This report is based on our in-depth research of various people. Our view of Xintian is more optimistic than most people in the market. We think the worst situation for the company has already occurred. Currently, the company is in the same situation as Laojiao in Luzhou during difficult times a few years ago. We recommend investors not to worry too much about Xintian's insufficient marketing and weak brand influence, while ignoring Xintian's core competitiveness, such as excellent product quality and concept of origin, that other wine manufacturers do not have. We believe that many investors have overlooked the very attractive mergers and acquisitions value of Xintian. One is the inventory of high-grade Class A raw wine, the market price of which is as high as 2,035 billion yuan. Second, the company spent 8 years and invested a large amount of capital to directly and indirectly control the 150,000 mu grape base. In fact, we believe that the company's 2006 performance is no longer important. 2007 will be the first year for the company to thoroughly focus on the wine industry and actively explore the market. The company is likely to hand over a relatively satisfactory questionnaire to investors, so let's wait and see. We recommend investors pay great attention to a listed company that is in the Chaoyang industry, has a large margin of safety, and will get better and better in the future. The possibility that the company will continue to lose money in 2006 is not ruled out.