It has been learned that the company's proposed acquisition of Tang Zhong is difficult to reach an agreement because the other party's offer is too high, so it is estimated that the possibility of realization in the short term is very small, and the possibility of abandoning the acquisition cannot be ruled out; the acquisition of Guangzhou Machinery has reached an intention framework after several negotiations, and only some specific details need to be agreed upon, but due to the efficiency of state-owned enterprises and the coordination of relations, the actual progress is not satisfactory, and it is estimated that it can be completed in the first half of the year.

Due to the delay in the company's acquisition and private placement, which has affected the effective improvement of the company's performance, according to the company's operating situation in 2007 and its business plan in 2008, private placement and other factors are not taken into account. the company's earnings per share in 2007 and 2008 are expected to be 0.18 and 0.25 yuan respectively. We will closely monitor the progress of the company's private placement and acquisitions.