The main business revenue and gross margin remained stable overall, and the chemical equipment and pump system business contributed significantly to revenue growth. During the reporting period, the company's main business revenue was 1,231 billion yuan, up 1.64% year on year; main business cost was 993 million yuan, up 1.58% year on year; and comprehensive gross margin for the period was 19.285%, up 0.04% year on year. The biggest contributors to performance were pump and pump system products and chemical equipment. Their revenue increased 15.26% and 8.52% year-on-year respectively. The weak cyclicality of these two businesses helped maintain the long-term stability of the company's performance. “Market growth+business upgrade” helped pump and pump series business grow further. The company's pumps and pump system products have become the most important source of revenue in 2012, contributing a total of 406 million yuan in revenue, accounting for 33% of total revenue in 2012, an increase of 8.52% over the previous year. The main products include fire pumps, fuel pumps and industrial pumps and system integration. Among them, fire pump products are mainly used in civil fire protection and forestry fire protection; with economic development, demand for industrial fire protection such as petrochemicals and dangerous goods storage is increasing, bringing new impetus to the fire equipment market; furthermore, with the further increase in the degree of urbanization and the increasing pressure on environmental protection in China, the country's emphasis on fire safety in cities, forestry, etc. is expected to further increase, so we are optimistic about the future development prospects of the fire protection industry. The company's special pump products have become the standard equipment for the main fire engines currently in service in China. It has a broad market base. It also helps fire protection companies to undertake various types of fire protection projects after successfully upgrading to the first-level qualification for fire protection facilities engineering, and to complete the transformation from product-oriented to service-oriented, taking advantage of the company's collaborative advantages in product technology and engineering design, thus improving the profitability level of such businesses and making greater contributions to the company's performance. Leading in oxidation reaction and crystallization technology and equipment, opening the door to the import substitution market. The company is the largest comprehensive engineering contractor in China whose main business is oxidation reaction and crystallization technology. It has rich technical reserves and design and construction experience in the design and manufacture of phthalic anhydride, acrylic acid, and crystallization equipment, and already has strength in the domestic market to compete with international industry giants such as BASF, Mitsubishi Chemical, and DSSE. In 2012, the company stepped up its market development efforts, highlighted its advantages, and adjusted its product structure according to market conditions, resulting in a 15.6% year-on-year increase in chemical equipment revenue, while technological upgrades also brought a slight increase in gross margin. With China's economic development, the domestic biochemical and petrochemical products market has maintained rapid growth, and market demand is strong. Especially in the fields of alternative energy, biomedicine, deep processing of petrochemical products, deep processing of grain, etc., key technologies and key equipment still need to be imported. Currently, the company already has a complete set of system engineering design capabilities and manufacturing capabilities, and is expected to further expand the import replacement market for high-end chemical biological equipment with higher cost performance and better after-sales service.