Comparable revenue declined after the merger of Tianjin pump industry in this period. Due to the acquisition of 58.74% of the group's stake in Tianjin pump industry, and the company's operating income of 764 million yuan in 2011, the net profit belonging to the parent company was 49.77 million yuan, down 4.44% and 3.01% respectively, with earnings per share of 0.11 yuan, slightly lower than expected. By product type, pump products achieved 11.76% growth, substation automation products due to a small base, the growth rate reached 1115%, while the revenue of tungsten and molybdenum products decreased by 21.95%.

The increase of gross profit margin of tungsten and molybdenum products increases the comprehensive gross profit margin. From the point of view of the gross profit margin, the gross profit margin of tungsten and molybdenum products increased by 4.96 percentage points to 7.98%, and that of pump products increased by 2.17 percentage points to 39.83%. The gross profit margin of other products decreased in varying degrees due to increased competition, rising raw material prices and other factors, and the comprehensive gross profit margin increased by 2.77 percentage points to 24.94%.

The high rate of management expenses affects performance. In terms of the expense rate, the management expense rate increased by 2.88 percentage points to 14.19% during the reporting period, which remained at a high level, higher than we had expected; the sales expense rate increased by 0.79 percentage points to 7.66%, and the increase in the expense rate during the period affected the current performance. The current limiter is being put up for trial operation, and the result still has to wait. After the company's 220kV superconducting current limiter is installed in Tianjin Power Grid, since it is the first of this voltage grade product in the world, it needs to be debugged and improved for a longer time, and the results still need to be further observed.

This year, earnings per share are 0.14 yuan, maintaining a "neutral" rating. As the timing of the additional offering is still uncertain, without considering the additional offering for the time being, we estimate that the EPS of the company in 1314 / 14 will be 0.14Unix 0.16Unix 0.19 respectively. In view of the uncertainty about the progress of the superconducting current limiter, the company's "neutral" rating is maintained for the time being.