The company hopes to improve efficiency by strengthening "internal skills".

With the introduction of talents, Chen Guiwu, a former senior executive of Auto Ba Jiaji, was newly hired as the general manager, trying to increase exports.

Reform the staff assessment system, hoping to improve business efficiency and enhance enterprise cohesion

The ERP system is running normally, which is helpful to gain insight into the market situation in advance. The company should increase its production capacity and enhance its competitiveness. 60 new Dayuan machines will be added to facilitate the acceptance of orders, and 83000 cotton yarns will be added at the end of the year, which will help to stabilize the gross profit margin.

The recession of the industry and the intensification of competition are the biggest factors hindering the development of the company. At present, the prosperity of the industry is reduced, the difficulty of the company's sales growth increases, and the space for further cost reduction is limited, so the future performance is relatively stable.

From 2006 to 2008, we expect the company to achieve revenue of 523 million yuan, 583 million yuan and 643 million yuan respectively, an increase of 12.1%, 11.5% and 10.3% respectively over the same period last year, and net profits of 48.5 million yuan, 52.1 million yuan and 57.2 million yuan, up 0.88%, 7.43% and 9.86% respectively, and 0.285 yuan, 0.307 yuan and 0.337 yuan respectively.

We have slightly lowered our future performance expectations, mainly due to the increase in operating expenses and management expenses.

We believe that the reasonable price range of the company in the future is between 3.42 and 3.99 yuan, and the current share price is 3.92 yuan, maintaining the "hold" proposal.