The EPS for the first quarter of 2012 was 0.17 yuan, in line with expectations that the company's revenue for the first quarter of 2012 was 2,736 billion yuan, a decrease of 6.4% over the previous year; net profit attributable to shareholders of listed companies was 49 million yuan, a decrease of 29% over the previous year; and basic EPS of 0.17 yuan, a decrease of 26.1% from the previous year. The company's performance for the first quarter of 2012 was in line with expectations. The company's gross profit rose slightly in the first quarter, and asset impairment losses dragged down performance because the average lead price in the first quarter of 2012 fell by about 16.8% year on year, and the company's operating income in the first quarter fell 6.4% year on year. However, since the decline in operating costs exceeded the decline in operating income, gross operating profit increased slightly by 5.5%. Asset impairment losses in the first quarter increased by $11 million over the same period last year, which clearly dragged down the first quarter results. It is expected that prices of smelting by-products will remain high in 2012, and the company's performance supports that silver and gold, which accounted for 35.4% and 10% of the company's 2011 operating income, respectively, contributed 60.4% and 12.5% of gross profit. Crude copper and sulfuric acid, which have higher gross margins, each contributed 19.2% and 15% of gross profit. Smelting by-products are the main pillar source of the company's performance. Based on the fact that the European debt crisis still exists and global liquidity is expected to continue to be generous, we judge that precious metals prices will continue to strengthen in 2012. The company's 2012 performance is supported. The recycled lead project will be completed within a year. The performance improvement is obvious. The company has now put into operation a 100,000 tons/year recycled lead waste battery treatment production line. The purchase and disposal volume of used batteries is 180,000 tons. The comprehensive recycling of 180,000 tons/year waste batteries from Jiangxi Yuanfeng, which is 60% owned, is expected to be put into operation by the end of 2012. Whether in terms of energy consumption, water consumption, or waste emissions, recycled lead is far lower than primary lead. According to estimates, the production cost of recycled lead is 38% lower than that of virgin lead. After completion, the project is expected to achieve operating income of 1,422 million yuan and net profit of 46 million yuan. The “hold” rating is expected to be 0.79, 0.9, and 1.09 yuan for 2012-2014 EPS, respectively, and the corresponding PE is 25.4, 22.3, and 18.5 times, respectively. Give the company a “hold” rating. Risk indicates risk in metal prices; risk that production investment falls short of expectations