The company's performance was in line with expectations. In the first quarter, the company achieved revenue of 2,736 billion yuan, net profit attributable to shareholders of the parent company of 48.74 million yuan, and EPS of 0.17 yuan. The company's gross margin remains high. In the first quarter, the company's gross margin was 5.68%, higher than 5.10% for the full year of last year, only lower than 6.13% in the fourth quarter of last year, and higher than the previous six quarters. Financial expenses kept costs high during the period. In the first quarter, the company's total cost ratio was 2.57%. Although it was lower than 2.83% in the fourth quarter of last year, it remained at a high level in recent years. The high expenses during the period were mainly driven by financial expenses. The financial expenses ratio reached 1.81% in the first quarter, a new high in recent years, and increased 53% over the same period to 49.5 million yuan. The company has a good return on investment. In the first quarter, the company once again accrued asset impairment losses of 19.17 million yuan, and lost more than 5 million yuan in investment income from joint ventures and joint ventures. However, the company increased total investment income by 30.43 million yuan through futures investment (net of income from changes in fair value decreased by 27.38 million yuan; investment returns are still relatively good). VAT on renewable resources affects non-operating income. In 2010, the expiration of the preferential value-added tax policy for renewable resources had a big impact on the company's non-operating income. In the first quarter, non-operating income decreased from more than 28 million last year to more than 3 million this year. With the implementation of new preferential policies, this revenue is likely to pick up. Profit forecasting and ratings. The company's EPS for 2012 and 2013 is expected to be 0.67 yuan and 0.84 yuan respectively, maintaining a cautious recommendation rating. Risk warning: risk of price fluctuations of products such as lead and silver; risk of supply of raw materials for lead concentrates and waste lead-acid batteries; environmental risk; risk of applying preferential policies, etc.