In 2010, the company achieved operating income of 2,207 billion yuan, a year-on-year increase of 12.69%; operating profit of 89,900 yuan, a year-on-year decrease of 12.71%; net profit attributable to owners of the parent company was 59.84 million yuan, a year-on-year decrease of 21.19%; fully diluted earnings per share of 0.43 yuan/share; and the company's distribution plan was to distribute cash dividends of 1.00 yuan (tax included) for every 10 shares. Affected by falling market demand, the company's sales revenue declined quarter by quarter. After a month-on-month increase of 33.11% in the first quarter of 2010, sales revenue for the 2-4 quarters decreased by 7.36%, 3.43%, and 6.74%, respectively. The quarterly decline in revenue is mainly due to the rapid decline in demand in the market after rapid growth from 2009 to the first quarter of 2010. Part of the fund-raising project was put into operation, which is one of the main reasons for the decline in gross margin. During the reporting period, part of the company's convertible bond project, 40,000 tons of flux-cored welding wire technical improvement, was put into operation, with a production capacity of 10,000 tons. The commissioning of the project increased production costs. Coupled with weak market demand, the gross margin of flux-cored welding wire in 2010 was only 9.17%, down 1.55 percentage points from the previous year; the products put into production in the fund-raising project were mainly ordinary flux-cored welding wires with low gross margins, further reducing the company's gross margin level. Furthermore, steel prices fluctuated upward during the reporting period, and the rise in the company's product prices lagged behind the increase in steel prices, which also caused the company's gross margin to decline. Extend the industrial chain downwards and actively intervene in the field of welding applications and welding equipment. The company is based on the main business of welding materials, and will actively expand into the downstream field of special welding services in the future to achieve general contracting of the entire special welding project from welding materials and welding equipment to welding processes. In the future, efforts will be made to achieve the three major business intensive management strategies of welding materials, welding applications, and welding equipment. In 2011, the company will actively carry out technical preparations and other preliminary work for welding applications and welding equipment business. The plan is to achieve sales revenue of 2,769 billion yuan in 2011 and strive for continuous growth. In 2011, the company plans to achieve a total output of 422,000 tons (close to 40,000 tons in 2010), a total sales volume of 438,500 tons, and a total profit of 81.4 million yuan. In 2010, the company had sufficient orders, full production tasks, and high equipment utilization. Sufficient orders provided a solid foundation for the company to complete its business plan in 2011. It is estimated that the EPS for 2011, 2012, and 2013 will be 0.60 yuan, 0.76 yuan, and 0.92 yuan respectively, and the price-earnings ratio corresponding to the latest closing price of 18.07 yuan will be 30 times, 24 times, and 20 times, respectively, maintaining a “neutral” investment rating. Risk warning: The risk of large macroeconomic fluctuations, and the risk of loss due to a sharp rise in depreciation costs for the commissioning of fund-raising projects.