Glass prices in the second half of the year can be cautiously optimistic: after the rapid rebound in glass prices in March, prices continued to rise in May and June. In this visit, we took into account the judgment of Chairman Yaohua and Yaopi executives and marketing executives on the trend in the second half of the year. We believe that the glass price trend in the second half of the year can be cautiously optimistic. The possibility of maintaining the current level of oscillation is high, and the possibility of a sharp rise is unlikely. As a leader in glass processing, structural adjustments are being accelerated under the expansion of production capacity: Yaopi has a clear competitive advantage in the domestic high quality float glass, engineering glass, and automotive glass fields. The company's development strategy is to further increase the production capacity and grade of processed glass. It is expected that the possible acquisition of a manufacturer will increase the production capacity of engineering glass by 50%; 400,000 new sets of Kangqiao Automobile's new line will be put into production in 2006. In addition, 400,000 sets of automotive glass newly invested and constructed will be put into production in 2007; in 2005, two new sets of automotive glass will be put into production in Changshu; in 2005, two new sets of automotive glass will be put into operation in Changshu The 600 tons/day production line will be put into operation in the first half of 2007; an ultra-white rolled glass production line with an annual output of 3 million square meters will be put into operation by the end of 2006, and is expected to contribute no less than 30 million/year of net profit after full delivery. Plant relocation brings value-added land benefits: Since the company's factory location will be changed to commercial development land, the Shanghai government ordered the company to complete the relocation within two years, and may replace relocation compensation by reducing the levy of supplementary taxes on the conversion of industrial land to commercial land. The company currently owns 399 acres of land and is located in the Jiyang region of Pudong. This area is close to the Pujiang River. Based on the price of comparable land in the surrounding area of 3 million yuan/mu in 2005, the land value is over 5 to 1 billion yuan, increasing net assets per share by 0.7 to 1.4 yuan, which will also increase transfer income. Profit forecast and valuation suggestions: With the recovery in glass prices, we expect the company's earnings per share in 2006 to be 0.20 yuan, a slight increase over 2005; with the acceleration of product restructuring and the rapid release of production capacity in 2007, our preliminary estimate is that earnings per share in 2007 are 0.30 yuan, which has a certain advantage in valuation. Also, there are potential mergers and acquisitions and equity incentives, so we recommend buying.