On the one hand, Betray, a holding subsidiary of the company, signed a long-term cooperation agreement with the Institute of Physics of the Chinese Academy of Sciences, and is committed to the research and transformation of lithium battery anode materials to expand the company's technical strength in all aspects; on the other hand, it has also carried out comprehensive cooperation with China Railway Resources on the mining and deep processing work of the Yunshan graphite mine and Hegang graphite mine in Luobei County, completely penetrating the entire new energy power battery anode material industry chain. We are strongly optimistic about the future development space of Betray as a leader in anode materials for new energy power batteries, maintaining a “highly recommended-A” investment rating. The company signed a cooperation agreement on lithium battery materials with the Institute of Physics of the Chinese Academy of Sciences, and is committed to lithium battery anode materials research and results transformation. The agreement will help Betray more quickly master the modification technology and preparation technology of lithium metal anode materials, and at the same time will further accelerate the industrialization process of lithium metal anode materials. On the other hand, the company and China Railway Resources have carried out comprehensive cooperation on the mining and deep processing work of the Yunshan graphite mine and Hegang graphite mine in Luobei County, using Yunshan graphite raw material supply as the main material source, Betray's graphite deep processing technology as technical support, and the booming development trend of lithium ion battery anode materials in the international market as an opportunity to develop a globally influential lithium ion anode material development and supply base, eventually forming a natural graphite deep processing base for various products such as anode materials, graphite milk, and fluorinated graphite. The country produced 13,500 new energy vehicles in March, an increase of 15.7% over the previous month, in line with expectations. The year-on-year growth rate of NEV production and sales is expected to reach more than 20% this year. Globally, there are already 700,000 existing vehicles. It is estimated that by 2020, the number of new energy electric vehicles (pure electric and hybrid) in the world is expected to reach 20 million units. Based on the average demand for negative electrode materials of 30 kg per vehicle, there is a market space of 600,000 tons. Betray is the world's largest producer of graphite anode materials for new energy batteries. The total shipment volume in 2013 was about 17,000 tons, accounting for about 35% of global production, and is expected to exceed 20,000 tons in 2014. Based on current production capacity, the negative electrode material supply gap in the next 5 years will reach 240,000 tons. The company has controlled considerable reserves of graphite ore resources, and the graphene industry chain has been fully extended. The upstream value industry chain, which took four years to build, has basically been formed. Maintain a “Highly Recommended - A” investment rating. We believe that the company's major transformation strategy of withdrawing from real estate and moving to new energy and new materials industries is fully in line with the development trend of China's economic transformation, and that the company's diversified transformation is not only fully forward-looking, but also has huge profit margins. EPS for 2014-2016 is expected to be 0.27,0.29 and 0.32 yuan, respectively. Risk warning: The drop in oil prices has had an impact on the expectations of new energy vehicles.