The company's production and operation are stable, and the approval of targeted additional distribution projects is progressing normally. At present, the company's production and operation conditions are normal. The yield has reached 92%-93%, individual products have reached 94%-95%, downstream demand is strong, and sales conditions are good. In the first quarter, the company achieved operating income of 135 million yuan, an increase of 137.34% over the previous year; and realized net profit attributable to shareholders of listed companies of 11.3888 million yuan, an increase of 20.96% over the previous year. The increase in revenue was mainly due to Shengbo Optoelectronics being fully included in the scope of the merger. The company submitted an application for the non-public offering of A shares to the China Securities Regulatory Commission on December 21, 2009. Currently, the Securities Regulatory Commission is still reviewing targeted additional materials issued by the company. Approval is progressing normally, and there have been no major changes. Five steps to ensure the success of the new project. The company's TFT-LCD polarizer project is progressing smoothly, and construction of the plant has begun. In order to ensure the success of the TFT-LCD project, the company has taken five measures, mainly including establishing a municipal R&D center for polarizers, cooperating with universities and downstream manufacturers to carry out R&D research; using advanced equipment from world-class manufacturers; hiring top Japanese technical experts to carry out project development; hiring a technical team from Taiwan with rich experience in polarizer production to participate in process operation and train operators for the company; through online experiments on line 2 and line 3, the company has mastered the TFT-LCD polarizer production process and made related products. In the second half of the year, the company has mastered the TFT-LCD polarizer production process and made related products. The customer tried it out to lay a good foundation for the commissioning of the new construction project. This month, the company has signed an agreement with the imported technical personnel. Adhere to the original investment logic. China's LCD industry has huge investment opportunities, and the upstream raw materials sector is the best investment link in the LCD industry chain. As an important component of LCD raw materials, polarizers have a large market size, yet the localization process is lagging behind. With panel production capacity gradually shifting to China, large-scale import substitution for the polarizer industry is coming soon. At present, Shenzhen Textile is a professional polarizer R&D and manufacturer with the largest production scale, the most advanced technology and the best product quality in China. The company has a strong will to develop the polarizer industry. Judging from various factors such as government support, downstream demand, relationships with suppliers, and accumulation of its own experience, Shenzhen Textile is the most likely domestic enterprise to break through the polarizer industry. Maintain a “buy” investment rating. The TFT-LCD polarizer project has the characteristics of high technology and high growth of GEM companies. As a sign of investing in the TFT-LCD polarizer project, the fundamentals of deep textiles have changed radically. Judging from the development space, after the success of the first phase of the TFT-LCD polarizer project, the company can fully expand production capacity through rapid replication, and its development space will continue to exceed expectations. Judging from certainty, it is more certain that polarizer products will successfully replace imports. In addition, the property leasing business also provides stable cash flow and room for appreciation. According to the valuation of the company's various business segments, we adhere to the target price of Shenzhen Textile A shares of 18-20 yuan for 6-12 months; at the same time, in the context of the appreciation of the RMB and the possible launch of the international market, we also strongly recommend Shenzhen Textile B shares.