The company's performance fell sharply in 2012. In 2012, the company realized operating income of 4.597 billion yuan, down 12.13% from the same period last year; the net profit of shareholders belonging to the parent company was 9.1654 million yuan, a decrease of 97.41% EPS 0.02 yuan over the same period last year. In the fourth quarter, the company's operating income was 1.299 billion yuan, up 30.90% from the previous month, down 29.62% from the same period last year; the net profit of shareholders belonging to the parent company was 1.6102 million yuan, an increase of 102.81% from the previous quarter, and a decrease of 92.30% from the same period last year.

The industry is in a decline, the main business did not see a substantial improvement in the fourth quarter, the company responded with diversification. The company's main products are soda ash and ammonium chloride, affected by the state's regulation and control policies on real estate, the price of soda ash fell sharply in 2012, the already overcapacity soda ash industry worsened, the product inventory increased, and the whole industry lost a lot of money. From the fourth quarter data, the company's main business did not see a substantial improvement, if excluding investment income, the company will still lose money in the fourth quarter. The company's development strategy in 2013 is not only to expand and strengthen the main business, but also to open up new profit growth points, that is, to implement a diversification strategy. This can be seen from the fact that in 2012, the company established and acquired 7 subsidiaries, including Shanghai Red Wuhuan Chemical Co., Ltd. (the company holds more than 50% of the shares, which is included in the merger scope of the company's 12-year financial report), and sells 90% of the shares of Xinjiang Yixin Chemical Co., Ltd.

Judgment of the inflection point of the industry: urbanization drives up the demand for glass and is optimistic that this year may be the inflection point of the industry in the coming months. We are optimistic about the long-term demand for glass driven by the promotion of urbanization in the future and the short-term recovery of glass demand (float glass inventory has declined slightly in March). In addition, we judge that this year may be an inflection point for the industry. for related analysis, please see our soda ash industry in-depth report later.

Profit forecast. It is estimated that the EPS from 2013 to 2015 will be 0.18,0.38,0.33 yuan, which will be rated as "neutral" based on valuation.