Key investment matters: FAW Xiali's 2010 report shows that 2010 revenue was 9.89 billion yuan, an increase of 15.5%; net profit of 300 million yuan, an increase of 75.8%; earnings per share of 0.19 yuan, and net assets of 2.26 yuan per share. The profit distribution plan is to distribute cash dividends of 0.3 yuan (tax included) to all shareholders for every 10 shares. The 2011 quarterly report showed revenue of 3.05 billion yuan, an increase of 13.5% over the previous year; net profit of 51.45 million yuan, an increase of 75.66%. Earnings per share were 0.03 yuan, and net assets per share were 2.29 yuan. Peace view: The sales situation of the headquarters has improved. In 2010, the company sold 250,360 cars, an increase of 17.97%, a growth rate lower than the average of the car industry. Sales of 8,2042 cars were sold in the first quarter of 2011, an increase of 18.3% over the same period, which is higher than the average growth rate of the car industry during the same period. The increase in the company's sales volume is mainly due to the increase in new models such as the Xiali N5 and Vizhi V2 and the contribution of “Xiali Goes to the Countryside” in developing secondary and tertiary markets. In 2010, the company's products ranked first among independent brands in the IQS (New Vehicle Quality Level) index evaluated by J.D. Power, and the VDS (Vehicle Reliability Index) ranking first among independent brands. The gross margin declined, and the loss of the headquarters widened. In 2010, the company's overall gross margin was 5.5%, a decrease of 1.5 percentage points. The loss amount of the headquarters increased to about 990 million yuan. Our analysis is mainly that the economy car market is fiercely competitive and there is strong pressure to reduce prices; the company's vehicle and engine production capacity has expanded in recent years, and depreciation and amortization expenses have increased rapidly. Huali completed equipment installation and commissioning for the 150,000 vehicle construction project, and mass production began on March 1, 2011. The company's commencement of production increased FAW-Xiali's total production capacity, and also increased pressure on the company's costs to depreciate. Investment income offsets the loss of the Department. Investment income in 2010 was 1291.21 million yuan, an increase of 36% over the previous year, mainly due to the increase in net profit of the participating company FAW Toyota. The company sold 48,3889 cars in 2010, an increase of 26.69% over the previous year; sales revenue was 68.685 billion yuan, an increase of 29%; net profit of 4.611 billion yuan, an increase of 38%; and net interest rates continued to increase by 6.7%. In the first quarter of 2011, FAW-Toyota's sales volume declined year-on-year, and profits declined due to increased taxes. The investment income obtained by FAW Xiali declined accordingly. Investment income for the first quarter was 265 million yuan, a decrease of 37% over the previous year. FAW-Toyota's overall sales volume in the first quarter of 2011 fell by nearly 5%. Among them, the Crown and RAV4, which have strong profitability, declined more.