In 2011, the company achieved a total operating income of 3.869 billion yuan, an increase of 3.13% over the previous year; realized net profit attributable to shareholders of listed companies of 503 million yuan, an increase of 190.64% over the previous year; realized net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses of 32.825 million yuan, a year-on-year decrease of 80.17%; and realized earnings per share of 0.82 yuan. The company's performance fell short of our expectations. By product, dialysis materials achieved operating income of 382 million yuan, gross margin of up to 40.98%; electrical materials achieved operating income of 230 million yuan, gross margin of 27.71%; optical materials achieved operating income of 183 million yuan, gross margin of up to 36.83%; barrier materials achieved revenue of 1,582 million yuan, gross margin of 9.19%; PET sectioning materials achieved revenue of 1,090 million yuan, with a gross margin of only 1.56%; PVC rolling materials achieved revenue of 131 million yuan, gross margin of only 1.27%. During the reporting period, Weida Optoelectronic Materials Co., Ltd., a holding subsidiary of the company, achieved net profit of 43.6742 million yuan, a decrease of 62.66% over the previous year due to the low level of prosperity in the electronics industry in 2011 and the marked decline in sales of polarizers for 3D glasses. The operating conditions of Jinhui Hi-Tech Optoelectronic Materials Co., Ltd., a shareholding subsidiary of the company, are still relatively good, achieving a net profit of 90.2519 million yuan, an increase of 33.63% over the previous year. The company's shareholding company DuPont Hung Kai Film Co., Ltd. also performed well, achieving a net profit of 217 million yuan and a net profit margin of 21.32%. Overall, the company's performance in several businesses involving new materials is fair, and the future is still promising. There are two main reasons why the company's operating performance fell short of our expectations. One is that the business conditions of the traditional PET slicing business and the PVC rolling materials business have not improved significantly, and they have not been able to get out of a state of loss, which has had a great impact on performance; the other is that the company has calculated asset impairment losses, with an impairment amount of up to 42,4208 million yuan, which also had a significant impact on performance. On November 26, 2011, Zhuojing Garden, a wholly-owned subsidiary of Foshan Zhuoyue Real Estate Development Co., Ltd., located in Plots 9 and 11, Qinggong 3rd Road, Chancheng District, Foshan City, was officially pre-sold to the public. The pre-sale house had a total construction area of 38276.42 square meters. The real estate business is expected to have a positive impact on the company's performance. The company's earnings per share for 2012 and 2013 are expected to be 0.27 and 0.40 yuan, respectively, and the price-earnings ratio corresponding to the closing price of 9.23 yuan on March 8, 2012 is 34.19 times and 23.08 times, respectively. Although there are many points of interest in the company's new film materials and there is great potential, there is some uncertainty about the improvement in the company's traditional business, and the short-term impact on performance is significant, so we are giving the company a “careful recommendation” rating for the time being. Risk: The operating conditions of traditional businesses are highly uncertain.