Recently, we conducted field research on Ruitai Technology, and mainly communicated with company executives on issues such as the business situation of the company's glass, cement, and steel refractory materials, the market prospects of various types of refractory products, the changes that will be brought to the company after entering the steel market, and the company's future development strategy. Review The cement kiln refractory turnkey business has taken a solid step, and there is still plenty of room for improvement in the future. The cement kiln refractory general contracting business means that the company provides full supporting services to cement companies, including early sales, installation, and technical support during use. Cement refractory materials account for a very small proportion of cement clinker production costs. The cost of refractory materials is about 3 yuan per ton of clinker, which determines the product quality that cement companies place more emphasis on refractory materials. The normal replacement cycle for cement kiln refractories is one year. The advantage of the general contract model is that when problems occur during the use of the company's products, the company will promptly provide maintenance and replacement services. The general contract model provides cement companies with a simpler model for the use of refractory materials, and is gradually being recognized by cement companies. In 2011, the company took a solid step in the turnkey business and achieved initial results. Last year, the company's revenue from refractory materials for cement kilns was 578 million yuan, accounting for 38% of revenue. Although the turnkey model accounts for less than 10% of business revenue, cement companies have begun to agree to this model and benefit from this model. For the company, the entire supporting service has changed from the traditional single sale of products to joint sales of products and services, which in turn has increased the revenue of the company's cement kiln refractory business, and the gross margin has also increased to a certain extent. Since the business is still in its infancy, there will still be some breakthroughs this year, but explosive growth is unlikely to occur. We believe that the turnkey model will surely become the development trend of cement kiln refractory materials. Although the cement industry still requires a gradual process to fully accept this model, there is still plenty of room for improvement in the future. Glass kiln refractories have a high market share and high product gross margin. In the future, the company will continue to consolidate its existing advantages while making full use of production capacity. The company's glass kiln refractory materials account for about 40% of the total market share of glass refractories. Glass refractories are mainly cast refractories, divided into cast zirconium corundum and cast alumina. In 2011, the gross margins of the two products were 25% and 39% respectively. The overall gross margin of glass kiln refractories was 29.5%, which is nearly 2 percentage points higher than that of cement kiln refractories. Glass kilns generally replace refractory materials every 6 years. Taking a float glass production line as an example, the cost of replacing refractory materials each time is around 50 million. In terms of the use of refractory materials, increasing the amount of cast alumina used is conducive to further improving the yield. Currently, new glass production lines have increased the amount of cast alumina used, and the company is also gradually guiding enterprises to use high-quality refractory materials. While increasing the yield rate of glass enterprises, it is also beneficial for the company to further increase the gross profit margin of refractory materials in glass kilns. The company considers the current stage of domestic real estate market regulation, excessive production capacity of flat glass, and the low point of photovoltaic glass, resulting in fire-resistant casting