In this regard, we have the following comments: The rise in the price of ammonium nitrate as a raw material has eroded the company's performance: the average price of ammonium nitrate purchased by the company in 2011 rose 16.50% compared to 2010. The price of industrial explosives is controlled by the state. The price increase of ammonium nitrate determines the profitability of industrial explosives. The current increase in ammonium nitrate prices has eroded the company's profitability, falling nearly 7 percentage points throughout the year; revenue from outside the province increased by nearly 42.57% year-on-year. We believe that it has greatly exceeded expectations: In the context of the impact of the “11.1” explosion in Fuquan, Guizhou, the company achieved revenue outside the province 128 million yuan, a year-on-year increase of nearly 42.57%, exceeding market expectations; the company's participation in Xuefeng is an earlier commitment: in the “Signing a Strategic Cooperation Framework Agreement with Xuefeng” announcement on October 21, 2011, the company clearly proposed that when Xuefeng shares are converted to capital increase, the share ratio will not exceed 5%. This participation is in line with expectations; since Xuefeng Technology clearly stated that it will prepare for listing, once successful, the company can obtain large investment returns. More importantly, the company can enter the vast Xinjiang market through Xuefeng Technology, which is beneficial to the company's long-term development ; The reorganization with Kamiaxe is still in progress. Kamiaxe has a production capacity of 68,000 tons of industrial explosives, 250 million rounds of industrial detonators, and 250 million meters of industrial cables. After the merger, the explosives production capacity will reach 159,000 tons, almost monopolizing the entire Hunan market. At the same time, after the merger was completed, the company had synergy in the bidding and procurement of raw materials and cross-provincial business. We expect that without considering the merger of Magic Axe, the company's earnings per share in 2012-2014 will be 0.82, 0.88, and 0.95 yuan, respectively. The company is currently in the suspension phase, and no investment rating will be given for the time being.