Incident description Shenzhen Feima International Supply Chain Co., Ltd. plans to jointly establish Qinghai Heguan International Supply Chain Co., Ltd. in Ganhe Industrial Park, Xining Economic and Technological Development Zone, Qinghai Province, and Xining National Low Carbon Industry Fund Investment Management Co., Ltd. to establish a “procurement and sales execution platform” on the basis of providing third-party professional logistics services for park enterprises, and to provide the design and implementation of overall logistics plans for large enterprises. The registered capital of Qinghai Heguan is tentatively set at RMB 10 million. The company used its own capital to invest 50 million yuan, accounting for 50% of the registered capital. The company will make a separate announcement on subsequent matters, such as whether Qinghai Heguan will be included in the scope of the company merger, according to the processing situation. The matter was reviewed and approved by the 21st meeting of the second board of directors of the company. According to the relevant provisions of the company's articles of association, this foreign investment matter must be submitted to the company's shareholders' meeting for consideration. This foreign investment does not constitute a related transaction or a major asset restructuring as stipulated in the “Administrative Measures on Major Asset Restructurings of Listed Companies”. Incident review cooperated with the National Industrial Fund to expand the park's supply chain. This investment partner is Xining National Low Carbon Industry Fund Investment Management Co., Ltd. It is China's first state-level low-carbon industry fund initiated and established by the Qinghai Provincial People's Government, with a total fund size of 50 billion yuan. Qinghai Ganhe Industrial Zone: A metal industrial park that will continue to grow. Ganhe Industrial Park in Xining (national level) Economic Development Zone has a planned area of 10 square kilometers and is one of the key industrial parks in Qinghai Province. The development position is: relying on Qinghai's rich electricity and mineral resources, it focuses on developing high-capacity, polymetallic smelting industries such as aluminum, copper, lead, zinc, sodium, silicon, rare metals, and calcium, PVC, caustic soda, and chemical fertilizers, and deep processing of downstream products. Contribute potential physical customers to metal platforms and benefit current platform shipments. Although the company's metal platform has begun to contribute to revenue and net profit, the current downstream customers are mainly trader customers. Therefore, the biggest attraction of this park investment project for the company is that it provides the company with a large number of potential physical customers, which can provide the company with a large number of stable manufacturing metal demand. If it can be successfully developed, its stability, profit margin, and risk level will be better than that of the existing trader-dominated customer structure. Continuing the strategic goals, the synergy effect has not yet been reflected, and “careful recommendations” are maintained. We believe that although this foreign investment continues the company's strategic goals, the platform synergy has not yet been realized, and the new platform is still being integrated. In view of the unknown downstream customer needs of the new investment, and it is unknown whether the company will obtain a stable supply of metal raw materials in Qinghai. We are not raising our earnings expectations for 2012 and 2013. We expect the company's EPS for 12-14 to be 0.24 yuan, 0.298 yuan, and 0.378 yuan, respectively, and corresponding PE to be 21 times, 17 times, and 14 times, respectively, to maintain “careful recommendation.”