Xiange Qing (002306.CH/RMB 9.63, purchase) announced its 2012 performance forecast: During the reporting period, the company achieved total operating revenue of 1,379 billion yuan, an increase of 11.66%; achieved net profit attributable to shareholders of the parent company of 120 million yuan, an increase of 29.35% over the previous year, and achieved 0.3 yuan per share. The company's revenue and net profit growth were lower than expected. The company's future focus is on the rapid growth of businesses such as fast food and group meals, the increase in performance brought about by continuous mergers and acquisitions, and the catalytic effects of stock prices to maintain the buying rating. The main reason why the 2012 performance fell short of expectations is that the company's high-end restaurants were greatly affected by the decline in macroeconomic growth, and their revenue growth rate declined quarterly (as shown in Figure 1). Weak revenue growth and rising raw materials and labor costs both squeezed the company's profit margins, and the company's net profit growth clearly fell short of the target in early 2012. High-end restaurants are greatly affected by macroeconomics and anti-corruption: the company's business covers luxury restaurants, high-end restaurants, mass catering, and group fast food from the top down. It is affected by macroeconomics and “anti-corruption and anti-three public” consumption. We believe that the company's luxury restaurant and high-end catering business faced a more severe business situation in 2013. According to a survey report released by the China Culinary Association, most companies are not optimistic about the state of the catering market in 2013. About 30% of companies believe that the growth rate of the industry will fall below 10% in 2013, about 32% think it will maintain the level of 2012, and about 30% of companies think it remains to be seen. Only about 8% of companies believe that the catering industry will continue to grow rapidly at a rate of more than 15%, and almost all of these companies are fast food companies. Popular catering has great potential: According to industry data, China's group meal market share already accounts for more than 30% of the overall catering market, accounting for about 50% of the fast food market. Especially in the Yangtze River Delta, Pearl River Delta and other regions, the group catering industry is increasing at a rate of 20% every year. Although the company is a latecomer to the group meal industry, it has strong financial advantages and brand effects, strong customer resource acquisition and integration capabilities, and growth prospects can be expected.