1. Clues of the company's industrial upgrading: There is no room for improvement in process upgrading. In terms of product upgrades, vigorously develop car tire equipment, expand large aircraft tooling jigs, and overraised capital may invest in other special equipment. In terms of functional upgrades, funds are raised to purchase equipment, and some outsourced processing and production are completed by oneself, extending the industrial chain. There is no concrete performance in value chain upgrades. Summary: The company's industrial upgrading is mainly reflected in product upgrades. In the traditional context of limited market capacity and high market share, expanding related markets (car tire equipment) and entering other equipment (tooling jigs and others) is currently a natural choice for the company. 2. Intermediate equipment for centralized tire processes: Judging from the tire process flow, tire production requires processes such as refining, extrusion, cooling, cutting, molding, vulcanization, shaping, and inspection. Tire equipment is divided into production equipment and testing equipment in terms of process; it can also be divided into general equipment and special equipment. The previous process is production equipment; the mixing and vulcanization are general equipment, and the intermediate production is special equipment. Generally speaking, the technical content of general equipment is low, while the technical content of special equipment is high. 3. Truck tire manufacturing equipment: The gross margin has declined slightly this year. Heavy tire equipment increased sharply by 71.8% last year, mainly due to the rapid increase in demand for heavy trucks brought about by an investment of 4 trillion yuan; it is expected that there will still be steady and rapid growth in the future. Gross profit margin fell 4.8 percentage points last year, mainly due to a drop in the prices of highly competitive products; this situation is expected to continue this year. 4. Engineering tire manufacturing equipment: leading giant tire equipment in the world. Engineering tire equipment fell 61.5% last year, which was also affected by the economic crisis, and many downstream customers suspended the construction of tire project production lines. It is not expected to contribute much growth this year. In terms of gross margin, engineering tire equipment is higher than truck tires; mainly, the company has a monopoly position on engineering tire equipment in China. 5. Car tire equipment: sufficient product reserves. Judging from the market capacity, car tire equipment is much larger than heavy duty tires and engineering tire equipment. The company has no problems with product reserves for car tire equipment, and is currently vigorously developing the market; it is expected that there will be significant growth in the next two years. 6. Aircraft tooling jigs: The market continues to expand. There are still a few sets of A320 tooling jigs signed with Tianjin Airbus this year, and delivery has been completed; the first section of the A350 agreement signed in October last year is expected to be implemented this year. Recently, the company is also negotiating tooling and fixture orders with other aircraft companies. This market is expected to grow steadily in the future. 7. Pay attention to plans for the use of overraised funds. The company overraised 270 million yuan, and in addition to the recent permanent increase in working capital of 80 million yuan, there is also 190 million yuan. In the short term, it is expected that the company will not move much with traditional rubber machines and upstream and downstream. 8. We expect to achieve earnings of 1, 1.23, and 1.53 yuan per share from 2010 to 2012, with a target price of 35 yuan, and an increase in holdings rating.