During the reporting period, the company achieved revenue of 1,239 million yuan, an increase of 59.88% over the previous year; imputed net profit of 113 million yuan, an increase of 49.46% over the previous year; corresponding to earnings of 0.34 yuan per share, and plans to send 0.5 yuan in cash for every 10 shares. The order confirmation process accelerated in the second half of the year, and the scale of revenue and profit in 2013 reached record highs. In 2013, the company's revenue and profit both reached record highs, mainly benefiting from the accelerated progress in confirming orders for the transfer of water from south to north in the second half of the year. In the second half of '13, the company confirmed that the Henan and Hebei sections were about 440 million yuan and 140 million yuan respectively, accounting for 51% and 17% of revenue in the second half of the year. In 2013, the company's gross margin increased by about 4 percentage points year on year. The reason is that the sales price of the company's south-to-north water transfer project in Henan included transportation costs, so the overall gross margin level increased slightly; however, the company's operating profit margin declined slightly from 12 years. The reason is: 1. The reason for south-to-north water transfer orders is that the company pays for transportation expenses, and the sales expense ratio increased by about 3.8 percentage points; 2. Due to capital turnover, short-term loans increased during the reporting period, and interest expenses increased. It is estimated that the orders in hand are about 700 to 800 million yuan, and the company that may maintain high revenue growth in the first half of the year signed a contract of about 160 million yuan in the first quarter. We estimate that the company's on-hand orders are about 700 to 800 million yuan, mainly distributed in Henan, Hebei, Inner Mongolia, Ningxia, Shanxi and other provinces. Since the run-in phase of the inspection process is over, it is expected that the remaining orders for the Henan and Hebei sections will be delivered in the first half of the year, while orders from Shanxi and Ningxia may be confirmed in the second and third quarters depending on the climate and construction progress. Currently, the company's on-hand orders are still quite sufficient. Combined with the impact of the low base for the first half of 2013, we believe that the company's revenue scale in the first half of the year will maintain a relatively rapid growth rate, and there is some guarantee of annual performance growth. Investment advice: Maintain a “prudent increase in holdings” rating. Currently, the company still has sufficient orders on hand, and the planned delivery period is concentrated in 2014, so there is some guarantee for this year's performance growth. The company has a perfect layout in northwest China and northern China, and its competitive advantage is obvious. If the growth rate of water conservancy investment picks up in the future, the company's order growth will be sustainable. At the same time, the company is also engaged in plastic pipeline business and plans to establish private banks, etc., so there are many growth points that can be further explored in the future. We expect the company's 2014-2016 EPS to be 0.42, 0.53, and 0.63 yuan/share respectively, maintaining the “prudent increase in holdings” rating. Risk warning that on-hand orders cannot be executed as scheduled, profit margins are lower than expected, and the company's new orders are lower than expected.