In 2011, the company achieved operating income of 543 million yuan, a year-on-year increase of 5.32%, a year-on-year increase of 6.03%, a comprehensive gross margin of 19.68%, a year-on-year decrease of 0.73 percentage points; of these, Q4 operating income was 122 million yuan, a year-on-year decrease of 10.33%, a decrease of 6.99%, and a net profit of 11.512,100 million yuan, a year-on-year decrease of 26.11%, a decrease of 29.20%, and a comprehensive gross margin of 20.41%, a year-on-year increase of 0.46 percentage points, a year-on-year increase of 1.89 percentage points ; Earnings per share were 0.38 yuan in 2011, of which Q4 was 0.064 yuan. The performance was basically in line with expectations. In 2011, the company's revenue from polyacrylamide for oil production declined slightly due to fluctuations in raw material prices; sales revenue for anion series products and acrylamide products increased significantly through increased market development efforts; revenue from cationic series products increased slightly; revenue from cationic series products increased slightly; and revenue from surfactants declined due to reduced usage due to the arrangement of production plans for the Shengli Oilfield pilot test project. The overall gross margin declined by 0.73 percentage points. The main reason is that with fluctuations in raw material prices, the average prices of both products and raw materials have declined, and the decline in product prices is greater than the cost. We believe the company will enter the fast track of development in 2012. 1. With the commissioning of 10,000 tons of cationic PAM and 10,000 tons of oil-repellent surfactants to raise capital, the company's production scale will be further expanded; 2. Lagging product price increases and product structure optimization will restore the product gross margin level to a certain extent, and the company's overall gross margin will rise in 2012. In terms of market development, 1. Baomo (Beijing) Environmental Technology, a wholly-owned subsidiary of the company, and Tianjin Dagang Oilfield Bingang Group Bohong Petrochemical formed a joint venture to establish Tianjin Bohong Biochemical with a registered capital of 30 million yuan. This marks that in the tertiary oil production market, after Shengli Oilfield, the company will fully enter the Dagang Oilfield and achieve results in the expansion of new oil fields; 2. The water treatment market, as the most important expansion field and growth point, will further improve direct sales and agency distribution channels, strengthen technical support and on-site services, explore cooperation models such as integrated solutions and operation services, expand the customer base, and further increase market share. As a leader in oil removal technology and products in the domestic tertiary oil production field, and the first stock in domestic water treatment chemicals, the company has extremely broad market development space and prospects in the future. We expect the company's 2012-2014 EPS to reach 0.55 yuan/share, 0.71 yuan/share, and 0.84 yuan/share, respectively, with an average annual growth rate of more than 30% over the next three years, and continue to be rated “increase in holdings”. Risk warning: Market expansion of capital raising projects is not smooth, and raw material prices have fluctuated greatly.