The results of the annual report are generally in line with expectations. In 2012, the company's total revenue fell 2.38% year on year to 3,675 billion yuan, and net profit attributable to listed companies fell 10.9% year on year to 255 million yuan, achieving EPS of 0.36 yuan. Among them, Changzhou Bayi's consolidated net profit was 0.175 million yuan, and net profit for the full year (including the first 4 months of last year) after deducting non-recurring profit and loss was 0.29 million yuan, exceeding Changneng Electric's performance commitment amount by 0.05 billion yuan, and the 2012 performance promise was completed. The company plans to distribute a cash dividend of 1.5 yuan (tax included) to all shareholders for every 10 shares, and an increase of 5 shares for every 10 shares. Net profit declined in the first quarter of 2013 due to floating losses in futures positions. The company's total revenue for the first quarter increased 40.3% year on year to 863 million yuan, while net profit attributable to listed companies fell 34.4% year on year to 29 million yuan, achieving an EPS of 0.04 yuan. The large increase in floating losses in copper and aluminum futures positions is the main reason for the decline in performance. Affected by this, the fair value change revenue for the first quarter was -29.6986 million yuan, compared to 2,516,400 yuan in the same period last year. The company expects a year-on-year change of -25% to 5% in the interim results. We speculate that factors such as fluctuations in raw material prices and futures positions in the second quarter will have a certain impact on the company's fair value change earnings and actual net profit at that time. High-end products are recognized, and the industry's advantages are undiminished. According to the annual report, 1) the company won the bid for the Beijing Electric Power Company project in November last year. This was the first time that the State Grid used a domestic large-length 500kV ultra-high voltage cable; 2) the 220kV ultra-high voltage cross-linked power cable YJLW02-1*2500 filled the gap in the domestic brand large-section ultra-high voltage cross-linked power cable market application; 3) The company was the first domestic enterprise to develop a large-length optoelectronic submarine composite cable integrating electricity and signal transmission for CNOOC, breaking the international market Cable giants have a monopoly position in China; 4) The company was the first in China to develop mining cables for coal mining machines, variable frequency mining cables, and 35kV EPDM power cables. We believe that the scientific research advantage of independent innovation will help the company achieve long-term steady development. Maintain a “neutral” rating. Including the total net income from changes in fair value and investment income for the first quarter, without considering the impact of future copper price fluctuations on this data, we expect that in 2013 and 2014, under the current share capital, the company's current assets will achieve EPS of 0.33 yuan and 0.39 yuan, respectively, corresponding to 27.1 times and 23.2 times P/E, respectively. We actively pay attention to the company's efforts at the management level and expectations for future performance improvements. Risk warning: 1) The growth rate of investment in power construction may slow down, and market competition may be intense; 2) business expansion may fall short of expectations; 3) raw material prices fluctuate or affect final profits.