The company has leading technology and rich product lines for a full range of video surveillance systems, optical fiber transmission systems and access control systems. It can provide customers with products integrating hardware equipment and software platforms, including integrated front-end, mid-end and back-end solutions, and is one of the few high-end security product suppliers in China. Currently, the actual controller of the company is Liu Zhaohuai, the chairman of the company, who directly and indirectly holds 95% of the company's shares prior to issuance. The demand situation in China's security video surveillance industry is better than the global level. The average annual compound growth rate of China's video surveillance industry is expected to be 23% from 2010 to 2014, reaching about 47 billion yuan by 2014. Digitalization, networking, integration, and intelligence are industry trends, and industry concentration still needs to be improved. The company has now built a product layout with video surveillance systems as the core. The product line is quite rich, including fastballs, cameras, gimbal cameras, matrices and auxiliary equipment, DVRs, video management software, optical transceivers, and access control systems. The company has strong competitiveness in all products. The core products matrix switcher, fastball and optical transceiver ranked first, first and second in the domestic market share in 2008, respectively. The company's competitive advantage is reflected in: 1. Global vision, high-end brand positioning; 2. Strong technical research and development strength; 3. Complete and complete product line; 4. Marketing channels and logistics advantages; 5. Technical service advantages The funds raised in this IPO will be invested in four projects, including video surveillance product technology improvement and expansion projects, optical transceiver series product technology improvement and expansion projects, marketing network construction projects, and R&D center technology transformation and expansion projects, with a total investment of 509.5 million yuan. After the implementation of the fund-raising project, it is expected to ease the company's production capacity bottlenecks and improve the company's overall R&D level and technical level, which will help the company continue to maintain its leading position in the same industry. The company's revenue for 2010 to 2012 is estimated to be 489 million yuan, 728 million yuan and 1,088 million yuan, respectively, and net profit of 112 million yuan, 175 million yuan and 247 million yuan respectively. The corresponding diluted earnings per share are 0.76 yuan, 1.19 yuan and 1.68 yuan, respectively. Referring to the relevant company's valuation, we believe that the company's reasonable valuation range is 35 to 40 times PE in 2011, and the corresponding price is 41.65 yuan to 47.60 yuan. Risk warning: 1. Risk of raw material procurement; 2. Risk that production capacity of fund-raising projects cannot be digested due to downstream market development progress falling short of expectations; 3. Risk of rapid decline in profitability due to increased market competition.