Well-known domestic electronic security product suppliers: The company is mainly engaged in R&D, production and sales of electronic security video surveillance products. The products include front-end video acquisition equipment (fast balls, cameras, PTZ cameras), back-end control and video processing equipment (matrices and auxiliary equipment, DVR, video management software), transmission products (optical transceivers), and access control products (access control systems); among them, the core products, matrix switches, fast balls, and optical terminals ranked first, first and second in domestic market share in 2008, respectively. Adhere to the strategic position of “achieving high-end prices at medium cost and creating high-end brands”: the company's products are positioned in the global market, taking advantage of domestic cost advantages, and through investment in research and development of new technologies and products, we continuously develop new products with leading technology and reliable quality, complemented by high-end marketing services, to cultivate the company's brand into a high-end brand with international competitiveness, thus obtaining excess profits. China is one of the fastest-growing markets in the global security sector: according to the US Frost & Sullivan “Comprehensive Safety” research, global video surveillance market demand will maintain an average annual compound growth rate of 13% between 2008 and 2014, and is expected to reach a market demand of 16.6 billion US dollars in 2014; furthermore, according to the “China Public Safety” research data, the average annual compound growth rate of China's video surveillance market capacity from 2010 to 2014 will reach 23%, and is expected to reach about 47 billion yuan in 2014. The capital raised in this release is mainly invested in video surveillance product technology improvement and expansion projects, optical terminal series product technical improvement and expansion projects, marketing network construction projects, R&D center technology improvement and expansion projects, etc. All projects are expected to be fully produced by 2014. It is estimated that after delivery, the annual production of fastballs, matrices, optical transceivers, and cameras will reach 48,900 units, 86,000 units and 250,000 units, and the market share is expected to increase further. Reasonable value range: We believe that the company's reasonable value range is 45.12-52.17 yuan, corresponding to the PE ranges of 57-66 times and 32-37 times for 2010 and 2011, respectively.