The company focuses on the research and development of glass deep processing technology, integrating the design, manufacture, sales of glass deep processing equipment and production and sales of deep-processed glass products. The main products include glass tempering equipment and ancillary equipment, low radiation coated glass equipment and ancillary equipment, safety glass, and energy-saving glass. We believe that judging from the development trend of the domestic glass industry, increasing the glass deep processing rate is an inevitable path for the glass industry to improve the product structure, promote industrial upgrading, and enhance the competitiveness of the industry in the future. At present, China's flat glass production ranks first in the world, but it lags behind developed countries such as Europe, America, and Japan. We believe the reasons are as follows: 1. Glass deep processing rates are closely linked to socio-economic development needs, and demand is increasing with continuous social and economic development; 2. Glass deep processing technology is currently mostly in the hands of developed countries such as Europe, America, Japan, etc., and imported equipment costs are expensive, which is not conducive to popularization and promotion. The company is a leader in the field of glass deep processing equipment development in China. The production and sales volume of the company's main product, flat-curved glass tempering units, has been ranked first in the domestic industry for 9 consecutive years since 2002, with a cumulative domestic market share of about 50%. The company is also in a leading position in the country in the research and development of advanced glass deep processing equipment, and will be a beneficiary of import substitution for high-end products. The company successfully developed the first offline low-radiation coated glass equipment with independent intellectual property rights in China in 2007, and has now signed sales contracts for 10 low-radiation coating production lines. TCO Coated Glass Equipment Co., Ltd. began research and development in 2009 and cooperated with Xinao Photovoltaic. Currently, the production line has been assembled and is undergoing process debugging, product inspection and certification, etc., and the subsequent market potential is huge. While the company is mainly engaged in the development of deep-processing glass equipment, it also develops and produces deep-processed glass, mainly including laminated glass, insulating glass, flat tempered glass, LOW-E glass, etc. In 2010, glass deep processing products accounted for nearly 1/4 of the revenue. Most of its uses are demonstration promotion and promotion of supporting equipment, etc., to promote the sales and promotion of equipment. The company's future business focus and development focus will still be equipment manufacturing. The capital raised by the company is mainly used for: 1. SM-NG-X energy-saving glass tempering unit technology transformation project; 2. NGC-X low radiation (LOW-E) coated glass unit industrialization project. After delivery, the production capacity of 200 sets of glass tempering units and the production capacity of 20 low-emission (LOW-E) glass coating units will be added. The company's earnings per share in 2011 and 2012 are expected to be 0.41 yuan and 0.58 yuan. Considering the valuation situation of related companies, we think the reasonable price range is around 10.25-12.30 yuan, which is 25-30 times PE in 2011. Risk warning: Fund-raising projects fall short of expectations; industry competition is too intense; raw material prices have soared.