Incident description The company announced a draft employee stock ownership plan: A total of 77 directors, supervisors and middle level employees of the company participated, and the total amount of capital raised was not more than 75 million yuan. By entrusting Ping An Securities with a targeted asset management plan, the company obtained about 4.49 million shares of the company's shares for a period of 1 year. The incident underpins the majority shareholders' loans and underpins long-term business confidence. The current employee stock ownership plan is no more than 75 million yuan. The funding sources are divided into two parts. One part is the company's employees raising their own funds, which is no more than 15 million yuan; the other part comes from the actual controller Tian Jiayu's loan (intended self-financing or equity pledge financing), which is no more than 65 million yuan. The annual interest rate of the loan is 8%, and the duration of the loan is 36 months. At the same time, Tian Jiayu promised: A: If the overall yield of an employee stock ownership plan at the end of the life period is less than 0, the holder will only bear part of the loss from self-financing, and the borrower will bear part of the loss and interest; B: If the overall yield of the employee stock ownership plan at the end of the life period is greater than 0, the holder's profit greater than the interest on the loan will be enjoyed by the holder, and the shortfall will be borne by the borrower. We believe that the majority shareholders are willing to underwrite the interests of employees, which also reflects their full confidence in the long-term operation of the company. All senior management participated to establish a medium term safety margin. 1. The current employee stock ownership plan mainly targets the company's management, including 15 directors and supervisors (all executives) and 12 middle managers, accounting for more than 70% of the company's total middle management; 2. The number of shares subscribed to by this employee shareholding plan is about 4.49 million shares, accounting for about 1.38% of the company's total current share capital, and the lockdown period is 1 year. We believe this plan establishes a margin of safety for the company's mid-term stock price to a certain extent. Fourteen years of refinancing to fill the flow, laying the foundation for subsequent growth. At the end of 2014, the company will increase by 860 million yuan, all of which will supplement working capital. We expect that with sufficient capital support, the company's nationwide production capacity expansion plan is expected to be realized at an accelerated pace, and the leading scale advantage is expected to be further reflected. Entering the retail business, the next main battleground. 1. Currently, the company's products are mainly used in the public service sector, and are supplied in cooperation with major real estate customers, so downstream demand is relatively stable, and payback is relatively good; 2. In the future, the company will gradually enter the retail market: the retail market space is huge, profitability is higher, but the competitive pattern is very scattered and the regional nature is obvious, so we speculate that mergers and acquisitions may be a quick path; at the same time, the company's doors and windows are positioned at the high-end, energy saving and environmental protection, etc., so the retail business layout is actually more advantageous. High growth can be expected, and I highly recommend it. We expect the company to have EPS of 0.23 yuan and 0.34 yuan in 15-16, which corresponds to 74 times and 49 times PE, which is recommended.