Incidents: The company announced its 2010 annual report on April 1. Annual revenue was 2,329 million yuan, up 129% year on year, operating profit was 280 million yuan, up 158% year on year; net profit was 251 million yuan, up 166% year on year; and diluted earnings per share were 0.49 yuan, which is basically in line with our expectations. Its profit distribution plan is to pay 4 yuan for every 10 shares. Comment: The annual results are in line with expectations, and the production expansion project is progressing smoothly. When demand in the photovoltaic market exploded in 2010, the company's output and revenue increased dramatically due to the rapid increase in process technology and production scale. The initial capital raised to invest in the second phase of the 100MW battery and module project is expected to reach production in the second quarter of '11, and the actual production capacity of the project may exceed expectations; of the silicon wafer cutting business with an annual output of 160 million chips, half of the production capacity will reach production in the second half of '11, mainly for domestic sales. Due to upstream and downstream matching considerations, there is still a possibility that downstream battery and module production capacity will expand. Acquire silicon materials companies to guarantee the supply of polycrystalline silicon materials. The company is about to participate in 15-25% of Hejing Technology's shares to guarantee priority supply of low-cost polysilicon raw materials. It is expected that the shareholding business will be completed by June this year. Hejing Technology currently has a polycrystalline silicon production capacity of 1,800 tons, and plans to produce 18,000 tons in the future, which will work perfectly with the company's silicon wafer business. A power plant company was established as a joint venture to truly join the ranks of vertical photovoltaics integration. On the basis of the original batteries and modules, the company acquired Youchuang Company, which produces 160 million silicon wafers per year, and has taken a 15-25% stake in polycrystalline silicon manufacturer Hejing Technology. In terms of downstream power plant business, the company not only participated in the 100MW photovoltaic power plant demonstration project in Zhejiang, but also set up a subsidiary in Luxembourg to manage the sales and installation of photovoltaic cell modules, which will further extend the company's industrial chain and enhance the company's profitability and company popularity. Maintain a “Recommended” rating. The earnings per share forecast for the company for 11-13 was maintained at 0.94, 1.19, and 1.37 yuan. The company's closing price on April 1 was 25.52 yuan, and the price-earnings ratio corresponding to the 11-year price-earnings ratio was 27.1 times, maintaining the company's “recommended” investment rating.