The company's total share capital before issuance was 67 million shares, and 22.4 million shares were issued this time, accounting for 25.06% of the total share capital after issuance. After this issuance, the total shareholding ratio of Wanhe Group, the largest shareholder, will change from 39% before issuance to 29.23%. The company is a professional supplier of automotive precision die castings and their assemblies. The company belongs to the die-casting sub-industry of the foundry industry. Its main products are aluminum alloy precision die-casting parts and assemblies for automobile engines, transmissions and chassis, which are mainly used in the manufacture of engines and transmissions for mid-range and high-end cars. The scale of the industry ranks among the top 5 independent aluminum alloy die-casting parts enterprises in the automobile industry in Guangdong Province, and is one of the fastest growing suppliers of automotive precision die-casting parts and assemblies in China. The company has the advantage of technological innovation. Adhering to the concept of “not only, but only specialized”, the company focuses its business on the field of engine and transmission precision die castings with the highest technical content. Relying on a number of original technologies and processes in the fields of die casting, molds, processing and assembly, the company has strong competitiveness in a series of products such as engine under-engine cylinder blocks, engine front cover assemblies, engine oil pan assemblies, differentials and engine mounts. The company has strong market development capabilities. The company has become a first-class supplier of major domestic and foreign vehicle (complete machine) manufacturers such as Ford, Dongben Engine, Dongben Motor, Changan Ford, Mazda, Cummins, Fiat, Chrysler, BMW Brilliance, Dongfeng Nissan, etc., and the exclusive supplier of various series of products. The product line covers four major series of products in the US, Japan, Germany, and Italy. Fund-raising projects expand production capacity and raise the level of research and development. The capital was raised to invest in the expansion of automotive precision die-casting parts and the construction of a light alloy precision molding engineering center. Production is expected to be fully achieved in 2013, with an additional annual profit after tax of 45.17 million yuan, equivalent to EPS: 0.5 yuan. Profit forecasting and valuation. Net profit attributable to owners of the parent company in 2010-2012 is estimated to be 4379, 57.85 million yuan, and 83.06 million yuan, respectively, and earnings per share diluted by the total share capital after issuance are 0.49 yuan, 0.65 yuan, and 0.93 yuan, respectively. Taking into account the average valuation level of comparable listed companies in the industry, the valuation level of the GEM market, and the company's growth potential, we believe that the reasonable price-earnings ratio of the company after listing should be 23-28 times. Using the 2011 EPS of 0.65 yuan as an estimate, the company's reasonable price should be between 14.95-18.2 yuan. Risk warning. (1) The risk that the price of raw materials such as aluminum ingots will rise beyond expectations; (2) the company is in a period of growth and its ability to withstand risks is low; (3) the risk that capital raising projects will not meet expectations.