The results of the annual report are generally in line with expectations. The company achieved operating income of 158 million yuan in 2013, an increase of 20.49% over the previous year, and realized net profit attributable to the parent company of 6.875 million yuan, an increase of 41.05% over the previous year. The company's revenue grew steadily in 2013. There are 3 main reasons. First, the stable profit brought by the company's stock of customers. Second, the company gradually expanded into other fields such as construction machinery and vehicles, agricultural machinery, and commercial vehicles. Third, new products such as smart warehouses and after-sales communication are progressing smoothly. This product can help construction machinery manufacturers improve the logistics efficiency of spare parts and improve the level of after-sales service. Moreover, the application fields of the two new products are no longer limited to the original construction machinery industry, opening up a broad market space for the company's future business development. The company's performance was at a low point in 12 and 13, and the year 14 is worth looking forward to. The main reason for the low performance base is that the company has invested a lot of manpower and material resources in transforming into a connected car IT service provider, developing new business models, and developing new businesses. The sales and management expense ratio remained high in 2013, reaching 19.16% and 45.49% respectively, up 6.91 and 10.35 percentage points, respectively, from 12.25% and 35.14% in 2011. Among them, R&D expenditure accounted for 18.86% of total revenue, and active R&D investment laid a solid foundation for transformation. We believe that from the revenue side in 2014, the company's traditional main business will steadily pick up, smart warehouses and after-sales communication products will continue to contribute to performance, and new markets for other IoT applications will gradually open up. On the cost side, the development of new products will come to an end, and the cost rate will gradually decrease, so the results for 2014 are worth looking forward to. Six highlights of the company's transformation in 2014: First, in addition to digging deeper into the field of construction machinery, the company will expand rapidly into the fields of elevators, agricultural machinery, and commercial vehicles. Second, in the field of construction machinery, service models have expanded from excavators to other construction machinery vehicles. Third, the information collected by the vehicle extends from position status to work status and health status into 3 categories. Fourthly, the types of services have expanded from simple financing and mortgage services, which mainly focus on locking machines, to customer work and project management, customer after-sales service, etc. Fifth, the service format has expanded from a simple C/S or B/S PC-based approach to a full-state service that includes web and mobile terminals. Sixth, the service process for manufacturers was extended from a relatively single sales process to the after-sales process, and gradually intervened in the production management process. Give an “increase in holdings” rating: We expect (considering mergers and acquisitions of business friends) that from 2014 to 2016, the company will achieve net profit attributable to the parent company of 45 million yuan, 88 million yuan, and 112 million yuan, respectively. EPS is 0.26 yuan, 0.51 yuan, and 0.65 yuan, respectively, corresponding to 54 times, 28 times, and 21 times P/E. Risk warning: The prosperity of the construction machinery industry continues to decline; the company's new business development falls short of expectations.