Key investment events: The company released its 2013 annual performance report. In 2013, it achieved revenue of 2.25 billion yuan, an increase of 11.35% over the previous year. Operating profit was 85.3 million yuan, a year-on-year decrease of 36.29%. Total profit was realized at 96.02 million yuan, a year-on-year decrease of 37.84%. Net profit attributable to shareholders of listed companies was 56.64 million yuan, a year-on-year decrease of 43.95%. It achieved an EPS of 0.34 yuan, a year-on-year decrease of 44.26%. The weighted average return on net assets was 5.97%, down -5.58% year over year. Comment: Due to the decline in business volume of major customers, non-recurring profit and loss decreased. Since this year, the PC industry has been severely impacted by tablets and smartphones, and shipments are at record lows. Under this general environment, the company's main customers are also affected: the decline in business volume of core customers Acer and Asus, the decline in orders from Ericsson, a core customer of Nanjing Feilida, and the motherboard project of Asus, a core customer of Shenzhen Feilida, is in the cultivation period, all of which have had a great impact on the company's performance. On the other hand, recurring profit and loss in 2013 was about 8 million yuan (mainly financial subsidies and interest income from fund-raising interest), a significant decrease from the same period last year (15.4599 million yuan). If the equity incentive plan is not completed, the corresponding financial costs will be recovered. The company launched a restricted stock equity incentive plan in early 2012. According to the equity incentive plan, the performance assessment requirements for unlocking the second unlocking period are that the net profit for 2013 is not less than 150% (about 125 million) of the 2011 fiscal year, and the return on net assets in 2013 is not less than 10.50%. The 2013 performance did not meet the assessment requirements. According to regulations, restricted stocks that can be applied for unlocking in the current period cannot be unlocked and cancelled by the company after repurchasing them at the granted price. The corresponding equity incentive expenses of about 12 million yuan will be recovered. It is expected that the company's situation will improve in 2014, and attention will be paid to the expansion of the company's new business. After experiencing a sharp contraction in the industry in 2013, the PC industry is expected to remain stable in 2014, and Asus Acer's shipment volume will rise steadily. Furthermore, the cultivation of Asus Acer on tablets will also lead to an increase in business. As a result, the company's business volume will pick up somewhat compared to last year. Currently, the company's business area has gradually expanded from the Yangtze River Delta region to southwest China, Hong Kong, Singapore and other places. The scope of business has also expanded beyond the IT industry. In the future, we can focus on futures delivery and bonded warehouses for Changzhou Rongda Hyundai Logistics, a holding subsidiary of the company. Profit forecasting and valuation. It is estimated that the company's 2014-2015 EPS will be 0.4 and 0.5 yuan respectively, and the corresponding PE will be 32.5 and 25.8 times, respectively. The company's focus for next year is that if it can find rapidly growing customers or industries, the growth rate may increase again. Maintain the “Overweight” rating risk alert. Costs have risen too fast due to the continued decline in the prosperity of the IT industry, the decline in the company's core customer business, and the company's expansion across regions and industries.