The company is a high-tech enterprise specializing in the research, production, sales and technical service of high-performance and high-precision electric contact alloy materials and components. The company's products mainly include three categories: granular and fiber-reinforced electrical contact functional composites and components, layered composite electrical contact functional composites and components, and integrated electrical contact components, mainly used in the field of low voltage electrical appliances. From a performance perspective, the company's total operating income and net profit in 2008 were only 170 million yuan and 8.93 million yuan, respectively. In the first half of 2011, the company had achieved operating income of 408 million yuan and net profit of 49.59 million yuan. Comparing the two, it can be seen that the company is growing very fast. From the perspective of competitiveness, the company's strengths are mainly reflected in technology. At present, the company has obtained 18 invention patents, participated in the drafting or revision of 3 national standards and 39 industry standards, and undertook 2 national torch program projects. Due to the high technical content of the product, the company has established a good long-term cooperative relationship with internationally renowned electrical appliance companies such as Zhengtai Electric, Delixi, Emerson, Sensata, Cooper, and General Electric. The company plans to raise 299 million yuan for the construction of an automated production line project for layered composite electrical contact functional composites and components with an annual output of 550 tons and a project with an annual output of 105 tons of granular and fiber-reinforced electrical contact functional composites and components. After delivery, the production capacity of all of the company's products increased by more than 60%, a significant increase. From the perspective of demand, the growth rate of the entire domestic low-voltage electrical appliance industry is expected to be around 15% in the future. Although this growth rate is not high, the company's new products have the ability to seize market share from competitors. Furthermore, the life span of electrical contact materials is about 5 years, and the annual replacement demand is about 20% of the stock. Overall, the company's absorption of the new production capacity is more secure. Currently, the price-earnings ratio (TTM, overall method) of the entire GEM market is about 38 times, which is very close to the average price-earnings ratio of the new metal materials sector we have compiled. Combining the current state of the company's industry and current market conditions, we believe that the company's reasonable pricing range is between 22.05-25.20 yuan, and the corresponding static price-earnings ratio for 2010 is between 35-40 times. Risk: Since silver accounts for a relatively large share of costs, fluctuations in silver prices may pose a risk to the company's performance.