n 2014 should be the inflection point of the company's performance: net profit of 50-52 million yuan is expected to be realized for the whole year without accounting for equity incentive expenses; net profit of 30-32 million yuan when accounting for equity incentive expenses. The main information in the company's quarterly report shows that in the first quarter of 2014, the company achieved operating income of 87.2396 million yuan, an increase of 41.03% over the same period of the previous year; operating profit of 1,489,500 yuan, an increase of 4,107.50% over the same period of the previous year; total realized profit of 3.966 million yuan, a decrease of 20.31% over the same period of the previous year; and realized net profit attributable to shareholders of the parent company of 3.995 million yuan, a decrease of 5.34% over the same period last year. Q1 2014 was the first time in the company's history (within the scope of public data) that sales revenue in a single quarter exceeded 80 million yuan, with significant year-on-year and month-on-month growth. Net profit declined slightly, close to the forecast limit. Non-recurring profit and loss for the same period was only about 2.1 million yuan, or about half of Q1 2013. The company's management expenses have increased dramatically by 7 million yuan, of which more than 3 million yuan comes from equity incentive amortization expenses (2 months), and it is expected that about 16 million yuan will be amortized throughout 2014. After deducting the amortization of management expenses and investment in the TP business (currently in a state of burning money, there may be revenue starting in Q2), net profit of about 10 million yuan was actually achieved in 2014 Q1, which is a significant increase over the previous year. Overall, the inflection point is obvious, revenue has increased dramatically, and performance is quite flexible: the packaging business and light guide film business are estimated to have increased significantly, public safety and anti-counterfeiting are stable, and overall gross margin has increased; the touch screen Touch Panel (TP) business investment period is likely to reverse in Q2 at the latest in Q3. Under the premise that key customers conquer, revenue and orders are likely to be realized significantly. Under the strong expectations of Metal Mesh, the company's performance is very flexible; the company still has some killer businesses. Key investment points The company's biggest highlight in 2014 was the conductive film Metal Mesh (MM, non-ITO flexible and transparent), which was the company's top priority in 2014. It is expected that orders for medium to large conductive films will begin to be collected in the first half of 2014, and will be released in Q3. 2014 should be the first year of Metal Mesh (MM), and the 2014 Apple iWatch's use of Metal Mesh technology will further detonate the MM concept company (originally expected in June, now the latest statement may be in Q3). The company is the most authentic target. The company's products are gradually being accepted by important downstream customers, including some industrial control devices, all-in-one devices, ultrabooks, and tablet devices. Recently, it has just passed multi-size Microsoft Win8 touch certification, and is also carrying out joint research and development of medium to large size touch controls with many major downstream customers in the industry. At the same time, the company is also experimenting with different business models. The expansion of the traditional packaging business into the cosmetics field is an important part of the company's journey of differentiation in the field of laser packaging, and the company's customization capabilities will eventually make it stand out. Compared to the alcohol label industry, which has a gross margin of about 20%, cosmetics with a gross margin of 70% to 80% require the appearance of packaging materials more urgently and are less sensitive to costs. Companies with core technology will open up a blue ocean in high-end packaging fields such as cosmetics. Light guide film: authentic Xiaomi concept. In 2013, Q4 began supplying light guide films for all new Xiaomi models. The light guide film business is expected to achieve revenue of more than 35 million yuan for the whole year. At the same time, the wholly-owned subsidiary Weiwang Technology will also turn a loss into a profit, and is expected to achieve a net profit of around 4 million yuan for the whole year. Public safety and anti-counterfeiting will become the company's future cash cow: the card business will maintain stable revenue, and license plate film companies have technical reserves and lead the industry. High-end financial anti-counterfeiting is also an important future highlight.