Incident Announcement on Subsidiaries Signing Direct Transactions and Power Transmission and Distribution Service Contracts The wholly-owned subsidiary Harbin Orient Optoelectronics Technology Co., Ltd. was approved as a power user that can be directly traded. Announcement on the establishment of a wholly-owned subsidiary The company plans to set up a wholly-owned subsidiary in Shenzhen with a registered capital of 45 million yuan. The proposed scope of business is R&D, production and sales of consumer electronic product accessories such as mobile phone screens, cameras, and HOME buttons. A brief review of direct electricity supply has drastically reduced the cost of electricity. Electricity accounts for up to 27.9% of the company's main business costs. Electricity consumption is mainly the consumption of the sapphire crystal chain. After direct power supply, it is expected that electricity prices and costs will be reduced by 15-19%, and unit costs will be reduced by 4.2-5.3% accordingly. Set up a subsidiary to expand downstream, and set up a subsidiary in Shenzhen, mainly for consumer electronics accessories such as mobile phone screens, cameras, and HOME buttons, etc., which will help further expand the company's industrial chain in the future, thereby increasing its competitiveness in non-Apple brand phones and smart watches, and dealing with the potential market brought about by the use of sapphire window films by domestic mobile phone brands. Profit Forecast and Valuation We expect the company's 2015-2017 EPS to be 0.40, 0.64, and 1.75. The target price is 49.6 yuan, maintaining the “buy” rating. The corresponding PE for 2016-2017 is 78X and 28X, respectively.