2014 should be an inflection point in the company's performance: net profit is expected to be 50 to 52 million yuan throughout the year without taking into account equity incentive expenses; net profit of 30 to 32 million yuan is expected to be realized when equity incentive expenses are taken into account. The main situation of 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 last year; operating profit of 1,4899 million yuan, an increase of 4107.50% over the same period last year; realized total profit of 3,964 million yuan, a decrease of 20.31% from the same period last year; and realized net profit attributable to shareholders of the parent company of 3.9995 million yuan, down 5.34% from the same period last year. Q1 2014 was the first time in the company's history (within the scope of public information) that sales revenue in a single quarter exceeded 80 million yuan, with significant year-on-year and month-on-month increases. 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, about half of Q1 in 2013. The company's management expenses increased significantly by 7 million yuan, of which more than 3 million yuan came from equity incentive amortization expenses (2 months). It is expected that amortization of about 16 million yuan will be required for the full year of 2014. After deducting the amortization of management expenses for equity incentives and investment in the TP business (currently in a state of burning money, there may be revenue starting in Q2), the net profit of about 10 million yuan was actually achieved in 2014/Q1, which was a significant increase over the previous year. Overall, the inflection point is obvious, revenue has increased dramatically, and performance is highly flexible: the packaging business and light guide film business are estimated to have increased significantly, public safety anti-counterfeiting is stable, and overall gross margin has increased; the touchscreen Touch Panel (TP) business investment period but 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 drastically. Under the strong expectations of Metal Mesh, the company's performance is very flexible; the company still has some killer business. Investment points The company's biggest highlight in 2014 was the conductive film Metal Mesh (MM, non-ITO flexible and transparent), which was also the top priority of the company's work 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 is supposed to be the first year of Metal Mesh (MM), and the adoption of metal mesh technology by Apple iWatch in 2014 will further detonate the MM concept company (originally expected in June, now the latest statement is probably 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 equipment, all-in-one devices, ultrabooks, and tablet devices. Recently, they have just passed the touch certification of Microsoft Win8 of various sizes, and are also conducting joint research and development of medium to large touch with many major downstream customers in the industry. At the same time, the company is also experimenting with different business models. The expansion of traditional packaging business into cosmetics is an important part of the company's path 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 and tobacco label industry, which has a gross margin of about 20%, cosmetics with a gross margin of 70% to 80% have more pressing demand for the appearance of packaging materials 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: an authentic Xiaomi concept. In 2013, Q4 began supplying light guide films for all new Xiaomi models. It is estimated that the light guide film business will achieve revenue of more than 35 million yuan throughout the year, while Weiwang Technology, a wholly-owned subsidiary, will also turn a loss into a profit, and is expected to achieve a net profit of around 4 million yuan throughout the year. Public safety and anti-counterfeiting will become the company's future cash cow: the card business will maintain stable revenue, license plate film companies have technical reserves, and lead the industry. High-end financial anti-counterfeiting is also an important point of interest in the future.