Two sides announced the 2013 annual report, which included net profit of 10.1048 million yuan, a decrease of 39.75% from the same period last year; operating income of 1,184 billion yuan, a decrease of 3.59% from the same period last year; and basic earnings per share of 0.0225 yuan, a decrease of 39.68% from the same period last year. Also, it was announced that the implementing entity of the household paper project with an annual output of 80,000 tons will be adjusted from Liangmipin Paper, a holding subsidiary, to a holding subsidiary, Two-sided Needle Paper Products. The company's profit was mainly realized by selling shares of CITIC Securities. At the end of the reporting period, the company held 37.4 million shares of CITIC Securities and sold a total of 17.32 million shares in 2013, receiving investment income of 149 million yuan. Daily chemical products such as toothpaste and toothbrushes achieved sales of 461 million yuan, of which the parent company achieved main business revenue of 133 million yuan. In the second half of last year, the company launched a series of two-sided traditional Chinese medicine toothpaste for pain relief, and upgraded a series of toothpaste products such as refreshing and gingival care. The above new products generated sales revenue of more than 27 million yuan and achieved gross profit of more than 10 million yuan. Among them, the new high-end “pain relief” series toothpaste is mainly sold in Guangxi, Beijing, Shandong, Hebei, Jiangsu, Hubei, Sichuan and Guangdong regions. This year, the company will further expand its sales area. The Dainichi Chemical segment business has been actively integrated and reorganized. The Dental Division, Washing Division, Yangzhou Company, Fangcao Company, Huihao Company, Import and Export Company, and Technology Center, which handle daily chemical products, were merged into the Dainichi Chemical Division, and the Dainichi Chemical Department was established. Departments such as the marketing department, manufacturing department, administration and personnel department, and finance department have been set up, laying a good foundation for the efficient operation of the daily chemical business. At the same time, an incentive policy for the sale of new products has been formulated, and efforts have been made to promote new products; drug lines have been developed exclusively for two types of toothpaste to promote the entry of toothpaste into the pharmacy system. Sales have now begun in Chengdu and Guangzhou. The paper sector lost 55.12 million yuan. The main loss came from traditional paper business such as pulp, and the company made fine adjustments to the industrial layout. Since the main business of the two-sided needle paper holding company is mainly paper pulp, etc., while the main business of the subsidiary's two-sided needle paper products is mainly household paper, the implementing entity of the household paper project with an annual output of 80,000 tons was adjusted from holding Sun Company's two-sided needle paper industry to the holding subsidiary, the core advantages of the main products and main business of each subsidiary can be better exploited. The sucralose business was affected by a sharp drop in prices, with a profit of 37.54 million yuan for the whole year, of which only 3.84 million yuan was in the second half of the year. This business has been affected by the expansion of industry production. This year's net profit is not expected to be optimistic. Since 2013, the company has cooperated with professional institutions to formulate a “two-pronged” brand development strategy and industrial development strategy, further clarifying the company's development ideas and development plans for various sectors. We believe that the focus of the company's development is still a two-pronged brand, which is worth looking forward to. We expect the revenue of the two-sided approach in 2014-2015 to be 1,426 million yuan and 1,716 million yuan, up 12.45% and 20.32% from the previous year; net profit of 34 million yuan, 67 million yuan, 244.09% and 100.54%, corresponding to EPS of 0.07 yuan and 0.15 yuan. Maintain the “Overweight” rating. Risk warning: The additional distribution project has failed to be implemented; the promotion of new toothpaste has fallen short of expectations, and expenses have risen sharply during the new product promotion process, affecting the company's profits; assets such as the paper industry or continued losses have dragged down the company's performance; if production in the sucralose industry expands on a large scale, it may cause prices to drop sharply, affecting the company's profits.