1. Company performance: The company achieved revenue of HK$19.624 billion during the period (same below), an increase of 36.4% over the previous year. Among them, revenue from 3G smartphones was 18.935 billion yuan, up 44.6% year on year; revenue from 4G smartphone was 514 million yuan, down 58.2% year on year. Net profit reached 348.5 million yuan, an increase of 7.1% over the previous year. The profit per share is 16.58 cents, and no final interest is paid, but it is recommended that you send 1 bonus share for every share you hold. The main reason for not paying dividends is that the company vigorously developed 4G mobile phones last year, which required a large amount of capital to expand production capacity, invest in fixed assets, and supplement working capital. It is expected that there should be better cash and cash flow this year, and the dividend level of 20% to 30% will be maintained. This year's capital expenditure is about 300 million to 500 million yuan, and there are no acquisition targets. 2. The company expects 4G market share this year: 4G started in China this year, and now the shipping time is less than 3 months, but the company's shipment volume is definitely the largest in mainland China, far ahead of other peers. The company hopes that this year's 4G business will be further enhanced based on the market share of the 3G business in the past. The company expects a price war in the second half of the year to build a user base. The company hopes to become a mainstream brand in China in the future and become a mainstream brand in the world through the LTE wave. 3. The current performance of the “Daishen” product: This is a product that cooperates with e-commerce. The success of e-commerce products depends on future scale development. Currently, all e-commerce products only have very low profit levels in the first third of their life cycle, but if they can reach the expected scale, they can guarantee a lot of savings in intermediate expenses in the future, and eventually generate a relatively good profit forecast. Okami is currently performing very well and has been able to meet the company's expectations. 4. The main reason for the increase in government subsidies: government subsidies increased by more than 300 million dollars in 2013, divided into three parts, the first is tax rebates, about 170 million; the second is that companies have undertaken national security and cloud computing projects, and the government has provided some support funds; and third, some other revenue. 5. Expectations of the company's sales this year: The company's target for shipments this year is to reach the level of 60 million, of which 40 million are 4G products. Judging from the performance in Q1 of 2014, the overall situation is in line with expectations. Currently, most 4G products in mainland China are being manufactured by companies, but as other competitors enter, the market share will definitely decline. Currently, the company is being held back by pressure from the supply chain, where the company has recently appeared to be slightly exhausted. Regarding growth in mainland China and overseas, the company believes that the main growth point is mainland China, but it will also actively expand overseas. It has now established a relatively good foundation with some mainstream overseas operators, especially in India, where there will be significant growth this year. The future overseas strategy will still focus on LTE products. 6. The company's growth points this year: There are three main growth points, the first is LTE products, the second is overseas markets, and the third is e-commerce. These three horse-drawn carriages will support the company's continued steady growth over the next few years. From the market side, the operator market is the company's traditional advantage, and the company is confident of maintaining it. The e-commerce market will slightly exceed company expectations this year, but future development is uncertain due to pressure from the supply chain. 7. The current shipping situation among carriers: The carrier market should be a relatively good year this year. The company can unquestionably become a supplier of TD-LTE in China Mobile; China Telecom is uncertain due to licensing issues, but the company is ready for the product. The company can guarantee that its products can be launched among the three major operators, and will also launch new products every month, so the company is currently ahead of other rivals by more than two months in product layout. 8. Details of the cooperation with JD: At present, the cooperation between the two sides is still in the exploration stage, but the new product has performed well on JD. The number of reservations for a single model is over 7 million, making JD history. Due to the pressure of the supply chain, companies that demand this quantity are unable to supply the goods. Currently, market demand is very strong. 9. In what areas of technology is the company ahead of other rivals: Is the core of the technology leadership question still in strategic deployment. The successful launch of this year's products is mainly based on the advance layout of operators last year. In the first half of 2013, the company discussed development opportunities in the 4G wave with several major domestic suppliers, including platform architecture and product positioning. Meanwhile, in August 2013, the company began comprehensive development of LTE products. Furthermore, the company has close interaction with the upstream and downstream industrial chains, shifting from following the development of the industry to leading the transformation of the industry. As a result, it is possible to launch products on the operator market, so it is technologically ahead of other rivals by more than 2 months. 10. Is there room for improvement in the company's future gross margin: This year's goal is to maintain last year's level of 12.9%. Looking at the whole year, before the price war began in the second half of the year, the company enjoyed high gross profit, and it may return to average in the second half of the year. Also, the initial gross profit of the e-commerce market will be lower, but since e-commerce is a direct sales model, promotion expenses in the later stages will drop, so the total profit brought by e-commerce will be better than that of operators. Finally, as the size of the company continues to expand, price negotiations with upstream suppliers have also been very successful, and can support the company in fighting a price war