Description of the incident: Jia Linjie (002486) released its 2013 annual report today. The main business results are as follows: in 2013, the company achieved operating income of 896.413 million yuan, an increase of 10.57% over the previous year; achieved net profit of 9,834.07, an increase of 157.26% over the previous year; and achieved earnings of 0.24 yuan per share. The company plans to distribute 0.8 yuan (tax included) for every 10 shares, free 2 shares (tax included), and add 8 shares. Incident review Market recovery is sufficient, and sales revenue is recovering: In 2013, the company achieved revenue of 89,64,103 million yuan, an increase of 10.57% over the previous year; at the same time, the company's gross margin increased by 3.8 percentage points to 27.4%; the company's fabric business has achieved restorative growth, with sufficient orders and an increase in gross margin. The main reasons are: (1) The sales performance of the company and several existing major customers, including icebreakers, Polartec, etc.; (2) The company successfully expanded its sales performance to well-known international brands such as Nike Sales and the development of a number of new international customers have strongly guaranteed the steady growth of the company's high-end customer base; (3) Since the second half of 2013, demand for outdoor professional sportswear accessories has clearly picked up, and the company has always insisted on developing and producing functional fabrics for this market segment, so it quickly showed a trend of strong production and sales and a significant increase in gross margin. Status expenses are well controlled, and the expense ratio has declined slightly: the company's sales expenses were 89.1553 million yuan, up 6.12% year on year, and the company's management expenses were 66.05536 million yuan, up 7.95% year on year. As the company's revenue scale gradually expanded and new customer development expenses increased, but the increase in the two expenses was slower than the revenue growth rate. The sales expenses rate and management expense ratio fell to 9.95% and 7.37% respectively. The company's financial expenses were 4.216,200 yuan, a significant increase compared to -296,800 yuan in 2012. The main reason was the decrease in deposit interest and exchange earnings obtained in the current period, and the financial expense ratio rose from -0.04% to 0.47%. Increased gross profit and significant increase in net profit under cost control: In 2013, the company achieved net profit of 9,834.07, an increase of 157.26% over the previous year, and the net profit margin increased from 4.72% last year to 10.97%. The main reason for the sharp increase in the company's net profit is due to the combination of increased operating income, increased gross margin, and good cost control. Maintaining the “Cautious Recommendation” rating: Our 2014-2016 EPS forecast is 0.27 yuan, 0.31 yuan, and 0.36 yuan. With the gradual recovery of the market and the sharp recovery in the company's orders, the main business growth is worth looking forward to, and maintaining the “Cautious Recommendation” rating.