The company's nylon 6 filament is targeted at high-end users. The customers are mainly customers using high-end textile machines in economically developed coastal regions. The differentiation rate of the company's products has reached 70%, and the price of its own products is significantly higher than that of other products in the market. The company's technological leadership will ultimately be reflected in efficiency. The company's technology (environmental protection, automation) industry leadership is reflected in the fact that the company's performance declined the least during the recession in the chemical fiber industry (taking the performance of listed companies in the nylon industry in 2012 as an example, the company's performance fell by 45.11%, Meida shares fell 71.32%, China Resources Jinhua fell 93.68%, and Shenma shares fell 125.23%). We believe that if the industry's prosperity improves in the future, the value of the company's technology will be reflected in the increase in benefits. The future of the industry pattern is more favorable than the company's product structure. Currently, the company has adopted a backward integration strategy, acquired Hang Ding, and launched nylon slices this year. At present, the company has no intention of getting involved in the caprolactam business. We believe that with the expansion of caprolactam production capacity in the country in recent years, China's external dependence will gradually decline, the bargaining power of caprolactam will weaken, its gross margin will undoubtedly gradually decrease, and profits will gradually be transferred to the three links of benzene, slicing, and filament. We think the company will benefit from this. This year's increase in performance comes from slices, and next year it comes from nylon. The company's relatively certain increase in performance this year should come from Hangding's slicing project. Hangding will gradually start production in October, and production capacity will be fully released before the end of the year. Next year, the increase in the company's performance will come from the new production capacity of nylon. Firmly optimistic about the company's development over the next three years and maintain the “increase in holdings” rating. We expect the company's 2013-2015 EPS to be 0.18 yuan, 0.32 yuan, and 0.54 yuan, maintaining an investment rating of “increased holdings”.