Investment highlights: 2012 results fell short of expectations. The company achieved operating income of 357 million yuan, a year-on-year increase of 2.64%, net profit attributable to shareholders of the parent company of 27.295 million, a year-on-year decrease of 38.63%, and earnings per share of 0.13 yuan, lower than expected. Profit distribution plan: 0.24 yuan (tax included) for every 10 shares. Security glass grew steadily in 2012, contributing to an increase in revenue and gross profit. The company's security glass revenue in 2012 was 283 million yuan, up 18.54% year on year, 16 percentage points higher than the overall revenue growth rate. The gross profit margin was 36.37%, the same as in 2011, accounting for 79% of revenue and 83.3% of gross profit, up 10 and 8 percentage points from 2011, respectively. Fire-proof profiles for steel doors and windows grew the fastest in 2012. In 2010, the company launched security glass ancillary products - steel door and window fireproof profile company products. In 2012, revenue increased by 39.64%, gross profit margin was 43.86%, an increase of 4.9 percentage points, and revenue and gross profit increased by 1.7 and 2.3 percentage points to 6.5% and 8.3% respectively. The company lost money on photovoltaic glass and cells in 2012. In 2012, the photovoltaic industry still failed to break out of the slump in the industry. The company's photovoltaic glass (modules) and cell revenue fell by 24.9% and 99.8% respectively, and the gross margin of photovoltaic glass fell 13 percentage points to 20.93%. After deducting expenses, it was a loss. The gross profit and net profit of the cells were both losses. New projects are put into production, personnel have been increased, and management expenses have increased. The company's three cost rates increased by 3.5 percentage points to 24.9%. The increase was management expenses, which increased by 41.3%. Mainly due to the commissioning of the Wujiang project, the number of company employees increased by 23%, and the corresponding increase in personnel wages and other expenses. The project was adjusted to strengthen the advantageous position of security glass. Prosperity in the photovoltaic industry declined. In 2012, the company decided to change the original Wujiang investment project — that is, stop implementing the “build a production line for BIPV modules with an annual output of 8 MW solar energy”, and expand the “construction of 1.2 million square meters of special glass production line for environmentally friendly and energy-saving glass products” to “build 1.8 million square meters of special glass production line for environmentally friendly and energy-saving glass products”, which is equivalent to an increase of 600,000 square meters in the current security glass production capacity. It is expected that production capacity of security glass will expand to 3 million square meters, increasing production capacity by 25%. Profit forecasts and investment advice. The company issued 230 million non-public bonds in the first quarter of this year, and the financial expense ratio increased. It is estimated that in 2013-2015, the company's EPS was 0.21\ 0.32\ 0.4 yuan, and the 2013 PE 27 times, giving it an “increase in holdings” rating. Risk warning: raw material prices are rising; demand is weak.