The layout is large, and the vertical integration development company specializes in TFT modules, mainly supplying ZTE and Huawei. Since listing, the company has expanded its product line vertically and has now basically completed the construction of CTP, LENS, and CTP+TFT product systems, and the vertical integration support is getting better and better. The company currently has two production bases in Shenzhen and Changsha, and has basically achieved a vertical integrated production capacity of 3 kk/m. TFT modules and sensors are fully self-sufficient, and one-third of LENS is sold abroad for all other than personal use. After 12 years of yield climbing, the product yield gradually approached the industry average. In response to the market supply and demand pattern, medium to large size CTP has become the focus of the company's planning, and the layout will be 7 inch, 10 inch, and 15.6 inch products. The poor execution of ZTE's orders was the main cause of losses in 12 years. 2012 was a year where the company actively carried out industrial layout, accelerated investment in software and hardware, expanded production capacity, and ran in production. Among them, the company signed a framework agreement with ZTE Kangxun in early 2012 and expanded production capacity around ZTE's demand. (1) Due to some problems with product design during the company's transformation process, there is a process of product development and certification. The company achieved sales revenue of 560 million yuan to ZTE Kangxun for the full year of 2012, far below expectations. (2) Due to technological upgrades in the touch market and changes in product demand, the company lost about 30 to 40 million yuan in asset impairment in 12 years. (3) Due to the large increase in capital requirements during the expansion of production capacity, the company's financial expenses have increased dramatically. The combination of the above three reasons has caused the company to lose a lot in 12 years. In response to the impact of individual customers on the company's business in 12 years, the company actively adjusted customer strategies, introduced customers such as Hisense and Konka, and strengthened cooperation with Huawei in the tablet field. However, it is expected that ZTE will remain the company's main customer in the short term. The company has entered the late stage of transformation. OGS is an important highlight in 13 years. Currently, the company has established integrated display and touch control production capacity, improved yield on the basis of full compatibility, and developed products such as OGS on the basis of strengthened technical reserves. Meanwhile, the company's private issuance has been approved. As the funds raised are in place, the Chibi project will strengthen the company's competitive strength in the LENS and medium to large CTP markets. In terms of choosing technical plans, the company believes that OGS technology is becoming more mature and has market competitiveness, and demand is expected to be released in the second half of the year. The company will shift from existing large-chip technology (suitable for large orders) to single-chip technology (low operating costs) to reduce production line costs and mold opening costs and increase production line continuity. This change in the company's technical plan shows the company's business strategy of strengthening cost control and adapting to the “sea of aircraft tactics” in the domestic market. Yield is a key factor in OGS marketing. Since the automation level of most OGS production lines is higher than that of traditional LENS companies, OGS product yield has the conditions to surpass the latter, but progress falls short of expectations. The industry estimates that an OGS yield of 80% or more will have a cost advantage and is expected to greatly increase market share. Currently, the industry-leading OGS yield is about 70%, while the yield of the company's OGS products is about 50% to 60%, which still needs to be improved. The “neutral” rating was given for the first time, and the company's 13-year production and sales are expected to resume normal operation after a run-in period of capacity expansion. However, the yield of the company's new products still needs to be further improved, there is no cost advantage in market competition, and profitability needs to be improved. Furthermore, the company's balance ratio is far higher than the industry average, and the progress of undisclosed additional issues will have a major impact on the company's business promotion and financial expenses. We expect the company's 2012-2014 EPS to be -1.66, 0.16, and 0.62 yuan respectively. The current stock price already reflects the company's profit improvement expectations and has been given a “neutral” rating for the first time.