Matters: The company announced a few days ago that the progress of ColiVision's touch component materials project is in line with expectations. The main project building has been completed. Currently, related equipment is gradually being installed in the factory. The kiln, one of the main equipment, has been ignited and commissioned, which has become an important sign of significant progress in the project. The equipment will also be gradually installed and debugged in the later stages of the project. Peace view: The progress of the project is in line with expectations and is a major breakthrough in the field of touch screen glass substrates in China: Collivision's main products are glass substrates for touch screens. Glass substrates are the most important raw material for the production of touch screen cover lenses. Currently, they are mainly monopolized by international giants such as Corning, Asahi Glass, and Sheet Glass. Collivision's kiln ignition indicates that the company already has initial mass production capacity, marking a major breakthrough for domestic companies in the high-tech barrier industry such as glass substrates. Collivision products have high technical barriers. If mass production and shipment can be successfully carried out in the future, it is expected that foreign monopolies on this field will be broken. Currently, the mainstream TP glass substrate solution is chemically tempered alkali-free glass. This is the solution Corning established when designing products for Apple. Since Apple has become a model for the industry, alkali-free glass substrates currently account for more than 80% of the TP market. Corning's alkali-free TP glass substrates use an overflow process. The biggest highlight is their compression and wear resistance. After chemical tempering, the glass substrate can withstand 54 kg of pressure. However, alkali-based glass such as Japan's Asahi Glass and alkali-free float glass are mainly used in mid-range and low-end models due to insufficient strength after being used as cover lenses. Due to high technical barriers, Corning has enjoyed a gross profit margin of up to 60%-80% for a long time, and its leading product, the Gorilla series, has always been in short supply. Collivision's technology path is similar to Corning's. Through years of technology accumulation and independent research and development, it currently has relevant core patents, and the prospects are promising. The growing trend of high downstream demand for glass substrates for TP has not abated. According to DisplaySearch's estimate, in 2011, the global shipment volume of touch screen substrates reached 24 million square meters, and the market size reached 29 billion yuan. Moreover, based on the continuous increase in the penetration rate of touch screen phones with touch functions, the continuous increase in the sales ratio of tablets in computers, and the expansion of touch functions in future ultrabooks, the global touch screen substrate glass will reach 79 million square meters in 2014, and the average annual growth rate for the next three years will reach 48%. The integrated layout of the touch screen field is far-reaching, and it is now beginning to show results. Currently, the company owns 75% of Huaying Optoelectronics. Huaying Optoelectronics is engaged in touch modules, cover glass, etc., leading the country in terms of technical strength and industrial chain integration. It is speeding up the pace of production capacity expansion and customer expansion, and the growth prospects are promising. We believe that Huaying Optoelectronics will become an important driving force for the company's business transformation and performance improvement. Huaying Optoelectronics and Colix Materials, which are owned by listed companies, have formed a strong synergy with the **** parent company China Video Control CPT Touch Sensor business. The glass substrates, touch bonding, and other aspects that the company is currently working on are all links with high technical thresholds and high gross margins within the touch industry, and profit prospects are promising. Since the company's performance is related to project yield and gross margin, it is difficult to judge at this point, so there is no performance forecast for the time being. We will be closely monitoring the company's breakthroughs and progress in the field of key raw materials for touch screens. It was covered for the first time, and a “neutral” rating was given. In the future, ratings will be adjusted according to the actual situation of the company. Risk warning: Due to the technical difficulty of using alkali-free glass substrates for TP, there is great uncertainty about future company yields and shipments; there is a risk that the downstream industry will fluctuate.