The publication of an alternative catalogue of toxic and harmful ingredients (products) is beneficial to companies. The “Catalogue of Substitutes for Toxic and Harmful Raw Materials (Products) Encouraged by the State (2012 Edition)” jointly formulated by the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the Ministry of Environmental Protection was officially released. Among them, the “application category” involves heavy metal replacement subjects in high-temperature kilns in cement, steel, non-ferrous and other industries, that is, chromium-free refractory bricks replace chromium-containing refractory bricks. Compared with other companies in the same industry, the company has a leading advantage in the development of chromium-free products. The proportion of chromium-free products is relatively high (chromium-free products account for more than 60% of the company's alkaline materials), and chromium-free alkaline bricks and their production process have obtained invention patents, so the publication of alternative catalogs is beneficial to the company's policy formation. Year 12 is the bottom of the company, and performance will improve markedly in '13. Mainly dragged down by the refractory sector for glass kilns in 2012, the company's performance declined sharply year over year. With the adjustment of the company's business structure and the decline in raw material prices in '13, the company's performance will improve markedly. Currently, the company's downstream mainly involves the glass, cement and steel sectors. Due to the downturn in the flat glass industry, the company plans to adjust the internal weight of the glass business. Overall, the glass business is mainly stable. In addition to the previous key business flat glass, it will establish and improve the triangular structure of the international market, daily-use glass, and flat glass. China currently has about 2,000 daily-use glass kilns, and high-end kilns (such as kilns that produce beer bottles and cola bottles) account for about 1/4. The company will keep an eye on the high-end market in daily-use glass kilns. Based on a contract of 3 million, 500 kilns is a market of 1.5 billion dollars. Furthermore, judging from the replacement cycle, the replacement cycle for daily-use glass kilns (3-4 years) is far less than that of flat glass kilns (6-8 years). The company's glass business is expected to increase by at least 30% in 2013. The cement business has been the highlight of the company's growth over the past 12 years, and it is also a business that the company will continue to focus on in the future. The cement business grew at a high rate in 2012, and is expected to continue to grow at a high rate in '13. Year 12 is still the development stage of the company's cement business. By the end of '12 and the beginning of '13, a batch of the company's cement business products will complete the use cycle test, and after the second half of '13, the company will gradually enter a period of rapid development and harvest in the cement business. In the steel business, the company's overall idea in the short term is to stabilize and develop slightly. The profits of Xianggang Refractory are generally stable. Furthermore, the company's average procurement price of raw materials has declined. Prices of major raw materials such as zircon sand dropped by at least 20% from the highest point in 2012. Since the company has a certain inventory cycle for raw materials, the favorable impact of the decline in raw material prices on the company will be reflected after the second quarter. Valuation and investment recommendations. We expect the company's EPS to be 0.01 yuan, 0.06 yuan and 0.16 yuan respectively in 2012-2014. We are optimistic about the company's medium- to long-term development and continue to maintain the company's “gain” rating