Report summary: The company achieved operating income of 946 million yuan in 2014, a slight decrease of 0.08% over the previous year, and gross margin slightly decreased to 19.5%. Net profit attributable to shareholders of listed companies was 27.5548 million yuan, an increase of 12.09% over the previous year, corresponding to an EPS of 0.08 yuan. The company's main operating targets for earnings per share in 2015 were operating income of 1.15 billion yuan and total profit of 38 million yuan, up 21.56% and 37.91% year on year. Looking at the main revenue by product, color photosensitive materials still account for more than 90% of total revenue, achieving operating income of 865 million yuan, a year-on-year decrease of 1.63%, and a gross profit margin of 18.03%, a year-on-year decrease of 0.94%. The main business has not improved yet. The company's traditional business, including color photosensitive materials, new materials, and photographic chemical materials, remained stable year on year. We believe that the company's traditional business has not improved significantly. The additional issue project enters lithium battery separators. The company plans to increase 600 million yuan to invest in new lithium battery separators and solar battery backplane expansion projects. As a leading enterprise in the domestic color film and photo paper industry, the company has accumulated a large number of core technologies related to film formation, coating and particle dispersion, and these mature technical support will help the company move faster and faster on the path of localization of high-end lithium battery separators. The diaphragm project has promising prospects. The company's fixed expansion projects include 40 million square meters of wet diaphragms and 15 million square meters of diaphragm coating. At present, the company's pilot products have successfully obtained certification from large downstream lithium battery manufacturers, and the feedback has been positive. We believe that the future development of new energy vehicles will drive a rapid increase in demand for lithium battery separators, and the company's wet coating diaphragms are expected to meet the stringent performance requirements of power batteries in all aspects. The strategy of positioning the middle and high-end will ensure that the company's diaphragm stands out from similar domestic products, thus giving new wings to the company's development. Earnings forecasts and ratings. We expect the company's EPS for 15-17 to be 0.09, 0.18, and 0.27 yuan, maintaining an increase in holdings rating.