The packaging business is growing steadily, and some businesses are dragging down the main business. The LED industry is shifting and lighting product replacement is stabilizing, and the LED packaging industry is trending steadily. Affected by the pandemic, some business losses from previous mergers and acquisitions have dragged down the company's performance this year. According to the text of the company's third quarterly report announcement, the company's calculation of impairment of goodwill and investment losses in 2019 led to losses in 2019. From the beginning of the year to the end of the next reporting period, the company does not expect to have to account for impairment of goodwill. From the beginning of 2020 to the end of the next reporting period, subsidiaries Dongguan Jincai Hardware Co., Ltd. and Danyang Yishan Auto Lamp Equipment Manufacturing Co., Ltd. are expected to lose money, affecting the company's overall profit. As the impact of the pandemic gradually weakens and the economy gradually recovers, our traditional main business is expected to usher in a recovery in revenue and profit. The first phase of the Mini LED display project was put into operation, which is expected to become a new growth point. The Mini LED backlight+high pixel panel is expected to become the main product in the TV display field in the future. Large-size displays have a relatively long service life, and there are higher requirements for longevity. OLED is lightweight and convenient to use on mobile phones, but when used on televisions, there is a longevity problem. The blue light attenuation problem has not yet been solved. In a short period of time, in the large size field, OLED still cannot really replace the LCD market. The company has achieved a leading position in product technology at MiniLED. According to information published on the company's public account on December 1, 2020, the first phase of the company's Mini/Micro LED semiconductor display project was held at the company's Guangzhou headquarters park. The first phase of the project plans to invest in 50 production lines. After delivery, 20,000 75-inch TV backlights can be produced every month, and the production capacity of P0.9 RGB direct display products can reach 1,000 square meters per month. Investment advice: We expect the company's revenue from 2020 to 2022 to be 3.39 billion yuan, 4.57 billion yuan, and 5.59 billion yuan respectively. For the first time, we have given a buy-A investment rating. Risk warning: the risk of price reduction of LED products, the risk of market demand for mini LED products falling short of expectations