Incident announcement regarding the subsidiary signing a contract for direct transactions and transmission and distribution services. The wholly-owned subsidiary Harbin Aoride Optoelectronics Technology Co., Ltd. was approved as a power user that can be directly traded. Announcement on the establishment of a wholly-owned subsidiary The company plans to establish a wholly-owned subsidiary in Shenzhen with a registered capital of 45 million yuan. The business scope is designed to develop, produce and sell consumer electronic product accessories such as mobile phone screens, cameras, and HOME buttons. Brief review Direct electricity supply has drastically reduced costs. Electricity costs account for up to 27.9% of the company's main business costs. Electricity consumption is mainly that of the sapphire long crystal process. After direct power supply, it is estimated that the electricity price cost will be reduced by 15-19%, and the unit cost will be reduced by 4.2-5.3% accordingly. The establishment of a subsidiary was extended downstream, and the company set up a subsidiary in Shenzhen, mainly for consumer electronic product accessories business such as mobile phone screens, cameras, and HOME buttons, which will help further expand the company's industrial chain in the future, thereby improving its competitiveness in non-Apple brand phones and smartwatches, and dealing with the potential market brought about by domestic mobile phone brands using sapphire windows. Profit forecast and valuation We expect the company's 2015-2017 EPS to be 0.40, 0.64, and 1.75. The target price is 49.6 yuan, maintaining a “buy” rating. Corresponding to the 2016-2017 PE is 78X and 28X, respectively.