Event: The company released its 2013 Annual Report. In 2013, the company achieved total operating income of 291 million yuan, down 0.43% from the same period last year; realized net profit attributable to shareholders of listed companies was 654.08 million yuan, down 21.34 percent from the same period last year; and earnings per share were 0.60 yuan. Lower than our previous expectations. Comment: Domestic business revenue declined, and many businesses declined. In 2013, the company's main domestic business revenue was 114 million yuan, down 18.6% from the same period last year; in terms of products, integrated circuit chip business revenue decreased by 37.4%, and smart meter business revenue decreased by 57.4%. The company's asset impairment loss in 2013 was 21.8938 million yuan, an increase of 347.63% over the same period of the previous year due to factors such as the increase in preparation for bad debts accrued in the current period, as well as the increase in preparation for depreciation of the company's accounts receivable. The smart meter won the bid for the State Grid project again in 2014. In 2013, Fugen Intelligence strictly grasped the testing indicators, and the product qualification rate increased to over 99%; in 2014, Fugen Smart, the company's holding subsidiary, won the first batch of electric energy meters tenders in the National Grid 2014 to bid for 96,700 Level 2 single-phase smart meters. We expect that the company will continue to win bids in future State Grid tenders. Overseas projects are running smoothly. In 2013, the revenue of CB Electric Co., Ltd. in Ghana was 51.508 million yuan, an increase of 5% over the same period of the previous year; Xiaocheng Ghana Electric Power Company's revenue was 908.726 million yuan, an increase of 214% over the same period last year. With the gradual streamlining of personnel and various matters, and the establishment and improvement of various management systems, the company's overseas projects will be completed one after another, enter a stable operation period, and provide stable profits. The company's R&D investment has increased, and work on new products continues to advance. In 2013, the company invested 255.474 million yuan in R&D, accounting for 8.77% of revenue, an increase of 2 percentage points over the previous year. The company's integrated circuit research and development center has completed the design of new process orders/three-phase smart meters and special communication SoC chips, most of which have already entered the engineering flow stage; the company has developed internal lightning protection chips, micropower RF chips and wireless communication solutions, and carrier chips with enhanced anti-interference capabilities. Profit forecasting and investment ratings. The decline in domestic business and the growth of overseas business fell short of our expectations. We forecast net profit attributable to Fuxing Xiaocheng's parent company shareholders in 2014-2016 to be 107 million yuan (down 34%), 152 million yuan (40% reduction), and 210 million yuan, respectively, with corresponding earnings per share of 0.98 yuan, 1.38 yuan, and 1.84 yuan respectively. We maintain the company's “gain” rating. risk factors. The construction progress of the company's power grid renovation project in Ghana fell short of expectations; Ghanaian sovereignty and single customer risks; the company's chip sales fell short of expectations; and Ghanaian photovoltaic industry policy risks.