Cylindrical roller bearing into account the intensity of competition in the industry

Core assumptions (1) Consolidated Company 2014 after taking into account the various types of equity investment and equity investment and non-bearing production line will be gradually put into full production, and the industry boom downturn trend will continue for some time, we have production capacity of the company to raise investment Cylindrical roller bearing projects after the release of the results of the contribution cautiously optimistic. Assuming 2014-2015, the company bearing business will achieve 18% and 15% growth in the spindle business will achieve 5% and 10% growth, bearings and Cylindrical roller bearing steel trading income remained shrinking trend, but the decline narrowed, respectively, to achieve -28% -25% growth.
(2) Taking into account the intensity of competition in the industry, and the company bearing high-speed rail Precision Bearing project and the robot can contribute to the results take time, we assume that products bearing the company's gross profit margin decreased slightly steady, 2014 - 2015 gross profit margin of 24.50%, respectively, and 24.00 %, spindle product gross margin remained at around 5% level; bearings and bearing steel trade continues downward trend, respectively, 1.50% and 1.50%.
(3) We assume that the company can maintain the current level of government subsidies and corporate tax levels.
The main risks (1) the risk of a further decline in downstream demand; risk (2) changes in tax policies; (3) the company raised investment project progress is slower than expected risk.