Chengxing Co., Ltd. announced a private sale of additional capital raising 997 million yuan, mainly for the acquisition of Chengxing Group's 55% shares in the Leidatan Hydropower Station (250 million yuan), the 65,000-ton calcium phosphate technical improvement project (196 million yuan), and the repayment of bank loans to supplement working capital (550 million yuan). We have a “neutral” attitude on this plan. In 2008, 70% of the power generation of the Leidatan Hydropower Station was sold to Chengxing Co., Ltd. for the production of yellow phosphorus in Maitreya. This increase is conducive to solving related transaction problems and further improving the integrated business model of mining, electricity, and phosphorus industry chains. In 2008, the hydropower plant achieved net profit of 40.92 million yuan, and after 55% equity acquisition, we expect to increase the net profit of the listed company by 22.5 million yuan. 65,000 tons of calcium phosphate are technologically modified. The products focus on toothpaste grade, pharmaceutical grade and food grade, which is in line with the company's development direction of insisting on improving the level of refinement. According to the announcement, it is estimated that the net profit after tax will be 46 million yuan after the construction period is put into operation for one year. We expect to start production in 2010, and actual profit is related to the market development process. It is proposed to use 300 million yuan to repay bank loans and 250 million yuan to supplement working capital, which can reduce interest payments by 15.9 million yuan. If we use stock prices for the 20 trading days prior to the announcement of the board of directors, we have a preliminary estimate that the share capital will need to be increased by 127 million shares. We assume that net profit will increase by 84.4 million yuan after normal operations in 2010, with an ROE of 8.47%, which is lower than the current ROE level. There was almost no increase in earnings per share in 2009. The phosphorus chemical industry has basically bottomed out, and we maintain the company's “increased holdings” rating.