The company's application for non-public offering of shares was reviewed and approved by the Stock Issuance Review Committee of the China Securities Regulatory Commission on July 18, 2007. After the implementation of the additional issuance, the shareholding ratio of Shifang Hongda Development Co., Ltd., the majority shareholder, will rise from 26.92% to 41.09%, and the controlling interest will be significantly strengthened. Since then, the interests of all shareholders have tended to be highly consistent, which is conducive to the rapid development of the company in the future. We keep our previous assumptions and earnings forecasts unchanged until further signs of a significant increase in performance at the industry and company levels appear. That is, under the premise of additional dilution, earnings per share in 2007 were 2.06 yuan, compared to 3.34 yuan in 2008. Based on the company's past performance in obtaining and managing resources, we are optimistic about the company's prospects in terms of resource expansion. They also maintain optimistic expectations about their efforts to improve the phosphorus chemical industry chain. We believe the company has the strength to become a giant in the domestic mining industry. We insist that having resources is the foundation for sharing the commodity bull market feast, and have been relentlessly seeking reasonable methods suitable for the valuation of resource stocks in the A-share market. Here, we will try to replace the simple net profit discount method in the previous period with a physical option method. This is a valuation method closer to international practice. Using the physical options method, the equity of Lanping mining resources was estimated at 64.19 yuan/share, and the assets of the company headquarters were estimated at 12.31 yuan/share using the P/B relative valuation method. The company's reasonable internal value center is 76.50 yuan/share. Rating “Overweight”.