The headquarters of Phosphorus Chemical, other installations at the non-ferrous metals production base, and the subsidiary Anxian Chemical have yet to resume normal production. Among them, the most important ones are ammonium phosphate production capacity and 80% of the zinc smelting production capacity of the headquarters. However, judging from the post-disaster recovery progress announced by the company, we are worthy of optimistic expectations. The company headquarters has a zinc smelting production capacity of about 100,000 tons. It has maintained a low capacity utilization rate due to insufficient self-sufficiency in the mine (Jinding's own concentrate is being transported long, and Ganluo is gradually increasing concentrate production); due to the long-term slight profit from outsourced concentrate smelting zinc, it is now in a state of loss. According to our estimates, the 20% smelting capacity that has now been restored is just enough to smelt the self-produced zinc concentrate from Ganluo. The rest of the smelting capacity will not have an obvious adverse effect if the rest of the smelting capacity is not restored yet. We maintain our forecast of earnings of 0.87 and 2.22 yuan per share for 08/09. After considering the resource value of 51% of Jinding's shares, the reasonable value of Hongda shares should be 42.38 yuan/share, maintaining the “increased holdings” rating.