Yatai Group announced on the 28th that due to the intention to adjust the price of non-public shares issued in 2014, the targeted additional price was adjusted from 3.47 yuan/share to 4.15 yuan/share. The participants were six specific investors from Beifang Cement, Jilin Aodong, Huaan Fund, Changchun Chengfa, Jidong Cement, and Jinta Investment. It can only be implemented after review and approval by the company's shareholders' meeting and approval by the China Securities Regulatory Commission. Non-public offering improves financial conditions and favors the expansion of the pharmaceutical sector. The company raised about 2.4 billion yuan in equity financing this time, of which 2.3 billion yuan was used to repay bank loans, and the remaining additional working capital to ease financial pressure. The private capital raised by the company this time mainly starts from two points: 1) Optimizing the company's equity structure and improving the financial situation. After issuance, the company's balance ratio will drop to 69.73% from 75.33% in 2013, effectively enhancing the company's resilience to risk; reducing annual financial expenses by about 138 million yuan, increasing profitability, and improving the company's financial situation. 2) Replenish working capital to provide a good financial guarantee for the company's strategic transformation of the pharmaceutical industry. The company has been vigorously developing research and development of projects such as the Vero cell influenza vaccine, Rg3 injections, and health food. In recent years, the company's high debt costs have hampered the pace of the company's transformation. Through this equity financing, the transformation and upgrading of the company's industrial structure will be strongly promoted, and a good financial guarantee for the subsequent development of the pharmaceutical sector will be provided. To build a pillar pharmaceutical industry, future business transformation can be expected. The company has a drug research and development center, three manufacturing enterprises, and a pharmaceutical chain retail enterprise. In the future, the company intends to build a pillar pharmaceutical industry and expand the company's business. In August, the company announced the signing of a cooperation framework agreement with Jiangsu Weikell Pharmaceutical Technology. The cooperation further highlights the company's willingness to gradually transform. In October, the company's human use of avian influenza (H5N1) whole-virus inactivated vaccine (Vero cells) was approved for drug clinical trials, and new progress was made in the field of pharmaceutical research and development. The company is currently actively strengthening its strength in pharmaceutical research and development, production, retail, etc., and its products are involved in fields such as traditional Chinese medicine, chemicals, and health products. In the future, the company's pharmaceutical business is expected to become the focus of development, driving a double improvement in performance and valuation. Cement real estate is developing steadily, and the industrial layout is perfect. In the first half of the year, the company's cement revenue was 2.76 billion yuan, the average price of a ton of cement was 318 yuan/ton, and the gross profit per ton was 77 yuan/ton. The main reason for the decline in performance was the decline in sales volume. We expect high cement prices in Northeast China to fall in the second half of the year, and gross profit per ton will be lower than the same period last year. Combined with weak real estate demand, cement demand has declined, and profit levels have declined year over year. In the first half of the year, real estate revenue was 1.29 billion yuan, up 31% year on year, gross profit was 440 million yuan, up 80% year on year, and gross profit margin of 34% hit the highest level in six years. The contribution of real estate revenue mainly comes from the opening up of real estate revenue in the Shenyang region; we expect revenue growth to continue to be high in the second half of the year, mainly from real estate projects developed in Nanjing and Tianjin. The company's industrial layout is perfect, and it has formed a pattern of joint development in the fields of cement, real estate, medicine, coal, finance, etc. Earnings forecasts and ratings. The building materials and real estate business in the company's traditional industries is developing steadily. Considering that the expansion and transformation of the company's pharmaceutical industry can be expected in the future, we maintained the company's EPS of 0.10/0.16/0.30 yuan (EPS 0.073/0.117/0.219 after addition and dilution) in 14-16, maintaining the “increase in holdings” rating.