Incident: Recently, the price of lead and zinc has fallen below the cost line. We expect the market price to reverse, which is beneficial to enterprises. 1. Restoring the ability to operate sustainably after asset restructuring. In 2013, through the implementation of major asset restructuring, the company made Dongshengmiao Mining, owned by Jianxin Group, Sidwan, and Zhishang Lianhe, become a wholly-owned subsidiary of the company, thus establishing its main business as lead and zinc ore mining and related product production and operation business. As a result, the company obtained high-quality assets related to lead-zinc ore mining, asset quality was fundamentally improved, and profitability was greatly increased, thus recovering its ability to operate continuously and enabling the company's stock to resume listing. 2. Mainly engaged in lead-zinc ore mining and selection business. The company is mainly engaged in lead-zinc ore selection business. The quality of lead-zinc resources owned by the main mine is relatively good, and the average grade is above the average grade in society. In the future, the company will form a production scale of more than one million tons and form a business model integrating production, sales, and freight in the industrial chain, with a scale advantage. Furthermore, the company's business covers integrated business models from geological exploration, mining, and downstream product production. Raw materials for downstream sulfuric acid production are provided by upstream mining enterprises, which guarantees lower raw material costs than industry levels. In 2013, the company achieved sales revenue of 669 million yuan and net profit of 282 million yuan. The company's sales revenue for the first three quarters of 2014 was 592 million yuan, an increase of 51.99% over the same period last year, mainly due to the company's non-ferrous metals trade. 3. The annual production scale of lead-zinc ore mining exceeds one million tons, and the mining resources are abundant. The production capacity of lead-zinc ore mining of the subsidiary Dongshengmiao Mining is 800,000 tons/year, and the subsidiary Jinpeng Mining is 150,000 tons/year. In addition, the company is building a mining system for 500,000 tons/year of lead-zinc ore. The mining capacity is expected to expand to 1.45 million tons in 2015; the production capacity of industrial sulfuric acid and ferrous iron powder is 100,000 tons/year. Dongshengmiao Mining and its wholly-owned subsidiary Jinpeng Mining have obtained mining rights for Dongshengmiao pyrite, Zhongjiashan lead-zinc (gold and silver) mine, and mining rights for Dawangfu mine, respectively. 4. Mainly mining, diversified industries. The company plans to achieve a significant increase in resource reserves and profitability through resource exploration and mining mergers and acquisitions by the end of 2017, and invest 3 to 4 billion yuan in external acquisitions and construction of high-quality mines. In order to strengthen its ability to integrate resources, the company plans to expand into the downstream industry of non-ferrous metal mining. Jianxin Group, the controlling shareholder of the company, has promised to inject its two downstream lead-zinc ore mining related enterprises, Urad Houqi Ruifeng Lead Smelting Co., Ltd. and Bayannur Huafeng Zinc Oxide Co., Ltd. into the listed company when conditions are ripe. At that time, the company will own businesses such as ore smelting and comprehensive recycling of downstream resources. Furthermore, the company also plans to expand and strengthen existing domestic and foreign trade in lead-zinc-copper products and gradually establish an advantageous position in the nonferrous metals trading market in western China. 5. Non-public stock offerings supplement working capital. The company reported the application materials for the non-public offering of shares to the Securities Regulatory Commission in September 2014, and it is currently under review. According to the current non-public offering plan, the company expects to issue 239.521 million shares at a price of 5.01 yuan/share, with an issuance scale of 120 million yuan. The purpose of raising capital this time is to supplement the parent company's working capital. The target of the company's current non-public stock offering is Jianxin Investment and Side Wanfang. Among them, Jianxin Investment is a wholly-owned subsidiary of Jianxin Group, the controlling shareholder of the company. 6. Profit forecast and valuation. With the gradual completion of asset injections by controlling shareholders and the smooth development of the company's industrial mergers and acquisitions business, it is predicted that the company will become a large and small mining group integrating non-ferrous metal mining, smelting and trading by 2017. Assuming that this fixed increase proceeds smoothly, we expect the company's EPS for 2014-16 to be 0.28, 0.28, and 0.33 yuan respectively, of which 15-16 is calculated as dilution after considering the increase in total share capital. In terms of valuation, the current industry average is 40 times, and the company's epitaxial expansion path is obvious, and the valuation level is expected to move upward. The 2015 EPS is expected to be valued 30 times, with a target price of 8.40 yuan, and a rating to increase holdings. The corresponding dynamic PE for 2014-16 is estimated at 30, 30, and 25 times, respectively. 7. Uncertainty analysis. Product prices have fallen sharply or mine production has fallen short of expectations.