The company is the largest producer of nitrocellated cotton in the world. The production and sales volume has been ranked first in the world for many years. It is one of the three executive units of the World Nitrocotton Industry Association, and is a leading enterprise in the domestic and international nitrocellulose industry. The company is mainly engaged in the production and sale of nitrocellulose series products. Nitrocellulose is an ester in a large family of cellulose derivatives. It is widely used in various fields such as coatings, inks, sporting goods, cosmetics, etc., and mainly produces nitrocellulose series products, including H-type nitrocellulose, L-nitrocellulose, and nitrocellulose containing energy. The company has formed a complete industrial system integrating production, sales and research and development of nitrocellulose. According to the implementation plan for this fund-raising investment project, the company will add 400.18 million yuan in fixed assets after the project is completed, and after the project is put into operation, the annual depreciation expenses will increase by about 23.227 million yuan. If the market environment changes after this fund-raising investment project is put into operation, causing the return of the project to deviate drastically from the expected level of return, then there is a risk that profits will decline due to a significant increase in depreciation of fixed assets.