Incident Company (002259) announced today that it has completed the non-public offering of 56.4 million shares, raising a net capital of 306.7756 million yuan, and an issue price of 5.67 yuan/share, which is equivalent to 101.61% of the reserve offering price of 5.58 yuan/share, which is equivalent to 69.32% of yesterday's closing price of 8.18 yuan/share. A brief review of the full capital raised by the non-public product expansion product production line company (002259) will be invested in the construction of two projects: the “0.16 million cubic meter medium density fiberboard production line project” and the “0.3 million per year solid wood composite door production line project”. The project plans to raise 0.163 billion yuan and 143 million yuan respectively, and the estimated net profit is 39.4049 million yuan and 307.296 million yuan, respectively. This fundraising project is expected to expand the company's (002259) product line and continue to consolidate and improve the “forest board integration” industrial chain. At the inflection point in performance, we forecast that the company's (002259) profit in 2010 will increase by 22.23 million yuan, net profit attributable to shareholders of the parent company will reach 36.89 million yuan, or 0.12 yuan per share. In 2011, the 0.22 million cubic meter medium fiber board (thin board) project, which was funded by the IPO, went into production, and will contribute about 0.36 billion yuan in operating income and about 16 million yuan in net profit. In 2011, the company's net profit was 52.89 million yuan. Based on the company's (002259) total share capital of 357.4 million shares after completion of the additional issuance, the profit per share after full dilution was 0.15 yuan. In 2012, the additional fund-raising project is expected to reach production, adding 0.588 billion yuan in sales revenue and 70.12 million yuan in net profit, and reaching 0.34 yuan per share. According to the company's (002259) EPS of 0.12 yuan, 0.15 yuan, and 0.34 yuan from 2010 to 2012, we maintain the target price of 9.50 yuan. Since the company's (002259) stock price has recently risen 7%, we lowered our rating to increase our holdings.