Incident: The company received a notice from Jia Quanchen and his co-actors Jia Yulan, Jia Xiaoyu, and Dai Yiming on May 7, 2015. Jia Quanchen and his co-actors signed a “Letter of Commitment on Mr. Jia Quanchen and his Co-Actors to Increase Their Shares in the Next 12 Months” on April 30, 2015. The specific process is as follows: 1. Mr. Jia Quanchen and his co-actors, Jia Xiaoyu and Dai Yiming, disclosed the “Summary of the Acquisition Report of Qingdao Hengshun Zhongsheng Group Co., Ltd.” on March 31, 2015, and promised to increase their holdings of the company's shares by no more than 2% and not reduce their holdings of the company's shares in the next 12 months from the date the acquisition report was signed. 2. On April 30, 2015, Jia Quanchen, Jia Yulan, Jia Xiaoyu, and Dai Yiming signed the “Agreement on Concerted Action”, which stipulates that during their time as shareholders of the company, Jia Quanchen, Jia Yulan, Jia Xiaoyu, and Dai Yiming will all act in unison when exercising shareholder rights (including but not limited to shareholders' right to make proposals and shareholders' voting rights), and take Jia Quanchen's opinions as opinions for concerted action. According to the letter of commitment signed by Jia Quanchen and his co-actors Jia Yulan, Jia Xiaoyu, and Dai Yiming, within 12 months from the date the “Coordinated Action Agreement” was signed, Jia Quanchen and his co-actors Jia Yulan, Jia Xiaoyu, and Dai Yiming increased their holdings of the company's shares by no more than 2%, and they will not reduce their holdings of Hengshun Zhongsheng shares. Comment: The promise to increase holdings shows confidence within the company. The promise of Jia Quanchen and his co-actors, Jia Yulan, Jia Xiaoyu, and Dai Yiming to increase their holdings shows the actual controller of the company and the company's internal confidence in the company's future development prospects. The company has now completed its nickel-iron layout in Indonesia, and the Indonesian sector business has been initially realized; at the same time, the company currently still has a number of major orders on hand in the complete mechanical smelting equipment business, which will greatly improve its performance in 2015. At the same time, it also shows from the side that even after the sharp rise, stock prices are still very attractive, and executives are full of confidence in the company's future prospects. The actual controller of the transfer of the share agreement remains the same. On March 31, the company announced that the controlling shareholder Xinyu Qingyuan Environmental Investment Management Co., Ltd. had transferred its 90.1 million shares of the company to Jia Quanchen, Jia Xiaoyu, and Dai Yiming through an agreement transfer, so that Jia Quanchen, Jia Xiaoyu, and Jia Yulan changed the company's shares held indirectly through Qingyuan Investment to their own direct ownership (Jia Yulan's shares are held by their son Dai Yiming). The equity transfer registration was completed on March 31, 2015 at the Shenzhen branch of China Securities Registration and Settlement Co., Ltd. After the share transfer, Jia Quanchen, Jia Xiaoyu, and Dai Yiming directly held a total of 101 million shares of the company, accounting for 33.28% of the company's total share capital of 302 million shares. Large orders are delivered, and performance is expected to increase dramatically in the first half of the year. The company expects profit of 177-187 million yuan in the first half of the year, an increase of 1058-1123% over the same period last year. The main reasons are as follows: (1) The new large contracts signed in 2014 will continue to contribute profits to the enterprise. Currently, the company is executing orders of about 1 billion yuan. According to the production plan, the semi-annual output value has increased significantly over the same period last year, which will result in a sharp increase in net profit attributable to shareholders of listed companies ;( 2) It is expected that the company's non-recurring profit and loss during the reporting period will be 103 million yuan, or 900,000 yuan for the same period last year. The Indonesian layout is beginning to take shape. The company's current investment project plan in Indonesia has begun to take shape, and has obtained many mineral resources such as coal mines, nickel mines, and manganese ores through acquisitions. In February 2014, the company's Nickel-Iron Industrial Park project in Sulawesi, Indonesia was officially launched. At the same time, the construction of the industrial park and supporting power plant project will also bring opportunities for the company to export equipment (complete mechanical smelting equipment and power equipment); after the construction of the power plant is completed, in addition to supplying electricity to its own smelter, it can also sell electricity to the outside world. The company's various projects in Indonesia have huge profit margins in the future and will have a profound impact on the company. Since 2014, revenue from complete machinery and equipment has increased dramatically, and the company has not contributed huge profits. The country endorses the new goals of the “Belt and Road” strategy. March 27: Qingdao Municipal People's Government, the Company, the Central Sulawesi Provincial Government of Indonesia, Indonesia PT. Batue TjepperResouces, the four parties signed a deal with Hengshun Zhongsheng Group and Indonesia PT. Support agreement for Batue Tjepper Resouces to carry out investment projects in Indonesia. According to the support agreement between the Chinese and Indian governments, the signatories of the agreement will cooperate through mutual support (financing, assistance, technology transfer, etc.); the local governments of the two countries will actively guide and provide various facilities. The support agreement is a full affirmation that the company is in line with the country's “Belt and Road” strategy. It also provides policy guarantees for the construction of integrated industrial parks and other projects being carried out by the company in Indonesia. It is expected that the company's project progress will be completed beyond expectations. Maintain a “buy” investment rating. The company relies on the Indonesian Sulawesi Nickel-Iron Industrial Park project to integrate superior local resources - coal and nickel ore, to create a complete nickel industry chain from energy (coal, electricity) - nickel ore - nickel smelting; at the same time, the company will continue to develop overseas sales markets for complete mechanical equipment business using the Indonesian Industrial Park project as a starting point. It is expected that sales orders and sales revenue will continue to increase in 2015, and the company's performance will continue to grow rapidly. According to the company's performance and project progress, the company's 2015-2016 EPS is estimated to be 1.31 yuan and 2.27 yuan respectively. Combined with the average valuation level of the nickel sector and the “Belt and Road” increasing the company's valuation level, we gave the company a target price of 78.88 yuan, corresponding to 60 times PE in 2015, maintaining the “buy” rating. Risk warning. Policy risk; project achievement risk; exchange rate fluctuation risk; business integration risk.