Incident 1: Company executive Mr. Meng Fanlong (position: director, deputy general manager, financial director, board secretary) purchased 100,000 shares of the company through the stock trading system of the Shenzhen Stock Exchange on September 3, 2014, and promised not to transfer the company's shares within one year. Incident 2: The company announced a report on the implementation of major asset purchases, disclosing the circumstances of the acquisition of KRS. Executives showed confidence in increasing their holdings. Mr. Meng Fanlong, an executive of the company, did not hold shares in the company before increasing his holdings. This time, Mr. Meng increased his holdings at a historic high in the company's stock price (the increase cost was 12.11 yuan/share, only lower than the stock price at the beginning of the listing) and promised to lock in for one year, demonstrating his confidence in the company's development. The subsequent integration of KRS is the key to the company's development. We believe that the integrated management of this Australian company with a long history after the company's acquisition of KRS is the key to the company's development. According to our collection and collation of available public information, the best performance in KRS history in recent years was a net profit of more than 10 million Australian dollars, while the company's current net profit is only one-tenth of that year. High operating costs and period expenses are the reason for the sharp decline in performance. We believe that the future profitability of KRS is still expected to return to the best level in history that year. Coupled with the industrial chain connection with the company's existing business, it is expected that there will be a synergy effect and may create greater value. Currently, KRS executives have made certain adjustments: on June 5, 2014, the former director and executive of KRS, Mr Robert Farrar, officially resigned, and its acting director, Mr Hardjanto Siswandjo, also dropped out of this position accordingly. On 2014/6/6, former KRS executives Mr Sean Shwe and Mr Andrew Tacey were hired as the company's new executive directors. On 2014/8/29, John Murphy, the former director of KRS, officially resigned. We believe that KRS executive changes are only the first step in restructuring the company's governance. Maintain a “buy” investment rating. Due to the principle of prudence, we will not consider the impact of the KRS merger in the future. Judging only from the company's current business, we expect the company's 2014-2016 EPS to be 0.21 yuan, 0.27 yuan, and 0.32 yuan, maintaining the “buy” investment rating. Risk warning. There is a risk that the length of integration time after the KRS acquisition exceeds expectations, and the risk that external shading promotion falls short of expectations.