Incident: On October 30, the company released its three-quarter report. The first three quarters achieved operating income of 2.18 billion yuan, an increase of 7% over the previous year, net profit attributable to shareholders of listed companies of 31.83 million yuan, an increase of 828.95% over the previous year, and non-net profit attributable to listed companies - 9.575 million yuan, an increase of 90.6% over the previous year. Among them, operating income in the third quarter was 843 million yuan, up 14.5% year on year, net profit attributable to shareholders of listed companies was 25.14 million yuan, up 1701.47% year on year, and non-net profit attributable to listed companies was 15.1 million yuan, up 144.3% year on year. At the same time, the company expects to achieve net profit attributable to shareholders of listed companies of 45-55 million yuan in the full year of 2016, turning a loss into a profit. The improved state of marine resources has boosted output growth, and profitability has increased dramatically. In 2016, the company underwent a comprehensive transformation. First, by divesting 790,000 mu of unsuitable sowing area, it achieved a shift from a large-scale type to a quality and efficiency focus on unit output rates. Second, promote the upgrading of the marine ranching industry, cultivate high-quality marine treasure seedlings, accelerate the market-based transformation of the seed industry, and at the same time increase the proportion of self-grown seedlings and control the unit cost of seedlings. Third, strictly control costs and expenses, strengthen the control of seed fees and marine usage fees, reduce labor costs, and improve internal organizational structure and operational efficiency. Under the implementation of a series of transformation measures, the company's operating income increased steadily during the reporting period. At the same time, the gross margin of the aquaculture industry also rebounded, and net profit reversed sharply year-on-year losses. Furthermore, the company continues to expand overseas markets and improve order capacity, and the scale of products sold to Europe, America, Japan, and South Korea continues to expand, leading to a significant increase in profitability. Relying on its maritime advantages and the domestic consumer market, it is expected to enter the first camp of international fishery. The company is a well-known domestic seafood brand, and its maritime advantages are obvious. The market size is leading in fields such as shrimp, scallops, etc., and the channel advantage is obvious. The company has a development foundation in fishery processing, and has a good foundation in deep processing. It has a basic brand foundation, has the ability to become a brand, has a foundation in food processing, and can also become a personal consumer product. According to the company's announcement, at present, the company's product research and development center has developed 65 products, of which 30 have been transferred to the market. Currently, newly developed food products will begin to be listed in batches, and the company is speeding up its transformation from a food company to a food company. The company has established dual brand cooperation with the leading snack food brand “Liangpin Store”. Zhangzidao snack food has entered more than 1,000 stores; China is the second largest fishery consumer market in the world, and fishery consumption and supply do not match. The company is expected to rely on its existing advantages to implement a “resources+channel+brand” strategy and enter the first international fishery camp. Introduce war investment to welcome new development. The company announced that the controlling shareholders signed a “Share Transfer Agreement” with Shanghai Hexiang on June 5, 2016, to transfer their holdings of 35.55 million shares - 106.66 million shares of Zhangzidao shares (about 5% to 15% of the total share capital of Zhangzidao) to Shanghai and Xiang or the designated parties of both parties. The introduction of war investment by the company will give full play to the company's technical resource advantages and the management advantages of war investment, improve the company's management efficiency, and implement a “resources+brand+channel” layout. Investment suggestions: With the restructuring of the company's operations, performance is expected to turn a loss into a profit; introduce war investment to welcome new development. The estimated net profit for 16-18 is 0.63, 1.61/213 million, and the EPS is 0.09/0.23/0.3 yuan, maintaining the “buy-A” rating, with a target price of 14 yuan for 6 months. Risk warning: Product sales fall short of expectations; cost control falls short of expectations;