Event: Company Announcement: Joint Venture Framework Agreement signed with Practical Precision Inc. (PPI). Main views: 1. Using agricultural big data to further enhance and expand existing business PPI is an agricultural big data company engaged in precision agriculture. It is committed to providing North American farmers with planting decision services based on field data. PPI has SoilOptiX software and hardware integration technology. A single system can accurately and quickly obtain multiple physico-chemical data of soil, and form a high-precision digital soil map through a unique artificial intelligence big data mining algorithm. This cooperation will help the company strengthen further cooperation with organizations such as the government, Internet agricultural resources, and fertilizer manufacturers. On the one hand, it saves fertilizer costs for growers and improves the competitiveness of agricultural products, and on the other hand, it enhances the efficiency of fertilizer production and distribution enterprises. 2. The traditional business additives market is developing steadily. The fund-raising project production company has formed a production capacity of 36,000 tons of chemical fertilizer additives in 2015. In 2016, the fund-raising project put into operation 22,000 tons of anti-caking agents and 12,000 tons of multi-functional packaging. 3. While actively seeking endogenous growth, the company is also actively seeking epitaxial development. As before, it co-initiated the establishment of an industrial merger and acquisition fund with a direct investment subsidiary of Kyushu Securities as a platform for integrating the company's industrial mergers and acquisitions in the fields of bioengineering, emerging agriculture, new materials, energy saving and environmental protection. 4. Other new projects and new directions should not be underestimated Other new projects and directions include: 1) The 100,000 ton round granular potash fertilizer project is progressing smoothly, and production and operation has begun. 2) The phosphorus-containing wastewater treatment and slow-release fertilizer recycling project has begun to be promoted on a large scale. 3) Plant nutritional additives currently being developed can effectively help fertilizer enterprises achieve transformation and upgrading. 4) Zinc-rich rice is exploring marketing promotion models, including internet marketing. 5. Give a “recommended” rating We expect the company's EPS in 2016-2018 to be 0.75, 0.98, 1.22 yuan, and the corresponding PE will be 48, 37, 30 times, and give a “recommended” rating. Risk warning: epitaxial development expectations are low, and the downstream fertilizer industry is sluggish