Event: The company released its third quarter report. The company's operating income during the reporting period was 383 million yuan, up 43.45% year on year; net profit attributable to shareholders of listed companies was 60.96 million yuan, up 35.55% year on year. Achieved EPS of 0.49 yuan, in line with expectations. The increase in the company's performance was mainly due to the increase in overseas sales revenue and the Dutch Novecare consolidated statement. The fund-raising project was put into operation, consolidating its leading position in the industry. The company has formed a production capacity of 36,000 tons of chemical fertilizer additives in 2015. The listed fund-raising project was put into operation in 2016, and the company's production capacity reached 80,000 tons. In addition, the 100,000 tons/year round granular potash fertilizer project of the subsidiary Yannong Fubon has been put into operation. The company's production capacity has been greatly increased, categories have become richer, downstream market areas have been expanded, and market competitiveness has been further improved. There is plenty of room for imagination in overseas mergers and acquisitions, and external development is actively promoted (1) The company is actively going global and achieving internationalization through overseas mergers and acquisitions. In September 2015 and May 2016, 70% of the shares of Novecare in the Netherlands were obtained through two cash mergers and acquisitions, greatly optimizing the company's downstream market layout and increasing the company's performance. The company will continue to acquire international companies with core technology and market resources in the segment. (2) Participate in multiple industrial merger and acquisition funds. The company and Hubei High-tech Industrial Investment Co., Ltd. plan to establish Hubei Gaobang Ecological Environmental Protection Fund Management Co., Ltd., and the Hubei Hi-Tech Fubon Ecological and Environmental Protection Industry Investment Fund, with a fund size of 500 million yuan. Furthermore, the company and a direct investment subsidiary of Kyushu Securities plan to jointly initiate the establishment of an industrial merger and acquisition fund with a fund size of 500 million yuan. The incentive mechanism was further improved. Following the introduction of a restricted stock incentive plan, the company once again introduced a stock value-added rights incentive plan for foreign employees. The company has established a benefit-sharing and restraint mechanism between shareholders and employees, fully mobilizing their enthusiasm and creativity, and integrating their interests more closely with the company's long-term development. Optimistic about the company's development potential, maintain the “increase in holdings” rating. The company's 2016-2018 EPS is expected to be 0.77 yuan, 0.98, and 1.28 yuan respectively. Optimistic about the company's endogenous and external development potential, the target price was raised to 36.00 yuan to maintain the “increase in holdings” rating. Risk warning: risk of cyclical fluctuations in the fertilizer industry; risk of fluctuations in raw material prices