The company's non-public offering was approved by the Securities Regulatory Commission on June 17, and the company's 2015 non-public offering was approved by the Securities Regulatory Commission. This non-public offering raised 497 million yuan, with a reserve price of 9.35 yuan, for the Nanjing Tianhua Phase II project. The investment is mainly aimed at expanding the production capacity of equipment for sludge drying and lignite upgrading (annual output of 50 sets each). A number of technology reserves are being promoted at an accelerated pace. The Tianhua Institute is one of the top ten key research institutes of the former Ministry of Chemical Industry, and has achieved more than 400 major scientific and technological achievements. Recently, the State Council introduced an incentive policy to support the transformation of scientific research results, and the transformation of many of the company's scientific research results is expected to accelerate. Faced with declining demand for chemical equipment, the company leverages its scientific research advantages and actively extends to environmental protection equipment. The company's environmental protection equipment such as sludge drying, lignite upgrading, ammonia nitrogen wastewater treatment, and low NOx burners is put on the market and commercialized application, which is expected to accelerate promotion. The contract amount currently being executed by the company is 515 million yuan. According to the contract agreement, all deliveries will be made in 2016, providing a guarantee of performance in 2016. Orders for sludge drying and lignite upgrading are expected to accelerate implementation. The amount of dehydrated recycling in the lignite upgrading process can meet the recycling water needs of power plants, improve coal combustion efficiency and reduce coal consumption after upgrading, especially for water-scarce coal-fired power plants in the north. The company's lignite upgrading technology has now been used in industry in Baosteel and Pangang; the company's sludge drying technology has a high heat utilization rate, low energy consumption, and small investment. It is expected that the company's sludge disposal and lignite upgrade orders have been implemented at an accelerated pace. After the company's private offering, the Nanjing Tianhua Phase II fund-raising project will accelerate, increasing the production capacity of sludge disposal and lignite upgrading equipment. Research institutes under major groups have reform expectations, focus on the distribution process and consider additional distribution. The EPS for 16-18 is expected to be 0.13, 0.16, and 0.21 yuan, respectively. The company is the only listing platform under the Academy of Chemical Sciences. The group is rich in high-quality assets, and there are expectations for reform of research institutes. The company's private offering has been approved, and it is recommended that attention be paid to the additional distribution process. The company is a small company in a large market and a large group, and maintains a “buy” rating.