Key points of investment: The company announces asset replacement, that is, related transaction announcements: it is proposed to buy non-agricultural assets and place land assets. The company plans to purchase five parcels of land owned by the Gansu Agricultural Reclamation Group from the Group, totaling 272,300 mu of land use rights and related agricultural assets, mainly located in Jinta, Minle, Jiuquan, and Shandan in Hexi. Of these, 114,000 mu are agricultural land (some crops have already been planted), while the remaining 158,000 mu are uncultivated wasteland in Yinong and will be reclaimed over the next 3-5 years. The assets that the company plans to allocate to the Group are four enterprises, including the Mining Branch and Shengyuan Branch. The assessed value of injected assets was 971 million yuan, and the assessed value of assets placed was 967 million yuan. The difference of more than 4 million yuan was paid by the company in cash. Make further use of resource advantages, promote performance improvement and create new growth points, and send a positive signal. This is the third time that the company has purchased land assets from the group. Previously, the company divested the loss-making agrochemical business in 10-11, and the company acquired the group's land assets in '13. By replacing the Group's five parcels of land and related agricultural assets with some of the company's assets, the company can make better use of the company's rich land resources, industrial development, and large-scale management advantages, and form a virtuous circular system and industrial chain, which can further optimize the company's asset structure and industrial layout, and reduce related transactions and industry competition issues between the company and the group. It also symbolizes the Group's strong support for the development of listed companies, so investors don't have to worry about the problems of corporate system bundling in the future. On the other hand, the main business of the mining branch, Shengyuan branch, supply and marketing branch, and 100% of the shares held in Green Space this time is the mining and sale of mangosteen and raw salt, flower cultivation, etc., which are inconsistent with the company's industrial development direction, and are in a state of loss (total loss of 7.62 million from January to November '15). At the same time, the company announced the establishment of Gansu Yasheng Haoshibang Food Co., Ltd. to use raw material suppliers to transform brand food. The company plans to invest 50 million yuan to establish Gansu Yasheng Haoshibang Food Co., Ltd., with a 100% shareholding ratio. Over the past few years, the company's land resources have continued to expand. Prior to this asset injection, the company had a land area of 4.15 million mu, and more than 700,000 mu of arable land had been reclaimed. The unified business model accounted for about 65% of arable land. The level of modernization was already very high. The company was blessed with unique resource advantages+technical advantages, and produced a large number of unique high-quality agricultural products. However, due to shortcomings in marketing and lack of brands, the company mainly sells in local wholesale markets to supply raw materials to large processing enterprises. To establish Haoshibang, the company will focus on the industrial chain with the fundamental goal of comprehensively increasing the added value of agricultural products, implement a specialized, full-industry chain food development strategy focusing on the food ingredients industry and the food industry, and build a complete industrial system “from field to table” to highlight industrial characteristics; use modern marketing methods to further improve terminal sales of specialty agricultural products, open up purchase and marketing channels for bulk agricultural products, and form a “big circulation”; integrate food products and industries into specialized food companies to develop in groups to promote the formation of a basket of agricultural products that can reach the terminal market, using “Good Food Asia” “State” unifies the brand and realizes organic integration of all links in the industrial chain. Through Internet+ marketing thinking, we will create a high-quality and safe agricultural products, food market system and O2O's Internet+ marketing platform integrating high-quality agricultural products, food franchise chain, e-commerce, group sales, bulk wholesale, traditional distribution, large supermarket distribution, system procurement, etc., and establish a business model for the entire large food industry chain integrating cultivation, production, processing and sales, thus realizing the local transformation of primary agricultural products into high-quality agricultural products and food with high added value to obtain more reasonable profits. After the construction of the major food industry chain is completed, it is expected to achieve annual revenue of 1.2 billion yuan and net profit of 100 million yuan. Maintain a “neutral” rating and focus on catalysts for food-side layout. Opening up the industrial chain drives product premiums and asset injection increases profitability. Since the company's food-side layout has only just begun, and the pace of performance contributions is uncertain, and without much consideration, we expect the company's net profit for 15-17 to 1.24/1.61/210 million yuan (profit forecast has not been adjusted), earnings per share of 0.064/0.083/0.11 yuan, and a valuation of 50X in 2017. We maintain a neutral rating for the time being, but we strongly recommend investors to pay attention to the extended expansion of the company's food-side layout, the introduction of war investment, and equity diversification A catalyst for development.