Incident: The company announced today that it will increase its capital by 15% of Guangzhou Bezao Technology Company's shares by 7.5 million yuan, strengthen cooperation in the field of O2O e-commerce on the Internet, and prepare for further development of O2O e-commerce business. Comment: 1. The main business is export to domestic sales, and the company's sales channels have been adjusted in half a year: its domestic sales revenue share rose from 23.2% at the end of 2014 to 41.31%. Against the backdrop of no significant improvement in the export environment, the company's channel layout gradually changed to domestic, actively exploring the middle and high-end domestic markets for boutique goods and gifts. We believe that daily-use porcelain products themselves are highly irreplaceable, and as the cultural taste of domestic residents gradually improves, the domestic ceramic industry still has a lot of room for development, and the company's share of domestic sales revenue is expected to increase one step further in the future. 2. Taking a stake in Bezao Technology opens up e-commerce channels, helping the domestic sales business Bezao Technology has a strong first-mover advantage in the mobile e-commerce field, and is expected to provide support for the company's domestic business in social marketing and e-commerce operations. We anticipate that mobile e-commerce will become an important domestic sales channel for the company, forming a positive consumer loyalty cycle driven by interpersonal sharing and word-of-mouth marketing. Currently, the scale of daily consumption directly driven by WeChat is about 11 billion yuan, of which shopping consumption accounts for about 13.2%. We believe that as consumer stickiness increases and consumer purchasing power increases, there is still plenty of room for improvement in shopping consumption. 3. Set up an industrial fund to launch a business transformation company cooperated with Shenzhen Qianhai Joint Chuangying Investment Management Co., Ltd. to establish the Guangdong Songfa Win-Win Industrial M&A Fund, which is aimed at investing in equity mergers and acquisitions in emerging industries, and carrying out industrial incubation and emerging industry layout. We believe that this move is an important sign of the start of the company's business transformation to further create a development model of diversified brand operation and integration of online and offline resources. 4. The transformation expectations were clear, and “Prudential Recommendation - A” rating was given for the first time. The company's main business has been transferred to domestic sales, and WeChat e-commerce has broad scope for development, and the transformation expectations for the establishment of an industrial fund are clear. The Songfa Chuangying Industrial Fund is large and is expected to provide greater business support for the company's transformation; the company's shareholders also include executives from within the industry, and have large business reserves in the fields of health and home, which can provide reserve projects for the company's future business transformation. We expect the 2015-2017 EPS to be 0.51, 0.72, and 0.80 yuan respectively, giving it a “Prudential Recommendation - A” investment rating for the first time. Risk warning: The export market continues to be sluggish, and the development of domestic sales business falls short of expectations.