The incident company published the “2015 Semi-Annual Report” on August 7, 2015. The announcement showed that during the reporting period, the company achieved operating income of 5759.17 million yuan, an increase of 36.16% over the previous year, and realized net profit attributable to shareholders of the parent company of 7.06 million yuan, a decrease of 42.67% over the previous year, and achieved basic earnings per share of 0.02 yuan, compared to 0.04 yuan for the same period last year. Review Operating income has risen, but gross margin has declined sharply. The main reason for the increase in revenue is the sharp increase in cathode copper produced by the company's smelting slag treatment project. In 2015, the company plans to complete 90,000 tons of cathode copper, and 45,700 tons in the first half of the year, up from 40,700 tons in the whole of 2014. In the reporting period, the company's consolidated gross margin was 1.53%, down 2.05 percentage points from the previous year. In the first half of 2015, prices of major products rebounded, but the overall performance was worse than in 2014. The average prices of SHFE electrolytic lead, gold, silver, and cathode copper fell 7.64%, 3.28%, 10.19%, and 11.14%, respectively, from 2014. Hedging in response to falling product prices has been the main source of profit for the past three years. Net profit for the reporting period mainly came from income from changes in the fair value of financial liabilities and income from futures investment, which increased by 783.24% and 36.01%, respectively, year-on-year. The company is a leader in the domestic electrolytic lead industry and is committed to the development of circular economy business. The company currently has a lead production capacity of 400,000 tons, ranking first in the country. In 2014, the company became one of the first two enterprises to meet the entry requirements for recycled lead. It has three waste lead-acid battery treatment production lines, with a total annual processing capacity of 540,000 tons. In 2015, the company plans to raise funds privately for 4 circular economy projects. Among them, the “Waste Lead-Acid Battery Recycling Network System Construction Project” plans to build 67 collection and storage sites, with a total accumulation volume of 720,000 tons/year, which will increase the company's raw material self-sufficiency rate to a certain extent. The supporting “Phase III Waste Lead-Acid Battery Comprehensive Treatment Project” has an annual processing capacity of 180,000 tons. After the completion of the project, the company will further enjoy the institutional dividends of China's vigorous development of the circular economy. As the leader in China's lead industry, the Profit Forecast Company plans to further consolidate the development path of the recycled lead industry and reduce the cost of raw materials through non-public offerings. We expect that without considering this additional issue, the company's 2015-2016 EPS will be 0.07 yuan, 0.23 yuan, and 0.29 yuan respectively, and the current price corresponding PE will be 193.42, 59.61, and 47.40 respectively. Since September is one of the times when the Fed raises interest rates generally anticipated by the market, we tend to be cautious in the short term on the entire basic metals industry, giving the company a “neutral” rating for the time being. Investment risk: Risk of falling prices of major products beyond expectations; risk of failure of non-public offerings; policy risk; risk of a sharp downturn in the macroeconomic economy.