Incidents: On August 27, the company released its semi-annual report. It achieved operating income of 891 million yuan during the reporting period, an increase of 5.06 percent over the same period; realized total profit of 99 million yuan, a decrease of 15.15% over the same period last year; and net profit attributable to shareholders of the parent company of 87 million yuan, a decrease of 23.08% over the same period last year. Our analysis and judgment: 1. Performance improved month-on-month and actively promoted industrial restructuring: The overall development of agricultural planting was relatively stable, the company actively promoted changes in agricultural planting models, and performance gradually improved from quarter to quarter. Net profit for the first quarter was 29 million, and the second quarter was close to 60 million, an increase of 100% over the previous quarter. Furthermore, the company is actively restructuring the industry, incorporating red dates and spices into the layout of the new industry on the basis of the existing “5+1" industry, forming a new pattern of the “7+1" industry. 2. Agricultural reclamation reform is advancing at an accelerated pace, and the company has reached the inflection point of “agricultural reclamation reform+state-owned enterprise reform”: in the context of accelerated land circulation and agricultural reclamation reform, Yasheng Group may reform the path: 1) Introduce strategic investors to improve the efficiency of business operations. 2) Employee shareholding. 3) Integrate land resources outside of reclaimed areas. 3. The company is the only listed agricultural company with a large amount of land resource property rights. Agricultural reclamation in Gansu still has 4 million mu of land resources, and agricultural reclamation reform is imminent, and there are expectations of injection. The total area of land resources owned by agricultural reclamation in Gansu is about 8.1 million mu. Currently, there are 4.15 million mu of listed companies, accounting for 51%. In the context of comprehensive agricultural reclamation reforms, the securitization of group assets is a trend. It is expected that the company's asset storage and asset injection is expected. The large amount of land resources in agricultural reclamation in Gansu will also open up room for the company to grow. Furthermore, the company still has an area of about 700,000 mu of cultivated land that has not been cultivated in Yinong, and there is room to double the area of cultivated land that can be used within listed companies. Investment suggestions: We expect the company to achieve net profit of 44/ 540 million yuan from the mother in 2015/2016; the corresponding EPS is 0.23/0.28 yuan, respectively. Give it a “buy-A” rating. Risk warning: The reforms have fallen short of expectations.