Event description: The company's 2019 semi-annual report shows that in the first half of the year, it achieved revenue of 2.25 billion yuan, a year-on-year decrease of about 2%; net profit of 91 million yuan, a year-on-year decrease of 11%, and earnings per share of 0.11 yuan. Incident review: Due to the fire accident at the corrosive foil workshop, the revenue of the electrode foil sector declined. During the reporting period, the company's high-purity aluminum achieved sales revenue of 331 million yuan and electronic aluminum foil achieved sales revenue of 311 million yuan, which remained stable compared to the same period last year; electrode foils achieved sales revenue of 416 million yuan due to insufficient supply of corroded foils, showing a certain decline; alloy products and aluminum products achieved a total sales revenue of 783 million yuan, which was basically the same as the same period last year; judging from domestic and foreign market distribution, the company's export revenue was 240 million yuan, an increase of 11.47% over the same period last year. The production capacity advantage is obvious, and the aluminum foil business is growing steadily. About 750 million yuan of capital raised by the company's non-public stock offering will be used for: (1) a high-pressure high-pressure foil project with an annual output of 15 million square meters; (2) a high-performance high-pressure corrosion foil project with an annual output of 15 million square meters; and (3) repayment of bank loans. By the end of June, part of the project's production lines had already entered the commissioning stage. The total number of issuers is 4: TBEA Electric Co., Ltd. subscribed for about 368 million yuan; Zhuhai Gree Electric Co., Ltd. subscribed for about 200 million yuan; Jiangsu Yuquan Agricultural Bank State-owned Enterprise Mixed Reform, Transformation and Upgrading Fund subscribed for about 148 million yuan; and Shenzhen Boding Huxiang Investment Partnership subscribed for about 35 million yuan. Currently, TBEA has a shareholding ratio of 30.85% and is still the company's largest shareholder. Gree Electric has a shareholding ratio of 4.44%, making it the third largest shareholder of the company. Gree Electric has strategically invested in shares and deepened cooperation with Xinjiang Zhonghe. Xinjiang Zhonghe is an important supplier of medium- and high-voltage foil-formed materials for Gree Electric. This strategic equity investment in Xinjiang Zhonghe will help improve the company's supply chain system and provide the company with a stable supply of raw materials. Furthermore, in-depth cooperation with Xinjiang Zhonghe can accelerate the promotion of the company's products in emerging industries and form a close strategic cooperative relationship. Profit forecast and investment recommendations: Considering the impact of electrode foil sales and costs during the year, after adjustments, the company's net profit for the year 2019-2021 is expected to be 1.96, 2.52, and 296 million yuan respectively; EPS is 0.19, 0.24, and 0.29 yuan respectively. The P/E corresponding to the stock price on August 14, 2019 is 22.7X, 19.2X, and 16.3X, giving an increase in holdings ratings. Risk warning: Prices of alumina and electrolytic aluminum fluctuate sharply, and demand for aluminum foil falls short of expectations