Key Investment Highlights Announcement Lihe Houpu Technology increased the capital of the participating company Hunan Lihe Houpu Technology Co., Ltd. by RMB 10 million. The capital increase price was RMB 1 yuan/share. After the capital increase, the company's investment in Lihe Houpu was 20 million yuan, with an investment ratio of 26.67%. Who is Rikago Atsuura? ——The main projects of Lihe Houpu's subsidiary Electrochemical Hupo have basically completed the main projects of the 2,000 tons/year nickel-cobalt-manganese ternary material precursor production line and the 3,000-tons/year battery-grade nickel sulfate production line, and are undergoing customer certification. ——Mr. Liu Huiji, the main shareholder of Lihe Hupu, is the inventor of preparing the nickel-cobalt-manganese ternary material precursor. The production cost is lower than the traditional process, and the production cost is lower than the traditional process, and the shareholding agreement at the time was that if the pilot product met expectations, Xiangtan Electrification had the right to invest more at the agreed price (see announcement on March 16, 2018). Therefore, this investment means that the project is one step closer to mature mass production. The company's layout of cathode materials has gradually become clear. Previously, the second phase of the lithium iron phosphate production line of Hunan Yuneng New Energy Battery Materials Co., Ltd., which holds 16.07% of the company's shares, had already been put into operation. The total production capacity of Guangxi Yuneng's 13,000 tons of lithium iron phosphate production line project was put into operation; the technical level of the company's lithium iron phosphate products was leading in the domestic industry, and lithium iron phosphate was already supplied to BYD and others. In the first half of 2019, lithium iron phosphate sold a total of 4,366 tons, an increase of 1,475.08% over the same period last year, achieving a net profit of 34.2294 million yuan. Overall, the company's layout of lithium battery cathode materials has gradually improved, making full use of the company's proprietary knowledge platform. Whether it is lithium manganate, lithium iron, or ternary, the company is likely to have a place in the field of lithium battery cathode materials in the future. Risk warning: -- Raw material prices fluctuate beyond expectations; potential changes in the cathode material technology route; profit forecasting and valuation do not take into account the company's increase in distribution. The company's EPS in 2019-2021 is expected to be 0.18,0.27,0.33 yuan/share, and PE is 27.8 times, 18.7 times, and 15.5 times, respectively; maintain the company's shareholding rating