Incident: On September 9, the Securities Regulatory Commission publicly published the “Opinions of the China Securities Regulatory Commission on Leveraging the Role of the Capital Market to Serve the Country's Poverty Alleviation Strategy”. The “Opinion” calls for gathering joint efforts between the Securities Regulatory Commission and the capital market to serve the country's anti-poverty strategy, support enterprises in impoverished regions to use multi-level capital market financing, support and encourage listed companies and securities funds and futures management institutions to fulfill their social responsibilities for poverty alleviation, and effectively strengthen the protection of investors in impoverished regions. In order to support industrial development in impoverished regions and help poor people get out of poverty steadily, the Securities Regulatory Commission has opened up a green channel for enterprises in impoverished regions for the initial public offering of shares, listing on the New Third Board, issuing bonds, and mergers, acquisitions and restructuring. Main opinion: In January, the company and the Poverty Alleviation Office established the Lankao China Securities Poverty Alleviation Industry Fund Company Poverty Alleviation Industry Fund. The equity structure of the Poverty Alleviation Industry Fund of the Lankao China Securities Poverty Alleviation Industry Fund Co., Ltd., CITIC Agricultural Industry Fund Management Co., Ltd., Lankao Longdi Investment Management Center, and other investors jointly established Lankao China Securities Private Equity Fund Management Co., Ltd. Among them, young eagle farming and animal husbandry take the lead, accounting for 40% of the shares. Afterwards, Lankao China Securities Private Equity Fund Management Co., Ltd. was the general partner, and Young Eagle Farming and Animal Husbandry jointly established the Lankao China Securities Industry Poverty Alleviation Investment Fund. We believe that the Lankao China Securities Poverty Alleviation Industry Fund integrates the superior resources of leading agricultural enterprises, leverages social capital, and also has policy support from the Poverty Alleviation Office. Taking advantage of the country's precise poverty alleviation policy, we expect that the fund's subsequent preparations and projects will proceed smoothly, which can provide stable investment income for all investors, and at the same time cultivate high-quality enterprises for the Lankao region and promote local economic development. 2. The reported investment income is 63 million yuan. The business model will be rapidly replicated in various regions to establish multiple industrial funds, fully integrate existing resources, and achieve capital appreciation. In the first half of 2016, Young Eagle participated in the establishment of Shenzhen Zefu Agricultural Industry Investment Fund Limited Partnership (Limited Partnership), Pingtan Fengshi No. 1 Investment Management Partnership (Limited Partnership), Pingtan Jingyuan Investment Management Partnership (Limited Partnership), and CITIC Modern Agricultural Industry Investment Fund (limited partnership) (tentative name) to actively engage in upstream and downstream investments in agriculture and e-sports. The company's interim report received 63 million yuan in investment income, mainly in agriculture and related fields, upstream and downstream enterprises in the company's related business chain, and upstream and downstream of the e-sports industry chain. The company has experience in capital operation and management, and is a pioneer in the application of agricultural industry funds. We believe that in the future, the company will shift the asset-light business model of pig farming to the capital market, achieve investment income in the form of financial investment, reduce investment risk, and increase net profit. Conclusion: We believe that, as pioneers in the development of agricultural industry funds, Young Eagle Farming and Animal Husbandry was also the first to establish the Poverty Alleviation Industry Fund. It can make full use of its first-mover advantage to fully explore advantageous projects, cooperate with the rich development experience accumulated by the company in the early stages, and achieve capital appreciation. The company's 2016, 2017, and 2018 EPS is expected to be 0.35 yuan, 0.43 yuan, and 0.72 yuan, respectively, and the corresponding PE is 16.33 times, 13.37 times, and 7.91 times, respectively.