Incident: Recently, Xiang'e Information announced that it had signed a strategic cooperation agreement with Langyuan Co., Ltd. Comment: The goals of cooperation between Vertical Extension Agricultural Products Industry Chain Company and Langyuan Co., Ltd. are to strengthen the agricultural products industry chain, expand the market network, expand areas of cooperation, and enhance brand influence. Simply put, Xiang'e Qing provides sales channels, and Langyuan provides products. In other words, Langyuan Co., Ltd. relied on the company's mature chain catering service channels across the country, combined with the company's successful operating experience in the middle and high-end catering service market, to enhance the sales scope and sales scale of Langyuan Co., Ltd.'s high-quality finished small food products such as fresh vegetables, fruits, dried nuts, etc. The company uses the advantages of Langyuan Co., Ltd.'s own and agreed base, cold chain storage, sorting and processing, logistics distribution, etc., to procure high-quality fresh agricultural products, and explore new fields of cooperation and development between the catering service industry and the food industry through Langyuan Co., Ltd.'s nationwide cooperative sales network with large and medium-sized supermarkets and the market influence of its own direct-run stores. Cooperation methods for joint development of juice drinks are being discussed. This strategic cooperation agreement is a useful exploration of strengthening cooperation between the two sides and upstream enterprises. The two sides have jointly invested in the development of juice drinks, integrated the company's economic resources, enriched the company's production, and will not have a significant impact on the company's business performance in the short term. The business scope of Langyuan Co., Ltd. includes the cultivation, storage, processing and sale of fruits, vegetables, raisins, nuts and kernels. In terms of cooperation between the two sides, the two sides should set up a new company to jointly discuss issues such as product development and operation. It is currently in the discussion stage with scientific research departments such as China Agricultural University. The two sides are also only planning cooperation in a strategic sense, and market issues such as specific methods and feasibility are yet to be determined. The company achieved remarkable results in 12 years of horizontal expansion. It has successively acquired or participated in Shanghai Qiding Catering Development Co., Ltd., Beijing Longdehua Catering Management Co., Ltd., Shenzhen Haigang Catering Management Co., Ltd., etc., to enter the fast food and group meal markets while sharing profits in the seafood market. As a result, the restaurant business, fast food business, group meal business and food processing business will become the company's four main businesses. Performance forecast and valuation We forecast the company's EPS of 0.37 yuan and 0.53 yuan for 12 and 13, respectively. Maintain the “Buy” rating. Risks indicate food safety risks, emergency risks, market risks, etc.