On December 11, 2015, Harbin Wanxin Graphite Valley Technology Co., Ltd., a holding subsidiary of the company, signed a cooperation agreement with the Peking University Institute of Industrial Technology to establish the “Peking University - Baoan Ethylene Carbon Technology Joint Laboratory”, marking that the company has made further progress in graphene research and maintained the “Highly Recommended - A” investment rating. Graphene is one of the brightest new stars in the field of new materials science since the 21st century, and is expected to be used in various fields such as electronics, new energy, high-end manufacturing, and medicine in the future. Currently, graphene is in the aggressive stage of industrialization. The key and difficult points of the graphene industry are the preparation of related materials, transfer technology, and integration of upstream and downstream industrial chains. This agreement sets out three research directions, including batch preparation technology for graphene, application of graphene in the field of new energy, and application of graphene in wearable devices. This move is expected to break the shackles of industrial development, further open up downstream applications, and achieve a trillion-level market. From the perspective of technical feasibility, Academician Liu Zhongfan of Peking University, the head of the research team of this agreement, is a well-known expert in the field of carbon materials. Recently, the leading research team used chemical vapor deposition methods to successfully achieve direct growth of graphene on glass surfaces by optimizing growth conditions, which attracted worldwide attention. The team has mastered the core technology and believes it can vigorously promote the industrialization process of graphene in the future. Recently, the graphene industry has continued to improve. According to the “Certain Opinions on Accelerating the Innovation and Development of the Graphene Industry” jointly issued by the Ministry of Industry and Information Technology, the Development and Reform Commission, and the Ministry of Science and Technology, emphasis will be placed on collaborative development between industry, education, research and use in the future. The opinions indicate three major development directions: technological innovation for large-scale preparation of graphene materials, construction of intellectual property systems, and construction of service platforms for industrial development, and it is proposed that by 2020, a complete graphene industry system will be formed, standardized, serialized and low-cost graphene materials will be realized, large-scale applications will be achieved in various fields, and a number of graphene enterprises with core competitiveness will be formed. Currently, there is a high level of attention and many participants in the graphene market, but most are engaged in short and fast low-end manufacturing, and there are very few listed companies with core technology. China's Baoan's move will help the company integrate high-end scientific and technological talents and scientific research resources in the graphene industry, accelerate the effective transformation of scientific and technological achievements through the construction of a high-level industry-university-research platform, further promote the company's strategic transformation into a “high-tech industry group with a focus on new materials,” occupy an advantageous position in the industrial competition pattern, and even become an industry leader. The company's EPS for 2015-2017 is expected to be 0.55 yuan, 0.26 yuan, and 0.31 yuan respectively, corresponding to this year's PE of 21 times, maintaining a highly recommended -A rating. Risk warning: Investments in the financial sector are subject to certain volatility, which may affect current performance.