The company announced on December 21, 2016, that the Issuance Review Committee of the China Securities Regulatory Commission reviewed the company's application for non-public issuance of shares on the same day. According to the review results of the meeting, the company's application for non-public stock offering was approved. Announcement comment: The son of the controlling shareholder and the general manager of the company participated in this fixed increase, demonstrating the controlling shareholders' confidence in the company's development and fixed increase projects. This fixed increase of no more than 50 million shares (including 50 million shares), and the total capital to be raised is no more than 506.1688 million yuan, which will be used for special multi-functional membrane smart factory construction projects, agricultural ecological film intelligent equipment construction projects, and cloud-based big data smart service platform construction projects. This fixed increase is the first refinancing project since the company went public. The management made every effort to promote it. Mr. Ma Jiazhen, the son of the controlling shareholder, Mr. Ma Zhenxin, and the company's general manager, plans to subscribe for shares of no less than 10,000 yuan, demonstrating the controlling shareholders' confidence in the company's development and fixed growth projects. The fixed increase project conference helped the company upgrade its industry and build “Jinming Industry 4.0.” This fixed increase project conference will help the company upgrade to achieve “intelligent manufacturing+Internet manufacturing+intelligent ecosystem”, develop into a smart factory solution solver in the industry, and build “Jinming Industry 4.0.” The special multi-functional film smart factory construction project creates a model smart factory with high automation, digitalization, informatization and intelligence in the film product manufacturing industry, and achieves profit through the production and sale of high-end films. According to the company's estimates, the per capita annual output value of the model smart factory will reach 2.2 million yuan, which is far higher than the industry average, and compared with the normal production model, the proportion of personnel saved at the same production capacity is more than 40%. The project uses high-end multi-functional film as an entry point to enter the downstream industry. Through demonstration effects, customers in the downstream industry sell equipment products of the same type at lower prices than foreign countries, leading customers in the downstream industry to enter the high-end film market and promote the rapid growth of the company's film production equipment business. After the implementation of the agricultural ecological film intelligent equipment construction project, the company will have the ability to mass-produce agricultural ecological zebra film intelligent equipment and ultra-wide coating PO film blow molding complete equipment, enrich the company's types of special equipment for agricultural film production, and consolidate the company's market position in agricultural film production special equipment. The cloud-based big data intelligent service platform construction project will build a cloud-based intelligent ecosystem built on advanced information technology such as big data, cloud computing, and the Internet, guide upstream and downstream enterprises to innovate their own operating models and promote the transformation and upgrading of intelligent manufacturing for industrial enterprises. After the fund-raising project reaches delivery, the company's profitability will reach a new level. In 2014, when the company had the best performance after listing, it achieved net profit of 60.16 million yuan, while the three fixed increase projects (all with a construction period of two years) reached estimated annual net profit of 78.3864 million yuan, 78.3864 million yuan, and 66.167 million yuan, respectively, which can achieve a total net profit of 22,293.35, and the company's profitability will reach a new level. Investment suggestions: We expect the company's net profit in 2016-2017 to be 55.44 million yuan and 63.39 million yuan, EPS is 0.23 yuan, 0.26 yuan, corresponding PE is 79.30 times and 70.15 times. Currently, the median PE (TTM, excluding negative values) in other special machinery industries is 140.49 times. The company's valuation still has some room for growth. Considering that the “Jinming Industry 4.0” and “Big Health” strategies are the core, a series of industrial layout is progressing steadily. After this fixed increase project reaches production, profitability will reach a new level. “We will maintain it buy Enter the “Investment Rating”.