The investment proposal company has a complete industrial layout from “special animal breeding - fur raw fur trading - fur processing - fur garment design and production - fur clothing sales”. The fixed increase project has recently passed. In the future, it will further promote intensive and clean fur production, deepen the industrial chain, and consolidate the leading position of the company's main business in the industry. Furthermore, the company plans to acquire 10% of the shares in the future, and the influencer industry layout is advancing once again. At the same time, the mobile social e-commerce platform “micro-selling”, as the company's most important industrial layout, will connect with the company's supply chain, collaborate in the future, and open up the entire influencer e-commerce industry chain. It is expected to become a new profit point for the company in the later stages. It is predicted that the company's 2016-2017 EPS will be 0.07 yuan and 0.11 yuan respectively, and the corresponding PE will be 231X and 139X respectively, maintaining the “recommended” investment rating. Key investment performance was in line with expectations, with a 5.43% increase in net profit: the company achieved operating income of 207 million yuan in the first half of 2016, a year-on-year decrease of 14.89%; realized net profit attributable to shareholders of listed companies of 8.732 million yuan, a year-on-year decrease of 13.52%, net profit after deduction of 6.743 million yuan, an increase of 5.43%; earnings per share were 0.03 yuan, the same period last year; and performance was in line with previous forecasts. Among them, the second quarter achieved quarterly operating income of 96 million yuan, a year-on-year decrease of 13.38%; net profit attributable to shareholders of listed companies was 794,300 yuan, an increase of 221.20% over the previous year, and earnings per share of 0.02 yuan. The company expects to achieve net profit of 55803-95662 million yuan in January-September, a year-on-year change of -30% to 20%. Gross margin increased steadily, and the expense ratio declined during the period: In the first half of the year, the company made efforts to adjust its business structure, and profitability improved, and overall gross margin increased by 5.41 pct to 35.57%. Among them, the gross margin of OBM in the main business was 45.35%, an increase of 13.77pct over the previous year, and the gross profit margin of mink products in the new business was 14.47%, an increase of 14.47pct over the previous year. In the first half of the year, the cost rate for the period increased by 4.76pct to 30.51%. Among them, the company's increased product sales efforts increased the sales expense ratio by 2.07 pct to 11.30%, the increase in investment in scientific and technological innovation led to an increase in the management fee rate of 3.70 pct to 13.95%, and the financial expense ratio decreased by 1.00 pct to 5.27%, mainly due to the company's extensive export business and the recent depreciation of the RMB exchange rate. Lay out the influencer industry and promote social e-commerce platforms: The company recently announced that its subsidiary Huazhuo Investment plans to invest 5 million dollars to acquire 10% of the shares of Future Moment. Future Moment operates as an influencer operating an economic company. The contract includes 20 influencers with e-commerce monetization capabilities, including the famous influencer “Wang Yuepeng Niko” with millions of followers. This acquisition will be a key step for the company to lay out the influencer industry and develop the social e-commerce industry chain. Currently, the company holds 30% of Yushe Technology's shares. The mobile social e-commerce platform “micro-selling” it operates is the company's most important industrial layout. It connects with the company's supply chain, collaborates with future moments, and opens up the entire e-commerce industry chain for influencers. It is expected to become a new profit point for the company in the later stages. A fixed increase of 600 million yuan was approved, consolidating the leading position in the main fur industry: In July of this year, the company's 2016 non-public stock offering application was approved by the Securities Regulatory Commission. The company now fixed an increase of 600 million yuan to build a clean fur production platform and a clean production storage base. The completion of the production project can achieve an annual output of 14 million sheets of raw fur and 10 million sheets of dyeing and processing. The purpose of this fixed increase is to improve its own industrial layout, promote the deep development of the industrial chain, build an intensive cleaner production platform, and consolidate the company's leading position in the industry. Mr. He Guoying, the actual controller of the company, participated in the subscription of 60 million yuan for a three-year sales period, demonstrating the majority shareholders' confidence in the company's subsequent development. Risk warning: The construction of fixed growth projects falls short of expectations, and e-commerce projects on social platforms are progressing slowly.