Incident: The company predicts net profit of 42 million to 47.8 million for the first half of the year, an increase of 45% to 65% over the previous year. Main opinion: 1. Performance slightly exceeds market expectations. We expect profit growth composition: Our traditional business grew by about 15% on the basis of net profit of 28.97 million in the first half of last year, and the rest mainly contributed to Dutch company Novicay, which was incorporated into the list in October last year. 2. The traditional business additives market is developing steadily. The fund-raising project production company has formed a production capacity of 36,000 tons of chemical fertilizer additives in 2015. In 2016, the fund-raising project put into operation 22,000 tons of anti-caking agents and 12,000 tons of multi-functional packaging. The company has outstanding channel brand advantages in the field of segmentation, which helps ensure market development with additional production capacity. 3. Actively seek epitaxial development. While imaginative space companies are growing endogenously, they are also actively seeking epitaxial development. As before, they co-initiated the establishment of an industrial merger and acquisition fund with a direct investment subsidiary of Kyushu Securities to integrate the company's industrial mergers and acquisitions as a platform for bioengineering, emerging agriculture, new materials, energy saving and environmental protection. 4. Other new projects and new directions should not be underestimated Other new projects and directions include: 1) The 100,000 ton round pellet potash project is progressing smoothly. 2) The phosphorus-containing wastewater treatment and slow-release fertilizer recycling project has begun to be promoted on a large scale. 3) Plant nutritional additives currently being developed can effectively help fertilizer enterprises achieve transformation and upgrading. 4) Zinc-rich rice is exploring marketing promotion models, including internet marketing. 5. Maintain the “Highly Recommended” rating We expect the company's EPS in 2016-2018 to be 0.75, 0.98, 1.18 yuan, and maintain the “Highly Recommended” rating. Risk warning: epitaxial development expectations are low, and the downstream fertilizer industry is sluggish