1. Guannong shares (600251.CH/ RMB 13.10, unrated) achieved operating income of 848 million in the first half of the year, and net profit belonging to shareholders of listed companies was 114 million: the company realized main business income of 848 million yuan in the first half of the year, an increase of 49.50% over the same period last year; operating profit was 128 million yuan, down 22.81% from the same period last year; and net profit belonging to shareholders of listed companies was 114 million yuan, completing 61.7% of the annual plan. In the first half of the year, the basic earnings per share was 0.145 yuan, and the cash flow generated by operating activities was 205 million, an increase of 34.79 percent over the same period last year.

2. With the merger of Tianjin Sanhe, the operating income increased significantly: the company achieved 216 million yuan in operating income from lint products in the first half of the year, down 42.63% from the same period last year, mainly due to the decline in lint sales prices and the decrease in the company's sales volume in the first half of the year. The deep processing of fruits and vegetables achieved an operating income of 432 million yuan, accounting for 50.94% of the main business income, of which the operating income of large barrels of ketchup reached 135 million yuan, an increase of 92.01% over the same period last year, and small packaged ketchup 304 million yuan, with a gross profit margin of 18.77%. Small package tomato sauce is a new business after the merger of Tianjin Sanhe. The company makes full use of Tianjin Sanhe's successful production and management experience and the advantage of foreign trade sales channels to promote the production and sales of vats of tomatoes. At the same time, Tianjin Sanhe seized the opportunity that small-packaged ketchup was popular in the market, and achieved the export of 69000 tons of tomato products in the first half of the year, and the export of small tomato products ranked first in the country, which played a key role in the growth of the company's business income. It is expected that the company's ketchup business will continue to maintain rapid growth in the second half of the year.

3. The operating cost increased synchronously, and the expenses during the merger of Tianjin Sanhe increased: the company's operating cost in the first half of the year was 751 million, an increase of 41.98% over the same period last year, which was synchronized with the growth of operating income. The sales cost was 36 million, an increase of 211.49% over the same period last year, mainly due to the company's new small package ketchup business. The management cost was 46 million, an increase of 54.12% over the same period last year, and the merger of Sanhe led to an increase in management cost; the financial cost was 22 million, an increase of 23.97% over the same period last year, as the company increased the scale of loans in order to complete the capacity expansion and transformation project of the 10, 000-ton diced tomato production line, resulting in an increase in financial costs. It is expected that the company's production capacity will be expanded in the second half of the year, and profitability is expected to increase.

4. Expect the agricultural products auction platform and the big data project to blossom on the ground: at the end of July, the standing Committee meeting of the Corps will study and deploy economic work, and will speed up the development of the Southern Xinjiang Division and actively explore new industries and new business models such as "Internet +" as the focus of future work. The company's agricultural products auction platform will open in September, and we believe that the domestic agricultural products circulation link needs great changes, and the agricultural products auction is an excellent way to break through the current confinement. Through price reduction auctions and other models are expected to change the current situation of low efficiency of agricultural products circulation. The big data project is the direction of future development, and the cooperation between the company and the National Information Center is expected to speed up the company's "Internet +" process. We are optimistic about the future prospects of the company's new model and actively recommend the market for attention.