Yuff Co., Ltd. announced on the evening of July 20 that the company signed a strategic cooperation agreement with Zhongrong International Trust Co., Ltd. (hereinafter referred to as “Zhongrong Trust”). The company uses its own advantages to provide high-quality projects for Zhongrong Trust, and Zhongrong Trust uses its own advantages to provide the company with a full range of financial services. At the same time, the company's shareholder Jiayuan Co., Ltd. (“Jiayuan Company”) plans to transfer 27.83 million shares of the company to Zhongrong Trust through an agreement transfer, accounting for 6.99% of the company's total share capital; after the share transfer, Jiayuan still holds 28.75 million shares of the company, accounting for 7.22% of the company's total share capital. Trading of the company's shares will resume from the opening of the market on July 21. We believe that the company's new energy business is developing smoothly, and that the layout of the entire industry chain has begun to take shape. Joining hands with China Finance Trust will help the company achieve a strong connection between investment projects and capital requirements; we are optimistic about the company's long-term development, maintain the buying rating, and raise the target price to 31.00 yuan. The main points supporting ratings are to introduce high-quality partners, and complement each other to achieve a win-win situation. Zhongrong Trust was established in 1987 with a registered capital of 8 billion yuan; as of the end of 2016, its consolidated management assets were 854.8 billion yuan, of which 683 billion yuan was in trust assets, ranking among the highest in the industry. The company and China Finance Trust have reached a willingness and consensus to cooperate in various areas such as financing and investment. After implementation, it will help optimize the company's balance and liability structure, enhance the level of capital liquidity, reduce financial and operating costs, and expand financing channels. At the same time, it will also help the company to further enhance the company's competitive strength, enhance the company's financing capacity and resilience to risks, and achieve a strong connection between investment projects and capital requirements. The traditional business is developing steadily, and the new energy business is expanding smoothly. The company is a leader in the domestic polyester industrial yarn industry. It has a complete production, supply and marketing business chain. Currently, it is operating well and developing steadily. Zhihang New Energy, a holding subsidiary of the company, currently has an effective production capacity of about 3.5 GWh of power type 18650 batteries, which has become one of the leading cylindrical power batteries in China; at the same time, it also has a complete production line of ternary cathode materials and PACK systems. We expect that there is a high probability that Zhihang New Energy will fulfill its performance promises this year. Listed companies' equity ratio is expected to increase further, significantly increasing the performance of listed companies. The main risk facing ratings is that the NEV policy falls short of expectations; overcapacity in power batteries has led to a sharp drop in prices. The valuation is based on the current share capital. We expect the company's earnings per share for 2017-2019 to be 1.24, 1.45, and 1.61 yuan respectively. The price-earnings ratio corresponding to the current stock price is 20, 17, and 16 times, respectively, to maintain the buying rating. The target price will be raised from 27.50 yuan to 31.00 yuan.