Announcement: On March 3, 2020, the company issued a plan for the non-public offering of shares. The total capital raised by this non-public stock offering does not exceed 2.15 billion yuan. After deduction of issuance fees, it is proposed to invest in the following projects: 1) 10,000 tons of albumin extraction and comprehensive processing project; 2) 445 million yuan in 10,000 tons of functional oligosaccharide extraction and processing project; 3) comprehensive utilization of peas; 4) additional working capital of 530 million yuan. It is planned to raise funds for a comprehensive utilization project for deep processing of peas. The expansion of high-end protein production capacity guarantees demand. On February 18, the company's 100,000 ton pea deep processing project has been successfully tested. After production is put into operation, the annual production capacity of the company's pea protein reached about 70,000 tons, including 40,000 tons of high-end protein and 30,000 tons of low-end protein. Currently, the company plans to raise capital to invest in a comprehensive utilization project for deep processing of peas. High-end protein production capacity will be further expanded, reaching 100,000 tons of raw materials for pea processing after delivery, with an annual output of 7,000 tons of high-end protein, 13,600 tons of low-end protein, and 13,000 tons of pea fiber powder. It is estimated that in 2021, the production capacity of high-end protein will reach 47,000 tons, and the production capacity of low-end protein will reach 44,600 tons. On February 24, the company's subsidiary signed a pea protein sales contract with Beyond Meat, enhancing the company's international influence and brand power. With the rapid expansion of the artificial meat industry and the supply of pea protein in short supply, the company's continuous expansion of production capacity guarantees a simultaneous increase in demand, which will further increase the company's share of pea protein in the global market and guarantee the company's leading position. The plan is to raise 10,000 tons of albumin and functional oligosaccharide processing projects to explore high-value-added products. The company continues to invest heavily in technology research and development. It has the world's leading “1+10” circular economy model, driving enterprises to achieve a transformation from a single fan production and processing to a full industrialization chain. At this stage, the company has developed high value-added products such as pea protein and dietary fiber with a purity of 88% or more. The gross margins of high-end protein and dietary fiber have reached 60% and 59%. With the shift from distribution to direct sales, there is still room for improvement in profitability. This time, the company plans to raise funds for 10,000 tons of albumin and functional oligosaccharides processing projects, reflecting the company's breakthrough in product innovation, successful exploration of new high-value-added products, and further expansion of the company's product categories. The purity of albumin obtained by the company is high. Between 88% and 93%, it achieved targeted extraction of small to medium molecular albumin from pea and water. After completion of the project, the annual output was 10,500 tons, and the unit price excluding tax was about 47,000 yuan/ton, which could achieve sales revenue of nearly 500 million yuan. After the completion of the 10,000-ton pea functional oligosaccharide extraction and processing project, 10,500 tons of pea functional oligosaccharide can be produced annually. The unit price without tax is about 59,000 yuan/ton, and the planned sales revenue is 620 million yuan. It is expected that 2021 will contribute significantly to the company's revenue and profit. Profit forecast: Based on the construction period of the fundraising project for one year, the 2021 fundraising project will significantly increase the company's revenue and profit level after the launch of the fundraising project. We expect the company to achieve revenue of 21.22/24.96/3.443 billion yuan in 2019-2021, a year-on-year increase of -10.82%/17.65%/37.92%, net profit of 2,00/3.61/651 billion yuan, a year-on-year increase of 117.38%/80.62%/80.37%, respectively, EPS 0.16/0.29/0.52 yuan, maintaining the company's buying rating. Risk warning: risk of raw material price fluctuations; risk of product sales structure and market changes; risk of exchange rate changes; risk of capital raising investment projects; approval risk