The company announced on August 8 that Sunflower (Luxembourg) Solar Technology Co., Ltd., a wholly-owned subsidiary of the company, and BOREAS Energy Co., Ltd. signed an agreement to acquire the solar power plant project owned by the company. The solar power plant is located in the Elsterheide region of Dresden, Germany. BOREAS Energy Technology Co., Ltd. has all legal formalities for the power plant, including leases, construction permits, reclamation permits, and the reservation commitments of the Envia distribution grid company. The power plants are all ground-based systems, with a scale of 20-25MW. The cost of this transfer is approximately 2,399 million euros, and the final transfer cost is determined based on actual installed capacity. Comment: After the company obtained ownership of the power plant project, all the required solar modules were provided by the company, and it is expected that the power generation will be completed in the fourth quarter of this year. After the construction of the power plant is completed, the return on net assets of the power plant is expected to be about 10% or more. The company is currently expanding into the entire industry chain through fund-raising projects, overfunded projects, and equity participation. The company has a layout from polysilicon, silicon wafers, batteries, and modules to power plants. In the early stages, the company mainly focused on expanding the upstream of the industrial chain, including plans to participate in a 15-25% stake in Hejing Technology (Hejing Technology has a polysilicon production capacity of 1,800 tons and a planned production capacity of 18,000 tons in the future) and construction of 160 million 8-inch polycrystalline silicon wafers production projects. The company's involvement in overseas power plant projects will drive component sales and enable the company to gain new profit growth points. It is expected that the company will continue to participate in overseas power plant projects in the future. In addition, at home, the company participated in the “Golden Sun” demonstration project in the early stages. With the introduction of feed-in tariffs for photovoltaics in China, it is expected that the company will also accelerate its participation in domestic power plant projects in the future. By expanding upstream and downstream of the industrial chain, the company's ability to withstand risks and profit levels will improve in the future. The company's earnings per share for 2011, 2012 and 2013 are expected to be 0.91, 1.14, and 1.49 yuan, respectively, maintaining a prudent recommendation rating. Risk: (1) The progress of the company's projects falls short of expectations. (2) The growth rate of demand in the photovoltaic industry has declined rapidly.