The company acquired hydropower plants to break through the bottleneck of hydropower development resources. Mindong Electric Power's main business is hydropower and wind power generation. The company currently belongs to 11 hydroelectric power branches, 2 hydropower holding subsidiaries, and 1 wind power generation holding subsidiary. In order to break through the current bottleneck in hydropower development resources, expand the company's electricity installed capacity and total power assets, improve the company's main business revenue and return on assets, and enhance the company's resilience to risks and financing capabilities, the company acquired 70% of the shares of Fuan Guodian Fucheng Hydropower Co., Ltd. with its own capital of no more than 12 million yuan (assessed value of 117.314,800 yuan). Mergers and acquisitions in the hydropower sector are favorable, and profits are growing steadily. Fuan Guodian Fucheng Hydropower Co., Ltd., which was acquired by the company this time, was established on September 22, 2003. It is a wholly-owned subsidiary of China Guodian Group Corporation, with a registered capital of 80 million yuan. The company's business scope: investment, construction and management of hydropower projects; hydropower generation; comprehensive agricultural development, etc. The target company's Tantou Hydropower Station was officially put into operation on June 19, 2010. The total installed capacity is 30MW. The average annual design power generation capacity is 9.255 million kilowatt-hours over the years, the design uses 3085 hours of power generation per year, and the feed-in price is 0.4281 yuan/kilowatt-hour. The actual average annual power generation from 2012 to 2015 was 90.6 million kilowatt-hours, and the actual average annual feed-in electricity consumption was 89.01 million kilowatt-hours. Mindong Electric Power's current hydropower profit is very stable. In the future, it will gradually increase the company's power generation capacity through mergers and acquisitions. We expect that after this acquisition, the company's operating income will increase by 32 million, and gross profit will increase by about 15 million. Profit forecast and rating: Considering that this acquisition will increase the company's main business revenue in the hydropower sector, we expect the company's 15-17 EPS to be 0.19 yuan, 0.22 (+0.02) yuan, and 0.26 (+0.02) yuan, respectively, to maintain the “gain” rating. Risk factors: Precipitation dropped sharply, hydropower generation decreased; electricity prices fell short of expectations; real estate sales fell short of expectations; mining consolidation was slower than expected.