Benefiting from engineering growth, the company's performance in the first three quarters increased by 32%. The company achieved revenue of 798 million yuan in the first three quarters, an increase of 38.80% over the previous year; net profit attributable to shareholders of listed companies was 244 million yuan, an increase of 31.86% over the previous year. The increase in the company's revenue was mainly due to the increase in engineering business and the increase in tap water sales revenue, but due to the decline in the company's gross margin, the gross profit only increased by 30%. The month-on-month decline in revenue and profit growth in the third quarter. On a quarterly basis, the company's revenue for the first three quarters increased by 38%, 67%, and 8% respectively; the company's net profit for the first three quarters increased by 53%, 51%, and 0%, respectively; and the revenue and profit growth rate for the third quarter declined sharply. The company's failure to achieve a year-on-year increase in net profit in the third quarter was mainly due to a decline in gross margin and an increase in sales expenses. To expand into sponge cities, lay out hazardous waste, and accelerate environmental development companies, Yuze Investment, Huakong SEG, etc., jointly initiated the establishment of an environmental protection industry fund (a total of 5 billion dollars, initial scale of 1.5 billion, company investment of 200 million). The fund's investment scope includes the Ministry of Environmental Protection's pilot PPP projects, high-end equipment, and the shares of environmental monitoring and evaluation agencies, etc. for sponge cities, black and smelly water bodies, etc., and the company is expected to participate in comprehensive environmental management of sponge cities and environmental monitoring and evaluation agencies. Furthermore, the company set up a subsidiary, Jinxiu Jiangnan, to lay out hazardous waste business. Currently, Splendid Jiangnan has begun preliminary work such as the EIA of the Qinwangshan Industrial Waste Comprehensive Utilization Project in Jiangyin City. A pioneer in state-owned enterprise reform, focusing on the equity incentive approval process, the company's 2016-2018 EPS is expected to be 0.39, 0.51, and 0.65 yuan, respectively. As a local state-owned water company, the company took the lead in introducing a draft equity incentive, and granted a price of 3.54 yuan (after reinstatement). The unlocking conditions correspond to net profit of 284 million, 3.37, and 390 million dollars in 16-18, showing management's confidence in future development. Currently, matters related to equity incentives still need to be approved by relevant departments. The company has plenty of cash on hand, and it is expected that the company will accelerate the expansion of the environmental protection industry and maintain its “buy” rating. Risk warning: The growth rate of the engineering business is declining; the equity incentive approval process is lower than expected