Incident: The company and Xinyuan Power signed a “Strategic Cooperation Framework Agreement”. The two sides are actively promoting fuel cell technology and industrialization, and cooperating on fuel cell technology and applications. Key investment points: Join hands with leading domestic fuel cell companies, Xinyuan Power, to seize the high ground of the new energy industry. Xinyuan Power is the first company dedicated to the industrialization of fuel cells in China. It has many first-class experts in the field of fuel cells, and has nearly 400 independent intellectual property patents, including 250 invention patents. Among the 10 key projects for “new energy vehicles” in 2016, Xinyuan Power's “Key Technology Research and Engineering Development of Fuel Cell Stacks and Key Materials” received 125 million dollars in financial expenses, making it the company with the highest subsidy among the top ten projects. The company's partnership with Xinyuan Power this time is expected to take advantage of Xinyuan Power's strong technical strength to accelerate the company's industrial layout in new energy fields such as hydrogen energy and fuel cells, and seize the high ground in the market. The company has advanced fuel cell air compressor technology, and this cooperation is expected to accelerate the development process of air compressors in the domestic market. Currently, the company holds 17.01% of OPCONAB's shares. In October 2015, Shanghai Xingxuekang Investment Partnership, a merger and acquisition fund in which the company participated, acquired 100% of the shares of SRM and OES, the two core subsidiaries of OPCON's business. The OPCON fuel cell air circulation system has two major technologies, turbines and screws, and has developed 12 series of products that can meet the supporting needs of trucks, buses, and passenger cars, and has entered the procurement systems of major automobile manufacturers around the world. At the same time, the company has a 5% stake in US Concepts NREC, which owns turbine air compressors for fuel cells. At present, China's fuel cell industry is in its infancy. The company is currently cooperating with Xinyuan Power. On the one hand, it takes advantage of Xinyuan Power's leading position in the country and closely follows the market to develop new products; on the other hand, it is expected to support Xinyuan Power's fuel cell stack, quickly penetrating the broad market of the domestic fuel cell industry. Maintain the company's “buy” rating. Join hands with Xinyuan Power, a leading domestic fuel cell company, to seize the high ground of the new energy industry; the company has advanced fuel cell air compressor technology, and this cooperation is expected to speed up the development process of the domestic air compressor market. The company's 2016-2018 EPS is expected to be 0.06, 0.21, and 0.34 yuan. We continue to be optimistic about the company's layout in the fuel cell industry and maintain a “buy” rating. Risk warning: Cooperation falls short of expectations; risk of increased industry competition; risk of product development and market expansion falling short of expectations.