Incident: On the evening of January 9, the company announced that it has received the “Approval on Approving the Non-public Issuance of Shares by Zhejiang Weihai Construction Group Co., Ltd.” from the Securities Regulatory Commission, which is valid for 6 months. This fixed increase raised a total of 2.47 billion yuan, mainly for the company's investment in construction-handover projects and PPP projects. The company's current non-public offering price is 7.87 yuan/share, and the number issued is no more than about 313.85 million shares, raising a total of 2.47 billion yuan. The capital raised was mainly invested in: 370 million yuan invested in the first phase of PPP development in the Cangshan Industrial Cluster Area in Tiantai County (one standard), and 2.1 billion yuan invested in the construction of a fence on both sides of the Jiantang River in Hangzhou Bay New Area of Ningbo - (phased operation) handover project. Raising capital will help ensure the smooth completion of relevant key projects. At the same time, it is also conducive to optimizing the company's capital structure and enhancing the company's profitability and core competitiveness. The controlling shareholder, Weihai Holdings, led a high percentage of investment and locked in for 3 years, fully demonstrating confidence in the company's future development prospects. In this fixed increase, the controlling shareholder Weihai Holdings subscribed for nearly 1.5 billion yuan, and Li Chengcheng, the actual controller of the company, invested about 265 million yuan, locked in for 3 years. We believe that this move further binds the controlling shareholders and the company's management to the consistency of the company's development interests, and fully demonstrates their confidence in the company's future development prospects. Major projects are progressing at an accelerated pace, compounded by the gradual implementation of full PPP orders, and the company's performance is expected to maintain a trend of continuous high growth. With this fixed increase in capital raised in place, some of the company's major projects will advance at an accelerated pace. At the same time, the company is actively expanding PPP projects, and the PPP orders in hand are very full. Considering that PPP is still in the process of accelerating promotion, the company has a strong advantage in the field of seawall engineering, and the pass rate of previous projects is as high as 100%, it is expected that related PPP orders will continue to grow at a relatively rapid pace. With the gradual implementation of these ongoing PPP orders, it may drive the company's performance to continue to grow at a high rate. Participating in the establishment of mergers and acquisitions funds may accelerate the company's outreach. On January 5, the company announced that it plans to use its own capital of no more than 67.5 million yuan to participate in the establishment of a limited partnership merger and acquisition fund. The initial fund size will not exceed 180 million yuan, and if bank investment is introduced, it will not exceed 450 million yuan. Participating in the establishment of mergers and acquisitions funds may help companies acquire high-quality projects and accelerate the promotion of outreach. It is estimated that the company's EPS from 2016 to 2018 will be 0.18 yuan, 0.37 yuan, and 0.55 yuan, respectively. The current stock price is 54 times that of PE in 2016. Risk warning: PPP order growth rate and implementation falls short of expectations, transformation or failure to meet expectations, etc.