Key investment events: The company issued an announcement. The actual controller, **** Fengli, and the company's directors, supervisors and senior management plan to increase their holdings in the company within 12 months. The minimum amount of the planned increase is 10,000 yuan, the maximum increase in holdings is 100,000 yuan, and the maximum increase price is 15 yuan/share. Our review shows confidence that the actual controller and management team have increased their holdings: the management team plans to increase their holdings between 100 million yuan and 1 billion yuan. Based on current stock prices, if the final increase in holdings is 500 million yuan, the increase in holdings will account for about 8% of the total shares, which is a significant increase in holdings. Furthermore, the maximum price for additional stock holdings is 15 yuan/share, which is almost double the current stock price, reflecting the strong confidence of the actual controller and management team in the company's development. New shareholders are strong, bringing new impetus for development: In June 2016, Fengli Capital became a major shareholder in the financial environment. Fengli Capital has strong strength (the number and scale of funds managed far exceeds the industry average). With its good financial capabilities and rich resources, it believes that it not only optimizes the management system of the CFC environment (all former executive teams have been replaced), stimulates employee vitality (equity incentives have been implemented), and the performance of reversing losses (Xinjiang Junchuang, which has divested continuous losses), can also broaden financing channels (it has signed a 5 billion yuan financing strategy with the Xuzhou branch of the Bank of Jiangsu) Cooperation agreement), future extension Consolidation and PPP orders are worth looking forward to. Build a comprehensive environmental platform and expect PPP orders to improve performance: After the company acquired Blue Sky Environmental Protection and Integrated Hydraulic Platform Innogreen, it has formed a comprehensive environmental service platform for flue gas+water+solid waste. The Blue Sky environmental protection project has rich experience and strong technical strength (based on Zhejiang University). Innogreen's business covers all areas of water treatment. It has many patented technologies and rich project cases, and can easily meet all kinds of comprehensive environmental protection orders. The company has had several PPP projects since 2015, and its ability to take orders is outstanding. Coupled with the new shareholder Fengli Capital's rich industrial resources, future PPP orders may exceed expectations. Investment suggestion: Fengli Capital, the new shareholder of the company, is rich in industrial resources and is expected to bring vitality and diversified financing channels to Kerong. The company has formed an environmental governance platform, and PPP orders may exceed expectations. The actual controller and management team's increase in holdings and the implementation of equity incentives for key managers at the beginning of the year all reflect strong confidence in the company's development. We expect EPS to be 0.40 and 0.75 in 2017-2018, corresponding to PE 22X and 12X Risk Reminder: PPP order expansion falls short of expectations, and project progress falls short of expectations