Benefiting from Huada's consolidation and increase in operating scale, 2016 profit increased 33% year on year. The company achieved revenue of 488 million yuan in 2016, an increase of 48% year on year, and net profit to mother of 69.53 million yuan, an increase of 33% year on year. The company's revenue and profit growth is mainly due to the annual consolidation of Jiangsu Huada and the increase in the scale of the company's water treatment operations. Excluding combined factors, the net profit of the company headquarters was about 36.96 million yuan, a year-on-year decline of 16%, mainly due to the decline in equipment sales in the coal metallurgy industry. Jiangsu Huada deducted non-net profit of 30.93 million yuan in 2016, with a profit commitment completion rate of 94%; Sitong Environmental deducted 14.47 million yuan of non-net profit in 2016, with a profit commitment completion rate of 85%. The entire water treatment industry chain has been built, and operating revenue and orders are growing rapidly. The company improved the layout of the entire water treatment industry chain through the acquisition of Jiangsu Huada, Daoyuan Environmental and Sitong Environmental. Recently, the company announced that it won the bid for the Beijing Pinggu Water Quality Improvement Project (amount of 158 million yuan) and the Yanjiao High-tech Zone (amount of 107 million yuan), which initially showed the company's strong comprehensive management capabilities. In 2016, the company's operating revenue was 137 million yuan, up 66% year on year; Jiangsu Huada combined the full year, with centrifuge business revenue of 192 million yuan, up 338% year on year. The sales revenue of traditional water treatment equipment was 149 million yuan, down 26%. It was mainly affected by overcapacity in the metallurgical coal industry, but the industry improved in the second half of the year. In 2017, provincial capitals ushered in the assessment period for the treatment of black and smelly water bodies before the end of 2017. Municipalities directly under the Central Government, provincial capitals, and built-up areas of planned separate cities required basic elimination of black and smelly water bodies. Along with the further development of central environmental protection inspections, the black and smelly water treatment market was opened. The company has initially had technical advantages in the field of black and smelly water treatment, and has initially completed a national layout focusing on the Beijing-Tianjin-Hebei, Yangtze River Delta, Pearl River Delta, and Chengdu-Chongqing economic zones. Management incentives are in place, and the company's EPS for 2017-2019 is estimated to be 0.59/0.77/1.03 yuan, respectively, to promote the treatment of black and smelly water bodies. The first phase of the company's employee shareholding plan completed the purchase (amount of 29.17 million yuan, average price of 31.91 yuan/share); the fixed increase was completed, with a share exchange price of 30.25 yuan and a fund-raising price of 32.03 yuan; the number of equity incentives was 5.255 million shares, covering the newly appointed general manager and other management teams, corresponding to the unlocking conditions of 0.90/1.18/146 million yuan. The company is focusing on building a comprehensive water treatment service provider with technical advantages, and continues to advance in various fields such as black and smelly water bodies and comprehensive environmental treatment. Currently, the stock price is lower than the employee stock holding price and fixed increase price, management incentives are in place, and the “cautious increase” rating is maintained. Risk warning: new orders fall short of expectations, competition exacerbates the decline in gross margin; risk that the underlying company's profit promises cannot be fulfilled; risk of impairment of goodwill;