Matters: On March 9, the company issued an announcement. Chairman Dr. Wu Daohong and Qian Xuejie resigned and withdrew from the board of directors. Mr. Song Bin, the former president of Baosteel Development Co., Ltd., and Deng Fuhai, the former chairman of Huafu Engineering, joined the board of directors and became new directors. Comment: The chairman resigned for personal reasons, and the actual controller did not change. The former chairman, Dr. Wu Daohong, resigned for personal reasons. The status of the controlling shareholder is stable. In addition to the stock holdings he has taken the lead in increasing his holdings a few days ago, Dr. Wu Daohong holds a total of 54.83% of the company's shares. In the future, Shenwu Group will continue to give strong support to Shenwu Group's development. Company executives (Wu Daohong, Wu Zhiyong, Lei Hua, Qian Congxi, and Liu Anzhi) used trust plans to jointly increase their holdings by 4.13 million shares at an average price of 32.13 yuan/share at the end of February. The increase in senior management positions reflects the company's confidence. Furthermore, the three core executives in the current holdings increase plan (Mr. Lei Hua, Mr. Qian Congxi, and Mr. Liu Anzhi) did not originally hold shares in the company. Through this increase in holdings, they can strongly improve the incentive mechanism, and performance exceeding expectations in the future can be expected. The newly appointed director is rich in industry resources, bringing a solid foundation for development to the company The new director Song Bin is the former president of Baosteel Development. He has rich management experience, bringing rich business resources to the steel and metallurgy industry. Mr. Song Bin has worked in Baosteel Systems for more than 20 years, has rich experience in the steel and metallurgy industry, and has accumulated a large number of contacts and business resources in the steel metallurgy industry. The addition of Mr. Song Bin shows confidence in the company's future development and will also provide strong support for the market expansion of Shenwu Energy's new technologies. At the same time, it will also provide a convenient channel for the company to cooperate with Baowu Group after this group (Baosteel and Wu Gang were restructured at the end of 2016). Furthermore, Song Bin first has outstanding management skills and rich experience. Received an EMBA from the China-Europe International Business School and has managed companies such as Baosteel Resources (Hong Kong), Baosteel Resources, and Baosteel Development. Mr. Song Bin's management experience is exactly what companies currently in the midst of rapid development need. Moreover, Baosteel Development, which was originally led by Mr. Song, is mainly engaged in services such as harmless disposal and comprehensive resource utilization of waste generated in the metallurgical production process. Its main products include: new building materials such as fine slag powder, water slag, fly ash, steel slag, etc.; iron oxide red, iron oxide, magnetic cores, etc. for magnetic materials; iron water dephosphorization agents for metallurgical raw materials, metallurgical pellets, steel water insulation agents, etc.; as well as recycled materials such as refractory materials, waste oil regeneration, iron oxide pigments, etc., have amazing energy efficiency, etc. A certain degree of synergy. Biography of Mr. Song Bin: Born in May 1971, Chinese nationality, undergraduate degree. From 1990 to 1994, he studied at the Department of Metallurgical Machinery at Anshan Iron and Steel Institute (now Liaoning University of Science and Technology); from June 1998 to September 1998, he participated in training at the Maryland Institute in the US; from 2001 to 2004, he attended the EMBA program at the China-Europe International Business School; from August 2012 to October 2012, he participated in training at the University of Manchester in the UK. From 1994 to 1996, he was Baosteel Equipment Department Smelting Regional Technician; From 1996 to 2001, he served as Baosteel International Trade and Personnel Department Officer, Director, League Committee Secretary; Deputy General Manager of Tianjin Baosteel North Trading Co., Ltd. from 2001 to 2003; General Manager of Chengdu Baosteel West Trading Co., Ltd. from 2003 to 2007; Deputy Director of the General Office of Baosteel Group from 2007 to 2009 (presiding over the work); Served as Baosteel Resources (Hong Kong); From 2009 to 2014, he served as Baosteel Resources (Hong Kong) ) Executive Director of Baosteel Resources Co., Ltd., Party Secretary of Baosteel Resources Co., Ltd. (responsible for cadres, personnel, responsible for scrap steel procurement); from 2014 to 2017, he was the president of Baosteel Development Co., Ltd., and also the chairman of Baosteel Building Materials Co., Ltd. The new director, Deng Fuhai, was the former chairman of Huafu Engineering. Mr. Deng Fuhai, an old employee of Shenwu Group who returned to the company, joined Shenwu Group in 2007. He worked for a long time at the Jiangsu Academy, the predecessor of the company. He was familiar with the company's business and returned to Shenwu Energy Saving to help the company develop. Biography of Mr. Deng Fuhai: Born in January 1966, Chinese nationality, graduate degree, senior engineer. Graduated from Chongqing University of Civil Engineering with a master's degree in engineering in 1991. From May 1991 to March 1995, he was the project manager of China Hubei International Economic and Technical Cooperation Corporation; from April 1995 to March 2000, he was the managing manager of Dacheng Hubei Construction Co., Ltd.; from July 2000 to October 2003, he was the deputy general manager of Wuhan Road Property Development Co., Ltd.; from November 2003 to June 2007, he was the deputy general manager of Hubei Renhe Property Development Co., Ltd.; and from July 2007 to December 2007, he was the assistant president of Beijing Shenwu Thermal Energy Technology Co., Ltd.; From January 2008 to September 2014, he was the executive deputy general manager and director of the Jiangsu Metallurgical Design Institute; since December 2014, he has been the chairman of Gansu Jinchuan Shenwu Resources Comprehensive Utilization Technology Co., Ltd. Since February 2017, he has been the senior deputy general manager of Shenwu Technology Group Co., Ltd. and the chairman of Beijing Huafu Engineering Co., Ltd. The company has huge market space in various market segments. Following the utilization of non-ferrous tailings, it is expected that the company's first non-ferrous tailings utilization project, the company's first non-ferrous tailings utilization project, the Jinchuan Phase I copper tailings comprehensive utilization project will be released one after another. Using Shenwu's unique thermal storage furnace direct reduction technology, it is the ultimate choice for the Jinchuan Group to search for ten years around the world. After the demonstration project was put into operation, many domestic non-ferrous giants were encouraged to sign cooperation framework agreements with the company, which is expected to gradually be implemented into orders in the future. The company currently has an order value of 11 billion dollars, which guarantees high performance growth. The company is not only an enterprise that can only process waste mines, but also has a world-leading cost advantage in the smelting fields of many metals such as nickel, vanadium, and titanium. The total market space of the various market segments where the company is located exceeds 600 billion dollars. In addition to the utilization of non-ferrous tailings, the company's market space in business sectors such as bulk solid waste (steel dust), comprehensive utilization of difficult mineral resources, and steel smelting process reengineering is also gradually being released, with huge potential. We reaffirm that the company is a target for environmental technology stocks with strong technical certainty, large market space, and determined growth. Net profit for 17-18 is estimated to be 68/980 million yuan, respectively, with high performance growth and strong certainty. Settlement of future orders, performance execution, and expansion into new fields will all be important stock price catalysts to continue to maintain the “buy” rating.