Announcement Overview The company predicts net profit of 391-474 million yuan for the full year of 2016, an increase of 40% to 70% over the previous year. At the same time, it plans to distribute a cash dividend of 0.90 yuan for every 10 shares, while using the capital reserve fund to increase 30 shares for every 10 shares. Furthermore, the company invested in the establishment of a headquarters base in the North and was shortlisted on the Shenzhen Stock Connect list. Key investment points: Annual performance is expected to increase by 4-70%, continuing to make great strides forward. In 2016, the company continued to advance and implement the established strategies, and expanded product systematization and overall solution development on the basis of adhering to the three strategic industries of smart cities, smart energy, and communication rail communication. The company has high technical product advantages and strong market development capabilities in its own business field. On the one hand, the company's high-end smart UPS, EPS power supplies, and high-voltage DC products are mainly used in basic power facility construction, smart city construction and data centers. The company has established the development direction of “energy Internet system integration solutions” by combining the core technical advantages accumulated over many years, and the market has grown steadily; on the other hand, thanks to the rapid growth trend of the photovoltaic industry, the company's photovoltaic system integration business has achieved relatively rapid growth. At the same time, the company completed fixed distribution of photovoltaic projects at the end of August, since Revenue from grid-connected photovoltaic power plants has increased significantly. The company expects to achieve net profit of 391-474 million yuan for the whole year, an increase of 40%-70% over the previous year, and continue to make great strides forward. We believe that the company is expected to continue to grow beyond expectations next year. Set up a headquarters base in the North to expand the scope of business areas according to the company's development strategy and plans. In order to expand the scope of business areas, the company and its wholly-owned subsidiary Easite New Energy (Kunshan) jointly invested 200 million yuan to establish a wholly-owned subsidiary in Tianjin - Easytech Tianjin Smart Energy Co., Ltd., as the company's northern headquarters base, mainly engaged in smart cities, smart energy, charging facilities for new energy vehicles, and smart parking systems. As the strength of the northern layout increases, the market share of the company's products will be further increased. Profit forecast and valuation. Under current share capital, we expect the company's net profit from 2016 to 2018 to be 4.3, 61, and 8.0 billion yuan, respectively, with year-on-year growth rates of 54%, 42%, and 31% respectively, and EPS of 0.75, 1.06, and 1.39 yuan respectively, corresponding to 35, 25, and 19 times P/E. Furthermore, the company was shortlisted on the Shenzhen Stock Connect list and maintained its “increased holdings” rating. Risk warning: IDC market demand is declining, system integration business falls short of expectations, and demand for charging stations is insufficient.