Incident: On November 8, 2016, the company received a notice from Mr. Li Renchao, the controlling shareholder of the company. Mr. Li Renchao transferred 15,150,310 shares of the company held by the “Penghua Asset Kunpeng No. 9 Asset Management Plan” through the Shenzhen Stock Exchange's commodity trading system. Key investment points: The increase in holdings of controlling shareholders shows strong confidence in development, and the company's various businesses are on the way to growth. Based on a comprehensive analysis of the company's internal and external environment, full of confidence in the company's industrial transformation and upgrading and future development prospects, and optimistic about the company's future growth space, the controlling shareholder of the company, Mr. Li Renchao, transferred 15,150,310 shares of the company held by the “Penghua Asset Kunpeng No. 9 Asset Management Plan” through the Shenzhen Stock Exchange's bulk trading system, accounting for 2.05% of the company's total shares. The average transaction price is 12.94 yuan/share, and the transaction amount is 196.045 million yuan. After increasing his holdings, Mr. Lai Yen-chiu's shareholding ratio increased to 23.05%. Earlier, during the period from December 1, 2015 to January 7, 2016, Mr. Li Renchao completed this plan to increase his holdings through the “Penghua Asset Kunpeng No. 9 Asset Management Plan” established by Penghua Asset Management (Shenzhen) Co., Ltd., fulfilling the promise of the “Notice on Maintaining the Company's Stock Price Stability Adjustment and Stock Increase Plan” disclosed by the company on July 11, 2015. The increase in shareholders' holdings shows strong confidence in development. Currently, the traditional boiler turnkey business is growing steadily. The order volume for overseas boiler turnkey business is 9.13 billion yuan, and the environmental protection business will continue to gain strength. The company recently invested 1.35 billion yuan to acquire 15% of Hengli Shengtai's shares to enter the graphene field. Later, mass production of graphene will greatly improve the company's performance and contribute to increased performance. In the future, the company will gradually form a diversified development pattern of boiler equipment manufacturing, environmental protection, new graphene materials, and big finance, with broad development space. Continue to maintain a highly recommended rating. We maintained EPS for 16, 17, and 18 (including Hengli Shengtai's investment income) of 0.32 yuan, 0.55 yuan, and 0.8 yuan, respectively. We believe that the company's strategic layout is gradually being clarified, and the business pattern of boiler equipment manufacturing+environmental protection+big finance+graphene new materials is gradually being formed. It is still an investment target worth continuing to track, and we continue to maintain our “highly recommended” rating. Risk warning: The risk that the project progress will not meet expectations, and the risk that the order volume will not meet expectations.