1. IPO purchase proposal:

The company is one of the five large state-owned power generation groups in China, and the only platform for China Datang Group to develop environmental protection and energy saving industry, relying on China's leading business layout advantage of covering the whole industrial chain of environmental protection and energy saving in coal-fired power generation, for coal-fired power generation enterprises and other customers to provide a convenient package of solutions. The company's business operation is dominated by the franchise business of environmental protection facilities. According to the Sullivan report, according to the cumulative contracted capacity by the end of 2015, the company's market share of desulphurization and denitrification franchising business is 21.6% and 38.2% respectively, ranking first in the country. The company's coal-fired power generation flue gas desulfurization and denitrification franchise business emphasizes standardized, intensive and professional management, and strives to improve the cost structure and finally achieve significantly better operating efficiency than the general level of the industry. In the years ended December 31, 2013, 2014, 2015 and the six months ended June 30, 2016, the company's gross profit margins of desulphurization and denitrification franchise business reached 38.3%, 31.3%, 36.8% and 39.4%, respectively.

Thanks to China's favorable public policy environment and the rapid development of environmental protection and energy conservation industry, the company has grown rapidly and achieved excellent business performance. For the years ended December 31, 2013, 2014 and 2015 and the six months ended June 30, 2016, the company's operating income reached RMB 5.7 billion, RMB 6.5 billion, RMB 8.6 billion and RMB 3.1 billion, respectively. The profits from continuing operations are RMB 496.4 million, RMB 494.8 million, RMB 750.3 million and RMB 438.5 million, respectively.

According to the IPO document, the company's net profit for the year ended December 31, 2015 was RMB 750 million. Assuming no over-allotment option was exercised, the IPO price corresponds to a price-to-earnings ratio of 12.1x to 16.2 times in 2015, and a price-to-book ratio of 2.13x to 2.52x in 2015. reasonable valuation, it is recommended to apply.