Matters: Recently, the company announced that its application for a non-public offering of shares was approved by the Securities Regulatory Commission. It intends to issue 59.3081 million shares on a non-public basis at an issue price of 12.14 yuan/share. It is estimated that a total of 7.2 billion yuan will be raised. This fixed increase will raise a total of 7.2 billion yuan, of which 4.7 million yuan will be used to repay loans from major shareholders and 250 million yuan will be used to supplement the working capital of listed companies. Key points 1. The fixed increase optimizes the debt structure. In the future, project expansion and business expansion will be accelerated. The fixed increase will raise capital to repay the majority shareholders' loans and supplement cash flow. After the fixed increase is completed, the shareholding ratio of the majority shareholders will increase, and support may increase unabated. This fixed increase has received strong support from Cloud Investment Group, the majority shareholder. The majority shareholders plan to subscribe for 53.2397 million shares, accounting for 89.77% of the newly issued shares of this fixed increase. After this fixed increase is completed, Cloud Investment Group will hold a total of 92.0988 million company shares, increasing its share share to 37.8%. We believe that the majority shareholders' deep participation in the company's growth has fully demonstrated their confidence in the company's development prospects. The majority shareholders will provide strong support for the company's future ecological and environmental protection projects and the expansion of sponge city PPP projects, and the settlement of more large-scale environmental PPP projects in the future will bring new performance elasticity to the company. 2. A major PPP project won the bid. Subsequent increments can be expected to win the bid for major PPP projects. Subsequent increments can be expected, which may drive continued rapid growth in performance. Since this year, the focus of the company's management has begun to shift to market development and business promotion, and has successfully won bids for major PPP projects such as the “Sponge City Construction Renli Ancient Town PPP Project in Hedong New District of Suining City”. The total amount of the three phases is 1.32 billion. The construction period is from 2016 to 2020, and the return on investment is expected to be 6.8%. Ecological restoration and watershed management will be an important contribution point to the company's revenue this year. With the gradual increase and implementation of the company's PPP orders, it is expected to drive the company's performance to continue to grow rapidly. 3. Increased distribution and dilution will not change the room for long-term market capitalization growth, maintain the buy-rating company's backing on Cloud Investment Group, shareholders will give strong support to the company's project development, and the company will move rapidly towards a comprehensive environmental protection company, and expand PPP projects with high performance flexibility. It is estimated that the company's EPS from 2016 to 2018 will be 0.40 yuan, 0.51 yuan, and 0.66 yuan, respectively. The current stock price is 61 times the PE corresponding to 2016. Maintain the buy rating. 4. Risk warning that the fixed increase was unsuccessful, and the order fell short of expectations.