Report summary: The entire industry chain layout maintains competitive advantage: The company's deep layout in the photovoltaic industry chain has achieved comprehensive coverage from upstream pull/ingots to downstream components and power plant EPC business. At the same time, the company's production equipment self-control rate has reached more than 80%, and it has strong cost control capabilities, so the company can maintain its competitive advantage in the face of declining industry growth. Production capacity is expanding in an orderly manner, and performance is growing steadily: the company has 5 production bases to complement and complement each other in the industrial chain. Each production base in the west has a localized cost advantage, which guarantees the competitiveness of products. In the first half of the year, the company achieved 600MW of module production capacity, and 2GW of photovoltaic glass production capacity completed basic transformation. Revenue continued to increase, ensuring steady growth in performance. The development of its own power plants continues, and the share of revenue has increased: since 2013, the company began developing and arranging its own power plants. Currently, the total power plant holdings exceed 220MW, and the company's electricity bill revenue in the first half of the year accounted for nearly 20%. In the future, the company will continue to develop its own power plants. It plans to develop about 200MW of photovoltaic power plants every year, and plans to hold a total of 1 GW within 5 years, which will become a new performance growth point. EPC is gradually gaining strength and outstanding cost control capabilities: The company has integrated advantages in the power plant EPC field and can provide customers with integrated services for components, design, installation and subsequent operation and maintenance. Relying on the layout covering the entire industry chain, 70%-80% of the cost in the entire EPC process can be controlled by the company itself, has strong cost competitiveness, and can also have a higher level of profitability than the industry. Currently, the company has sufficient EPC orders, which is also the company's key development direction next year. Profit forecast: The company's EPS for 2016-2018 is expected to be 0.21, 0.29 and 0.37 yuan respectively. The company's industrial chain cost control capability is strong, performance is growing steadily, and its own power plants and EPC business continue to gain strength, maintaining an increase rating. Risk warning: (1) power plant and EPC business development falls short of expectations; (2) PV installed capacity falls short of expectations