Report summary: The non-public offering application was successfully approved. On November 2, the company announced that its application for a non-public offering of shares was reviewed and approved by the Securities Regulatory Commission. The company plans to issue 59.3081 million shares on a non-public basis at a price of 1,214 yuan/share, raising a total capital of 720 million yuan. The fixed increase in capital raised 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 raised a total of 7.2 billion yuan, of which 471 million yuan was used to repay loans from major shareholders and 250 million yuan was used to supplement the working capital of listed companies, which is conducive to saving financial expenses for listed companies and speeding up project expansion and business expansion. 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, and that their support to the company may continue unabated in the future. Implementing an employee stock ownership plan and implementing an employee stock ownership plan can help increase the enthusiasm of the company's management and core business cadres, or drive continuous improvement in the company's operating performance. At the beginning of September, the company announced that it plans to implement an employee stock ownership plan by subscribing to non-public shares. It plans to subscribe for 815,500 shares for a total amount of no more than 9.9 million yuan. We believe that the company's implementation of employee stock ownership plans is conducive to deepening the company's mixed ownership reform, establishing a long-term mechanism for employee shareholding, establishing and improving the benefit-sharing mechanism between the company and employees, and enhancing the company's development vitality. After winning the bid for a major PPP project, subsequent increases 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, Suining City”. As the company's PPP orders gradually increase and are implemented, it is expected to drive the company's performance to continue to grow rapidly. There is huge room for imagination for the beneficiaries of state-owned enterprise reform. The company is the only listing platform under the Cloud Investment Group. With the gradual progress of state-owned enterprise reform, the huge business and assets owned by the majority shareholders will surely involve restructuring and integration. The company may directly benefit, and there is huge room for imagination. It is estimated that the company's EPS for 2016-2018 will be 0.27 yuan, 0.47 yuan, and 0.67 yuan, respectively. The current stock price is 87 times PE corresponding to 2016. Risk warning: PPP project expansion and implementation fall short of expectations, transformation and new business fall short of expectations, etc.