1. Event Overview The company released its 2015 annual report and performance forecast for the first quarter of 2016. The operating income for 2015 was 507 million yuan, up 19.31% year on year; net profit attributable to shareholders of listed companies was 6.69 million yuan, up 35.20% year on year; net profit attributable to shareholders of listed companies is expected to be 32.18-643.6 million yuan in the first quarter of 2016, compared to 1.6 million yuan for the same period last year. 2. Analysis and judgment of the increase in main business revenue in 2015. The decline in profit in the first quarter of 2016 was not likely to benefit from the advancement of UHV projects. Revenue from the company's main high-end copper and aluminum electromagnetic wire products increased by 18.32% year on year, and aluminum products increased 17.81% year on year. In addition, the company strengthened in the international market, and sales volume increased 17.05% year over year. Since the holding subsidiary Zhengneng Electric began trial operation in the second half of 2015, the orders in hand have not yet reached the delivery date, and revenue has not yet been generated. The 888 Innovation Space is still in the renovation stage. Profit for the first quarter of 2016 declined year-on-year, but with order confirmation revenue and the opening of the Innovation Space, the annual performance is expected to improve. With the rapid development of UHV, reactor products are expected to break through in 2015, Zhengneng Electric's new product, the dry-type hollow flat wave reactor, has passed product certification and can be operated on the network. The company is expected to actively follow up on the UHV engineering tender. If the bid is won, the company is expected to greatly improve the company's performance. Previously, the company won the bid for UHV engineering filter reactors, etc. for a total amount of 60 million yuan, laying the foundation for winning the flat wave reactor. We are optimistic about the flexibility of the company's reactor products during the peak performance period of UHV engineering construction. The 888 Internet Capital Management Company was established to promote the construction of industrial parks with the support of the government's “mass entrepreneurship, mass innovation” strategy. The company has entered the field of innovative industrial parks through mergers and acquisitions, raised capital to build innovative spaces, hoping to achieve the development of a dual main business. The company announced that it plans to jointly invest with 888 Investment Holding Co., Ltd. to establish Guanghua 888 Network Capital Management Co., Ltd. to engage in investment and financing management and consulting services and foreign investment business. The establishment of a holding company is conducive to sharing risks and benefits with other investors. It is expected that through a professional investment team, investment in emerging industries will enhance the company's sustainable profitability and business expansion capabilities, and is in line with the company's long-term development plan. 3. Profit forecast and investment recommendations: The company's EPS for 16-18 is expected to be 0.07, 0.11, and 0.18 yuan respectively, and the corresponding PE is 210X, 136X, and 82X, maintaining the “prudent recommendation” rating. 4. Risk warning: The construction of the 898 Industrial Park falls short of expectations; the expansion of the reactor market falls short of expectations.