1. Incident Overview The company announced that it won the bid for the “State Grid Corporation's Ximeng-Taizhou, Shanghai Miao-Shandong ±800kV UHVDC Transmission Project First Batch Equipment Bidding - Electric Reactors” project, with a total bid amount of about 60 million yuan. 2. Analysis and judgment of reactor products directly won the bid for the UHV project. The main business is growing steadily. The holding subsidiary Zhenneng Electric Products won the bid for a total of two packages, totaling 249 reactors, including: parallel reactors - voltage rating: AC35kV 6 units, filter bank reactors - voltage rating: AC1000kv 108 units, filter bank reactor voltage rating: AC500kv 135 units, with a total amount of about 60 million yuan, accounting for 14% of the company's revenue in '16, which will contribute positively to the company's performance in '16. This reactor product directly won the bid for the UHV project, indicating that the domestic market has approved the company's reactor products. We believe that the next 5 years will still be a development period for UHV engineering, and the company's reactor products are expected to continue to make breakthroughs. The product technology originated in North America and is expected to further enter the North American market. At the same time, driven by reactor products, the company's high-end electromagnetic wire products will also benefit. Raise the 898 Innovation Industrial Park to open up growth space. The company takes advantage of “mass entrepreneurship and mass innovation” to see the huge industry space in China's innovation industrial parks, and enhances overall performance and comprehensive competitiveness with the new growth points created by the Innovation Industrial Park. The “898 Innovation Industrial Park” is positioned as an “incubator for startups, an accelerator for growing enterprises, and a booster for leading enterprises”. It creates an international “central innovation zone” integrating functions such as technological innovation, cultural creativity, and financial services through online and offline innovation spaces. It is a comprehensive industrial base for innovative and entrepreneurial enterprises to work, exchange, and connect to resources around the world through international exhibitions and other exchange activities. At the same time, industrial parks can use the conditions of their own venues to gather and integrate domestic and foreign exhibition resources, use the advantages of Internet platforms to host independent brand exhibitions, sell various domestic and foreign exhibitions as agents, and provide a full range of supporting services. We believe that the Innovation Park is located around the 798 Art Zone and has geographical and location advantages, cooperation and support from scientific research institutions such as Peking University Guanghua, etc., and also has funding and supporting financial services, so there is plenty of room for growth. 3. Profit forecast and investment suggestions: We believe that the company is a major manufacturer of high-end electromagnetic wires in China. In the short term, the market demand for transformers and reactors will increase, and the company's main business revenue will grow steadily; we are optimistic about the growth space of innovation parks in the short term. Since the fixed increase plan has not yet been approved, changes in share capital and the performance contribution of the 898 Innovation Park are not yet taken into account. The company's 15-17 EPS is expected to be 0.05, 0.08, and 0.14 yuan, respectively, and the corresponding PE is 375X, 227X, and 121X, respectively, maintaining a “careful recommendation” rating. 1. 4. Risk warning: 2. 1) The construction of the UHV project falls short of expectations; 2) The development of the Innovation Industrial Park falls short of expectations.