Incident: On November 18, 2015, the company issued an announcement that it intends to issue shares to purchase 100% of Guoyuan Electric's shares held by Storage Solar PV, to pay a total transaction consideration of 110,500 million yuan at an issue price of 19.44 yuan/share; it intends to issue shares to no more than 5 investors to raise no more than 800 million yuan to build photovoltaic power plants and supplement working capital. Main views: 1. The traditional LED business is expected to grow steadily by expanding sales regions and adjusting product structure. The company's traditional main business is LED products such as LED lawn lights and lighting. In recent years, the company's LED product revenue has mainly come from overseas. In 2014, the company acquired Zhongshan Pinshang Lighting Co., Ltd. and European L&D, while maintaining its traditional market advantages in North America, it has increased its efforts to develop European and domestic markets. The company is also actively optimizing and adjusting the existing LED business to highlight advantageous businesses. On the one hand, the company is strengthening the expansion of LED lawn lamp business and LED lighting business in the North American market and improving the construction of European business channels and domestic product lighting brands; on the other hand, the company is reducing underdeveloped business and shrinking and adjusting LED road engineering business, LED display business, etc. It is expected that with the company's management and integration of mergers and acquisitions, and as the company actively promotes advantageous businesses, the company's LED business will grow steadily. 2. Complete the acquisition of Huayuan New Energy, plans to acquire Guoyuan Electric Power, and plans to raise capital to build photovoltaic power plants. It is expected that photovoltaic operations and EPC projects will grow rapidly. Since its establishment in 1993, the company has been engaged in photovoltaic business for a long time, mainly in the middle and upstream photovoltaic industry. In 2014, the company officially announced its entry into the photovoltaic power plant investment industry. Through self-construction, mergers and acquisitions, etc., photovoltaics is rapidly expanding in the field of photovoltaic operations and EPC. In August 2015, the company completed the acquisition of 100% of Huayuan New Energy's shares at a price of 1.8 billion yuan. The performance of Huayuan New Energy began to be consolidated in August this year. Huayuan New Energy's main business is photovoltaic power plant operation and photovoltaic power plant EPC. The company issued 83,212,735 shares to Zhenfa Energy, paid 200 million yuan in cash to purchase 75% of Huayuan New Energy's shares, and invested 32,561,505 shares to Haoxuan to purchase 25% of Huayuan New Energy's shares, and added shares to be listed on September 10, 2015. Among them, shares obtained by Zhenfa Energy are locked for 36 months, shares obtained by Haoxuan Investment (controlled by Chairman Ding Kongxian) are locked for 12 months, and shares of listed companies that Chairman Ding Kongxian and co-actors promised to hold before this transaction are locked for 12 months from the date of completion of this transaction. Huayuan New Energy promises that the non-net profit deducted from 2014 to 2017 will not be less than 200.1688 million yuan, 25,890.64 million yuan, 33,45709 million yuan, and 366.1442 million yuan, respectively. In November 2015, the company announced that it intends to acquire 100% of Guoyuan Electric Power's shares held by Storage Solar PV at a price of 110,500 million yuan, all paid by issuing shares. The issue price is 19.44 yuan/share, for a total of 56,841,563. Storage Solar PV promised that in 2016-2018, Guoyuan Electric will deduct non-net profit of no less than RMB 78.9541 million, RMB 70.1838 million, and RMB 81.394,800, respectively. In November 2015, the company plans to raise supporting capital by issuing shares from no more than 5 other specific investors, and the total capital raised will not exceed 800 million yuan. Of this amount, 60 million yuan will be used to invest in new photovoltaic power plant projects, and 20 million yuan will be used to supplement the working capital of listed companies. At the end of the first quarter of 2016, the company's installed capacity is expected to reach 400MW; at the end of 2016, the company's installed capacity is expected to reach 700MW; Huayuan New Energy, which the company has acquired, has plenty of EPC orders in hand and reserves, and is expected to continue to advance the construction of EPC projects. We believe that PV operations and PV EPC will become important growth points for the company's revenue and profit, and that the company's revenue and profit will grow rapidly. 3. Actively promote research and development of graphene materials. The company actively promotes research on graphene powder preparation methods, graphene heat dissipation performance application research, and cooperates with Tsinghua University and Central South University to carry out pioneering research projects on “roll-to-roll graphene film coating process and improving stability of new structured solar cells”. The JIG-LIB series materials developed by the company are used as graphene composite cathode additives for lithium-ion batteries, which are expected to benefit from the development of new energy vehicles. 4. The profit forecasting and rating company has a stable LED industry; it has completed the acquisition of Huayuan New Energy, plans to acquire Guoyuan Electric Power, plans to raise capital to build photovoltaic power plants, and expects rapid growth in photovoltaic revenue and profit; actively promoting research and development of graphene materials, which is expected to benefit from the development of new energy vehicles. If we consider this merger and acquisition, Huayuan New Energy and Guoyuan Electric promised a total profit of 413 million yuan and 436 million yuan in 16-17. In addition to the power plant business and traditional business other than the two companies, the company's profit is expected to be 158 million, 450 million, and 570 million in 2015-2017. Based on prudential considerations, regardless of the impact of this increase, it is estimated that the company's 2015-2017 EPS will be 0.41 yuan, 0.96 yuan, and 1.21 yuan respectively, and the corresponding valuations will be 44 times, 19 times, and 15 times, respectively, giving it a “buy” rating. 5. Risk suggests that there is uncertainty in mergers and acquisitions; the problem of photovoltaic power plant abandonment has not been effectively solved