The incident successively signed agreements with the Yexian County People's Government and the Henan Water Resources First Bureau. Recently, a “Strategic Cooperation Agreement” was signed with the Henan First Water Resources Engineering Bureau to carry out strategic cooperation on construction projects such as water conservancy, urban water services and water resources extension industries, and sponge cities in Henan Province to establish a mutually beneficial and win-win “cooperative consortium”. Specific models include: 1) For projects operated by the company, the company and Henan Water Resources First Bureau are the implementing entities to jointly invest in construction. When the company needs support, the Henan Water Resources Bureau must promptly draw up elite personnel to provide strong support; 2) For projects operated by the Henan Water Resources Bureau, the Henan Water Resources Bureau chose the company to form a consortium as the implementing entity to jointly invest and build. In addition, the company previously signed the “Ye County Comprehensive Environmental Management Project Framework Agreement” with the Ye County People's Government in Henan Province, with a total investment of about 500 million yuan. The company is responsible for proposing construction project planning and design plans and raising the funds required for project construction, while the Ye County People's Government is responsible for coordinating relationships between relevant departments and townships to implement infrastructure conditions such as water, electricity, and transportation. The brief review complements the advantages of Henan Water Resources Bureau 1 to improve water environment management capabilities Henan Water Resources Bureau 1 is a large state-owned enterprise, mainly constructing domestic and foreign water conservancy and hydropower projects, industrial and civil construction projects, and municipal public works. It has first-level general contracting qualifications in the above three areas. It is in a leading position in the water conservancy construction industry in Henan Province, and is in a leading position in the same industry in the country. The company acquired 51% of Innogreen's shares in 2015. It is a new type of environmental protection enterprise integrating R&D and manufacturing of membrane products and water treatment products, design and implementation of water treatment systems, water treatment engineering installation and service, technical consulting, and water investment and operation. In terms of project operation, Kerong Environment has signed a cooperative framework agreement and water supply franchise agreement with the Beipiao Municipal Government for tap water supply projects. We believe that the significance of this strategic agreement is: 1) the cooperation involves water conservancy construction, water operations, sponge cities, etc., with a broad scope and large project space; 2) the Henan Water Resources Bureau brings excellent qualifications, which will further enhance the company's comprehensive strength in the construction and operation of water environment treatment projects; 3) both parties can participate in projects operated by each other to create new growth space for the company's performance. The Ye County project is tailored, and the comprehensive environmental service provider is gradually being formed. The Ye County Environmental Comprehensive Management Project is a targeted project proposed by the company based on the local environmental situation in Ye County, in line with the strategic policy of “building an integrated solution provider and a comprehensive comprehensive environmental service provider”. We believe that if the project is successfully implemented, it is expected to utilize the company's technical advantages and accumulated experience in the fields of clean combustion, flue gas treatment, water environment treatment, and solid waste disposal. In addition to bringing impressive performance increases, it will further enhance the company's market position in the environmental management industry. Set up a 2 billion yuan industrial investment fund to nurture new environmental growth. The company recently signed a strategic cooperation framework agreement with Shenzhen Qianhai Qinzhi International Capital Management Co., Ltd. to jointly initiate the establishment of an industrial investment fund with a total scale of no more than 2 billion yuan, with an initial installment of 1 billion yuan. The investment direction is environmental protection related fields such as flue gas exhaust gas treatment, water conservancy and water environment treatment, ecological environment treatment, and solid waste environment treatment. Qinzhi Capital is a professional investment institution with state-owned shares and market-based operations. We believe that the company will rely on Qinzhi Capital's professional investment capabilities, actively deploy upstream and downstream in fields related to the environmental protection industry, and integrate internal and external resources through industrial investment methods. The actual controller and executives increased their premium holdings, demonstrating their firm confidence in future development. On April 18, the company's actual controller and chairman, Ms. Mao Fengli, and the company's directors, supervisors and senior management (management team) announced that they intend to increase their holdings of the company through the Shenzhen Stock Exchange trading system within 12 months. The lower limit of the planned increase is 100 million yuan, and the upper limit is 1 billion yuan. This time, the actual controller and executive team intend to use their own or self-raised capital to increase their holdings at the price limit of 15 yuan/share. Compared with the closing price of 7.89 yuan/share before the suspension of trading, the increase in holdings is obvious, fully demonstrating the company's long-term optimism about the environmental protection industry and their firm confidence in future sustainable development. After completion, it will further strengthen control over the company's business development. Furthermore, the directors and supervisors of the companies participating in the plan to increase their holdings promised not to reduce their holdings within 6 months. Maintaining the purchase rating We believe that after Fengli Capital joined the company, it has optimized the company's operations at various levels, such as business management and capital operation. In addition, the first phase of the company's equity incentive plan has been granted. The incentives include a total of 182 people, including directors, senior management, and core technical (business) personnel. The net profit in the exercise conditions has increased dramatically over the same period last year, which indicates that the company will usher in leaps and bounds. We expect to achieve net profit of 1.63 million yuan and 204 million yuan in 2017 and 2018, respectively, corresponding to EPS of 0.23 yuan and 0.29 yuan, maintaining the purchase rating.