Incident: The company announced the resolution announcement of the 4th Extraordinary General Meeting of Shareholders in 2017. Among them, the bill on the “Dongxu Blue Sky New Energy Co., Ltd. First Employee Stock Ownership Plan (Draft)” and its summary agreed to 414,323,707 shares, accounting for 99.9890% of the shares held by all shareholders attending the meeting. Employee shareholding shows confidence: On August 8, 2017, the company issued the first phase of the employee stock ownership plan (draft) for 1,500 employees, including directors, supervisors, and senior management. The total capital raised by the employee shareholding plan was up to 317 million yuan. CNOOC Trust was commissioned to manage it, and fully subscribed to the general level share of the pooled fund trust plan it set up. The maximum limit of this pooled fund trust plan is 950 million yuan. Priority shares and general level shares are set according to a leverage ratio of no more than 2:1. Through share grading, the benefits or losses of the employee stock ownership plan have been amplified. The shareholding plan lasts for 24 months, and the lock-up period is 12 months. At the same time, the pooled trust plan will be purchased through the secondary market within 6 months after review and approval by the shareholders' meeting, and the cumulative number of underlying shares held by the employee stock ownership plan during the entire validity period shall not exceed 10% of the company's total share capital. Judging from the employee's shareholding plan, on the one hand, Dongxu Group, the controlling shareholder of the company, underpins the priority share of the pooled fund trust plan, and on the other hand, the employee shareholding plan amplifies expected gains or losses through leverage. It can be seen from this that the company's controlling shareholders, directors, supervisors, and ordinary employees are all confident about the company's future development. The construction of photovoltaic power plants has accelerated, and the results have entered a period of rapid release: According to the company's announcement, in 2016, the company raised a total of 14.35 billion yuan in capital through non-public offering, all of which were used for the construction of photovoltaic power plants. By the end of 2016, the company had begun construction of nearly 800MW photovoltaic power plants. Some of these projects have been gradually connected to the grid, and more than 3GW of photovoltaic power plant project filings have been completed. The types include centralized ground-based photovoltaic power plants, distributed ground-based photovoltaic power plants, distributed roofs, etc., and through integration with agriculture and poverty alleviation, it is expected to open up more market space and performance growth points for the company. 2016 was the beginning of Dongxu Blue Sky's massive entry into the new energy industry. It is also the first year for the company to fully launch the construction of photovoltaic power plants. As the power plants are gradually connected to the grid, the company's performance is being released at an accelerated pace. According to the company announcement, in 2016, the company achieved revenue of 3.774 billion yuan, an increase of 126% year-on-year, and a net profit of 175 million yuan, an increase of 183% over the previous year; in the first half of 2017, the company expects to achieve net profit of 121-13 million yuan, an increase of 50%-61.5% over the previous year. As a catcher in the photovoltaic industry, the company is speeding up the increase in the scale of power plant holdings, and is expected to enter the first tier of the domestic photovoltaic power generation industry in the short term. In addition, the company is also actively expanding its photovoltaic power plant engineering business and power plant operation and maintenance business, which is expected to have a synergy effect with the company's photovoltaic power plant investment and operation to ensure the smooth implementation of the project. Acquisition of Starview Ecology and layout of the environmental protection industry: Based on the company's strategic goal of “developing an environmentally-friendly industry” and the overall optimism of the environmental protection industry market, on May 2, 2017, the company announced that it intends to acquire 100% of the shares of Starview Ecological Construction Investment (Suzhou) Co., Ltd. with its own capital, at a consideration of 340 million yuan. After the acquisition is completed, Starview Ecology will become a wholly-owned subsidiary of the company. Starview Ecology was acquired and established in 2015. It is a professional investment and construction platform in the PPP field, engaged in garden ecology construction business. Its key team members mainly come from Oriental Garden and have rich connections and resources in the environmental protection industry. At the time of the announcement of the acquisition, Starview Ecology had a PPP contract amount of 2.7 billion yuan, and promised that PPP project contracts signed in 2017, 2018, and 2019 relating to the recipient's main environmental protection business, such as ecological environment, environmental protection, water conservancy and water services, and non-PPP project contracts with progress payments would not be less than 6 billion yuan, 7 billion yuan, and 8 billion yuan, respectively. Investment advice: We expect the company's revenue growth rates from 2017 to 2019 to be 61%, 37%, and 30%, respectively, and net profit growth rates of 184%, 67%, and 76%, respectively. For the first time, we have given a buy-A investment rating, and the target price for 6 months is 16.65 yuan. Risk warning: PV power plant projects fall short of expectations, and PPP projects fall short of expectations.