1. Overview of the incident Recently, Jinglan Technology released its report for the third quarter of 2017: revenue for the first three quarters of 915 million, up 2976% year on year; net profit of 144 million yuan, up 550.27% year on year; of these, revenue for the third quarter was 436 million yuan, up 122241.68% year on year, and net profit to mother was 43 million yuan, up 353.38% year on year. 2. Analysis and judgment The environmental protection effects of the transformation are remarkable, and garden transfers in the north have added synergy effects. The company's performance increased dramatically, mainly due to the orderly development of various businesses during the reporting period and the smooth implementation of the framework agreement. At the same time, Jinglan Muhe was not yet consolidated in the third quarter of last year. Recently, the company completed the transfer and merger of gardens in the north, and further expanded into the landscaping and ecological restoration industry on the basis of the original clean energy service (Jinglan Energy Technology) and water saving service (Jinglan Muhe). The main ecological environment business structure is more complete, and performance flexibility has been further improved. In the future, various subsidiaries are expected to have good synergy effects by sharing customer networks and complementing qualifications. There are many ways to raise funds, so there is no need to worry too much pressure on cash flow. The company's cash flow from operating activities/cash flow from investment activities during the reporting period was -741/-755 million yuan respectively, which is a normal result of the business expansion period. The actual controller subscribed to the full amount of 510 million North Gardens to raise funds, demonstrating the majority shareholders' financial strength and confidence in the company. On September 28, the company's first PPP ABS order was approved by the board of directors. Using the PPP project contract proceeds rights held by Jinglan Muhe as the underlying asset, it issued asset-backed securities of no more than RMB 411 million (of which priority level of 390 million yuan and secondary level of 021 million yuan). While providing sufficient capital for the company, it also confirmed from the side that the PPP projects in the company are well regulated and of high quality. The company added 300 million in short-term loans and 250 million in long-term loans in the third quarter. Currently, the balance ratio is only 46.81%, which is a low level among similar companies, and there is still plenty of room for financing. The transformation of framework agreements is gradually accelerating, and high-value on-hand orders guarantee high future growth. Since 2017, the company has announced the signing of a new framework agreement of 9.45 billion yuan. There are sufficient framework agreements in place, totaling about 19.6 billion yuan. This year's framework agreement accelerated the transformation into project orders. The “30,000 mu High Standard Farmland Construction Project in Xinyingzi Town Contract Village, Toketou County”, the “Hulunbuir Agricultural Reclamation Group Hailar Farmland Administration Building High-Standard Basic Farmland Land Remediation PPP Project”, and the “Julu County Modern Agriculture “Tiantian Street” Smart Water-Saving Irrigation Project”, which won the bid in the third quarter, all came to fruition. Since 2017, the company has signed new orders of 6.275 billion yuan (including contracts and winning bids). Sufficient on-hand orders will be the core force driving the company's performance growth. 3. Profit forecast and investment recommendations The company's EPS for 2017 to 2019 is expected to be 0.45, 0.65, and 0.80, respectively. We are optimistic about the company's future development in clean energy, agricultural water conservation and ecological restoration, and maintain a “highly recommended” rating. 4. Risk Warning 1. Policy implementation falls short of expectations; 2. Order signing falls short of expectations; 3. Contract execution progress falls short of expectations.