Incident: The company announced that the Development and Review Committee of the Securities Regulatory Commission has reviewed the company's fixed increase matters. According to the review results of the meeting, the company's application for a non-public stock offering was approved. Key investment points: The smooth completion of the non-public offering will supplement capital strength. The fund-raising project for photothermal power generation projects has begun, and construction is currently progressing smoothly. The total capital raised by the company's non-public stock offering does not exceed 1,570 billion yuan. After deduction of issuance fees, it is intended to be used for the “Yumen Zhengjiashawo Molten Salt Tower 50,000 kilowatt photothermal power generation project”. Actively promoting photothermal power generation projects will help the company accumulate photothermal power generation project construction, project operation and management, and seize the photothermal power generation market. Construction of this photothermal project began in July of this year. Using second-generation photothermal technology, the conversion efficiency is higher. Currently, the price subsidy for photothermal power generation is strong, and subsequent operating income is guaranteed. After this non-public offering conference, with subsequent capital raised in place, it is expected that the company's capital strength will be further strengthened and the project will accelerate progress. The integration of China Machinery Power is smooth, and the power EPC contributes to the main source of performance; changes in accounting estimates will increase the overall performance scale. Since completing the acquisition of 80% of China Machinery Electric's shares in 2016, the synergy effect has been highlighted, and the power EPC has gradually become the main source of the company's performance. Since the beginning of the year, China Machinery Power's related business has progressed smoothly. It has successively won bids for Lu'an Hami and Panxing Energy's thermal power projects, and is actively promoting overseas projects such as Indonesia's Delong Nickel's own power plant and Brunei PMB coal-fired power plant. In the second quarter, the company sold shares in its subsidiary Xinmei Chemical, generating investment income of 37.17 million yuan. The company expects net profit for the full year of this year to be 27-350 million yuan. In October 2017, the company held an extraordinary shareholders' meeting to review and pass the changes to adopt future applicable law. Implementation began on the date of review and approval. The net profit for the third quarter report did not include the impact of this change in accounting estimates. The accounting estimate affected net profit of 95.71 million yuan in the first three quarters. Traditional equipment manufacturing has picked up, management mechanisms and asset structures have been rationalized, and the profitability level of traditional businesses has been raised. Benefiting from the recovery in demand in the downstream industry, the company has announced since the beginning of the year that it will provide core equipment such as heat exchangers and hydrogenators for the refining and chemical projects of China Aviation Technology and Hengli Petrochemical. The heavy installation sector has added more than 1 billion yuan in orders, with a total of 1.88 billion yuan in ongoing orders. The total number of new orders in the half year exceeds 70% of the annual tasks. Other sectors also performed well in the first half of the year. Feiteng Aluminum & Plastic achieved performance of 22.57 million yuan in the first half of the year, exceeding the annual performance promise; Wuxi Hongqi Shipyard successfully reversed losses in the first half of the year. In the first half of this year, the company set up an industrial company to be responsible for the operation of the Chengyang base, revitalize existing resources, and at the same time divest loss-making assets into new coal chemicals, and recover capital to concentrate on developing advantageous core businesses. With the further streamlining of the company's management mechanism and further optimization of the asset structure, the profitability of the company's traditional equipment business is expected to be further enhanced. Profit forecast and valuation: We maintain the company's profit forecast unchanged. We expect net profit of 347, 5.08, and 602 million yuan respectively from 17 to 19, with an EPS of 0.47, 0.69, and 0.82 yuan/share, respectively. The PE corresponding to the current stock price is 18, 12, and 10, respectively. The company's power EPC has plenty of on-hand orders and continues to contribute to increased performance. Fund-raising projects are being actively promoted, and the profitability of the main business of traditional equipment manufacturing continues to improve, maintaining a “buy” rating.