1. Investment event On July 23, 2018, the company announced the 2018 semi-annual results forecast. 2. Our analysis and judgment results are expected to continue to grow at a high rate. In the first half of 2018, the company expects to achieve net profit of 308 million yuan to 370 million yuan, an increase of 30.08% to 56.26% over the previous year. The 2018 mid-year report continues its rapid growth trend. The company's performance growth was mainly driven by the two main businesses of gardening and auto parts. Newly signed projects in the garden sector continued to be implemented and entered the construction stage, and sales revenue grew steadily. The combination of factors such as a complete industrial ecological chain and a professional design team ensures the continuous and efficient operation of the business. The market share of the non-tire environmentally friendly rubber products business in the auto parts sector has increased. At the same time, through measures such as customer structure optimization and product upgrading, the company's operating income has increased, and the company's profit growth has been driven. The company expects the impact of non-recurring profit and loss on the company's net profit to be 65 million yuan to 66 million yuan, mainly due to the acquisition, storage and auction of land in the old factory area of the auto parts sector due to the overall city plan. With the gradual fulfillment of orders, the company's annual performance is expected to continue to grow at a high rate. The actual controller's increase in holdings shows confidence. Mr. Zhang Lei, the controlling shareholder and actual controller of the company, increased his holdings by 13,733,155 shares between July 6, 2018 and July 20, 2018 through centralized bidding. The average increase price was 7.39 yuan/share, accounting for 0.95% of the total share capital. The source of capital for the increase in shares was Mr. Zhang Lei's own funds. After this increase in holdings, Mr. Zhang Lei directly held 395,723,241 shares of the company's total share capital, held the company's shares through Tibet Fumei Investment Co., Ltd. (Zhang Lei holds 72.1% of the shares), and her co-actor, Ms. Li Xiaonan, held a total of 466,945,902 shares of the company's shares, accounting for 32.14% of the company's total share capital. The issuance of convertible bonds was approved, and the company's financing channels benefited. On July 16, 2018, the company's application for the public issuance of convertible corporate bonds was approved by the China Securities Regulatory Commission. The official approval is yet to be issued by the CSRC. It is believed that issuing convertible bonds will help the company broaden financing channels, and it is expected that in the future, it will strengthen its financial strength and help the development of the garden engineering business. Sai Shi Garden is full of orders, and the performance is guaranteed. Hangzhou Saishi Garden Group Co., Ltd., a wholly-owned subsidiary of the company, had signed an unfinished order of 6.408 billion yuan as of the end of the second quarter of 2018, which is about 2.49 times the company's 2017 garden engineering business revenue of 2,576 billion yuan. With the gradual implementation of orders, the company's landscape engineering business performance is expected to be released. 3. The investment proposal estimates that the company's EPS for 2018-2020 will be 0.61/0.81/1.02 yuan/share, respectively, and the corresponding dynamic price-earnings ratio will be 14/10/8 times, respectively, giving it a “recommended” rating. Risk warning: fixed asset investment declined; accounts receivable recovery fell short of expectations.