Key investment events: The company's private offering. A fixed increase of 900 million yuan will be raised to provide financial support for subsequent business: the price of the non-public offering of shares is 1,170 yuan/share, the quantity is 79 million shares, and the net capital raised is 918 million yuan. The company's non-public stock offering is intended to be used for the Chenbar Huqi China Grassland Industry Cluster PPP Project, Luzhou Xueshan Municipal Road and Park Greening Tourism Construction EPC Project, Luojiang County's 2017 Urban and Rural Facilities Upgrading and Improvement Project, and the Garden Green Waste Ecological Recycling Equipment Purchase Project. The three subscribed targets are Wuxi Guolian Xinmei Investment Center, Wuxi Cultural Tourism Phase I Industrial Investment Center, and Jiangsu Xinyangzi Shipbuilding Co., Ltd., all local companies in Wuxi. As the capital raised is in place, it will help the company to further accelerate the transfer of orders. Strengthen the main business Business advantages and optimization of the company's asset structure. Gross profit increased, net profit increased by 34.7%: the company achieved revenue of 2.31 billion yuan in 2018, an increase of 0.4% over the previous year, and net profit of 380 million yuan, an increase of 34.7% over the previous year. Mainly due to the shift of Jindian Garden, a subsidiary of Southwest China, from real estate gardens to municipal gardens, the company's profitability has improved. The company operated steadily throughout the year, strengthened the integration of the company's internal resources, strengthened the business advantages of ecological restoration, and successfully implemented large-scale mine restoration projects. In addition, the company has strengthened accounts receivable management and strengthened repayment efforts, and the operating cash flow situation is expected to improve. The ecological and environmental protection industry is booming, and the volume of organic coverage business can be expected: investment in the ecological protection and environmental management industry increased by 42% from January to November 2018, and the growth rate of the industry has maintained a rapid growth rate of more than 30% since 2018. Driven by policies such as beautiful China and rural revitalization, the ecological and environmental protection industry is expected to maintain a high level of prosperity. This fixed capital increase will also be used for the purchase of equipment covering new production lines. Organic coverage is already quite mature in developed countries, and is still in its infancy in China. The estimated annual domestic demand is around 20 billion yuan. The company's organic coverage business prospects are good, gross profit is high, and future growth is worth looking forward to. Earnings forecasts and ratings. EPS is expected to be 0.66 yuan, 0.88 yuan, and 1.22 yuan respectively from 2018 to 2020, corresponding to 22 times, 16 times, and 12 times PE, maintaining the “buy” rating. Risk warning: Project progress, project repayment falls short of expectations, business development falls short of expectations, and risk of impairment of goodwill.