1. Investment event On March 12, 2019, the company announced a report on the status of the non-public offering of shares. 2. The analysis determined that performance continued to grow relatively rapidly, and repayment efforts were strengthened. In 2019, the company achieved operating income of 2,312 billion yuan, an increase of 0.37% over the previous year; realized net profit of 383 million yuan, an increase of 34.73% over the previous year; during the reporting period, Chongqing Jindian Garden, a wholly-owned subsidiary of the company, achieved a transformation from focusing on real estate gardens to focusing on municipal gardens, and the company's gross margin increased. Furthermore, the company has strengthened accounts receivable management and strengthened repayment efforts, thus achieving a continuous increase in net profit. A fixed increase supports PPP and EPC projects. The number of shares issued by the company is 79,487,178 shares, accounting for 11.68% of the total share capital after issuance. The issue price of this non-public offering is 11.70 yuan/share, and the lockdown period is 12 months. The Wuxi Guolian Xinmei Investment Center (limited partnership), the Wuxi Cultural Tourism Phase I Industrial Investment Center (limited partnership), and Jiangsu Xinyangzi Shipbuilding Co., Ltd. were all placed by 26,495,726 shares, all with an allocation amount of 309,999,994.20 yuan. The net capital raised this time is 918,120,495.60 yuan, which will be used for the Chenbar Huqi China Grassland Industrial 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 introduction of a fixed increase in state-owned shareholders is expected to achieve collaborative development. Among the three shareholders that have been increased this time, the Wuxi Guolian Xinmei Investment Center (limited partnership) and the Wuxi Cultural Tourism Phase I Industrial Investment Center (limited partnership) all have state-owned shareholders. The shareholders of Wuxi Cultural Tourism Phase I Industrial Investment Center (Limited Partnership) are Wuxi Garden Classical Construction Co., Ltd., Jiangsu Yuantian Investment Co., Ltd., Wuxi Cultural Tourism Development Group Co., Ltd., and Wuxi Greening Construction Co., Ltd. In the future, the company may hope to achieve collaborative development in businesses such as classical gardens and cultural tourism with additional shareholders. Optimize the layout and enhance core competitiveness. The company established a wholly-owned subsidiary, Muqu Technology, and obtained new China Environmental Label (Type II) product certification and 7 patent certificates, enhancing business collaboration capabilities and core competitiveness. The company's newly developed organic covering “Mu Fun” is at the leading level in the same industry in terms of ecological function, environmental protection function, landscape function and economic function. It has strong market competitiveness and is expected to promote the development of the company's ecological and environmental protection business. 3. Brief financial analysis of the company's operating income grew rapidly in 2016-2017, and the growth rate slowed in 2018. In recent years, the company's net profit from its parent has grown rapidly. The company's gross margin and net profit margin increased in Q1-3 2018. The increase in the company's financial expense ratio in recent years has led to an increase in the period's expense ratio. 4. The investment recommendation predicts that the company's EPS in 2019-2020 will be 0.85/1.09 yuan/share, and PE will be 16/12 times, respectively, giving it a “recommended” rating. Risk warning: fixed asset investment declined sharply; accounts receivable recovery fell short of expectations.