On the evening of March 28, the company announced that it achieved operating income of 413.6048 million yuan in 2018, an increase of 37.45% over the same period last year; net profit attributable to shareholders of listed companies was 8,00792 million yuan, an increase of 39.25% over the same period last year; and the company achieved earnings per share of 1.08 yuan, an increase of 24.14% over the same period last year. The company's performance continues to improve and is generally in line with expectations. The company plans to distribute cash dividends of 3.3 yuan (tax included) for every 10 shares and 3.5 shares for every 10 shares to all shareholders based on the total share capital of December 31, 2018. Looking at the rating industry, the performance of the steel, petrochemical, automobile, and civil industries all increased. By product, the four product sectors of engineering, dosing equipment, and chemical sales and operation are flying hand in hand. The company's overall gross margin was 38.20%, a slight decrease from last year, but the decline was smaller than expected. The company's net profit margin was 19.43%. In the face of a slight decrease in gross margin, the company strengthened control on the cost and cost side, making net profit superior to the same period last year. From the revenue side, the benefits of downstream industrial customers have rebounded, and the addition of operating orders from Letting Steel EPC and SAIC Volkswagen has had an obvious effect on increasing the company's performance. Revenue increased in the civil sector+other business sectors. Increased production at Yuanba Gas Field increased revenue in the chemical industry's operating sector, and chemical sales revenue increased steadily. On the cost and expense side, the share of material costs is stable, labor costs have declined, project costs have risen, and overall control has exceeded expectations. Financial expenses continued to decrease, with the period expense ratio falling 2.3 percentage points over the 17-year period. The return of cash is steady, asset-light management, and there is plenty of cash on hand. Net cash flow from operating activities in 2018 decreased year-on-year due to an increase in the share of EPC projects in the revenue structure. The increase in receivables and inventory turnover rates indicates that the company's operating efficiency has improved. At the end of 2018, the company had 399 million dollars in cash on hand, an increase in short-term loans plus an increase in payables, pre-collection projects, and other accounts payable. The debt ratio rose to 18.27%, which is still at a low level for similar companies in the industry. The company operates on an asset-light basis, and the company's depreciation and amortization still accounts for a small share of revenue. Industrial water treatment operations have solid performance, EPC projects have brought performance flexibility, and endogenous epitaxial growth has been steady. Operating revenue is firmly rooted in: top customers account for a high share of revenue, stable repayment, and high-quality one-stop operation services. EPC orders have greatly improved performance elasticity: Hegang projects have been launched one after another to generate revenue+ “1+1" model to obtain more EPC projects+ paving the way for subsequent operations. The establishment of subsidiaries and the expansion of external mergers and acquisitions have become new driving forces for growth, and the industrial chain has been further extended. Equity incentives target core employees+controllers have increased their holdings, and distributed cash dividends+bonus shares to enhance stock liquidity. Future performance can be expected. Profit forecast and ratings: We maintain our 2019-2020 forecast unchanged. We expect net profit for 2019-2021 to be 1.24/1.61/217 million yuan, EPS is 1.22/1.59/2.14 yuan/share, corresponding PE is 31/24/18 times, maintaining the “buy” rating. Risk warning: risk of loss of existing major customers, risk of new industrial water orders falling short of expectations, risk of increased industry competition.