1. Investment event On June 21, the company announced the acquisition of minority shareholder interests in Suzhou Huazao Architectural Design Co., Ltd., a holding subsidiary. On July 2, the company announced foreign investment. 2. Analysis judges steady growth in performance. In the first quarter of 2019, the company achieved revenue of 325 million yuan, an increase of 10.43% over the previous year. Net profit of 23 million yuan was realized, an increase of 10.83% over the previous year. The net profit deducted was 22 million yuan, an increase of 11.81% over the previous year. The company's performance continues its steady growth trend. Acquire minority shareholders' shares of Huazao Design and Design to strengthen control over subsidiaries. The 17th meeting of the third board of directors of the company deliberated and passed the “Proposal on the Acquisition of Minority Shareholders' Interest in Suzhou Huazao Architectural Design Co., Ltd., a holding subsidiary”. The board of directors of the company agreed that the company would acquire 22.79486% of Huazao Design's shares held by seven natural persons including Geng Guanghua and Wang Yulin with its own capital of 19.1477 million yuan. Before this transaction, Zhongheng Design held 69.13% of Huazao Design's shares. After the acquisition was completed, the company's share of Huazao Design increased to 91.92537%. The acquisition strengthened the company's control over Chinese-made design, helped improve the company's overall operating efficiency and future profitability, and enhanced the company's core competitiveness. Entering the field of new environmental protection technology, there is great potential for future development. The company announced that it plans to jointly fund the establishment of Jiangsu Environmental Technology Research Center Co., Ltd. (hereinafter referred to as “Provincial Environmental Technology Research Center” or “Target Company”) with its own capital of 15 million yuan, Jiangsu Academy of Environmental Sciences Environmental Technology Co., Ltd. (hereinafter referred to as “Provincial Environmental Technology Research Center” or “Target Company”), and the company's affiliate, Suzhou Industrial Park Zhongheng Hengli Industrial Investment Co., Ltd. (hereinafter referred to as “Hengli Investment”). After this investment is completed, the company holds 30% of the target company's shares, and the target company becomes the company's participating company; the related party, Hengli Investment, will hold 30% of the target company's shares without actual payment of capital, and transfer it to the shareholding platform free of charge after the target company establishes an employee shareholding platform. The target company mainly focuses on technology research and development, industry incubation, technical services, and integrated Internet information technology services in the field of environmental protection technology. According to the construction of a new type of scientific research institution of “investment+incubation, platform+industry, talent+capital”, it opens up an innovation chain model integrating “basic research - applied research - applied technology development - industrialization - incubation”, relying on the strong technology, business resources and national layout and capital advantages of listed companies of the Provincial Academy of Environmental Sciences (Provincial Department of Ecology and Environment) to become a first-class innovation highland with significant international influence, high-end talent gathering place, industry The source of technological innovation strategies. Jiangsu is a major environmental protection industry province. Environmental transformation and upgrading tasks are heavy, and the target company has huge room for future development. 3. The investment proposal predicts that the company's EPS for 2019-2021 will be 0.83/1.03/1.17 yuan/share, and the corresponding dynamic price-earnings ratio will be 16/13/11 times, respectively, giving it a “recommended” rating. Risk warning: risk of declining fixed asset investment; risk of unsuccessful recovery of accounts receivable; risk of falling short of expectations.