Event Overview The company announced on August 28, 2019 that recently, Shagang Group, the controlling shareholder of the company, has completed the acquisition of 24.01% of shares in Global Switch Holdings Limited (“GS”) held by Aldersgate Investments Limited through its wholly-owned subsidiary Tough Expert Limited. After this equity transfer is completed, Aldersgate Investments Limited is no longer a shareholder of Global Switch Holdings Limited. Ruben Brothers left the original shares, and 100% of GS shares are owned by domestic capital. After Shagang Group acquired 24.01% of GS shares through a wholly-owned subsidiary, Ruben Brothers no longer holds GS shares; 100% of GS shares are domestic capital. We believe that once GS shares are concentrated, it will help GS to better connect with the upstream and downstream resources of the domestic industry, especially the strong overseas demand from large domestic enterprise customers, which will greatly enhance the certainty of GS's overseas business growth. At the same time, for company management, the shareholder structure is simpler, and on the other hand, more homogenous investors can also guarantee the continuation of the company's long-term high-quality management model. GS's high-quality overseas IDC targets, with a property valuation of over £5.4 billion. As a leading global IDC manufacturer, GS has the following characteristics: (1) high-value commercial core regional location; (2) the industry's top IDC management service level; (3) high-value sticky industry customers. Domestic capital is settled, performance growth is certain, and strong steel assets are expected to be divested. GS value is expected to highlight profit forecasts and valuations. We believe that the company's GS business is expected to provide the company with new performance growth. The company's total revenue for 2019-2021 is estimated to be 18.93 billion yuan, 20.05 billion yuan, and 24.38 billion yuan, respectively. Net profit is 1.67 billion yuan, 2.59 billion yuan, and 3.23 billion yuan, respectively, corresponding to current price PE 19.9 times, 12.8 times, and 10.3 times. For the first time, coverage was given an “increase in holdings” rating. Risks suggest that the trade dispute between China and the US causes the overseas renewal rate to decrease; domestic business expansion falls short of expectations; risk of approval by the Securities Regulatory Commission; exchange rate risk; and systemic risk.