1. The incident company reviewed and passed the “Proposal on Acquiring 100% of the Shares of Jingbian County Fengrun Wind Power Co., Ltd.” 2. Our analysis and judgment is to acquire 100% of Jingbian Fengrun's shares, and the approved total installed capacity is 49,000 kilowatts. The amount of this equity transfer is 80 million yuan. After the acquisition is completed, the company will directly hold 100% of Jingbian Fengrun's shares. As a wind power plant project company, Jingbian Fengrun owns and operates the Jingbian Xindun autonomous domestic high-power wind turbine demonstration project. The approved total installed capacity is 49,000 kilowatts, and the feed-in electricity price (including subsidized electricity prices) is 0.61 yuan/kilowatt-hour, and all electricity generation is already connected to the grid. Actively acquire wind power assets and steadily promote industrial chain expansion and strategic transformation. In total, 2019H1 owns about 100 MW of grid-connected photovoltaic power plants, achieving revenue of 59.2315 million yuan. 2019H1 achieved wind power generation sales revenue of 159.597 million yuan; it has received a total of 190 MW of wind farm approvals. Among them, the two phases of the Dezhou project, totaling 100 MW, are under construction, and the other 90 MW are still going through preliminary formalities. 2019H1 acquired Jiangyin Yuanjing Huili Energy Co., Ltd. and indirectly owned a wind farm with an installed capacity of 74.8 MW. Through the expansion of the industrial chain, the company combines tower manufacturing with the development and utilization of local wind resources to form a healthy development trend of mutual promotion and coordination. The company's acquisition of 100% of Jingbian Fengrun's shares was successfully reviewed and approved. It is a strategic choice for the company to expand the new energy power generation business, and is expected to contribute to stable performance in the future. Wind power prosperity has rebounded, and tower performance has boosted. The company has 8 production bases across the country, with a total production capacity of about 295,500 tons. As the domestic wind power industry continues to recover, 2019H1 has sold a total of about 991.0974 million tons of towers, achieving revenue of 780 million yuan, an increase of 130.1% over the previous year, and gross margin of 23.24% (up 2.95pct from the previous year), which is an important contribution to the performance of the first half of 2019. As of the first half of 2019, the company's ongoing orders for towers (including offshore wind power towers) totaled about $2.76 billion, nearly double the revenue in 2018. Sufficient orders will guarantee future performance. 3. Investment advice The company is a leading enterprise in domestic fan tower production, and is steadily promoting industrial chain expansion and strategic transformation. Currently, domestic wind power prosperity is picking up, steel prices are weakening, and there are plenty of orders in hand. Wind tower performance is expected to continue to break through. Combined with operating assets, the company's future performance is highly guaranteed. We expect the company's operating income in 2019-2021 to be 2,514 billion yuan, 3.257 billion yuan, and 3,597 billion yuan, and EPS of 1.15 yuan, 1.70 yuan, and 1.92 yuan, corresponding to the current stock price PE of 14.5 times, 9.8 times, and 8.7 times, covering the company's “recommended” rating for the first time. 4. Risk warning 1) Wind power installations fell short of expectations; 2) Steel prices rose more than expected; 3) Competition intensified; 4) Project progress fell short of expectations.