VPower Group is engaged in the design, installation, management, operation and maintenance of power generation systems through its subsidiaries. The company has two business divisions: Systems Integration (SI) and Investment, Construction, and Operations (IBO). The three new projects in Myanmar owned by the company's joint venture with China Technology Import and Export Group Limited are expected to contribute starting in 2020, which will enhance Vaillant Group's operating performance in 2020 and 2021. The company's performance in 2018 and 2019 was mediocre due to its IBO business expanding at a slower pace than expected. We believe the market's concerns about its growth prospects have been allayed. Vaillant Group is expected to resume rapid growth in 2020. Although the company has no directly comparable peers in the Hong Kong market, the company is worth watching if investors seek high profit visibility and interest in the clean energy sector in emerging markets. VPower Group, a leading provider of distributed power solutions, went public in November 2016 and is engaged in the design, installation, management, operation and maintenance of power generation systems through its subsidiaries. The company has two business divisions: Systems Integration (SI) and Investment, Construction, and Operations (IBO). The company's integrated business model involves: 1) providing power system solutions in emerging countries with power shortages; 2) investing in and operating distributed generation projects in many countries (such as Indonesia, Myanmar, Bangladesh, and the United Kingdom). The company provides solutions for natural gas, biogas, LNG, combined heat and power (CHP), organic Rankine cycle (ORC) and offshore vessels. VPower Group also uses its own proprietary system design and integration capabilities to design, integrate, and sell gas and diesel generator sets and power generation systems. In 2019, the power generation business accounted for 37% of turnover, and the SI business accounted for 67% of turnover. The IBO business is expected to achieve good growth in 2020 and 2021. As the IBO business expanded at a slower pace than expected, VPower Group's performance in 2018 and 2019 was mediocre. A joint venture between Vaillant Group and China Technology Import & Export Group Co., Ltd. has obtained three new projects in Myanmar, with a total capacity of 900 MW. These new projects are expected to begin production in mid-2020 and will enhance VPower Group's operating performance in 2020 and 2021. The company's IBO business, including the contribution of joint ventures, will resume rapid growth in 2020. A joint venture with China Technology Import & Export Group Co., Ltd. can ease the financial pressure on Vaillant Group. It is expected that market concerns about Vaillant Group's growth prospects and debt will also ease, and it is expected to boost investor confidence. Establishing a closer cooperative relationship with MTU to tap the potential of the Chinese market VPower Group signed a distribution agreement for MTU products in China with Rolls Royce in March 2020. The partnership between the company and MTU helps the company seize growth potential in the face of China's trend of replacing marine power generation solutions. Risk factors: The slower than anticipated launch of new projects in Myanmar, counterparty risk for offenders, and the risk of excessive concentration of suppliers.