Incident: The company and Fujian Electronic Information (Group) Co., Ltd. signed a “Memorandum of Investment Cooperation” to increase capital investment in Fujian Digital Fujian Cloud Computing Operation Co., Ltd., a wholly-owned subsidiary of Fujian Electronic Information Group. This memorandum is an intentional document only. Comment: The plan is to lay out the big data business and introduce new resources to enable development. Fujian Electronic Information Group is a wholly state-owned electronic information industry asset management and investment platform funded by the Fujian Provincial Government. It is ranked 38th in the top 100 electronic information companies in the country. The target company is a wholly-owned subsidiary of the group, engaged in the construction and operation of big data centers. The target company has 6 subsidiaries and 2 data centers in the Binhai New Area of Fuzhou. The completed digital Fujian Cloud Computing Center covers an area of 30 acres, has a construction scale of 40,000 square meters, and accommodates 4,500 cabinets. Of these, 2,500 have been put into operation, and the PUV value has reached the leading level in China. The National Southern Health and Medical Big Data Center under construction covers an area of 60 acres, has a construction scale of 120,000 square meters, and can accommodate 10,000 cabinets. It is expected to be put into use one after another by the end of 2020. The company grasped development opportunities and introduced Prologis as a strategic investor in 2019. The company closely followed the national strategy and actively laid out important “new infrastructure” related industries such as IDC, big data, and cloud computing. The company's current intention to cooperate with Fujian Electronic Information Group is an important trigger for management to implement the company's transformation and development strategy. If this transaction is completed, the target company will become a shareholding subsidiary of the company. At the same time, the company elected Mei Zhiming and Zhang Jiajing as non-independent directors of the 7th board of directors of the company. The company's high-value repurchases show confidence in development. Based on confidence in the company's future development prospects and recognition of internal investment value, the company announced in December 2019 that it plans to use its own capital to repurchase some of the company's shares through centralized bidding. The total proposed repurchase capital is not less than 250 million yuan, not more than 500 million yuan. As of April 30, the company has repurchased about 86.576 million yuan. Currently, the maximum price for repurchasing shares is 9.76 yuan/share. Maintaining the company's purchasing rating, the company's transformation progressed in an orderly manner, and initial results were seen. The company's target price was raised to 8.50 yuan. The company's EPS for 2020, 2021, and 2022 is expected to be 0.35, 0.40, and 0.45 yuan, and the corresponding PE is 23.4, 20.2, and 18.0 times, respectively. Risk warning: The announcement memorandum is a framework document and is not legally binding. There is uncertainty about the cooperation between the two parties and the progress of subsequent matters.