The company recently disclosed a plan to issue shares privately to no more than 35 specific investors, raising no more than 1.88 billion yuan, of which about 1.32 billion yuan will be used to acquire the distribution grid energy-saving assets and related EMC contract rights and obligations of 9 comprehensive energy service companies under the State Grid; the remaining capital raised will be used to supplement working capital and repay bank loans. We analyzed the company's fixed increase plan based on the following 6 questions: 1. Has the competition problem in the industry been solved? 2. What is the pricing and valuation of the underlying asset? 3. How large is the non-public offering of shares? 4. What is the business model of the distribution grid energy saving industry? 5. What are the development prospects of the distribution grid energy saving industry? 6. What do you think of the company's future development opportunities? In the additional distribution plan, the company clearly stated that through this transaction, the listed company integrated the energy-saving assets of the State Grid distribution grid. After the issuance was completed, there was no competition between the listed company and the controlling shareholders and their affiliates. If this capital operation is successfully completed, the company will become the only distribution grid energy-saving business listing platform under the State Grid. The distribution grid energy saving business market space is broad, and its business model has the characteristics of continuous operation; at the same time, it has high qualifications, capital, and technical barriers, making it difficult for social capital other than the power grid to participate. We are strongly optimistic about the scarcity of the company and the value of future growth. While expanding and strengthening the distribution grid energy saving business, the company, as the only listing platform under the State Grid Integrated Energy Service Group, is also expected to play an important role in the layout and capital operation of the State Grid Integrated Energy Service sector in the future. Profit forecast: Without considering raising capital to acquire assets, we expect the company's net profit to be 4.58, 4.92, and 524 million yuan in 20-22, and the current stock price corresponding to 20-22 PE is 19, 18, and 17 times. Risk warning: macroeconomic and industry policy fluctuations; progress in fund-raising, acquisitions, and resolution of industry competition falls short of expectations; increased industry competition; high customer concentration and dependency