2019 Annual Report & 2020 Quarterly Report: Performance is in line with expectations. In 2019, the company achieved revenue of 4.17 billion yuan (+4.08% yoy), net profit of 326 million yuan (+16.25%), net cash flow from operating activities of 807 million yuan (+7.6% yoy). The company's projects progressed steadily in 2019, and performance was in line with expectations. The first quarter of 2020 reported operating income of 651 million yuan (-5.54% year-on-year) and net profit of 48 million yuan (-19.80% year-on-year). The decline in performance in the first quarter was mainly affected by the epidemic, and the project construction process slowed down. We expect that with the rapid resumption of work and production across the country, the company's performance is expected to recover rapidly, with limited impact on annual performance. As the share of the company's operating revenue continues to increase, and China Energy is expected to hold the company, we expect the company's EPS in 2020-2022 to be 0.54, 0.63, and 0.74 yuan respectively. The current stock price corresponding to PE is 18.9, 16.3, and 13.8 times, respectively, maintaining the “highly recommended” rating. There are sufficient project orders, and the share of operating revenue continues to rise. The company has now become a leading integrated water environment service provider in China, covering the three major water treatment fields of urban water environment, industry, and townships. In 2019, the company added 3,036 billion yuan in project orders and completed 7 sewage project upgrades. By the end of 2019, the company had ongoing engineering orders of 3,927 billion yuan, and uncompleted investment in the franchise category amounted to 2,761 billion yuan. There were sufficient orders in hand, and the project continued to advance. The company achieved operating income of 4.17 billion yuan in 2019, of which water business revenue was 1,375 billion yuan (+16.23% year-on-year), operating revenue accounted for 32.97%, an increase of 3.44 percentage points over the same period last year, and the share of operating revenue continued to grow. In addition, the company's environmental engineering EPC business contributed 2,597 billion yuan in sales revenue, and the sewage treatment equipment sales business contributed 184 million yuan in sales revenue. China Energy Energy plans to invest in Guozhen Environmental Protection, which is expected to inject high-quality water assets. On March 13, 2020, the company announced that Guozhen Group plans to transfer 15% of Guozhen Environmental's shares to China Energy. The transfer price is 14.66 yuan/share (43.02% premium over the closing price on April 24, 2020), and hands over 6.26% of the voting rights to China Energy; if the transaction is completed, China Energy will own 23.69% of the company's shares and 29.95% of the voting rights, and China Energy will become the controlling shareholder of the company; in addition, Guozhen Group and China Energy Conservation Company also promised to remain Net profit for 2020 will not be less than 350 million yuan. We believe that the premium entry of central enterprises is optimistic about the company's future leading edge in the field of water environment management. In the future, the company will form effective collaboration with controlling shareholders and participate deeply in the protection of the Yangtze River. Moreover, after China Energy Conservation Holdings, it is expected that in the future, it will gradually inject high-quality water assets into Guozhen Environmental Protection, participate in the targeted distribution of Guozhen Environmental Protection, or entrust Guozhen Environmental Protection to operate its high-quality water assets. The collaboration between the company and the controlling shareholders is worth looking forward to. Risk warning: the project did not advance as expected, the financing environment deteriorated, and the economy declined sharply