Yunnan Water (6839) is a leading integrated service provider in the urban sewage treatment and water supply industry in Yunnan Province. Recently, the group is also interested in entering overseas markets such as Southeast Asia, and expanding its business to solid waste treatment and waste power generation. The prospects are worth looking forward to. The Group made a profit earlier. It is expected that net profit for the six months ending June this year will increase significantly compared to the same period in 2015, mainly due to the increase in the contribution of the Group's expansion business to operating value; and the increase in the contribution of new acquisitions to operating value, reflecting the positive contribution of mergers and acquisitions to business results. At the end of July this year, the Group purchased 50% of the Galaxy NewSpring Pte. shares from Tokyo-listed company Mitsui & Co., at a cost of 100 million US dollars, which will be repaid using the Group's debt loans. The latter operates 24 water supply, sewage treatment and water reclamation plants in various provinces in China, with a total treatment capacity of 1.54 million tons per day, which helps expand the group's business scale. In fact, the Group has frequent merger and purchase activities today. At the end of April, the Group successfully bid to acquire 75.51% of Harbin Chen Energy Technology's shares, with a total cost of $158 million. The latter currently holds a hazardous waste management license issued by the Heilongjiang Provincial Environmental Protection Agency. It has an annual processing capacity of about 16,000 tons, an annual waste incineration treatment capacity of about 9,800 tons, and also has a biological hydrogen production plant, a biological hydrogen demonstration project complex, a wastewater integrated treatment plant in Harbin City, Heilongjiang Province, and a building in Mudanjiang City. It is believed that the acquisition will enable the Group to realize the benefits of cooperation. As of the end of December last year, the Group's net profit increased 71.6% year-on-year to 286 million yuan (RMB, same below), operating value increased 41.6% year-on-year to 1,558 billion yuan, and gross margin increased from 30.3% to 32.6%. Overall, the overall picture is good. At the end of the period, the Group held approximately $1.67 billion in cash and approximately $19.6 million in restricted cash, an increase of approximately 176.2%. The ratio of assets to liabilities increased 9.2 percentage points year-on-year to 31.9%. On the trend, the rift opened high on July 26, and the stock price continued to rise after the period. However, yesterday it fell below the 10-day line, the STC%K line fell below the %D line, and the MACD bullish gap narrowed. The lower value of 4.35 yuan (HKD, same below) could be absorbed, and the rebound resistance was 4.8 yuan, and continued to be held without falling below 4.2 yuan.