Summary of Investment
-The fourth batch of environmental protection supervision and examination has been started, and some very strict polices forced the demand for smoke-gas treatment to be rapidly released
-Long-term development room has been opened, by virtue of advanced treatment technology and accelerated arrangements of non-electric power sectors at home and abroad.
Increase of Operating Cost and Financial Expense Retarded the Profit Increase Rate
The prediction for the first half year of 2017 published by the Company indicates that the operating revenue increased by 42.63% year on year to RMB1.549 billion, but the net profit attributable to the parent company increased by 17.44% year on year to RMB0.315 billion. The profit increase was less than the revenue increase, because firstly, the cost had increased due to increase of construction business volume, and secondly, the newly added bank loan and green bonds had resulted in that the financial expense increased by 6.46 times year on year. According to the guidance in the Stock Option Incentive Plan of 2014, the net profit increase rates from 2015 to 2017 were no less than 85%, 170% and 270%, respectively (based on the net profit of 2014 RMB0.271 billion); the result growth objectives of 2015 and 2016 were achieved, and it is expected that the net profit of 2017 can exceed RMB1 billion, a year-on-year increase of 34.4%.