Incident: The company announced the signing of a “M&A Financial Advisory Agreement” with Silicon Valley Paradise. Partnering with Silicon Valley Paradise, we have taken an important step in the outreach M&A strategy. Silicon Valley Paradise and the company signed the “M&A Financial Advisory Agreement” on December 5, 2014. Silicon Valley Paradise was hired as a financial advisor for the company's domestic and overseas acquisitions and mergers, and set up an independent project team to serve the company. The agreement is valid for one year. If the agreement expires, the parties have not raised written objections, or the specific project of cooperation between the two parties is still ongoing, then this agreement is automatically extended for one year. Silicon Valley Paradise has deep strength in industrial integration and mergers and acquisitions, venture capital management, etc., and has developed various successful M&A project models such as Dakang Animal Husbandry, ST Shengrun, and Boying Investment. This cooperation will greatly accelerate the company's epitaxial mergers and acquisitions process and help the company open up development space through capital operation and industrial integration. The company's strategic goals are clear, and the direction of mergers and acquisitions will be mainly in the field of intelligent equipment for the company's emerging business. The company has made some breakthroughs in research on the localization and industrialization of RV speed reducers, and the self-developed robot body and intelligent production line have been successfully used in existing processing lines for key components of tire molds. The 2014H1 intelligent equipment achieved foreign sales of 2.02 million yuan. The company has a strong desire to expand and strengthen the intelligent equipment business as soon as possible. By using Silicon Valley Paradise, the company will implement an active merger and acquisition strategy in the integrated application of key components and systems of intelligent equipment. System integrators with technical advantages of key components or a high degree of compatibility with the company's existing tire manufacturing and machining business are preferred targets. Endogenous growth is guaranteed, and there is room for extended mergers and acquisitions. The company's traditional business, the hydraulic vulcanizer and tire mold business, has maintained a high level of prosperity, and orders are well received, and growth is guaranteed next year; intelligent equipment has bright prospects, and the company will accelerate growth through mergers and acquisitions. Maintain a “buy” investment rating. Since this increase in dilution of the share capital was slightly lower than our previous expectations, we raised the company's 2014-2016 EPS by 13%, 26%, and 18% to 0.34/0.54/0.66 yuan, respectively. The current stock price corresponds to PE of 51/32/26 times, maintaining the “buy” investment rating.