Key investment events: Commercial City plans to privately issue 113 million shares to Yicheng at a price of 1.5 billion yuan; it also plans to privately issue 105 million shares to 6 people including Zhang Zhenxin at 13.28 yuan/share, raising no more than 1.4 billion yuan in capital. After the transaction is completed, the controlling shareholders and actual controllers of the company will be changed to Yicheng Investment and Zhang Zhenxin, and the company's main business will change to car rental and car networking. An aggressive car rental company. Yicheng Car Rental Network was established by Yicheng Investment in June 2015. Using the car rental business as an entry point, it provides services to end consumers throughout the effective life cycle of operating vehicles through vehicle networking information management platforms, driver training and labor dispatch agencies, and used car evaluation capabilities. Currently, it has four subsidiaries: Great Wall Business (car rental business, established in 2004), Shenzhen Yunchuang (vehicle networking platform, established in 2014), Beijing Rongyada (driver training, established in 2008), and E-rent Used Cars (used cars, established in July 2015). As of the first three quarters of 2015, the company had total assets of 1,006 billion yuan and net assets of 442 million yuan. The realized operating income and net profit were 130 million yuan and 11.49 million yuan respectively, of which the car rental business contributed 62.57% and 83.94% of the company's revenue and gross profit, and was the main source of the company's revenue and profit. The new car policy is getting tighter to benefit car rental companies. The company's car rental business has 2,192 vehicles of its own. Currently, its main customers include AA Car Rental, local government agencies and other enterprises. The private car management policy issued by the Ministry of Transport on October 10, 2015 makes strict regulations on the entry of private cars and drivers, and private cars are basically excluded. This will benefit self-operated car platforms such as AA Car Rental, and at the same time force platforms such as Didi Express to rent vehicles from professional car rental companies, and professional car rental companies ushered in a period of rapid development. Yunchuang Vehicle Network opens up online and offline service systems. The company's vehicle networking platform management business mainly includes vehicle positioning & monitoring, vehicle operation and management cloud platform services, and software customization and development services. The business method is to provide enterprise customers with a vehicle networking management platform based on the cloud innovation box of in-vehicle OBD equipment. By the end of September 2015, Shenzhen Yunchuang had established cooperative relationships with 18 car rental companies to manage 6,675 vehicles through the vehicle operation and management cloud platform. In the future, it will carry out customized software development services for external customers. Small and medium-sized car rental companies, government agencies, and enterprises are all required to carry out driver management, vehicle monitoring, and scheduling of their own vehicle fleets. This provides development space for enterprises with rich software development and software and hardware integration capabilities such as Yee Car Rental Network. The leasing market is developing rapidly, and for the first time, it has been given an “increase in wealth” rating. Benefiting from the standardization of private car management, the car rental market is expected to usher in rapid growth. The company's layout is perfect and aggressive. Based on the assumption that lost assets will be divested after business integration, the company's net profit for 2016 to 2018 is estimated to be 118 million yuan, 171 million yuan, and 227 million yuan respectively, corresponding to EPS of 0.30, 0.43, and 0.57 yuan respectively, which is the first time that it has been given an “increase in weight” rating. Risk warning: Changes in private vehicle management policies, progress in the Internet of Vehicles falls short of expectations