The incident company announced on the evening of May 17, 2016, that it intends to transfer 70% of the shares held by Tianjin Dongjie and Yunnan Dongjie to Yao Buwen, the controlling shareholder and actual controller of the company. After the transfer is completed, the company will no longer hold shares in these two companies. The review avoided risk, and the parking operation business was transferred to the majority shareholder for in vitro cultivation after acquisition. The two subsidiaries to be transferred by the company are mainly engaged in the construction, operation, and service of parking lots. Both were initially established in the first half of this year, and the business has not yet commenced substantially. Self-built and self-operated intelligent parking systems are capital-intensive businesses that will occupy a large amount of capital at once, and it will take several years to complete capital recovery by charging parking fees. In this way, the company may shift from asset-light operations to asset-heavy operations, and financial risk may increase. In order to prevent excessive short-term fixed asset investment from dragging down the reports of listed companies, the company believes that the time is not ripe to launch this model at this stage, so it has decided to transfer the initial expansion and extension of the parking operation business to major shareholders and then cultivate it in vitro, until the business matures, the direction of injection into listed companies remains the same, and it continues to work on the development of intelligent parking system products. The company will continue to focus on R&D, production and sales of high-performance intelligent parking system products, focusing on improving the technical level of products and market development. After the transaction is completed, the company can act as an equipment supplier for the above two subsidiaries and provide intelligent parking system products for their external operating companies at market-based pricing, thereby increasing the profits of listed companies. Cultivate transfers, and actual controllers will undertake the development of parking operations business. After the transaction, the risks of the new parking operation business will be borne by the company's actual controller, and social capital, including it, will develop partners throughout the country, set up parking operation subsidiaries in various regions, and develop parking operation business. Dongjie Intelligence will strengthen cooperation with it to expand sales of three-dimensional garage products. Profit forecast We forecast that 2016-2018 the company's operating income was 5.2/71/87 billion yuan, up 42%/36%/22% year on year respectively; net profit of 75/96/112 million yuan, up 105%/29%/16% year on year respectively; EPS is 0.53/0.68/0.79 yuan; PE is 78/60/52 times, respectively. Investment advice We believe that this plan reduces the risk of new business development and does not affect sales of intelligent three-dimensional garage products; while increasing the profits of listed companies, it also mitigates the risk that investment in parking operations may drag down financial statements in the early stages, which is beneficial to the company's medium- to long-term development. Furthermore, new businesses will be taken over and developed by actual controllers. In the future, for example