Incident: Executive Change Aspect: Meibang Chairman and CEO Zhou Chengjian submitted a resignation report. Ms. Hu Jiajia is the chairman of the board. Presidents Tu Ke and Song Wei (responsible for business development at Metsbonway) serve as vice presidents. Tian Fang is the financial director. Zhuang Tao is the secretary of the board of directors. Hu Zhoubin is an assistant to the president and is responsible for the development of Internet and innovative businesses. Daniel Silva is an assistant to the president and is responsible for business development at ME & CITY. In terms of equity transfer: Shanghai Metsbonway Co., Ltd. transferred 100% of its shares in Shanghai Metsbonway Enterprise Development Co., Ltd. to Kangqiao Industrial with 983 million yuan in cash. Huafu Investment, the controlling shareholder of the Company, holds 40% of Kangqiao Industrial's shares, and is also the controlling shareholder of the Company. Payment: 1. Prior to 2016-12-25, full payment of 10% of equity transfer payments of 98 million yuan was made. 2. Before 2017-2-28, 30% of equity transfer payments of $294 million were paid in full. 3. By 2017-3-31, the remaining 60% of the equity transfer amount was paid in full, and 591 million yuan was paid. Asset delivery: Complete the industrial and commercial change registration procedures for the underlying asset transfer by 2017-3-15. After this equity transfer, Meibang Enterprise Development will no longer be included in the scope of the company's consolidated financial statements, which is expected to have a positive impact on the company's 2016 performance. Performance has bottomed out, and expectations have improved. The company's revenue improved in 2016, driving better performance than in previous years. However, this major change in senior management (Zhou Chengjian's daughter, Hu Jiajia) and the transfer of shares to Kangqiao Industrial are, on the one hand, beneficial to the significant improvement in the company's performance starting in the fourth quarter and revitalizing existing assets; on the other hand, after the second generation, it is beneficial to improve the market's view that the company's current operations are not bright (at least from the company's future strategy, we can expect to see new thinking and new plans). In the short term, there is an inflection point expectation of a gradual adjustment of the company's strategy; in the medium term, the company will still face a series of business optimization and integration; in the long run, it is necessary to observe the specific management ideas after the new chairman takes office. For the first time, coverage was given a “buy” rating, with a target price of 6 yuan for 3-6 months. It is estimated that the company's EPS for 16-17 is 0.02, 0.2 yuan, corresponding to PE 228, 23 times that of PE. We believe that at least from 16Q4 and 17Q1, the company's performance flexibility brought about by equity transfers is high. Currently, the stock price is in the bottom range, and there are large trading opportunities in the short term. Risk warning: In the medium to long term, the rectification effect of the company's newly appointed executives is lower than expected.