The performance was in line with expectations, and the continuous improvement in profitability benefited from the combination of the new energy auto parts business and financial leasing business. The company's performance in the first three quarters increased sharply, achieving revenue of 1,999 million yuan, net profit of 152 million yuan, an increase of 124.58% over the previous year, net profit after deduction of 144 million yuan, an increase of 463.92% over the previous year, which was basically in line with expectations; of these, the third quarter achieved revenue of 720 million yuan, an increase of 53.09%, and net profit of 38 million yuan, an increase of 14.42% over the previous year. Benefiting from a boost in the new energy vehicle parts and financial leasing business with high gross margins, the company's gross sales margin for the first three quarters was 20.76%, up 5.02 pct year on year, and net sales profit margin was 8.77%, up 4.4 pct year on year. The injection and integration of the Group's new energy vehicle spare parts business and the two-shareholder asset finance and leasing business has effectively enhanced the company's overall profitability and improved the company's business structure. The implementation of the new energy vehicle subsidy policy is imminent, and the new energy vehicle subsidy policy is yet to be implemented. According to data from the National Bureau of Statistics, from January to September 2016, China achieved a cumulative production of 461,000 new energy vehicles, an increase of 83.70% over the previous year. The new energy vehicle industry has maintained a rapid growth trend. As the national new energy vehicle fraud investigation and punishment incident comes to an end, the new industry subsidy policy is expected to be implemented in the short term, and automakers in the new energy vehicle industry have also seen the light, and sales volume is expected to increase significantly in the fourth quarter. The NEV business of the majority shareholders managed by the company is also expected to expand by the end of the year. Once the scale of revenue or net profit triggers asset injection conditions, Zhongzhi's new energy vehicles will be injected into listed companies, bringing about diversification of the company's business while also reducing related transactions with major shareholders, further enhancing the company's profitability. The industrial layout is perfect, and the company is expected to enjoy industry growth dividends. Through a series of capital operations in the early stages, the company currently lays out the four core technologies of “batteries (including hydrogen fuel cells+lithium batteries) +motor+electronic control+electric air conditioning” and financial leasing aftermarket services. The layout of the entire NEV industry chain is perfect. In the future, with the development of the NEV industry, the company will fully enjoy the dividends brought by industry growth. Profit forecasts and valuation estimates that the company's net profit attributable to shareholders of listed companies in 2016-2018 was 2.43, 3.57 and 530 million yuan respectively, up 168.77%, 46.97%, and 48.57% year-on-year, corresponding EPS of 0.21, 0.31 and 0.47 yuan/share, corresponding to current stock price valuations of 48, 33 and 22 times. Considering the asset injection into Zhongzhi's NEV business and the relative certainty of the future development of the NEV industry, we are optimistic about the company's profitability and long-term growth space, and maintain a “buy” rating.