Matters: Mr. He Qinghua, the controlling shareholder of the company, transferred 37.65 million shares of the company held by Beijing Qianshi Chuangfu Capital Management Co., Ltd., accounting for 4.98% of the company's total shares; the average transaction price was 9.6 yuan/share, and the transaction amount was 361 million yuan. After this increase in holdings, Mr. He Qinghua held 26.69% of the company's shares. Investment Highlights 1. The significant increase in the holding of the controlling shareholder shows strong confidence in the company. The current large increase in the holding of the controlling shareholder Mr. He Qinghua shows that he has full confidence in the company's future development prospects and full recognition of the company's value. Furthermore, Mr. He Qinghua has promised to subscribe for 20.00% of the number of non-public shares issued by Shanhe Smart in 2015, so the possibility of continuing to increase his equity holdings in Shanhe Intelligence within the next 12 months is not ruled out. 2. 60% of AVMAX's shares have been settled, and the improved layout has benefited from General Aviation Open Company's acquisition of 100% of the shares of the Canadian regional aircraft leasing and maintenance company AVMAX for 1,979 billion yuan. Currently, the company has completed 60% of the shares. AVMAX's business includes aircraft leasing, aircraft maintenance, aircraft spare parts and used aircraft sales, etc., and achieved net profit of about 136 million yuan in 2015, which will significantly increase the company's performance later. The company has formed a full industry chain of general aviation aircraft manufacturing - aero engine development - aircraft operation and leasing - aircraft maintenance, and with a complete layout, the company will continue to benefit from the liberalization of general aviation. 3. The PPP model has entered underground engineering development. There are plenty of opportunities in the field of rail transit and pipe gallery construction. China Railway Shanhe, a joint venture subsidiary of the company, actively participates in urban underground engineering development projects such as PPP models, government investment, and owner investment, focusing on underground engineering projects such as rail transit, integrated pipe galleries, and sponge city construction. Rail transit and underground pipe galleries are key PPP implementation areas. Among them, rail transit is a segment with the second largest investment amount for inbound PPP projects in China, and the total investment has reached 1.04 trillion yuan. 2016-2017 will be the peak period for subway traffic, and the annual traffic mileage growth rate will exceed 30%. The investment amount for underground pipe galleries has reached 425.2 billion dollars. Among them, Hunan Province will strive to build 500 kilometers of underground integrated pipe galleries by the end of 2020, gradually increasing the proportion of urban roads equipped with underground integrated pipe galleries. Using the PPP model, joint ventures will better integrate capital resources and government resources, bringing plenty of opportunities to the company. 4. The profit forecast predicts that the company will achieve net profit of 87 million, 239 million, and 298 million yuan in 16-18, corresponding EPS of 0.09, 0.25, and 0.31 yuan, and corresponding PE of 110X, 40X, and 32X, maintaining the recommended rating. 5. Risk indicates that business development falls short of expectations.