On December 16, the company announced that its wholly-owned subsidiary Hong Kong Qinshang signed relevant agreements with AIDiEducationAcquisition (Cayman) Limited and Beijing Australian Exhibition. Hong Kong Qinshang plans to acquire 100% of Aidi's shares in cash (Eddy Education Group) held by Aidi (Eddy Education Group) (the successor company or Hong Kong Qinshang or cooperated with related parties to implement the above acquisition matters through the establishment of a fund enterprise). The preliminary valuation of the acquisition was 2.9 billion yuan The dollar equivalent of the yuan. Eddy Education Group was established and continues to exist in accordance with Cayman Islands law, and controls a number of education assets and school operations in China through VIE arrangements. Eddy Education: A high-end international education brand, providing a one-stop K12 system for international education Eddy Education entered China in 1997 to provide Chinese and foreign students with full English and bilingual courses and English training courses taught in both English and bilingual modes. At the same time, Eddy's is also an official test site for the five major international examinations. Up to now, EDI has successfully sent 11,000 students to study abroad. The company's Beijing Eddy (International) School is the only Chinese-foreign cooperative school in China that teaches courses in full English at the same time in Australia. Diploma degrees are widely recognized internationally. It is also an international university entrance examination officially authorized by the Curriculum Committee of the Western Australian Government Education Department — TEE China's only test center. The school is located in Chaoyang District, Beijing. It covers an area of 556 acres, has a construction area of more than 5w square meters, and has all-European architectural buildings and advanced facilities and equipment. Entering the fast track of development, the education ecosystem continues to improve first, and the acquisition of Longwen became the first step in the company's strategic transformation of K12. Longwen focuses on K12 one-on-one, and works to build an O2O teaching aid ecosystem offline. It has significant brand advantages and national expansion capabilities. Second, the acquisition of British Education+Eddy Education has continuously improved the layout of the international education sector. On the one hand, this acquisition will have a synergy effect with England Education (promised net profit of 1000/1300/1690/21.97 million yuan respectively in 2016-2019). In the future, the two sides may carry out in-depth cooperation in terms of teachers, textbooks, and management systems to complement each other's advantages; on the other hand, they will consolidate the company's layout in the field of international education to meet the rising demand for differentiated, personalized, and high-end education; third, they will acquire Little Red Riding Hood Education to expand the industrial layout, further strengthen collaboration with the original business, and at the same time provide a guarantee for future performance growth; fourth. After Huaxia Life became the company's second shareholder, it continued to move forward in the operation of the company's capital. The field fully demonstrates the determination and efficiency of the company's layout in the education sector. Maintaining the “Buy” rating, the company is a leading domestic semiconductor lighting product and comprehensive solution provider. It acquires Guangzhou Longwen, strategically lays out the K12 one-on-one education service industry, and takes solid steps in transformation; acquires British Education, enters international education, and implements education transformation; acquires Little Red Hat Education to extend the preschool education layout; and acquires 100% of Eddy Education's shares for 2.9 billion yuan to improve the company's international education ecosystem. Assuming Little Red Riding Hood completes delivery next year, we expect the company's 16-18 EPS to be 0.11 yuan, 0.17 yuan, and 0.22, respectively Yuan. The PE corresponding to the current stock price is 87X, 57X, and 44X, respectively.