Event: The company announced its 2016 annual report. In 2016, it achieved operating income of 987 million yuan, an increase of 23.4% over the previous year, net profit attributable to listed companies of 119 million yuan, an increase of 24.6% over the previous year, and net profit of 103 million yuan after deducting non-net profit of 103 million yuan, an increase of 13.6% over the previous year. Comment: 1. The main fan business grew steadily, and gross margin increased steadily. In 2016, the company's air conditioning fan and accessories business achieved revenue of 618 million yuan, an increase of 28.9% over the previous year, accounting for 62.7% of revenue, which is still the company's main business; construction ventilator revenue fell 6.2% year on year, accounting for 11.5% of revenue. The decline in revenue was mainly due to the downturn in the real estate market; cold chain fan revenue was 90.16 million yuan, up 21.7% year on year, accounting for 9.1% of revenue. The gross profit margin of the wind turbine manufacturing industry in 2016 was 36.9%, an increase of 0.9 percentage points over 2015. Accounts receivable amounted to 299 million yuan, accounting for only 30% of revenue, and the repayment situation was good. In terms of cash flow, the company's cash flow from operating activities was 183 million yuan, an increase of 103.5% over the previous year. The cash flow situation is very healthy. 2. Successful acquisition of Tiecheng Information. In 2017, the company will significantly increase its performance, and the acquisition of Tiecheng Information will commence in July 2016, and Tiecheng will complete the asset transfer in January 2017. Tiecheng Information is a leading domestic new energy vehicle charger company. The products it produces, such as vehicle chargers and DC converters, are widely used in well-known electric vehicle companies such as BAIC, JAC, Kandi, and Jiangling. Tiecheng Information achieved revenue of about 190 million yuan and net profit of 60.23 million yuan in 2016, exceeding the promise by 20%. With the expansion of new customers such as GAC, Southeast Asia, and Geely, Tiecheng Information is expected to achieve revenue of 360 million yuan and net profit of 100 million yuan in 2017, which will greatly increase the company's performance. 3. Fan+new energy two-wheel drive, will continue epitaxial mergers and acquisitions. In 2017, the company will achieve traditional fan+new energy two-wheel drive. Among the various business segments of traditional fans, traditional OEM air conditioning fans are required to increase revenue by 8%, engineering fan revenue to increase by 15%, and international trade market sales to increase by 10%. At the end of March 2017, Tiecheng's Taizhou base will soon be put into operation. At that time, Tiecheng's information production capacity will increase by 300%. Air conditioning fans and new energy vehicle chargers will both work in 2017. The fan business is expected to grow by more than 15%, and the new energy business is expected to double. At the same time, after the acquisition of Tiecheng, the company will not stop expanding. Currently, it is still actively searching for excellent targets in the fields of new materials and new energy. 4. Performance Forecast and Investment Suggestions We predict that Yilida will achieve operating income of 1.47 billion yuan and net profit of 230 million yuan in 2017, corresponding to 30 times PE in 2017, and give a prudent recommendation rating. 5. Risk factors The sales volume of new energy vehicles fell short of expectations, and Tiecheng Information's customer expansion fell short of expectations.