Incident The company released the 2016 annual report and the first quarterly report. The company released its annual report. The company's revenue for 2016 was 623 million yuan, -10.35% year-on-year, and net profit to mother was 110 million yuan, -20.62% year-on-year. Net profit after deducting non-return to mother was 102 million yuan, or -23.54% year-on-year, and EPS was 1.10 yuan. In the fourth quarter of 2016, sales revenue was 40.85% year-on-year, and profit was 56.8% year-on-year. New products, electrohydraulic pumps and automatic transmission oil pumps, gradually absorbed the pressure of dominant products. A cash bonus of $2.60 is distributed for every 10 shares. Revenue for the first quarter was 180 million yuan, 18.53% year-on-year; net profit to mother was 30 million yuan, 15.42% year-on-year. Brief review 1. Grasp new energy trends and reserve a variety of automotive electronics technologies. As a leader in the steering field, the company actively grasps the rapid development trend of new energy vehicles and smart vehicles, and continues to explore new growth points, including main working oil pumps for automatic transmission of power systems; electrohydraulic steering pumps for electric pump hydraulic power steering systems (EHPS); electric oil pumps for start-stop systems (EOP); electric vacuum pumps for braking systems; and keyless entry and starting systems (PEPS) for vehicle control systems. 2. Active transformation. Some new products were sold in bulk in 2016. As electronically controlled power steering systems (EPS) and EHPS accelerated the process of replacing hydraulic power steering systems (HPS), the main business steering pump revenue was 548 million, a decrease of 10.82% over the previous year. However, the company is actively deploying new products, and sales of new 2016Q4 products have increased dramatically, which will gradually make up for the adverse effects of product switching. Steering system EHPS products have already entered the mass production stage for projects at automobile manufacturers such as SAIC Chase, Xiamen Jinlong, Dongfeng Yangzijiang, Baoding Changan Bus, and Yangzhou Yaxing. The EHPS electrohydraulic pump project of an internationally renowned automobile company entered trial production in 2016 and was delivered in large quantities in the second half of 2017. Revenue of 9.25 million, or 28.72% YoY. EPS motor technology for steering systems successfully provided samples to some domestic customers in 2016 and received mass production plans from customers. In addition, a number of motor R&D projects have provided customers with prototypes for testing. Revenue was 113,000, or 658.39% YoY. Electric pumps (EOP) for power systems have already been used in SAIC passenger cars and Shandong Shengrui. The high-performance, high-reliability transmission oil pumps developed by the company have been supplied to automobile manufacturers such as Shanghai Automobile Transmission, SAIC Passenger Vehicle, BYD, and Geely. Revenue of $12 million, or 191.34% YoY. PEPS, a keyless entry and start system for traditional vehicles, has been put into operation; the development of pure electric PEPS has been completed, and trial road tests on customers' pure electric models have been carried out at the end of 2016. Revenue of 113,500 in 2015 and 2.59 million in mid-2016. Mechanical vacuum pumps and electric vacuum pumps were jointly developed. Both types of vacuum pumps manufactured samples to meet customer performance requirements and submitted samples. 3. Technology research and development advantages, high quality company customer resources. In 2016, the company's management expenses increased by 5.6% to 14.2%, mainly due to the increase in R&D expenditure, which is in line with the company's existing active technology research and development strategy. The company applied for 27 patents in 2016, including 6 invention patents, and has a total of 80 patents. This year, it has successively received the SAIC Iveco Hongyan Commercial Vehicle Co., Ltd. Quality Excellence Award; Jiangling Automobile Co., Ltd. Class A Supplier; Jiangxi Isuzu Motors Class A Supplier; Anhui Jianghuai Navistar Cooperation Contribution Award; and the Shanghai Automobile Transmission Excellent Quality Supplier Award. 4. Acquired CCI, a German supplier of noise reduction and insulation systems, and the company went international. Dell Co., Ltd. announced a transaction plan on January 10, 2017. It plans to purchase 100% of Fuxin Jiachuang's shares and Fuxin Jiachuang's claims through cash payments at a price of 1.937 billion yuan, and acquire and accept debts in cash through internal insurance and foreign loans, thereby indirectly obtaining CCI from the German company. CCI's main products include automotive vibration and noise reduction products, insulation products, structural reinforcement and other components. 5. Risk indicates that the growth rate of automobile sales falls short of expectations; steering system replacement falls short of expectations.