The performance was in line with expectations. On the evening of April 27, the company announced that in 2016, it achieved revenue of 4,080 billion yuan, a year-on-year decrease of 24.94%; net profit of 245 million yuan, an increase of 11.15%; deducted non-net profit of 60 million yuan; and a year-on-year increase of 126%. The company's investment income in 2016 was 197 million, mainly due to the sale of part of Zhonghe Technology's shares. The results of the restructuring of the business have been remarkable. The company began to accelerate business restructuring through capital operations in 2015 (merger and acquisition of High Quality Asset Network New Electric, Network New Information, and Network New Enpu; in 2016, it further divested the traditional integrated business of Fast Wei Technology and launched a merger and acquisition of Zhejiang Huatong Cloud Data Technology Co., Ltd.), which achieved remarkable results. The company's net operating cash flow recovered sharply in 2016, reaching 82 million, an increase of 54.35% over the previous year. Actively integrate the three major industries with artificial intelligence technology. In the three major industries it focuses on, the company has combined artificial intelligence technology to carry out related business research and development: 1) in the field of transportation, based on face recognition technology, to achieve surveillance and alarm, image reconnaissance, and intelligence research and judgment; 2) in the field of big health, an intelligent medical aid diagnosis system based on deep learning; and 3) developing robot investment consulting services in the field of big finance. We judge that, backed by the strong resource endowments of Zhejiang University, the company's artificial intelligence strategy is expected to overtake curves. It is proposed to acquire Huatong Cloud Data to further consolidate performance and save energy for the future. The company recently announced that it plans to acquire 80% of Huatong Cloud Data's shares, and the transaction price was initially set at 1.8 billion yuan. Huatong Cloud promised to deduct non-net profit of not less than 158 million yuan, 19.75 million yuan, and 246.75 million yuan in 2017, 2018, and 2019, respectively. After the acquisition is completed, the company's performance will be further consolidated. The acquisition is also in line with the company's established strategic idea: complete the optimization of the business structure as soon as possible by disposing of inefficient assets and injecting high-quality assets, laying a good foundation for gathering resources to focus on overcoming major transportation, big finance, big health, etc., and the forward-looking layout of artificial intelligence. Investment proposal: 2016 was a year of growth for the company. Through further divestment of Kuaiwei Technology's traditional integrated business, the company's business restructuring came to an initial conclusion; in the future, the burden will be lifted, and the artificial intelligence 2.0 strategy will be launched. We are optimistic that based on the strong resource endowments of Zhejiang University, the company will overtake corners in the artificial intelligence business and drive the company's business to continue to grow rapidly. Considering that the company announced in 2017 that it will continue to sell part of Zhonghe Technology's shares, it is estimated that the 2017 and 2018 exam preparation EPS will be 0.50 and 0.55 yuan, maintaining the buy-A rating, and the target price for 6 months is 17 yuan. Risk warning: AI transformation is falling short of expectations.