Core Opinion The company announced today that the total capital raised by the proposed non-public offering of shares will not exceed 1.07 billion yuan, and the issue price will not be lower than 90% of the company's average stock trading price for the 20 trading days before the pricing benchmark date. The distribution targets are Weihai Poly Technology Defense Equity Investment Center and Poly Phase I (Gu'an) Fund Management Center. Among them, Weihai Poly's GP is Poly Technology Defense Investment Co., Ltd., which holds 0.17% of shares, and LP is Beibing Technology Investment Co., Ltd., which holds 99.83% of shares. The China Ordnance Industry Group indirectly holds 10% of Beibing Technology's shares. The GP of Poly Phase I is Poly Technology Defense Investment Co., Ltd. and Wanqiao Jinhui Investment Fund Management Company, each holding 0.18% of shares, and the LP is Taigong Duocheng (Guan) Electronic Technology Co., Ltd., which holds 99.64% of the shares. The capital raised by this non-public stock offering will be invested in new military special vehicle equipment projects and exoskeleton robot projects. The lockdown period of the new plan has been extended, and the cooperation between the company and Poly Defense Technology has been further strengthened. The company's current fixed increase plan has revised the fixed increase plan announced on August 26, 2016, and changed the original one-year fixed increase to a three-year fixed increase. Furthermore, the issuers were confirmed as investors in Weihai Poly and Poly Phase I. According to the company's estimates, if the issuance is successful, the two will hold a total of 6.58% of the company's shares. This is the company's equity cooperation with Poly Technology Defense Investment Company after signing a strategic cooperation agreement with Poly Technology Defense Investment Company in September last year. Join hands with Poly and China Armed Forces to strengthen civil-military integration. As Poly's sole equity investment platform in the military sector, Poly Technology Defense Investment Company is the only large-scale defense company in China with comprehensive import and export rights for weapons and equipment, while China Ordnance Industry Corporation is one of the two major weapons and equipment manufacturers in China. Both are benchmark enterprises for civil-military integration in China. In the future, the company is expected to develop and advance further cooperation with it in seeking overseas defense base construction, special vehicle production business, and military asset mergers and acquisitions. Financial forecasts and investment recommendations maintain the target price of $8.52 and the buying rating. We maintain our performance forecasts for 2016 to 2018, which are 0.35, 0.38, and 0.42 yuan, respectively. According to comparable corporate laws, we gave the company a valuation of 60X for the special vehicle business and 21X for the real estate business in 2016, equivalent to a comprehensive target price of 8.52 yuan. Risks suggest a sharp decline in the real estate business. The performance of the special vehicle business fell short of expectations.