Key points of the announcement Kuangda New Energy, a wholly-owned subsidiary of the company, signed an “Investment Framework Agreement” with the relevant counterparties. Kuangda New Energy will directly hold 100% of Fulin Industry and Trade, and indirectly hold 100% of the shares in Fubon Electric and Fuwo Electric. After this investment is completed, the company will enter the automotive micromotor business. The initial investment amount is estimated to be no more than 400 million yuan, to be paid in four installments. Key investment points Using this investment to enter the automotive micromotor business, in line with the company's strategic development plan, the company's current main performance contributions come from the production and sale of automotive fabric accessories and the operation of photovoltaic power plants; after the completion of this investment, the company will enter the automotive micromotor business field. According to the announcement, the investor has been engaged in automobile motor research, production and sales for more than 12 years, and more than 95% of its products are sold to major European auto parts assembly plants, indirectly supplying products to many internationally renowned automobile manufacturers such as Toyota, BMW, Honda, Nissan, GM, Audi, Mercedes-Benz, and Ford. We believe that after the completion of this investment, the company will successfully enter the field of automotive micromotors, and utilize the customer resources of domestic automakers accumulated in the automotive fabric trim business to achieve complementary advantages, facilitate the expansion of new core components for new energy vehicles such as motors and electronic controls, and accumulate competitiveness in the field of new energy vehicles. The company to cancel the three power plant project companies and protect shareholders' interests announced on November 29 that it has decided to cancel the three photovoltaic power plant pre-project companies located in Xinjiang, with the aim of adjusting the photovoltaic business sector and optimizing the use of capital. We believe that handling some early power plant projects with uncertain profit prospects will help protect the interests of all shareholders. Maintaining the “buy” rating, we expect the company to achieve an EPS of 0.21 yuan, 0.25 yuan, and 0.30 yuan under the current share capital in 2016-2018, corresponding to 30.7, 25.7, and 21.7 times P/E. Risks indicate that there is some uncertainty about the progress of investment matters; the main business operation or does not meet expectations; and the company's business development in the field of new energy vehicles has a risk of trial and error to a certain extent.