Guide to this report: The company announced that the controlling shareholder will acquire 70.37% of Yineng Electronics's shares, and Chuangli Group will give priority to the transfer of its shares. It is determined that the completion of the integration will enhance the competitiveness of power lithium battery packs, and that Yineng Electronics will return to a high growth path next year. Key investment points: Conclusion: Maintain the increase in holdings rating, judge that the probability that Yineng Electronics will inject into the company is high, and the target price will be raised to 23.0 (+3.90) yuan. The company announced that the controlling shareholders intend to obtain 70.37% of Yineng Electronics's shares through capital increases and equity acquisitions. Chuangli Group will give priority to the transfer of all shares held by the controlling shareholders within 12 months after completion of the acquisition. We judge that after completing the integration with Yineng Electronics, the company will greatly enhance its competitiveness in the power lithium battery PACK market, which is expected to expand other electric vehicle companies other than AVIC NEV; furthermore, it is determined that Yineng Electronics will return to a high growth path next year. As the acquisition has not yet been completed, the company's 2016-18 net profit was maintained at 108 million, 291 million and 379 million yuan, respectively, corresponding to EPS of 0.17 yuan, 0.46 yuan and 0.60 yuan. The acquisition of Yineng Electronics will enhance the competitiveness of Chuangli Group's power lithium battery PACK business and expand the range of downstream customers. Yineng Electronics has the largest market share in the domestic power lithium battery BMS field, reaching more than 30%, and has entered the supply chain of mainstream electric vehicle manufacturers such as BAIC, GAC, and Changan. We have determined that the completion of the acquisition of Yineng Electronics will enhance Chuangli Group's competitiveness in the power lithium battery pack market and help expand to other customers other than AVIC New Energy. Judging that Yineng Electronics is expected to return to a high growth trajectory next year, profit elasticity is high. In 2015 and January to June 2016, Yineng Electronics achieved net profit of 63.1692 million yuan and 11.89973 million yuan respectively. The decline in performance was mainly affected by policies such as industry subsidies. We judge that after the implementation of the industry policy in the fourth quarter, the NEV market will return to a high growth trajectory next year; at the same time, China Coal Machinery Group's capital increase and loans to Yineng Electronics will solve its problems of insufficient development capital and production capacity. Yineng Electronics will quickly seize the market with its BMS market position, and profit elasticity is high. Risk warning: Acquisition progress falls short of expectations; PACK's business expansion falls short of expectations.