Incident: On October 12, 2016, Jiangsu Yilong, a wholly-owned subsidiary of the company, the company participated in the control company, and the Wujin High-tech Zone signed a “Zone Entry Agreement” with the Wujin High-tech Zone. Among them, the Wujin High-tech Zone sold 80 acres of industrial land to Jiangsu Yilong, and Jiangsu Yilong invested 1 billion yuan in the remanufacturing of aircraft and automobile tires. With huge investment, Wuxi Pteron accelerates development. Wuxi Pteron is mainly engaged in the remanufacture and sale of aviation tires, automobile tires, and industrial vehicle tires. It is the only domestic enterprise that has obtained approval from the General Administration of Civil Aviation to engage in aviation tire business, and has many invention patents. The company obtained 36% of its shares in July 2016, and stated that within two years of the completion of this equity transfer, it will continue to increase its shareholding and become a shareholder of Wuxi Yilong Holdings. We believe that Wuxi Pterosaurs has invested heavily this time to accelerate its development in the field of automobile and aircraft tire remanufacturing. It is expected to become a leader in this field in the future, and the company is expected to fully benefit as the future controlling shareholder of Wuxi Pterons. Continuing to promote transformation, it is worth looking forward to the company taking a stake in Pan-Asia in January 2015 to dabble in the field of new materials for microtransmission. The “full-range sound-absorbing cotton” project recently invested by Pan Asia Micropass is mainly used in the automotive market. It is the first material for automobiles to achieve significant improvements in weight reduction and sound absorption and noise reduction effects. It can not only replace imports, but also be widely used in the domestic automobile market. In November 2015, it participated in 18.18% of the shares in Silicon Communications, involved in the field of communication technology, and is committed to R&D, production and sales of high-end wireless network communication chips in smart homes and other fields. In July 2016, it participated in Wuxi Pteron and engaged in automobile tire remanufacturing. We believe that the company is moving frequently and is interested in opening up new fields and creating new growth points for the company's profits. Given a buying rating, the company's main business with a target price of 18.5 yuan for 6 months can be expected to be stable and expected, and the transformation is expected. EPS for 2016-2018 is expected to be 0.21 yuan, 0.24 yuan, and 0.28 yuan, giving a buying rating, and a target price of 18.5 yuan. Risk warning: Automobile production and sales have declined sharply; the transformation has fallen short of expectations.