A leading enterprise in the coal machine industry, the company transformed into the new energy vehicle industry chain is a leading domestic supplier of high-end coal machine equipment, mainly comprehensive mining machinery and equipment for coal mines, and ranks among the leading companies in the industry. The company began to seek transformation this year and is expected to benefit from the boom in the NEV industry chain by setting up Hefei Chuangda's new energy vehicle tri-electric business. Teaming up with AVIC New Energy, in April 2016, the company invested 51 million yuan (51%) to quickly cut electric vehicles in the field of electric vehicles. In April 2016, the company invested 51 million yuan (51%) with Hefei Xingyao, the Hefei Chuangda Management Technology Research Institute, to implement the first phase of the NEV three-power project to complete the 200 million Ah battery pack (corresponding to 16,000 sets) and 30,000 motors and controllers, marking the official transformation of the NEV sector. With the implementation of the new subsidy adjustment policy, logistics vehicles are expected to be released in the second half of the year, while China Aviation New Energy is speeding up production capacity investment and is expected to grow into a leading domestic electric logistics vehicle, profoundly benefiting from the explosion of logistics vehicles. The company's customers are tied to China Aviation New Energy. If 30,000 units are successfully put into operation and shipped next year, the corresponding profit can reach 130 million yuan, increasing the flexibility of performance. Traditional coal mills have gradually bottomed out, and the steady development company has been deeply involved in coal machine products for more than ten years. The shearer business ranked first in the country, and the tunneling machine business ranked in the top three. The company's coal machine products all maintain a gross profit margin of more than 40%, supporting the company's ROE to be higher than the industry average and leading profitability in the country. The coal machine replacement cycle will likely lead to an increase in demand for replacement next year. At the same time, the company is getting involved in a new financial leasing model to jointly help rebound coal machine sales. Transforming the NEV three-electric vehicle business to give the purchasing rating company a foundation in the traditional coal engine business and teaming up with China Airlines New Energy to transform the NEV PACK and motor electronic control business. It is expected that production capacity will be released next year to seize the high growth opportunities of the industry. The company's 2016-2018 EPS is expected to be 0.21, 0.35, and 0.46 yuan/share, giving it a buying rating. The risk suggests that at present, the company's Sandian business has not contributed to profits. If production capacity cannot be deployed as scheduled, performance will fall short of expectations, dragging down the company's transformation progress; subsidies for new energy vehicles may decline or have an impact on sales volume, which in turn will adversely affect the company's downstream demand.