Incident: On September 13, the company and Canada's ELIX WIRELESS CHARGING SYSTEMS INC (“ELIX Company”) successively signed “Class A Preferred Stock Purchase Agreements” and related subsidiary agreements. The company will invest 3.6 million US dollars to purchase about 409.09 A-level preferred shares at a price of 0.88 US dollars per share. After the transaction is completed, the company will become the largest shareholder of ELIX with a share ratio of 29.3%. After the handover is completed, Zong Electric Power will occupy 2 of ELIX's 6 board positions. Comment: 1. Lay out the field of wireless charging and master the core technology of MDC ELIX was founded on January 25, 2013 and is registered in British Columbia, Canada. As of June 30, 2016, the company's total assets reached $16800,000; in January-June, it achieved main business revenue of $3,967 and net profit of $162,400. The company is deeply involved in the field of high-energy wireless charging. The team members have rich entrepreneurial experience and technical background, and have mastered breakthrough dynamic magnetic coupling (MDC) technology. The products can be widely used in new energy vehicles, medical care, mining, warehousing and other industrial fields. The company has developed E1K, E8K, E10K, and E40K wireless charging systems based on MDC technology. Among them, the E8K will be launched next year, some of which will be supplied to Tesla, and is expected to bring in $3.88 million in revenue. Currently, ELIX's main customers include the Royal Canadian Mounted Police (RCMP), EDF, SHADO, etc. 2. Research and development of special robots expands the power map, and the industry is once again upgraded, relying on strong advantages and technical strength in the engine field. The company and Chongqing University signed an agreement in the field of robotics, and the two sides have carried out cooperative R&D, design, and planning in the field of fieldrobots such as garden robots, snowplowing robots, and lawnmower robots. Promote the industrialization of research and development results by establishing a platform for scientific research cooperation and exchange, and establishing a platform for talent training and human resource sharing. Machine intelligence is the key development direction of China in the next 5-10 years. We believe that the company's move has an industrial foundation, and subsequent business is highly scalable. 3. Turning cages for birds. The military drone business is progressing in an orderly manner. The company is the only domestic manufacturer that has successfully developed and supported TD0 and series aero engines. On the one hand, it has entered the military industry through import substitution; on the other hand, after laying the foundation for power systems. The company's participation in Shenfei will help achieve complementary advantages with the 11th Aerospace Academy and Shenfei Company. Relying on the deep platform advantages of the 11th Aerospace Academy, and utilizing its excellent machining capabilities and machinery manufacturing experience, the company's participation in Shenfei will achieve a dual transformation model of “engine plus complete machine” at the product level and “import substitution plus international expansion” at the business level. Open up the military drone industry chain and occupy a leading position in aerodynamics. “Wireless charging+robot+drone” boosts business upgrading. The future market space for related fields is vast. The company has mastered core technology and talent teams, and is expected to share both market and technology dividends. Maintain the company's “Highly Recommended - A” investment rating. Risk warning: The wireless charging project is not progressing as expected.