The incident company announced on the evening of May 17, 2016, that it plans to transfer 70% of the shares held by Tianjin Dongjie and Yunnan Dongjie to Yao Buwen, the controlling shareholder and actual controller of the company. After the transfer is completed, the company will no longer hold the shares in these two companies. Reviews avoid risks, and the parking operation business was cultivated in vitro after being acquired by a majority shareholder. The two subsidiaries that the company plans to transfer are mainly engaged in the construction, operation, and service of parking lots. They were both established in the first half of this year, and the business has yet to be substantially developed. Self-built and self-operated smart parking systems will take up a large amount of capital at once, and it will take several years to complete the recovery of funds by collecting parking fees. In this way, the company may shift from asset-light operations to heavy assets, and financial risks may increase. In order to prevent excessive short-term fixed asset investment from dragging down listed companies' statements, the company believes that the time is not ripe to launch this model at this stage. It decided to first transfer the initial expansion and extension of the parking operation business to be acquired by major shareholders and then cultivated outside the body. The direction of injecting it into listed companies remains unchanged until the business matures, and continues to commit to the development of intelligent parking system products. The company will continue to focus on R&D, production and sales of high-performance intelligent parking system products, focusing on improving the technical level of products and developing markets. After the transaction is completed, the company can act as an equipment supplier for the above two subsidiaries and provide intelligent parking system products to its off-site operating company according to market-based pricing, thereby increasing the profits of listed companies. Cultivate and transfer, and the actual controller will undertake the expansion of the parking operation business. After the transaction, the risk of the new parking operation business will be borne by the actual controller of the company. Social capital, including it, will develop partners nationwide, set up parking operation subsidiaries in various regions, and develop parking operation business. Dongjie Intelligence will strengthen cooperation with it to expand sales of three-dimensional garage products. Profit forecast We forecast the company's revenue in 2016-2018 of 5.2 billion 71/870 million yuan, up 42%/36%/22% year on year; net profit to mother of 75/96/112 million yuan, up 105%/29%/16% year on year, respectively; EPS was 0.53/0.68/0.79 yuan; PE was 78/60/52 times, respectively. Investment recommendations We believe that this plan reduces the risk of new business expansion and does not affect sales of intelligent three-dimensional garage products; while increasing the profits of listed companies, it also mitigates the risk that investment in parking operations may drag down financial statements in the early stages, which is beneficial to the company's medium- to long-term development. In addition, the new business will be developed by the actual controller. In the future, if the parking operation business is successfully cultivated, the company may carry out acquisitions, and the direction of the smart parking market expansion will not change. We maintain the company's “buy” rating, with a target price of 50-54 yuan for the next 6-12 months. The risk suggests that demand for three-dimensional garage products is slowing down, and equipment updates in the e-commerce warehousing and logistics sector are slowing down.