The company terminates commercial retail business, concentrates resources to develop gas business, and the company announced that it will end commercial retail business. The company's main business will change from “urban pipeline gas and retail commerce” to a single main business of “urban pipeline gas”. In the future, commercial asset preservation and value-added management will be carried out through external leasing, contract operation, etc., which will help concentrate human and financial resources to develop the gas business and provide financial support for it. The first IDC distributed energy project was launched. The highly replicative company and Deyang Xinrun Investment Consulting Co., Ltd. initiated the establishment of Chase Ruiheng (95.24% of the company's shares) to be responsible for the development of the company's energy business. Chase Ruiheng plans to acquire 100% of Shanghai Huanchuan's shares in Shanghai Huanchuan, which is owned by Chengdu Ruishi, a shareholding company of the company. Shanghai Huanchuan is the investor and operator of the distributed energy project to Haijiading IDC on the Guanghuan New Network. The project is expected to be put into operation by the end of 2016. The significance of this acquisition is 4 points: (1) the company's first project to enter distributed energy; (2) Aura New Network is a leading IDC enterprise, and the project is a benchmark project in the IDC field; (3) the project is the first project of Ruishi, an industrial merger and acquisition fund established by the company, and successfully merged into a listed company. It is expected that this model will continue to be replicated in the future; (4) the company establishes an energy business platform company, which is expected to introduce more partners and expand energy projects through various channels (not limited to Inruishi Management). Overall, the project is highly replicable, and it is expected that more distributed projects such as IDC will be implemented. Distributed natural gas projects were released rapidly. The company is a target of high quality and high flexibility. After the price of natural gas was lowered, distributed natural gas was already economical. With the relaxation of internet/grid connection policies, it began to expand in data centers, hotels, hospitals, airports, etc. Recently, many environmental protection companies have laid out the distributed natural gas field as the main direction of their transformation. It is expected that more listed companies will enter this field. This year and next year may be the year when orders for distributed natural gas projects are released quickly. The company has a small market capitalization (4.476 billion yuan), low balance ratio (17%), and high performance elasticity (net profit from gas assets of about 56.42 million yuan in 2015), which is the target of high quality and high elasticity of distributed natural gas. Additional issues target management interests and give “buy” ratings. The 2016-18 EPS is expected to be 0.12, 0.23, and 0.36 yuan, respectively. The continuous increase in the majority shareholders' holding ratio provides space for subsequent capital operations, and employee shareholding locks in the core interests of management. It is expected that distributed natural gas projects will continue to be replicated and given a “buy” rating. Risk warning: Project progress falls short of expectations, new orders fall short of expectations