The announcement briefly describes the company's recent announcement that in order to promote the development of the company's leading industries, focus on optimizing the industrial layout, increase inventory, and increase overall profitability, the company plans to reduce its holdings of some of the financial assets available for sale in 2016. Among them: reduce its holdings of Huaying Technology (Group) Co., Ltd. (hereinafter referred to as “Huaying Technology”) by no more than 4.11 million shares and reduce its holdings of Guotai Junan Securities Co., Ltd. (hereinafter referred to as “Guotai Junan”) by no more than 4.5 million shares. Based on recent secondary market prices, after reducing holdings, the company can obtain a total of about 120 million yuan in cash. Management analysis first, a model for local state-owned enterprise reform, combining industry integration and clean-up: The company has been operating frequently in the capital market in recent years, successively acquiring enterprises such as Shenzhen Yuanlei, Malui Optoelectronics, and Zhongnuo Communications. At the same time as mergers and acquisitions, the company has also been planning to integrate similar businesses under the original listed company with several subsidiaries, and identify relevant departments with poor hematopoietic function. At the same time, the actual controller, Fujian Electronics Information Group, is also making arrangements in various electronics and chip fields, such as cooperating with Taiwan's UMC to invest tens of billions of yuan to build a fab (which is expected to be put into operation by the end of 2016). It can be said that the company is a pioneer in “self-clarification” and integration of relevant resources in the context of state-owned enterprise reform. Second, the issuance of additional shares was carried out simultaneously with the reduction of investment asset holdings, laying a solid foundation for future development: Furi Electronics announced the increase in early 2015. It already obtained approval from the Securities Regulatory Commission at the end of last year, and is expected to be completed in the near future. At the same time, the company announced a reduction in holdings of related investment assets. If the impact of the reduction in market value due to changes in the scale of issuance and fluctuations in the secondary market is not taken into account, the two companies can obtain a total of about 770 million yuan in cash. While drastically reducing financial expenses, it will lay a solid foundation for the company's subsequent development, especially industrial integration and capital operation. Third, the ODM business benefits from the restructuring of supply testing in the smart terminal industry: the company's wholly-owned subsidiary, Zhongnuo Communications, is a mobile phone ODM company that serves companies such as Huawei, Lenovo, and Meizu. As the growth of the smart terminal industry has slowed, the market previously had doubts about whether China and Novo can fulfill their performance promises. However, in 2015, a number of companies in the smart terminal industry withdrew from the market, and industry concentration further increased. Relying on its growing number of high-quality customers, the market share of Zhongnuo Communications is expected to increase dramatically. Fulfilling its 2016 performance promise of 120 million yuan should be a probable event. The profit adjustment takes into account the expenses and increased costs resulting from the reform of state-owned enterprises in 2015. We adjusted the company's net profit forecast for 2015-2017 to 1.18,2.23,269 million yuan, corresponding to EPS of 0.31,0.50,0.60 yuan (an increase and dilution has been considered in 2016-2017), corresponding to PE 31,19,16 times. The investment proposal is a listed company with a current market capitalization of only 3.7 billion dollars, and PE is expected to increase by 20 times in 2016. Subsequent reforms of its state-owned enterprises are clear, and the “buy” rating is maintained.