Highlights of the report describe the company's intention to acquire 60% of the shares of China Education Future International Education Technology (Beijing) Co., Ltd. with 522 million yuan in cash. Established in 2006, China Education Future has formed a vocational education system including continuing education, international vocational education, IT vocational education, art vocational education, and online vocational education. Its main business includes: 1. Co-organizing vocational education, international education and other cooperative education projects with universities to export education services such as management, teaching, practical training, and employment to domestic and foreign institutions; 2. It independently provides education and training; 3. Online vocational education. The asset that was the subject of the incident review had outstanding growth, bringing performance growth points to the company. China Education's main business model in the future is education operation services. It is an asset-light service type, which has the characteristics of being replicable and rapidly expandable. In the future, it is expected to become a vocational education group that combines online (the target online already operates iXue.com and other projects) and offline to provide professional and efficient services for colleges and universities; in terms of demand, the state encourages general undergraduate colleges and universities in some places to increase investment and quality in vocational education, and create conditions for the target company to continue to expand its layout (previously, most of the cooperating colleges and universities were in the Beijing area, where there is a lot of room for expansion). The target company's revenue increased 109% year-on-year in 2015, and net profit of 20.1958 million yuan turned losses, showing the potential for explosive performance. Net profit promises for 2016, 2017, and 2018 reached 58 million yuan, 68 million yuan, and 79 million yuan respectively, which is a new growth point for listed companies. Chinese education will benefit from the rapid development of the vocational education industry in the future. Vocational education is an important requirement for talent training in industrial structure upgrading (including national strategies such as Made in China 2025, Internet +, innovation and entrepreneurship). Since 2014, policies such as the “State Council Decision on Accelerating the Development of Modern Vocational Education” and “Modern Vocational Education System Construction Plan (2014-2020)” have been introduced one after another. The top-level system design has taken a prototype, and tasks and projects in various local provinces have been released recently (March 16). The domestic vocational education industry is ushering in historic development opportunities. There is some collaboration between the media and education to plan additional financing to raise the company's development expectations. As the leading media in Hangzhou, listed companies have high brand value and rich channel resources, which helps target companies to expand relevant university customers to a certain extent. At the same time, the readers' groups also coincide to a certain extent with those in need of vocational education. In addition, the company recently announced plans to plan a non-public stock offering, which will also create a financial foundation for the company's continued development in the later stages (the company has already made cash investments in many fields in 2015, mainly including rapid communication, classic Bowei, etc., which will further create conditions after financing). Maintain a “buy” rating. After the completion of this merger and acquisition, the company will become the target of vocational education where A-shares are scarce. At the same time, urban life service providers will be further clarified and maintain purchase ratings. Risk Warning: M&A consolidation falls short of expectations; systemic risk.