Key investment events: The company announced that it intends to purchase 100% of La Cala's shares and raise supporting capital by issuing shares and paying cash. This transaction does not constitute a backdoor listing, and trading of the company's shares will continue to be suspended. Comment: In this transaction, the company purchased 100% of the shares held by La Cala's 46 shareholders with 2.5 billion cash and 8.5 billion yuan of equity. At the same time, the amount of ancillary financing was 5.5 billion yuan (Sun Taoran, Lenovo Holdings, and Ouyang Xu each subscribed for 34/6/51 million), of which 2.5 billion yuan was used to pay cash consideration for the transaction, 2.44 billion yuan was used for the target company's fund-raising project, and 503.5 million yuan was used to repay bank loans from listed companies. The issue price was 18.65 yuan/share (suspension price: 23.63 yuan/share). After the transaction is completed, the company's share capital will increase from 189 million shares to 940 million shares (including 456 million shares of the acquisition target assets and 295 million additional shares of ancillary fund-raising). The company's controlling shareholders and actual controllers will change. Sun Taoran, Sun Haoran, and Blue Cursor collectively control 28.14% of the company's shares, Sun Taoran and Sun Haoran will become the actual controllers of the listed company, and Lenovo Holdings will become the company's second largest shareholder, holding 23.12% of shares. Ouyang Xu, the company's former actual controller, and his co-actors hold 6.49% of the shares, making it the third largest shareholder of the company。 La Cala's core business is to provide third-party payment services to corporate users and individual users, and to provide related value-added and financial services using payment as an entry point. As of December 31, 2015, La Cala's payment and billing services covered more than 300 offline cities, with an annual payment transaction volume of over 1.6 trillion yuan, a cumulative service of nearly 100 million individual users and more than 2.7 million merchants, and continued to deepen payment and related financial services through the combined advantages of “online+offline”, forming a comprehensive service platform covering payment, credit, and credit reporting. In 14/15, La Cala achieved revenue and net profit of 91/1.59 billion yuan and -1.95/127 million yuan respectively, and promised that net profit after deducting deductions and accumulated income generated from raising supporting funds in 16-18 would not be less than 4.5/8.6/1.45 billion yuan, respectively. This transaction corresponds to about 24.44 times PE in 2016. Compared with 167.65 times the average value of PE (TTM) of A-shares comparable to the PE (TTM) of listed companies, the valuation is reasonable and higher than recent comparable acquisitions within the industry, mainly due to Karaka's leading position in the industry and brand advantages. Profit forecast and investment rating: The company plans to introduce third-party payment companies through this restructuring and implement the “travel+third-party payment service+Internet finance” strategy. After the restructuring, the company's main business will become the dual main business of tourism and third-party payments, and the company's assets, revenue, and net profit will increase dramatically; on the one hand, the tourism business benefits from Tibet's 13th Five-Year Plan to officially launch a world tourist destination, and on the other hand, third party payments are expected to achieve continued high growth in industry prosperity and online transformation. According to suspended stock prices, the company's market value is expected to reach 22.2 billion dollars after the restructuring is completed, and is expected to reach 22.2 billion dollars in 16-18 years The net profit (calculated by Karaka for the full year) was 457/881/1,439 million, which was 49/25/15 times the corresponding PE, respectively. It is recommended to actively buy after the resumption of trading. Risk warning: M&A progress falls short of expectations; natural disasters and political risks; and the cultivation period of scenic spots is too long.