Matters: The company plans to invest 10 million yuan wholly-owned to establish Hunan Huatian Yunfu E-commerce Co., Ltd., to provide users with online reservation, online payment, and offline lifestyle products. The review is as follows: Evaluation: To establish Huatian Yunservice and enter the O2O field of life services, the company plans to invest 10 million yuan in cash with its own capital to establish a wholly-owned subsidiary, Huatian Yunservice. Through Huatian Cloud Service, the company will build an O2O platform for lifestyle service products to provide users with various lifestyle services such as online reservation, online payment, and offline home delivery, including laundry, cooking, housekeeper, household equipment maintenance, etc., and can also be extended to other fields upstream and downstream of the industry chain such as vocational training schools (which provide service enterprises with workers' professionalism, grooming, and service etiquette training). The first phase of Huatian Yunfu plans to launch a value-added project for the laundry O2O business. It will be based on the middle and high-end markets, and gradually mature and develop franchisees or franchisees to carry out group business with enterprises and institutions. Local lifestyle service O2O industry Local lifestyle service O2O refers to the process of consumers purchasing or booking local lifestyle services through online channels, from online matching and online payment to offline services and consumer feedback, forming a complete closed loop of transactions. Life service O2O has the characteristics of a wide audience and high frequency. It can cover all aspects of daily life services required by residents, and can directly connect merchants and users, reduce intermediate links, and improve the convenience of service reservations. Benefiting from the booming development of mobile internet, the lifestyle service O2O industry has developed rapidly in recent years. According to iResearch's forecast, the local lifestyle service O2O market reached 309.18 billion yuan in 2015, an increase of 31.5% over the previous year. Lifestyle service e-commerce is divided into comprehensive e-commerce that can provide various services and vertical e-commerce focusing on a certain field. Comprehensive lifestyle service e-commerce businesses are usually large in scale and have strong brand influence, such as Meituan, Dazhong Review, Wowo, etc. There are many participants in the vertical lifestyle service O2O sector. Currently, there are more mature business models, and those that have formed a certain scale are: domestic service O2O companies Aunt Bang, e-Home Cleaning, laundry O2O companies, and e-bag washing, and chef-type O2O companies love chefs, good chefs, etc. Risk factors include macroeconomic downturn risk; the impact of the “three government limits” continues; the prosperity of the high-star hotel industry continues to decline; progress in the implementation of the proposed business sector falls short of expectations, etc. Investment Proposals Following entering the field of high-end health and pension services and participating in the establishment of an online platform for the hotel industry alliance, the company further ventured into the O2O field of local lifestyle services through the establishment of Huatian Cloud Service, and the business layout continued to be rich. Although the future of the project is difficult to predict and short-term economic benefits are difficult to show, this indicates that the company has taken an important step on the path of business transformation, and the company's positive transformation ideas are clear. Since Huatian has been deeply involved in service-related industries such as high-star hotels and property management for many years, and has abundant talent reserves and management experience, we believe that the establishment of Huatian Yunfu this time is an attempt at a new business model starting from its own advantages, which shows the company's positive transformation attitude. Hunan private enterprise Huaxin Hengyuan increased its holdings of the company by 300 million shares through a fixed increase, becoming the second largest shareholder and locking in for three years, showing firm confidence in the company's future development. At the same time, the company will take this opportunity to achieve mixed reform, and the management mechanism will be more flexible, which will help stimulate the company's vitality. In the future, the company is expected to achieve a spectacular transformation through business expansion or mergers and acquisitions on the premise of revitalizing existing assets. It is recommended to focus on it.