Key investment events: Commerce City plans to invest 13,300 million shares in the non-public offering of 13 million shares with Yicheng Investment at 1,328 yuan/share for 1.5 billion yuan to acquire 100% of its shares in Yicheng Rental Network; and plans to privately issue 105 million shares to 6 people including Zhang Zhenxin at 1,328 yuan/share, raising no more than 1.4 billion yuan in capital. After the transaction is completed, the controlling shareholder and actual controller of the company will change to Easy Ride Investment and Zhang Zhenxin, and the company's main business will be changed to car rental and car networking. An aggressive car rental company. The Yicheng Rental Network was established by EasyRide in June 2015. Using the car rental business as an entry point, it provides services to end consumers throughout the effective life cycle of operating vehicles through the Internet of Vehicles information management platform, driver training and labor dispatch agencies, and used car evaluation capabilities. Currently, it has four subsidiaries: Great Wall Business (car rental business, established in 2004), Shenzhen Yunchuang (Internet of Vehicles platform, established in 2014), Beijing Rongyada (driver training, established in 2008), and E-Rent a Used Car (used car, established in July 2015). As of the first three quarters of 2015, the company had total assets of 1,006 billion yuan and net assets of 442 million yuan. The realized operating income and net profit were 130 million yuan and 11.49 million yuan respectively, of which the car rental business contributed 62.57% and 83.94% of the company's revenue and gross profit, and was the main source of the company's revenue and profit. The new chauffeur policy is tightening to benefit car rental companies. The company's car rental business has 2,192 of its own vehicles. Currently, its main customers include AA car rental, local government agencies and other enterprises. The private car management policy issued by the Ministry of Transport on October 10, 2015 makes strict regulations on the entry of private vehicles and drivers, and private cars are basically excluded. This will benefit self-operated car platforms such as AA Car Rental, while at the same time forcing platforms such as Didi Express to rent vehicles from professional car rental companies. Professional car rental companies ushered in a period of rapid development. Yunchuang Vehicle Network opens up an online and offline service system. The company's vehicle network platform management business mainly includes vehicle positioning & monitoring, vehicle operation management cloud platform services, and software customization development services. The business method is to provide enterprise customers with a vehicle network management platform based on a cloud creation box for on-board OBD equipment. As of the end of September 2015, Shenzhen Yunchuang has established cooperative relationships with 18 car rental companies to manage 6,675 vehicles through a vehicle operation management cloud platform. In the future, it will carry out customized software development services for external customers. Small and medium-sized car rental companies, government agencies, and enterprises all need to carry out driver management, vehicle monitoring, and scheduling for their own fleets. This provides room for development for enterprises such as Easy Car Rental Network, which has rich software development and software and hardware integration capabilities. The rental market is developing rapidly, and for the first time, it has been given an “increase in holdings” rating. Benefiting from the standardization of private car management, the car rental market is expected to experience rapid growth. The company's layout is perfect and proactive. Based on the assumption that losing assets will be divested after business integration, the company's net profit from 2016 to 2018 is estimated to be 118 million yuan, 171 million yuan, and 227 million yuan respectively, corresponding to EPS of 0.30, 0.43, and 0.57 million yuan, respectively, giving it an “increase in holdings” rating for the first time. Risk warning: changes in private vehicle management policies, progress in the Internet of Vehicles falls short of expectations