Key investment events: The company announced that in the first three quarters of 2015, it achieved revenue of 367 million yuan, a year-on-year decrease of 9.38%, a net profit loss of 11.28 million yuan, a year-on-year decrease of 281.77%, and a net loss of 17.73 million yuan after deducting non-net profit losses of 17.73 million yuan, an increase of 18.72% over the previous year. Comment: The company's current main business is under pressure to make a profit. The company's main business is catering and food processing, and it owns a number of century-old restaurants. Against the backdrop of a decline in the high-end catering market, the company's operating performance has declined for 3 consecutive years. Short-term profit pressure is high, and transformation is imminent. The company relies on epitaxial expansion and transformation to break through the current difficulties. The company plans to acquire 100% of Jiahe Yipin's shares through a fixed increase. On the one hand, it will increase the company's performance, and on the other hand, it will draw on the management experience of private enterprises and the experience of Jiahe Yipin 020 to improve operating efficiency. At the same time, the company has reached a preliminary cooperation agreement with Diou Catering. Dio Catering has 3 brand stores and 1 food factory. The brands are Dio Coffee (which obtained famous trademarks in China in 2008, 322), Osomiro Coffee (120), and Ueshima Coffee (244), a total of 686, 28 direct-run stores, 76 managed stores, and 582 franchise stores. Dio's restaurant business performance is good. It achieved revenue of 194 million yuan and net profit of 15.82 million yuan in 2014. Profit forecast and investment rating: The company's main business is under pressure to achieve popularization+O2O transformation through epitaxial mergers and acquisitions. On the one hand, increase the company's performance and resolve short-term profit pressure; on the other hand, achieve a nationwide business area, expand the scope of business, and continue to focus on the long-term benefits that state-owned enterprise reform and Silk Road construction have formed for the company. The company's EPS for 15-17 is expected to be -0.01/0.03/0.05 yuan, respectively, maintaining the “increase in holdings” rating. Risk warning: Food safety issues, extended expansion falling short of expectations, Silk Road construction and state-owned enterprise reform falling short of expectations.