Key investment events: The company announced that as of December 11, 2018, CICC Group and its co-actors held a total of 22.68% of the company's shares, surpassing Jiaotong University Industrial Group and its co-actors (22.65%) to become the company's largest shareholder. Comment: The controlling shareholders and actual controllers have not changed yet. According to the definition of the “Company Law”, a controlling shareholder is “a shareholder holding common stock (including preferred shares with restored voting rights) that accounts for 50% or more of the company's total share capital; a shareholder who holds less than 50% of the shares, yet the voting rights enjoyed by the shares held by the shares are sufficient to have a significant impact on the decisions of the shareholders' meeting.” Currently, the controlling shareholders and actual controllers of the company remain unchanged. The China Financial Group will continue to increase its holdings. The company announced on November 15 that the China Financial Department plans to increase its holdings of listed companies by no less than 0.5% of the company's total share capital and no more than 5% of the company's total share capital within the next six months through centralized bidding transactions, bulk transactions, and agreement transfers. At present, the 1.50% increase in shares has been completed, and there is a possibility of further increases in holdings in the future. CICC Group has rich industries, and business collaboration is worth looking forward to. CICC Group was founded in 1995 and has now entered various fields such as real estate development, mining development, health care, cultural tourism, energy investment, information industry, and capital investment. If the China Finance Department eventually becomes the controlling shareholder of the company, its industries are expected to collaborate with the company's business, help the company develop, and have a positive effect on improving the company's operating efficiency and performance. Investment suggestion: The China Finance Department has become the largest shareholder of the company. The entry of private capital to optimize the equity structure is conducive to the long-term improvement of the company's management efficiency, but no specific plan for school-enterprise reform has yet been introduced. The profit forecast for 2018/19/20 of earnings per share of 0.41/0.53/0.63 yuan is maintained for the time being. The current market value is 6.2 billion yuan, and the corresponding valuation is 53x/41x/35x. The optimization of the equity structure brings room for imagination and maintains the “buy” rating. Risk warning: The expansion of training outlets and enrollment falls short of expectations; the impact of relevant policies of training institutions on the progress of expansion; the expansion of vocational education, international education, and early childhood education business falls short of expectations.