On May 24, the company announced that the acquisition of Yixin Smart and the 460 million yuan plan to raise 460 million yuan was unconditionally approved by the Securities Regulatory Commission. The company issued 378.716 million shares (at a price of 466 million yuan) +200 million yuan in cash to acquire 100% of Yixin Smart's shares (at a price of 666 million yuan), and also used a pricing distribution method to raise an additional 460 million yuan to two specific targets, including Huaxia Life Insurance, to pay the cash consideration for this transaction and the design of high-speed RFID chip packaging equipment. Yixin Smart's 16-19 performance against gambling was 35 million yuan, 50 million, 60 million yuan, and 80 million yuan, respectively. After the transaction was completed, the company's share capital became 573 million shares, and the actual controller Mr. Ye Bin's shareholding of 24.13% became 21.02%. The acquisition of One Core Intelligence made up for the shortcomings in the IoT business and formed an effective collaboration with the vocational education sector. Yixin Intelligence is a leading domestic supplier of products and services for industrial robots, RFID electronic tags, and IoT industry application solutions based on RFID technology. It has a deep technical foundation and extensive market resources. On the one hand, this acquisition will make up for the shortcomings of the company's IoT business and promote the penetration and integration of software information services and hardware manufacturing, based on the hardware advantages of the IoT sensing layer, the RFID industry; on the other hand, it will form an effective collaboration with the company's existing vocational education sector. Specifically, ① Yixin Intelligence will export solutions in the fields of RFID recognition and control technology, the Internet of Things, industrial robotics, and intelligent manufacturing to the field of vocational education, which is expected to expand the content of vocational education training services and enhance the existing practical training service capabilities of the vocational education business; ② Real industrial projects accumulated by Yixin Intelligence over a long period of time can be achieved It has been successfully transformed into a teaching case for the company's vocational education business. After some training, outstanding engineers can enter the school as a “double teacher” resource to provide students with practical training guidance closer to the frontline of the industry; ③ The future development of Yixin Intelligence requires a large number of highly skilled applied talents, and the company can also provide attractive employment opportunities for students receiving practical training services. Deeply implementing school-enterprise cooperation and co-construction, Dingli College+Sino-German College gradually landed on the company while promoting the extension and expansion of the communications business while speeding up the groundwork and layout in the field of education, eventually forming a dual business pattern of information technology and education. Specifically, Dingli University: An enterprise-led academic education model with an accelerated layout that occupies a leading position in the field of vocational education. The company signed a 15-20 year long-term agreement with partner universities to cooperate in the form of co-managing second-level colleges. The company is responsible for operation (curriculum system design, internship training arrangements, etc.). In 2016, the company established a total of 10 Dingli colleges, and over the past 17 years, it has signed contracts with three large-scale Dingli colleges (1,000+ people/session, school investment of 100 million +). The company earns income by charging training service fees (that is, tuition fee sharing) from partner institutions. The per capita credit level is around 6,000-8,000 yuan/year. In '17, the company will complete the full curriculum preparation and training system for 4 major undergraduate majors, including computer science and technology, and 4 senior professional groups, including software, to help Dingli University complete systematic and integrated teaching, improve teaching quality, reduce running costs, and expand the influence of Dingli University while increasing sales revenue. At the same time, the company signed a cooperation framework agreement with Cyberle Investment and Huaxia Jiuying to jointly establish an industrial merger and acquisition fund to integrate investments in education, healthcare, and pension industries. In terms of the original main business, while maintaining steady growth in the communications business, we are focusing on the development of IoT technology and actively exploring the possibility of extending and expanding our accumulated communication capabilities to other fields. Maintain profit forecasts, give rating companies that are deeply involved in the field of mobile communication networks, target first-class product and solution providers, acquire Zhixiang Information, lay out vocational education, use Dingli University as a breakthrough, adopt order-based talent training programs, achieve revenue in the form of charging training service fees (that is, share of tuition fees) from partner institutions, and solidly advance vocational education strategies. We expect the company's EPS to be 0.38/0.51/0.70 yuan respectively, and 27x/20x/15x for PE, respectively. Risk warning: Dingli University's expansion falls short of expectations