The company announced that its wholly-owned subsidiary, Hong Kong Qinshang, signed relevant agreements with Aidi Education Acquisition (Cayman) Limited and Beijing Australian Exhibition for 2.9 billion dollars. Hong Kong Qinshang plans to acquire 100% of Aidi's shares in NIT Education Group (Aidi Education Group) in cash (subsequent companies or Hong Kong Qinshang or cooperate with relevant parties to implement the above acquisition through the establishment of a fund company). This acquisition is in the initial stages The valuation is the equivalent of 2.9 billion yuan in US dollars. Eddie Education Group was established and continues to exist under Cayman Islands law and controls a number of educational assets and school operations located in China through VIE arrangements. Eddy Education: A high-end international education brand, providing a one-stop K12 system for international education Eddy Education entered China in 1997 to provide Chinese and foreign students with courses from kindergarten to preparatory stage and English training courses taught in both English and bilingual modes. At the same time, Eddy is also an official test site for the five major international examinations. Up to now, Eddy has successfully sent 11,000 students to study abroad. Beijing Eddy (International) School, a subsidiary of the company, is the only Chinese-foreign cooperative school in China that teaches simultaneous Australian courses in full English and is fully in line with the international community. It is also the only testing center for international university admissions examinations officially authorized by the Curriculum Committee of the Western Australian Government's Department of Education — TEE in China. The school is located in Chaoyang District, Beijing, covering an area of 556 acres, with a construction area of more than 5w square meters. It has an all-European style school building and advanced facilities and equipment. Entering the fast track of development, the education ecosystem continues to improve first, and the acquisition of Longwen has become the first step in the company's strategic transformation K12. Longwen focuses on K12 one-on-one, offline and online efforts to build an O2O teaching and support ecosystem. The brand advantage is remarkable, and it has the ability to expand nationwide. It has now moved from rapid expansion to a stage of refined development; second, the acquisition continues to improve the layout of the international education sector. On the one hand, this acquisition will be formed with British Education (the promised net profit for 2016-2019 was 1000/1300/1690/21.97 million yuan, respectively) Synergistic effects. In the future, the two sides may carry out in-depth cooperation in terms of teachers, textbooks, and management systems, etc., complement each other's strengths, and continue to grow stronger; on the other hand, it will consolidate the company's layout in the field of international education to meet the rising demand for differentiated, personalized and high-end education; third, the acquisition of Little Red Hat Education to enter the field of preschool education, broaden the industrial layout, further strengthen collaboration with the original business, and at the same time provide a guarantee for future performance growth; fourth, after Huaxia Life became the company's second shareholder, the company continued to actively deploy K12 and education internationally The fields of education and preschool education fully demonstrate the determination and efficiency of the company's layout in the education sector. Maintaining the “buy” rating company as a leading provider of semiconductor lighting products and comprehensive solutions in China, acquiring Guangzhou Longwen, strategically laying out the K12 one-on-one education service industry, taking firm steps in transformation; acquiring British Education, entering international education, and implementing education transformation; acquiring Little Red Hat Education to extend the preschool education layout; and acquiring 100% of Eddie Education's shares for 2.9 billion yuan to improve the company's international education ecosystem. Assuming that Little Red Hat completes delivery next year, without considering this transaction, we expect the company's EPS for 16-18 to be 0.11 yuan, 0.17 yuan, respectively 0.22 yuan. The current stock prices corresponding to PE are 87X, 57X, and 44X, respectively. Risk warning: The performance growth of the subject matter of the acquisition fell short of expectations.