Incident: Executive change aspect: Zhou Chengjian, chairman and president of Meibang, submitted a resignation report. Ms. Hu Jiajia is the chairman of the board. Presidents Tu Ke and Song Wei (responsible for business development at Metsbonway) serve as vice presidents. Tian Fang is the financial director. Zhuang Tao is the secretary of the board of directors. Hu Zhoubin is an assistant to the president and is responsible for the development of Internet and innovative businesses. Daniel Silva acts as an assistant to the president and is responsible for ME & CITY's business development. In terms of equity transfer: Shanghai Metsbonway Co., Ltd. transferred 100% of its shares in Shanghai Metsbonway Enterprise Development Co., Ltd. to Kangqiao Industrial with 983 million yuan in cash. Huafu Investment, the controlling shareholder of the Company, holds 40% of Kangqiao Industrial's shares, and is also the controlling shareholder of the Company. Payment: 1. Before 2016-12-25, pay 10% of the equity transfer amount of 98 million yuan in full. 2. Before 2017-2-28, 30% of equity transfer payments of $294 million were paid in full. 3. By 2017-3-31, the remaining 60% of the equity transfer amount was paid in full by 591 million yuan. Asset delivery: Complete the industrial and commercial change registration procedures for the underlying asset transfer by 2017-3-15. After this equity transfer, Meibang Enterprise Development will no longer be included in the scope of the company's consolidated financial statements, which is expected to have a positive impact on the company's 2016 performance. Performance bottomed out, and expectations improved. In 2016, the company's revenue improved, driving better performance than previous years. However, this major change in senior management (Zhou Chengjian's daughter, Hu Jiajia) and the transfer of shares to Kangqiao Industrial are, on the one hand, beneficial to the significant improvement in the company's performance starting in the fourth quarter and revitalizing existing assets; on the other hand, after the second generation, it is beneficial to improve the market's view that the company's current operations are not bright (at least in terms of the company's future strategy, new thinking and new plans can be seen). In the short term, there is an inflection point expectation that the company's strategy will be gradually adjusted. In the medium term, the company will still face a series of business optimization and integration. In the long run, it is necessary to observe the specific management ideas after the new chairman takes office. For the first time, coverage was given a “buy” rating. The target price for 3-6 months is 6 yuan, and the company's EPS is expected to be 0.02 or 0.2 yuan in 16-17, corresponding to 228 or 23 times PE. We believe that at least from 16Q4 and 17Q1, the company's performance flexibility brought about by equity transfers is high. Currently, the stock price is in the bottom range, and there are large short-term trading opportunities. Risk warning: Looking at the medium to long term, the rectification effect of the company's newly appointed executives is lower than expected.