The layout of the fuel cell field is accelerating: The company and Xinyuan Power Company signed a “Strategic Cooperation Framework Agreement” to cooperate in fuel cell technology and applications to jointly promote fuel cell technology and industrialization. The new energy sector is the company's key future expansion direction. Through the acquisition of Swedish OPCON, the company has mastered core technologies such as fuel cell air circulation systems and ultra-low temperature gas compression. The twin-screw oil-free compressors developed by OPCON have been verified in fuel cell systems. Currently, they have been used in fuel cell transportation, fuel cell auxiliary power components, and fuel cell laboratories. More than 50% of the world's fuel cell vehicles are customers. Xinyuan Power is an advanced domestic enterprise in hydrogen battery stack technology. The establishment of this strategic partnership will help give full play to the resource advantages of the two sides in their respective fields and accelerate the company's industrial expansion and industrial layout in new energy fields such as hydrogen energy and fuel cells. The company is a leader in the refrigeration equipment field and teamed up with Simco to develop the ice and snow business: industrial and commercial ice machines are the company's traditional industry, and the company has always maintained a leading position in the industry. In September of this year, the company established a joint venture with Simco Group. The company invested 1.02 million yuan, accounting for 51% of the registered capital. Simco specializes in technical consulting for ice and snow stadium projects, installation of engineering projects and equipment, and planning of sports events. The company has now set up a joint venture with Simco, mainly to increase business development in the field of snow and ice sports and entertainment. The focus is on the planning, design and construction of sports projects related to the 2022 Beijing Winter Olympics. Acquiring 100% of Jiayun Oil and Gas's shares, significantly increasing performance: Jiayun Oil & Gas focuses on professional technical services for the construction, production and operation of natural gas projects. Through the acquisition of Jiayun Oil and Gas, the company's compressor industry chain will be further extended to the field of chemical gases, and the market space will be further expanded. Driven by the combined performance of Jiayun Oil and Gas, the company's revenue for the first three quarters of 2016 was 0.708 billion yuan, up 45.75% year on year; net profit was 15.0383 million yuan, up 63.20% year on year. Investment advice: We forecast earnings per share of 0.11, 0.15, and 0.23 yuan respectively from 2016 to 2018, and give suggestions to increase holdings. The target price for 6 months is 15.5 yuan, which is equivalent to a dynamic price-earnings ratio of 67 times 2018. Risk warning: The development of the fuel cell industry falls short of expectations; market competition continues to intensify.