Wuxi Zhefang and Lianchuang joined, and a giant robot ship set sail: According to the company announcement, on January 20, 2017, Wuxi Zhefang and Wuxi Lianchuang completed the transfer of 183 million negotiable shares of Youli Holdings held by Shuangliang Energy, accounting for 29.9% of the company's total share capital. Among them, Wuxi Zhefang received 18.6% and Wuxi Lianchuang sold 11.3%. The two are co-actors. Through this major asset restructuring, the company has beautifully transformed from a textile enterprise to a robot company. The company's new actual controller has been engaged in research and management in the field of robotics for many years and has rich industry experience. It is expected that, relying on its deep industrial background, the company will lead the company to grow into a giant ship in the robot industry. The merger and acquisition of Tianjin Fuzhen sounded the first trumpet of progress: the company announced on March 4 that it plans to purchase 100% of Tianjin Fuzhen's shares with 900 million yuan in cash. Tianjin Fuzhen is a leading developer, designer, manufacturer and seller of intelligent flexible production lines and automated control systems for automobile bodies in China. It has established good cooperative relationships with well-known car companies such as Jaguar, Land Rover, Changan Ford, and Shanghai Volkswagen. Fuzhen promised to deduct no less than 4.23/6.05/7.13/818 million yuan in non-net profit from 2016 to 2019, which will significantly increase the company's performance. Endogenous and epitaxial collaborative development, seizing opportunities for robot development: as China's population aging accelerates and the technical level of manufacturing technology improves. The development of the robotics industry is accelerating. According to IFR statistics, the compound annual growth rate of industrial robots in China reached 52.15% from 2009 to 2015. In 2015, China's industrial robot sales accounted for 27.02% of global sales, ranking first in the world. However, compared to countries such as Japan, South Korea, and Germany, the industrial robot density is over 300 units/million. The global average density is 69, and China is only 49; the penetration rate of service robots is less than 1%, so there is huge room for future development. China launched the Intelligent Manufacturing 2025 Plan to support the development of the robot industry. The company grasps large robot development opportunities and is expected to rely on strong industrial resources to rapidly grow into a leading robot enterprise in China through endogenous+epitaxial two-wheel drive. Future development is worth looking forward to. Investment suggestions: We expect the company's operating income from 2016 to 2018 to be 108 million yuan, 2,043 billion yuan, and 2,860 billion yuan respectively, corresponding to EPS of -0.60 yuan, 0.94 yuan, and 1.14 yuan respectively; we are optimistic about the development of its transformation robot business after asset restructuring, and give it a buy-A investment rating for the first time, with a target price of 15.41 yuan for 6 months. Risk warning: The restructuring is not progressing as expected