Highlights of the report describe the company's announcement that it intends to apply for financing of 400 million yuan from Cinda Financial Leasing Company by selling and leasing back some fixed assets. Incident review The sale and leaseback financing of 400 million yuan relieves financial pressure: This after-sales leaseback business involved the original book value of the company's fixed assets of 544 million yuan. The company sold to Cinda Leasing at a price of 400 million yuan and leased back. The lease period was 4 years and 16 terms, the annual rental interest rate was 5.50%, and the corresponding annual rent was about 122 million yuan. In addition, the rental fee is 14 million yuan, and the rent security deposit is 44 million yuan. At the end of the lease period, the company bought back ownership of 25,838 items of equipment at the agreed price. In the context of the macroeconomic downturn, the company's operations were under great pressure, while financial expenses increased the company's operating burden: the company's financial expenses in 2012, 2013 and 2014 were 462 million yuan, 512 million yuan, and 606 million yuan, respectively, with total profit of 127 million yuan, -202 million yuan and 214 million yuan for the same period. The company's expansion of financing channels through financial leasing will help the company relieve financial pressure, thereby improving the company's ability to operate continuously to a certain extent. The cost of financing the sale and leasing of fixed assets this time is 5.50%. Since the company's current sales and leaseback financing practices have a relatively limited impact on the actual business situation of the merger caliber company, EPS is expected to be 0.07 yuan and 0.10 yuan respectively in 2015 and 2016, maintaining a “careful recommendation” rating.