Key investment points: The financial difficulties of the state-owned Jinjian rice industry and the withdrawal of proxy shareholders of the Agricultural Bank were paid for by the local government in shell storage. The 92.65 million shares of Jinjian Rice Industry held by the Agricultural Bank were transferred to Hunan Jinxia Food Industry Co., Ltd., a subsidiary of Hunan Grain Group, at 4.62 yuan per share, for a total of 428 million yuan. 200 million of the transfer was funded in cash by the local government, and 300 million was loaned by the government interest rate to the Hunan Food Group. Jinxia Food Company currently holds 17.02% of Jinjian Rice Industry's shares, making it the largest shareholder of Jinjian Rice Industry, and the local government has retained the listing platform. After Jinxia Food Company came in, the first step was to issue additional bank loans to itself and three other companies to reduce Jinjian Rice Industry by 610 million yuan. The company proposed issuing 97.32 million additional shares (4.11 yuan per share) to Jinxia Food, Hunan Development, Xiangyi Industrial, and Xingxiang Chuangfu. The additional capital of 200 million yuan will be used to pay off loans from the Agricultural Bank, while the other nearly 200 million yuan will be used to supplement the company's working capital. The additional issuance plan has yet to be submitted to the securities regulators for approval. Until now, the main operating business of Jin Jian Rice has not changed. The next step is to wait for Hunan Jinxia Grain and possible other assets of Hunan Food Group to be loaded. The Hunan Food Group has arrived ready, so the next step is definitely to load the Jinxia Grain Group and possibly other assets of the Hunan Food Group. What is important is how to load them. There are three options to choose from (asset replacement, asset acquisition, and additional placement). According to our initial measurements, the third option is the most likely, but the worst for tradable shareholders. The reason is that the company's share capital expands too fast and the earnings per share after new assets come in is too low. The first two options are relatively beneficial to tradable shareholders. The fundamentals of Jinxia Food are relatively good, but the asset loading plan determines the investment value of the company's stock. Jinxia Food relies on the Hunan Grain Group, which has strong financial strength, and is engaged in grain acquisition and storage, grain processing trade, and grain feed trading markets. The main leaders are pragmatic and pioneering, and we believe that their fundamentals are relatively good (see below). However, the investment value of the company's stock is determined by the investment value of the company's stock. Based on the uncertainty of its asset loading plan, we have given the company's stock a “neutral” rating for the time being. Risk warning: It will take some time from the approval of this additional issuance plan to the next time the asset is loaded, and there are possible variables in this.