Shanghai Five Days Industrial is positioned as the regional operation headquarters and logistics headquarters. Shanghai Five Day Industrial has two main functions: on the one hand, it is responsible for the distribution of supermarkets and stores in East China; on the other hand, it is responsible for the implementation of the company's overall strategy, responsible for the development of businesses such as large hotel supplies stores, household goods living centers (Thousand Stores Project), online shopping, and international trade. According to the company's development philosophy, once the Shanghai Five Day Industrial model is successfully implemented, the company will use Shanghai Five Day Industrial as a template and replicate it in Beijing, Shenyang, Guangzhou, Wuhan, Chengdu and other regions. The company has entered a period of rapid expansion and needs a large amount of capital to support it. As the development model of Shanghai's five-day industrial began to bear fruit, the company accelerated the replication of Shanghai's five-day model across the country. Currently, it has selected two locations, Puhe New Town in Shenyang City and Shuangliu County in Chengdu City, to implement strategic replication. Even considering the investment expenditure of 2-3 billion yuan for each project and the investment expenditure of Dehua Guanlin Bamboo and Wood about 100 million yuan, the current construction and proposed projects require 500 to 700 million yuan in capital. The company plans to issue bonds to cover the capital required for its expansion to a certain extent. The company's current balance ratio is only 47%. Under the bank's previous credit investment limit, it should not be a problem to lend 3-4 billion yuan to the bank according to the company's asset size, but in 2008, against the backdrop of tightening national credit, the company's operating risk will also increase. After all, the company's current operating cash flow is tight (for example, operating cash flow of -1.55 million yuan in the third quarter of 2007), and bank credit cannot fully meet the capital requirements for the company's expansion. We believe that the issuance of 160 million yuan of corporate bonds this time has solved the capital required for the company's expansion to a certain extent, but issuing bonds alone cannot support the capital required for the company's development; we judge that the company may also finance in the secondary market. Maintain the company's “Recommended” rating. We maintain the company's EPS forecast of 0.42 yuan, 0.60 yuan, and 0.77 yuan respectively. We believe that the owner of the family business is responsible for the enterprise. The company's loan of 20 million yuan from Chairman Lin Fuchun through an entrustment loan is enough to prove this. At the same time, we also believe in the management ability of the company's management. We are still optimistic about the company's long-term development prospects and maintain the company's “recommended” rating.