Ping An's view: A large integrated trading group dealing with the cold winter of the industry. Dalian Friendship was established in 1993 and listed on the Shenzhen Stock Exchange in 1996. In 2012, Garweed Investments became the actual controller of the company. The company is a large comprehensive commercial and trade enterprise group whose main business is retail department stores, hotel management, and real estate development, complemented by other strategic investments. In 2014, China's macro environment continued to be sluggish. The company's main business carried the impact of e-commerce and industry diversion, and the company continued to seek new business growth points. Faced with this situation, the company has taken a number of measures to deal with the industry's cold winter. In the retail industry, we actively touch the Internet, put experience first, and actively explore the online sector; in the hotel industry, put service first, improve brand quality, and expand the customer scale; in the real estate industry, stock adjustment and sales first, actively adjust sales strategies, and return funds through land concessions. Acquire assets, break into finance, and establish the four major business lines of guarantee, credit reporting, and internet finance. In December 2015, the company announced that it plans to issue 660 million shares (total 6.27 billion yuan) to the two counterparties of Wuxin Investment Group and Wuxin Management Company at a price of 9.51 yuan/share to purchase 90% of their total shares in Wuxin Guarantee Group, 100% of Wuhan Small and Medium Guarantee Company, 90% of Wuhan Venture Guarantee Company, Wuhan Credit Rating Company Shares and 70% of Hanxin Internet Finance's shares. At the same time, it is planned to raise no more than 3 billion yuan in supporting capital. Based on the estimated issue price of 1,102 yuan/share, the number of shares to be issued will not exceed 270 million shares. It is proposed to purchase assets in 2013, 2014, and January-September 2015 to simulate consolidated revenue of 870 million yuan, 1.18 billion yuan and 980 million yuan, and simulated consolidated net profit of 490 million yuan, 630 million yuan, and 490 million yuan. According to the acquisition agreement, the net profit of the company subject of Wuxin Management and Wuxin Investment Guarantee to the owners of the parent company in 2016, 2017 and 2018 was not less than 638 million, 753 million, and 860 million yuan. After the acquisition is completed, the company will form an “industrial+finance” pattern. Backed by Wuhan Financial Holdings, its only listed platform After the restructuring is completed, Wuhan Financial Holdings will become the actual controller of the company and the only listed platform under Wuhan Financial Holdings. Wuhan Financial Holdings owns financial institutions such as banks, guarantees, trusts, financial asset exchanges, funds, microfinance, financial service companies, financial outsourcing services, pawnbrokers, asset management, etc., and is preparing to establish financial institutions such as financial leasing companies and life insurance companies. Investment Proposals Dalian Friendship's three main business growth has been blocked in recent years. The company continues to implement relevant diversified development and seek new business growth points. This year, the company plans to acquire assets into the fields of guarantees, credit reporting, and internet finance. The acquired assets have good profitability and strong risk management and control capabilities; after the acquisition is completed, the company will become the only listing platform under Wuhan Financial Holdings, which is optimistic about the company's future development, covering it for the first time, and giving it a “recommended” rating. Risks suggest risks such as macroeconomic performance falling short of expectations, retail sentiment continuing to decline, real estate market recovery falling short of expectations, and business consolidation falling short of expectations.