Event: Revenue reached 320 million yuan in 2016, an increase of 83.92% over the previous year. Net profit was 12.61 million yuan, a year-on-year decrease of 30.28%. The company achieved revenue of 87.95 million yuan in the first quarter, an increase of 91% over the previous year, and a net profit of 6.5 million yuan, an increase of 9% over the previous year. Key investment points: Investment increases influence profit levels: The company continued to promote B2B platform construction and supply chain financial platform construction in 2016, creating a closed loop of credit-transaction-financing-credit evaluation transactions, laying a solid foundation for the company's business expansion. Profits have declined as a result of increased investment. The company's revenue growth in 2016 and the first quarter of 2017 was mainly due to an increase in chemical trade revenue. Bulk e-commerce welcomes development opportunities, and supply chain finance has entered into pain points: B2C e-commerce has matured, B2B e-commerce can help enterprises reduce costs and increase efficiency, and is still a blue ocean. Among them, since commodity trading has characteristics such as huge transaction amounts and frequent price fluctuations, commodity e-commerce is expected to take the lead in rising. Supply chain finance can effectively solve the problem of accounts receivable in B-side transactions, reduce financial pressure on small and medium-sized enterprises, and effectively resolve enterprise pain points. At the same time, accounts receivable between domestic enterprises alone reached 26 trillion yuan, and the supply chain finance market is huge. We are optimistic about the company's development prospects as a major chemical e-commerce company to create supply chain financial services. Supply chain finance is gradually being implemented: The company uses trading platforms as carriers to collaborate with many banks to launch supply chain finance products to solve the pain points of financing difficulties for small and medium-sized enterprises. The company provides risk control services based on the transaction side to promote high-quality enterprises that have developed commodities in the early stages. In 2016, the company signed trading platform construction agreements with hundreds of enterprises. Some enterprises have already implemented the supply chain financial service model, and we expect it to continue to be implemented in the future. At the same time, the company completed a capital increase for Wangsheng Finance Guarantee Company, obtained higher credit lines from banks, and provided more complete financing guarantee services for online transactions. Profit forecast and investment rating: First coverage, giving a “buy” rating: Bulk e-commerce has ushered in a good opportunity for development. The company continues to promote the implementation of supply chain finance, and is optimistic about the company's long-term development. The company's 2017-2019 eps are expected to be 0.63, 1.58, 2.49 yuan, corresponding valuations of 50X, 20X, and 12X. For the first time coverage, a “buy” rating is given. Risk warning: (1) risk of related projects falling short of expectations; (2) systemic market risks.