The core reminder is that the company relies on the continuous development of technology in the main military goods industry. During the 13th Five-Year Plan period, the company adopted a “superior two strong three” development strategy, which is to accelerate the transformation and upgrading from manufacturing to manufacturing services and modern service industries, further improve the manufacturing industry, strengthen the service industry, and promote the organic integration and collaborative development of manufacturing and service industries. The company is currently promoting mixed ownership reform and the Jihuayuan Commercial Center project based on military and civilian goods. In mid-December, the Dingzeng conference was held, and it is expected that a Dingzeng road show will be held after the Spring Festival. It will raise 4.4 billion yuan and issue a reserve price of 819 yuan/share, of which 4.1 billion will be used for six Jihuayuan construction projects and 300 million yuan for terminal market network construction projects. According to Monita's research, the company's net profit on military supplies will increase as individual soldiers integrate a new generation of fabrics, functional clothing, shoes, and boots. However, there is a clear ceiling in the military business, and the future focus will be on consumer demand for civilian goods. The company is determined to increase the International Garden Project. A differentiated business model may drive the development of clothing and other civilian goods, so it is recommended that attention be paid to it. Research summary Military supplies: The low price bidding law was changed to a comprehensive bidding law. The demand for integrated replacement of individual soldiers highlights that orders from the military and armed police headquarters are military supplies, and that public security, industrial and commercial tax customization, etc. are all civilian goods. The future direction of the company's development is civilian goods, and the value of military supplies is increasing, but the ceiling is obvious. In the future, the integration of individual soldiers is the overall development direction of the military, and functional camouflage fabrics will become mainstream in the future. The previous visual camouflage will gradually be eliminated Jihuayuan: fixed increases help the “1+X” business center model, and the Olympic program training has become a potential stimulus. The difference between Jihuayuan and traditional commercial real estate is the exclusive signing of sports events. Indoor surfing and rock climbing may become a training ground for the National Sports Administration. The opening of the Chongqing Jihuayuan Extreme Sports Center is expected to generate 28 million annual ticket revenue, an average of 3,000 people per day. In the future, this model will be replicated and applied to mixed ownership reform of Yangzhong, Xi'an, Qingyuan, Xianning, etc.: the power pilot promotes market-based selection and salary performance assessment at the management level, and the core of the company's mixed reform is the pilot of authority: market-based selection and salary mechanisms at the management level; according to the index assessment requirements, the total profit growth rate in 2017 is expected to reach 8%. Huayuang Dynasty” JH1912 Positioning high-end customization, “JH1912” positioning light luxury fashion, 500 “JH1912” physical stores will be opened offline in the future, and O2O will be used online to achieve the same price for the same model across all channels. A fixed increase of 300 million dollars was invested in the physical construction project of the Research Institute, construction of R&D and design systems between China, the US, and Europe, and cooperation to build the “JH1912” research main content 1. Military supplies: the low price bidding law was changed to a comprehensive bidding law. The demand for integrated replacement of individual soldiers highlights that orders from the military and armed police headquarters are military supplies, and public security, industry and commerce, and tax customization are all civilian goods. The future direction of the company's development is civilian goods, and the value of military supplies is increasing, but the ceiling is obvious. In 2000, all 30 of the company's enterprises were handed over to the government. Previously, the company's military supplies accounted for more than 80%, but during the transition period of protection policy from 2000 to 2006, the market share fell to 75%. After 2006, the military supplies market was completely liberalized. In 2011, the company signed a three-year agreement on procurement with the military, and after implementing the Low Price Bid Law in 2014, the company's gross profit fell to a minimum of about 15%. At present, the low price bidding law has gradually been replaced by a comprehensive bidding law, which is expected to help companies bid for high-quality products. In the future, the integration of individual soldiers is the overall development direction of the military, and the previous visual camouflage will gradually be eliminated. The company developed a new type of camouflage to enable the military to effectively evade reconnaissance methods such as vision, infrared, radar, and optoelectronics in modern comprehensive warfare. The camouflage change will replace the entire army by region and military type, and then replace it in special segments. It is expected that the gross margin of the replacement will double. On the 70th anniversary of the founding of the nation in 2019, it is expected that there will be continued demand for camouflage functional products from the five major war zones. In the future, when foreign military standards are implemented in procurement, the purchase price of individual products will increase. Disarmament expectations have little impact on the company's military sales. The country has set a target of 300,000 for disarmament, which will be mainly for logistics departments and non-field forces. 2. Jihuayuan: A fixed increase helps the “1+X” business center model. The Olympic program has become a potential stimulus for the Jihuayuan project to position itself as “1+X”. “1” is a shopping center, “X” is a sports program, and a series of supporting mass consumption, catering, entertainment, and leisure services. Jihuayuan will introduce “JH1912” to achieve main business linkage, and will consider introducing internationally popular children's entertainment programs in the future. The difference between Jihuayuan and traditional commercial real estate is the exclusive signing of sports programs: the wind tunnel skydiving program is an exclusive agent in China and will meet the needs of professional drills and civil entertainment; the domestic purchase of indoor surfing technology equipment will solve the training needs of surfing after entering the official Olympic competition; the rock climbing wall is designed according to international standards and is designed according to international standards, and indoor surfing and rock climbing may become a training ground for the National Sports Administration. For the Chongqing and Changchun Jihuayuan projects, the company photographed the site for construction, and the American Weite Group was responsible for the investment promotion. The total land used for the Chongqing project is 943 acres, and more than 300 acres have been developed in the first phase. The “Eleventh” Extreme Sports Center opened for trial operation. The park has wind tunnel skydiving, surfing and skiing, rock climbing walls, ski resort sports, etc., and is one hour away from the city. Based on the 8:4:2 full customer flow rate, the company expects annual revenue of more than 28 million people, an average of 3,000 people per day, and tickets of about 300 yuan. For the time being, they will sell tickets at a 5-60% discount at the price. 3. Mixed ownership reform: The power pilot promotes market-based selection and recruitment at the management level and the evaluation of salary performance to motivate companies. The core of the mixed reform of companies lies in the pilot authority: market-based selection, recruitment and salary mechanisms at the management level. The expected result is to stimulate the vitality of the management team. The company understands the direction of the country's overall mixed reform: central enterprises have three main business development directions, which can be relaxed and increased; remuneration was previously an approval system; now it is a filing system; it emphasizes market-based selection and recruitment and salary incentive mechanisms. Currently, the ABCD four-level assessment index is generally used. If you cannot complete grade D, the labor contract is retained, but without a job contract, the salary can be reduced by more than 80%. If you reach A level or above, the salary will increase again. The distribution of profit indicators is as follows. The indicators from the State Assets Administration Commission to the majority shareholders to companies to subsidiaries have increased sequentially. According to the index assessment, the total profit growth rate is expected to reach 8% in 2017. If the main business fails to meet the standards, land disposal income can be released according to the plan in conjunction with the company's own land development plan. In 2013-2016, the government collected a total of 813,400 square meters and net income before taxes and fees was 2,915 billion yuan. The company has more than 70 subsidiaries, and future income from storage and financial subsidies will be stable. 4. Civilian goods: R&D links between the US, Europe, and China and Jihuayuan's own stores will continue to promote the establishment of the “Jihua Outdoor” brand before the “JH1912” company goes public, hoping to highlight military culture. However, competition in the sports and outdoor market is fierce, and now “Jihua Outdoor” has been discontinued. The company sets 41 standards for urban management professional wear in the industry. In the future, the company will participate in a market size of more than 1 billion dollars in tooling for enterprises, institutions, and units. Currently, the company's independent clothing brands are mainly “Jihua Royal” and “JH1912”: the former is aimed at high-end customization, has high gross profit but small volume, and SKU 480 in a single season. 50-60% of custom-made products are company services, and there is a confidentiality agreement for customizing clothing for leaders. The latter is positioned in the middle and high-end markets of urban fashion, business and leisure. Currently, there are 53 terminal stores, mainly direct-run stores and “in-store stores” in first-tier cities, and 5 in Beijing. The cost of clothing fabrics is high, and original clothing designers for luxury brands are employed. Brand promotion is low and popularity needs to be raised urgently, with a gross profit margin of 40-50%. In terms of price, it is higher than domestic first-tier business and leisure brands, and lower than luxury brand clothing. In the future, it is planned to open 500 “JH1912” physical stores offline by purchasing and leasing commercial center stores, of which 100 are to be purchased and 400 are leased. The company's “O2O Space” platform truly achieves the same price for the same model across all channels. Currently, it is mainly on Tmall. The company will invest a fixed increase of 300 million yuan in the physical construction project of the General Research Institute: upgrade the original studios in the US and Italy, build the US (JHAC) and European (JHEC) design centers, and achieve the linkage between the three regions through the China Design Center (JHCC), and combine the advantages of internationalization and localization. Among them, JHCC will focus on sample trial production, standard promotion and process implementation; JHAC will focus on fashion trends, product style design, and JHEC will focus on process development, fabric development, and model development to jointly create the fashion content and brand value of the “JH1912” product.