1. Incident Overview The company issued an announcement on November 2, 2016. It has received an official letter from the US Foreign Investment Commission (CFIUS). The acquisition of Ingram Micro Inc. (Ingram Micro Inc.) has passed the CFIUS review, and the CFIUS review of this transaction has been completed. 2. Analyze and judge that the acquisition of Ingram Micro has completed an important step. Overseas review risk release is likely to complete the acquisition by the end of 2016. Currently, the acquisition has passed all domestic and foreign antitrust reviews, filed by the National Development and Reform Commission, the Tianjin Commerce Commission, and CFIUS. The only main steps are foreign exchange registration and exchange procedures under foreign direct investment by domestic institutions, as well as the necessary approval, filing or authorization (if any). We expect the acquisition to be completed within 2016, with significant short-term catalytic effects. Ingram Micro International, which aims to become a global supply chain integrated service provider company, is a global IT supply chain integrated service provider. In the past three years (2013-2015), Ingram Micro achieved revenue of US$425.54, 464.87 and US$43,026, respectively, and achieved net profit of US$3.11, 2.67 and 2.15. In the 1st to 3rd quarter of FY2016, Ingram Micro achieved revenue of US$29.586 billion, a year-on-year decrease of 6.39%, and net profit of US$135 million, an increase of 82.68% year-on-year. The company may use this as a base, and combine its layout in trading platforms and supply chain finance to become a global modern supply chain management and integrated supply chain service provider. 3. Profit forecast and investment recommendations The net profit due to mother is estimated at RMB 3.17, 15.50, and RMB 1,564 million for 16-18, corresponding to the current EPS of 0.11, 0.53, and 0.54 yuan. It was given 40 to 45 times PE in 2017, corresponding to a valuation of 21.2 to 23.9 yuan, and a “highly recommended” rating. 4. Risk warning: Overseas mergers and acquisitions fall short of expectations, risk of exchange rate fluctuations.