Investment Highlights The company announced a major asset restructuring plan. It plans to purchase 80% of Jinwang Antai's shares by issuing shares and paying cash. The underlying assets are worth 960 million yuan, of which the cash consideration is 144 million yuan. The simultaneous issuance of shares raised no more than 960 million dollars in supporting capital. Overview of the acquisition transaction. The company plans to issue 7.7 million shares at a price of 816 million, acquire 80% of Jinwang Antai's shares in cash with 144 million yuan, and raise no more than 960 million dollars for the construction of 4 projects. GoldNet Antai promised net profit of 80 million, 104 million and 135.2 million yuan after deduction in 2016 to 2018, respectively. GoldNet Antai - IT solution provider for e-commerce platforms. Jinwang Antai mainly provides IT solutions for more than 300 domestic commodity trading markets and e-commerce platforms for group enterprises. It has extensive experience in software development in online trading, warehousing management, logistics distribution, supply chain services, risk control, etc. Currently, its main products include “E Spot” shopping mall systems, warehousing and logistics systems, etc. Strengthen financial IT capabilities and collaborate to build customer stickiness. As a leading domestic financial IT technology service provider, Xinyada will have good collaboration between the two, Jinwang Antai, which has been acquired this time. Relying on its commodity trading market business, Jinwang Antai's customer base and data acquisition capabilities will integrate the supply chain ecosystem with Xinyada's resources to create a new service model for supply chain e-commerce and financing, and also build a complete supply chain finance IT cloud service. Real transaction data effectively accumulated on the Jinwang Antai platform will also be jointly used by both parties to form a credit reporting and risk control system with the support of the big data platform, so that it can assist banks and other financial institutions to develop customer resources in emerging fields, expand business capabilities, and enhance customer stickiness to IT products and services. Profit forecast and investment advice: We gave the company an EPS forecast of 0.79 yuan, 1.05 yuan, and 1.27 yuan after the diluted share capital for 2016-2018, respectively, giving it an “increase in wealth” rating. Risk warning: M&A integration falls short of expectations; new business development is blocked; market competition intensifies.