Investment points, peace view: A large integrated trading group with multiple measures to deal with the cold winter of the industry Dalian Friendship was established in '93 and listed on the Shenzhen Stock Exchange in '96. In 2012, Garweide Investments became the actual controller of the company. The company is a large comprehensive commercial enterprise group whose main business is retail department stores, hotel management, and real estate development, and is 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 cope with the industry's cold winter. In the retail industry, we actively touch the Internet, put experience first, and actively explore the online field; in the hotel industry, we put service first, improve brand quality, and expand the customer scale; in the real estate industry, stock adjustment and sales come first, actively adjust sales strategies, and return capital through land concession funds. Acquire assets, enter finance, and build the four major business lines of guarantee, credit grant, credit reporting, and Internet finance. In December 2015, the company announced that it plans to issue 660 million shares (totaling 6.27 billion yuan) to two counterparties of Wuxin Investment Group and Wuxin Management Company at a price of 9.51 yuan/share to purchase 100% of their total shares in Wuxin Guarantee Group, 100% of the shares in Wuhan Small and Medium Guarantee Company, and 90% of the shares of Wuhan Venture Guarantee Company, Wuhan Credit Company, and Wuhan Credit Company, 100% of the shares, Wu Xin Evaluation 90% of the shares in top-level companies and 70% of the shares of Hanxin Internet Finance. At the same time, it is proposed to raise no more than 3 billion yuan in supporting capital. Based on the issue price of 11.02 yuan/share, the number of shares issued will not exceed 270 million shares. The assets to be purchased from 2013, 2014, and January to September 2015 simulated consolidated operating income of 870 million yuan, 1.18 billion yuan and 980 million yuan, and simulated consolidated net profit of 490 million yuan, 63 million yuan and 490 million yuan. According to the acquisition agreement, the net profit attributable to the owners of the parent company in 2016, 2017, and 2018, Wuxin Management and Wu Xin's investment guarantee is not less than 638 million, 753 million, and 860 million yuan. After the acquisition is completed, the company will form an “industrial+financial” pattern. Backed by Wuhan Financial Holdings and its only listed platform. After the restructuring is completed, Wuhan Financial Holdings will become the actual controller of the company and the only listing platform under Wuhan Financial Holdings. Wuhan Financial Holdings owns financial institutions such as banks, guarantees, trusts, financial asset exchanges, funds, microfinance, financial services 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 suggestions Dalian Friendship's three main businesses have been hampered in recent years, and the company has continuously implemented relevant diversified developments and sought new business growth points. This year, the company plans to acquire assets into fields such as 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, coverage for the first time, and a “recommended” rating. Risks suggest that macroeconomic performance falls short of expectations, retail industry prosperity continues to decline, real estate market recovery falls short of expectations, and business integration falls short of expectations.