The Group successfully achieved the overall listing and raised matching funds to introduce strategic investors. (1) absorbing and merging Huihong Group. The main businesses of Huihong Group and Huihong International are trade and real estate business, and there is competition in the same industry, so they can not give full play to the effectiveness of business resources. In order to solve the problem of inter-industry competition, the company launched a major asset restructuring. Huihong Group issued 1.512 billion shares to Su Hui Capital Management, the controlling shareholder of Huihong International, to purchase all the assets and liabilities of Huihong International at a price of 4.09 yuan per share. at the same time, Huihong International's shares held by Huihong Group were cancelled to realize the overall listing of Huihong Group and Huihong International. (2) raising matching funds through non-public issuance of shares. In order to improve the performance of this restructuring and enhance the profitability and sustainable development ability of listed companies after the completion of the reorganization, Huihong Group introduced six strategic investors to raise 2 billion of the funds with 4.09 yuan per share of non-public offerings, and finally realized the current situation of 67.41%, 21.80% and 10.79% of shares held by Jiangsu SASAC, strategic investors and the public respectively.

The reform of state-owned enterprises is carried out from top to bottom, and the group opens the way for the national reform of Jiangsu Province. (1) the rise of a new round of reform of state-owned enterprises. The third Plenary session of the 18th CPC Central Committee adopted the decision of the CPC Central Committee on several Major issues of comprehensively deepening Reform, which put forward a new round of ideas for the reform of state-owned enterprises. In August 2015, the top-level design plan for the reform of state-owned enterprises, the guiding opinions on deepening the Reform of State-owned Enterprises, was formally issued. (2) Jiangsu put forward the detailed rules of reform earlier. Jiangsu Province, which has a large amount of state-owned assets, successively issued opinions and rules on deepening the reform of state-owned enterprises in 2014. (3) the group conforms to the trend. Jiangsu's reform rules identified Huihong Group as a pilot of national reform, exploring the way of overall listing; the group lived up to expectations and completed the absorption and merger of the overall listing and supporting fixed growth work in 2015.

The overall listing provides an exemplary benchmark for Jiangsu Province and brings historical opportunities for the development of the company itself. (1) the first one of the national reform in Jiangsu. Huihong Group from restructuring suspension to raising funds to account, the overall listing and fund-raising work has been successfully completed, the task is arduous and of great significance, accumulating successful experience for the reform of the whole province and other domestic state-owned enterprises. (2) solve the competition in the same industry, integrate the industry effectively, and promote the transformation and upgrading of the company. The main businesses of Huihong Group and Huihong shares overlap, forming inter-industry competition, and the realization of asset restructuring makes this problem fundamentally solved. At the same time of the overall listing of Huihong Group, this restructuring will introduce strategic investors (Boshi Fund, Sinopharm Investment, Racing Boda, Racing M & A, Jingdao Tiangan, Xingzheng Capital Management) through the collection of supporting funds to help Huihong Group transform and upgrade.

Relying on the fund-raising project, the strategy of "one goal, two platforms and five plates" continues to advance, that is, taking the supply chain operation as the core, promoting the transformation of the group into a supply chain integrated operation enterprise, and building two major platforms of supply chain operation and capital operation. cultivate two emerging industrial sectors, cold chain logistics and medical and health, and enhance the three traditional advantage business sectors, such as textile and clothing, pulp and paper board and marine machinery and electricity. Gradually formed with the supply chain cloud platform as the carrier, through the integration of internal resources and the docking of external customers and suppliers, the unity of information flow, capital flow, logistics, business flow and business flow is formed.

Investment suggestions: we believe that: (1) under the historical background of the national reform, Huihong Group seized the opportunity of strategic upgrading in time and successfully completed the overall listing, with the further promotion of the national reform at the national level and the SASAC level of Jiangsu Province. the transformation and upgrading of the company is expected to speed up. (2) Industry policy catalysis: increasing policy support for foreign trade industry, especially the promotion of the "Belt and Road Initiative" strategy and the accelerated signing of free trade agreements between China and South Korea, China and Australia will alleviate the decline in the growth rate of the company's trade business. on the other hand, the domestic consumption upgrading potential is still huge; (3) in the internal integration of the company: the gradual exertion of scale effect and synergy effect is conducive to promoting cost control and further raising the company's gross profit margin. (4) the fund-raising project is advancing step by step, and the future performance is expected to be released. We estimate that from 2015 to 2017, the company's return net profit will be 8.13,8.79 and 966 million respectively, an increase of about 4650%, 8% and 10% respectively over the same period last year, and the EPS of the corresponding top 2.242 billion share capital will be 0.36,0.39 and 0.43 respectively. At present, the total market capitalization of the company is 21.2 billion yuan, which is bullish in the long term. Companies with large market capitalization can be expected to give a "buy" rating. Risk factors: (1) the internal integration process is lower than expected; (2) the investment return fluctuates greatly.