On the evening of January 20, 2016, Wanli Co., Ltd. (699847.CH/RMB 33.09, no rating) issued a restructuring plan. It plans to allocate the company's original lead-acid battery business assets at no less than 700 million yuan, while also issuing 678 million shares to Soufang World and its co-actors to invest 678 million shares in the Internet real estate and home advertising marketing business and financial business of Soufang Holdings according to a consideration of no higher than 16.18 billion yuan, and promised that the three-year results for 16-17 would be 8.0, 10.4 billion and 1.35 billion yuan, respectively Yuan also plans to issue 132 million shares in ancillary financing of 3.16 billion yuan to 10 institutions, including Haoshu Investment and IDG Capital, to invest in internal management platform and system upgrade projects, financial database and offline network construction projects, housing database construction projects, overseas market development projects, and technology research and development projects. After the restructuring is completed, Fangfang Tianxia and its co-actors will become the controlling shareholders of the company, and the actual controller of the company will be changed to Mo Tianquan. This transaction constitutes a backdoor listing. Trading of the company's shares will continue to be suspended because the Shanghai Stock Exchange will conduct an ex post facto review the relevant documents. Comment:1) The advertising and financial business of Search House went to the back of thousands of miles, and the real estate internet giant landed on A-shares. The original main business of Wanli Co., Ltd. was the manufacture and sale of lead-acid batteries. Due to excessive production capacity in the domestic lead-acid battery industry and the intensification of low price competition, the company's original main business conditions were poor. Through this asset restructuring, the company's main business was injected into the Internet real estate and home advertising marketing business and financial business, and entering the real estate Internet field. At last, another giant was welcomed in the A-share real estate Internet sector. 2) The valuation of the underlying asset was 20 times lower than that of the industry, and Sou Housing's holdings rose to 70% to create an A-share financing platform. The assets of this acquisition are Internet real estate and home advertising marketing business and financial business, with a valuation of 162 billion yuan, considering the promised performance of 800 million yuan in 2016, the corresponding injection price-earnings ratio is 20 times, which is still at a lower level compared to 60 times the valuation of other Internet companies. At the same time, after this restructuring, Soufang's shareholding company shares will increase to 70%, and it will also become an important financing platform in the Soufang Group system. In the future, it will rely on this platform to expand the Internet real estate and home advertising marketing business and financial business. At the same time, the former is a strong business of house search. The latter is also a high-growth business, and its long-term growth is worth looking forward to. 3) 3.2 billion yuan of financing is invested in finance, housing databases, etc., to promote innovation in the real estate Internet in all aspects. The company also raised 3.2 billion yuan in supporting capital through this transaction to invest in internal management platforms and system upgrade projects, financial databases and offline network construction projects, housing database construction projects, overseas market expansion projects, and technology research and development projects. Among them, the construction of financial databases and housing databases will lay a good foundation for financial services including building a financial credit reporting system and carrying out financial services such as inclusive finance, and extending value-added services in more real estate trading platforms. In the technology research project, the company will also invest in research and development of cutting-edge technologies such as cloud computing, big data, and VR. In the future, I will use it for my own use and carry out all-round Internet innovation in the real estate field. 4) Searching for high-quality real estate assets was backed by thousands of miles, and the real estate internet giant landed on A-shares and suggested that active attention be paid. If this restructuring is completed, the company's share capital will expand to 968 million shares. According to the closing price of 33.09 yuan/share before the suspension, corresponding to the current market value of 32 billion yuan, while considering the net profit of 800 million yuan and a 50-fold valuation of the underlying assets in 16 years, a reasonable valuation of the underlying assets is 40 billion yuan. At the same time, considering 3.2 billion yuan of supporting financing and asset placement and cash totaling about 1 billion yuan, the company's reasonable valuation is about 44 billion yuan, up 38% from the current market value. We are optimistic about the rapid development of the business after using Wanli to build an A-share financing platform and further Internet innovation in the real estate sector in the future. At the same time, we also remind them of their unique value as a target for A-share real estate stocks, and recommend that they pay active attention.