1. Overview of the incident Nanjing Chemical Fiber Co., Ltd. issued an announcement that the controlling shareholder Nanjing Textile Industry Co., Ltd. signed a “Free Transfer Agreement on State-owned Equity” with Nanjing Xingong Investment Group Co., Ltd. on March 7, 2014. According to the agreement, the textile group plans to transfer 101 million tradable A shares of the company (accounting for 33.02% of the company's total share capital) held by the textile group to Xinkong Group free of charge. 2. Analysis and judgment that Xinkong Group has become the direct controlling shareholder. The strength of capital operation is expected to be strengthened. After the acquisition is completed, Xinkong Group will change from the original indirect controlling shareholder to the direct controlling shareholder, and the Nanjing Textile Industry Group will be the indirect controlling shareholder of the company. Xinkong Group has now formed an overall layout with the group headquarters as the capital operation platform, medicine, electromechanical, and chemical fiber sectors as advantages, and participation in strategic emerging industries to guide investment. After this transfer, it will help Xinkong Group increase its support for Nanjing's chemical fiber business development and capital management, and help to further promote the strengthening and expansion of chemical fiber in Nanjing. Viscose staple fiber is still hovering at the bottom. Currently, the price of viscose staple fiber is still low. Currently, the market price has dropped to 12,000-12,500 yuan/ton. At present, the operating rate of the industry is around 85%-90%. We believe that the downside of the industry is already very limited. Real estate has become the company's second main business: it will continue to contribute to the company's performance. The company established a subsidiary, Nanjing Jinling Real Estate Development Co., Ltd., in 2009. It successfully won the right to develop the original factory plot in that year, and began construction and development of the project in April. The real estate business is expected to become the company's second main business. The company began selling real estate on September 18, 2010, and the real estate business began a harvest period in '11. The “Lejuya Garden” project developed by Nanjing Jinling Real Estate Development Co., Ltd., a holding subsidiary of the company, mainly serves rigid demand and improved demand. The current real estate sales situation is relatively good. 3. Profit Forecast and Investment Suggestions We expect the company to have an EPS of 0.1 or 0.25 yuan in 13-14. Be careful in recommending ratings. We will keep an eye on the company's subsequent integration. 4. Risk warning: the risk of a downturn in the viscose staple fiber boom, etc.