IPO Purchase Proposal: Yide International is a leading developer and operator of large-scale commercial logistics centers in China. By the end of July 2013, the company was also developing eight commercial logistics center projects in six provinces and autonomous regions of China, six of which were large-scale trade and logistics centers. According to Savills data, the company ranked second in China based on the number of large commercial and logistics centers, while the company ranked third in China based on estimates of large commercial and logistics centers and the total construction area that has not yet been completed. As of the end of July 2013, the company had a total land reserve of 7.5 million square meters. The company's business focuses on developing and operating large-scale trade and logistics centers in China's third- and fourth-tier cities and selectively entered second-tier cities. Currently, the vast majority of the company's turnover comes from business sales, and it is expected that future sales will be increased through rental income. In the outline of the national “12th Five-Year Plan”, the Chinese government announced that its focus on urbanization is small and medium-sized cities. It is believed that the urbanization of small and medium-sized cities will become one of the main driving forces for China's economic development in the next ten years. This will promote the formation of an efficient wholesale network and have a good effect on the business development of the company's trade and logistics centers. According to Savills data, between 2000 and 2011, the total construction area of China's trade and logistics centers increased by more than 2 times, while the total sales volume of merchants increased by more than 4 times, indicating that the trade and logistics center industry is developing rapidly. The turnover for the six months ended 2010, 2011, 2012 and 2013 was RMB 95.7, 832.7, 1607.1 and RMB 189.8 million, respectively, and net profit attributable to the company's shareholders was RMB 12.17, 228.97, 216.51, and -193.21 million yuan, respectively. According to the company's prospectus, Yide International (1396.HK) achieved net profit of RMB 216 million for the full year of 2012. Assuming that the exercise of over-allotment rights is not taken into account, the offering price is equivalent to 27.6 times to 36.5 times the price-earnings ratio, 2.5 to 3.3 times the net market ratio, and the valuation is too high. The company's business is similar to South China City, and whether the future sales situation of the development business is going well is the main risk factor. However, the company has a total land reserve of 7.5 million square meters. Abundant land reserves will bring strong growth momentum. Coupled with good prospects for the industry, the company will benefit significantly as a leading developer and operator in the industry, driven by the continuous acceleration of the urbanization process, so we recommend careful procurement.