The company announced plans to raise capital on a fixed basis to fund next year's development. Recently, the company has made many acquisitions and is facing some financial pressure. After this additional issuance is completed, it will provide the company with 450 million yuan in capital, laying the foundation for next year's development. Conclusions and suggestions: The company announced on the 14th that it plans to issue no more than 60 million shares to the Beijing Jinpanlong Cultural Development Center at 7.52 yuan/share (not less than 90% of the average trading price of the company's shares of 8.35 yuan/share in the 20 trading days before the pricing benchmark date). The total capital raised will not exceed RMB 451 million to supplement the company's working capital. Relationship with investors: On June 12, 2012, Xiangeqing used 3 million yuan to increase capital to a subsidiary of Jinpanlong Cultural Development Center (Jinpanlong Restaurant: “Jinpanlong Club”), an upscale business banquet brand owned by Money Leopard, to obtain 30% of its shares. In addition, Meng Qingshang, who holds 30% of the shares in the Jinpanlong Cultural Development Center, is now the founder of Xiangeqing, but the previous holdings have been reduced to 3.31% of Xiangeqing's shares (the equity structure after completion of the increase is shown in Figure 1). The company's capital situation: As of the end of the 3rd quarter, the company's book currency capital was 290 million yuan. The annual net operating cash inflow was about 400 million yuan, and the balance ratio was 42.31%. The amount of money used to acquire assets and investments in recent years has been quite large, so there is an urgent need for supplementary funds to cope with the company's future development. Business situation: The company opened 3 new stores in Hefei, Nanjing and Wuhan during the year, bringing the total to 33, including 24 self-operated stores and 9 franchise stores. In addition, a capital of 295 million yuan was invested in the 3rd quarter to complete the acquisition of 90% of Weishidu's shares, 45% of Shenzhen Seaport's shares, and Long Dehua's shares. In the 1st to 3rd quarter of 2012, the company achieved revenue of 1,035 million yuan, YOY growth of 13.9%, net profit of 110 million yuan, YOY growth of 45.45%, and EPS of 0.276 yuan, but net profit increased by only 19.3% due to non-operating income such as deductions, fair value differences due to acquisitions, and disposal of assets. In the 3rd quarter, the company achieved revenue of 347 million yuan, YOY growth of 14.4%, and net profit of 33.93 million yuan. YOY increased 34%, an 11% decrease in comparable net profit. This is due to poor sales growth but increased manpower and rent costs at major stores in Beijing. It is expected that profit growth in the fourth quarter is unlikely to increase significantly in annual recurring profit of about 20%. In 2013, given the economic recovery and the impact of mergers and acquisitions, profit growth will be significantly better than this year. Profit forecast: The company's net profit for 2012-2014 was 129, 148 million yuan, and 190 million yuan, YoY increased 38%, 15.4% and 28%, and the diluted EPS was 0.32, 0.32, and 0.41 yuan. Net profit after deducting non-recurring profit and loss increased by 18.7%, 34.2%, and 28%. The current stock price corresponds to the dynamic PE of 2013 by 29.4 times, and the valuation basically gives investment suggestions held reasonably. The target price is 9.7 yuan, corresponding to 30 times PE in 2012.