Incident: Guannong Co., Ltd. (600251.CH/RMB, no rating) and Shanghai Yongquan Yixin Investment and Development Center set up the first phase of the Emerging Industry M&A Fund — “Huafu Asset Management - Yongquan No. 1 Asset Management Plan”. The asset management scale did not exceed 95 million yuan, of which the company subscribed for 15 million yuan with its own capital, Guanyuan Investment subscribed for 5 million yuan, and the remaining 75 million yuan raised by Yongquan Yixin. Comment: 1. Related party compensation commitment: Guanyuan Investment, the controlling shareholder of the company, participated in subscribing for Class B shares of the asset management plan, and undertakes guarantee obligations and fixed expected income for asset clients that subscribe to Class A1 shares (50 million yuan, fixed expected income 9.5% /year) and A2 shares (25 million yuan, fixed expected income 6.5% /year), and assumes guarantee obligations and unconditionally fulfill the obligation to make up the difference. Furthermore, since Guanyuan Investment bears the above compensation obligations, if the company earns profits due to the asset management plan, the company pays 25% of that income to Guanyuan Investment after deducting the relevant taxes and fees. 2. Prepare for the company's future development: The company establishes this plan to invest mainly in innovative and growing high-quality enterprises listed on the New Third Board. The scope of investment is mainly investment in the New Third Board market, mainly including enterprises that have completed the shareholding system reform but have not been listed, enterprises that have completed listing but have not carried out market development, and enterprises that have already been listed and marketed. We believe that the company's future investment will not be blind, but will focus on future development directions (such as trading platforms, e-commerce, etc.) to reinforce and grow. 3. Emerging businesses will be the new engine for the company to take off in the future: in 2014, the company invested in e-commerce in Jiaxing, acquired 100% of Jiaxing Maoxiong's shares, created a “window of the army” for the company in Jiaxing in the Yangtze River Delta region, established a strategic cooperative relationship with SF Express “Hey Ke”, introduced a new business model 020, and expanded and strengthened related businesses through the capital market. We believe that in the coming period, online trading platforms will be the company's development direction and focus, and will also be in line with the general direction of the Chinese economy in the future. 4. Firm optimism, huge space: Compared with advanced markets, China's agricultural products trading market is still in its infancy. The bargaining power at the front end and end is very weak, and the agricultural product circulation chain needs great changes and breakthroughs. The strong support of the Corps Department will pave the way for the development of the company's agricultural products trading platform, and cooperation with relevant capital parties will open up development channels.