1. Acquiring China Oudi and renewing its office direct sales business 　　 Acquired China Oudi with zero consideration, and enjoyed the trademark rights for 10 years. This time, Chenguang Kelipu, a subsidiary of Chenguang Stationery (603899, diagnostic shares) (Morning Stationery holds 70% of the shares), and Oudi Office Network shareholder AsiaEC.com Limited (99.9% of the shares) signed the "Equity Transfer Agreement", Acquire 99.9% equity of the target company with zero consideration. After the completion of this acquisition, Oudi Office Network became a wholly-owned subsidiary of Chenguang Kelipu. Oudi Office Network will be granted exclusive license rights for licensed trademarks (including the "Office Depot" trademark) and specific domain names using specific licensed trademarks within the authorization period. The authorization is valid for 10 years. We believe that Office Depot is a well-known brand in the world, and its brand influence, talent pool and major customer resources will help the company and its holding subsidiaries to further increase their market share in the field of office direct sales, and promote the company's office direct sales business to extend nationwide , To promote the rapid development of Chenguang Science and Technology, has a positive effect on many aspects such as the realization of the strategic layout of the enterprise, the expansion of the business scale, the improvement of economic efficiency, and the promotion of management concepts. After the completion of this acquisition, Chenguang Science and Technology will optimize resource allocation, reduce management costs, and improve the profitability of the target company through the integration of human resources and customer resources. After the transaction is completed, Oodi Office will be included in the consolidated statement of Chenguang Stationery. 　　 2. Deeply cultivate channels, and market share can be expected to increase During the reporting period, the company continued to deepen its channels and terminals, actively developed school-side stores and office stores, and promoted the improvement of single store quality; the upgrade of chain franchise, focused on the development of second-generation franchise stores, and comprehensively improved the image and product display of second-generation franchise stores; accelerated Expand the office market, children's art market and other high-value product markets, and achieve sales targets for key projects and key categories by creating children's art areas, office areas, and high-value areas. As of the end of 2016, the company's Chenguang retail terminals exceeded 72,000, including 54469 standard model stores, 7872 high-end model stores, 7412 franchise stores and 3013 office stores. The number and quality of the company's channels continue to increase, and the market share can be expected to increase. 　　 3. Investment advice We expect the company's 2017-2018 operating income to be 5.693 billion yuan and 6.84 billion yuan, year-on-year growth of 23.94% and 23.95%, respectively; net profits were 585 million yuan and 702 million yuan, respectively, year-on-year growth of 18.6% and 20.1% , The corresponding P/E are 26x and 21x respectively. The company has benefited from the huge market space for cultural, educational and office supplies. The number and quality of channels continue to increase. The market share is expected to increase in the future. The new business Chenguang Life Hall and Chenguang Science and Technology are developing rapidly. The acquisition of Oudi China office direct sales business adds Xinyi maintains a "buy" rating for the company's performance growth in the future.