Performance description The company's operating income in 2014 was 1,497 million yuan, up 12.66% year on year; net profit attributable to shareholders of listed companies was 75.1 million yuan, up 7.10% year on year; net cash flow from operating activities was 251 million yuan, up 984.92% year on year. Basic earnings per share are $0.14. Performance review The effective expansion of the traditional publishing business is still difficult to hide the overall decline of the industry: in 2014, the company achieved effective market expansion and revenue growth in the traditional publishing business. Textbooks and teaching aids are the largest share of revenue, and achieved a year-on-year growth rate of about 28% through the implementation of free textbooks and differentiated marketing by the provincial government. General book publishing reversed three consecutive years of negative growth and achieved 7.33% growth. We believe that although the company's revenue scale in the traditional publishing business is showing an increasing trend, the gross margin of all of its businesses has declined to varying degrees due to higher cost costs. What is behind this is the overall slump in the traditional publishing industry. The company's current business structure is still mainly based on traditional publishing business and lacks a diversified layout, so it is even more affected by the downturn in the industry. Beginning with digital education, key projects promote the development of media integration: In 2014, the company actively promoted the “Digital Campus for Human Education” project to explore the digital transformation and diversified development of textbooks. In other aspects of media integration, the company mainly explores through key projects: on the one hand, Chunfengsha's “micro movie digital platform” project, which has produced 460 micro-movies, is being uploaded to three major mobile operators and 18 provincial IPTV channels; on the other hand, it is developing digital reading and digital general education projects such as “audio books,” “one cloud, multiple screens,” Korean comics, mobile animation projects, and “Chinese character calligraphy teaching (digital) promotion platforms.” We believe that the company's current actions in micro-movies, digital reading, and online education are all exploratory, and that in the future, it is likely that it will seek strategic development through investment, mergers and acquisitions, etc. The timing for state-owned enterprise reform is just right, and media innovation has yet to be launched: We believe that the company itself, as a small state-owned media stock with market capitalization in the A-share market, is a scarce target. Compared with industry leaders, corporate reform progress is lagging behind, transformation strategies are not obvious, media innovation has not been carried out on a large scale, and the potential of “Internet +” has yet to be explored in depth. Because of this, there is a possibility that the recent spring of state-owned enterprise reform will benefit the company, promoting the company's development in terms of media innovation from point to point through capital management. ? Risk indicates the risk of new technology integration; the risk of publication topic selection; and major changes in national policy.