Major events The company released a semi-annual report. In the medium term, it achieved operating income of 1,658 billion yuan, a decrease of 7.57% over the previous year; and realized net profit attributable to owners of the parent company of 610 million yuan, an increase of 150.27% over the previous year. Meanwhile, the company expects net profit for January-September this year to increase by 60.23-94.57% year on year. Comments and suggestions Capital operations have increased in recent years, and increased profits have been shown. The company is a listed company that switched from gas to the media sector after implementing a strategic restructuring in 2006. Since 2011, the company has accelerated the pace of resource acquisition and integration, and completed successive acquisitions of Guoguang Guangrong and Beijing Guoguang Guangrong. In 2013, the company made a big splash in mobile video licenses and operations. This year, the company continues to plan to acquire high-quality vertical resources such as Chenghuai Technology, Guangzhou Manyou, and Bangfu Software and handle some non-main assets, thus consolidating its own all-media industry layout. The current increase in the company's mid-term profit is also due to the processing of additional profits and non-main equity from previous mergers and acquisitions of the company. We believe that the increase in profits from mergers and acquisitions under the company's current pace of expansion will be beneficial to the increase in profits this year and next two years. The share of the new media business has increased, and gross margin has increased. After the company accelerated the pace of asset acquisitions in 2011, the pace of the company's expansion from traditional newspaper media to new media was gradually reflected. After a stage of transformation, the company's new media profit has risen to a level of 50%. The company's gross margin has also increased from 38.45% in 2011 to 47.78% now. We believe that with the development and operation of Internet TV, mobile TV and other businesses in the future, the company will take advantage of the resource advantages of CSI, the actual controller, and the development prospects of the new media business are worth looking forward to. At the same time, under the company's matrix-style business development model, the management experience of the current management team and Guoguang's resources and technical advantages are expected to be superimposed and applied. To build an Internet platform-based media group, the construction of three centers is the key. After the restructuring of the company, it has shown certain advantages in terms of licensing, channels and content aggregation. We see that in the future, the company plans to establish a content, data and innovation center, and is interested in leveraging Bonfu Software's big data mining and analysis capabilities to integrate existing different forms of content and user resources, open up its various media channels, increase user interactivity and user stickiness, and thus continuously enhance the value of the company's Internet platform. This is a good development path for the effective integration of the company's various business resources in the future. With the gradual acceleration of transformation and integration, the company's medium-term value is worth paying attention to. The company's strategic position is “all media+big culture”, and plans to become a first-class domestic, world-renowned, continuously innovative, globally oriented, and vertically diversified modern integrated international media group by 2017. We believe that with reference to the development history of the foreign media industry, domestic mergers and acquisitions are expected to continue, and a comprehensive all-media group is expected to appear at a certain stage in the future, and the company has such potential for development. Considering factors such as the current progress of the company's platform construction and operation and the continuous improvement of profitability, the company's earnings per share in 2014-15 are expected to be 0.508 or 0.698 yuan, corresponding to the 2014 dynamic PE of 24.96 times, giving the company a “recommended” investment rating. Risk warning: There have been negative emergencies in the industry, progress in resource integration and management has fallen short of expectations, and the impact of new technology on existing channels.