Our core logic: “e-sports+mobile game+video game+game media” The entire game industry chain platform layout in the past few months, the company plans to acquire the mobile game company Tianxiang Interactive, and completed the acquisition of 60% of the shares of Yinchuan Shengdi International Game Investment Co., Ltd. (hereinafter referred to as Yinchuan Shengdi) through its subsidiary, and obtained the right to operate the e-sports event WCA. In addition to the company's original video game business and professional game video media production subsidiary “Minghe Meihe”, the company has completed the layout of “e-sports+mobile game+video game+professional game video media”. It has created a “closed loop” of the “hardware development - game R&D and production - promotion and distribution - tournament organization” industry chain, and has become a game group with a platform effect. E-sports: E-sports, an emerging sports and entertainment model popular all over the world, is representative of a new type of sports and entertainment program in the 21st century. According to iResearch's estimates, the potential e-sports audience in China exceeds 0.1 billion, the age span ranges from 18 to 40, and has a spending capacity and spending intention higher than the average gaming population. According to Baidu Index data, the Baidu Index for “League of Legends” (an e-sports game) is more than 5 times that of the traditional sports “Soccer” index, and it already has an exploding player base. In recent years, live e-sports video broadcasts, represented by YY and the IG team invested by Wang Sicong, have become an important part of post-80s and post-90s culture. At the same time, Betta Live ranked the number one e-sports live streaming room during peak periods, with an online audience of over one million people. At YY, e-sports live streaming traffic is close to and surpassing the traffic of traditional entertainment and performance broadcasts. WCA: The predecessor of the world's top e-sports tournament WCA was the world-famous world e-sports competition WCG. In the early stages of preparation, WCA not only continued WCG's competition schedule, but also the WCA team. The first WCA in 2014 had a cumulative audience of over 30 million viewers and a DAU of more than 8 million. In particular, in a series of major channels for overseas e-sports live streaming (such as Twitch), they all received the highest amount of attention and traffic in the current period, making it a first-class e-sports event with global attention and participation. WCA once again entered the explosive trajectory in 2015. Jinya Technology has a series of interests in the operation, development, advertising, and derivative rights of the WCA tournament. After obtaining 60% of WCA's shares, the company will continue to increase WCA tournament operations. WCA 2015 will explode in various aspects: 1. The total prize amount will increase from 20 million to 0.1 billion, making it the e-sports event with the highest prize money in the world; 2. Extend the tournament period from 4 days of competition to 8 months throughout the year, and the organizational form of the competition will change from a similar “Olympics” to “” “Chinese Super League+Olympics”; 3. Increase the number of tournament games. 17 games are planned to become tournament events this year, including the most mainstream DOTA2; 4. Liberalize broadcast channels across the network, and mainstream video media, OTT, and online live streaming websites can all see simultaneous broadcasts of WCA games; 5. Continue to cross borders with giants in the sports and entertainment industry, and many collaborations are expected to be announced in the future. Currently, entertainment star AngelaBaby has been signed as the spokesperson for the tournament. “E-sports events import traffic - mobile games and video games for monetization” The “closed loop” model of the company ecosystem is beginning to take shape. In addition to the effects brought about by traditional sports event operations, WCA is also expected to become a platform for the company to obtain game traffic and users. In the future, with the huge amount of traffic and audience numbers brought by WCA, it will help the company to further improve its monetization capacity in mobile games, video games, and professional game video media businesses. Conversely, the company's game production business can also provide WCA with excellent events, and then form a “closed loop” business model with mutual benefit and win-win, and maintain the “barriers” of the company's competition. Based on the above views, we are optimistic about the future expansion of WCA events and the synergy brought about by the company's overall layout. Assuming that Tianxiang Interactive's mergers and acquisitions can pass smoothly, we predict 2015-2017 The company's consolidated net profit for the year was 0.3, 0.37, and 0.45 billion yuan, respectively, corresponding to current price-earnings ratios of 28.5, 23.1, and 19 times, respectively, maintaining the purchase rating.