This investment involves cross-border e-commerce, drones, offline channels, advertising, etc., and previously invested in wearable devices such as VR, mobile healthcare, watches, etc. The market may think that the company's foreign investment scope is broad and unfocused, while we believe that the contact OS is a low-profile Apple ecosystem aimed at building its own hardware+software ecosystem: 1. This acquisition includes e-commerce, Apple's high-end electronic offline channels and advertising, all of which are strategic considerations for the company in strengthening its own channel ecosystem. Contact Choice (online channel) +iSpace (Apple's high-end electronics offline store channel) broadens the company's channels for smart hardware such as VR and wearable devices. Furthermore, the company's previously planned smart hardware flagship store in Wangjing also has the same strategic thinking. Joint win-win (advertising) can strengthen channel monetization capabilities for the advertising+gaming business that the company is currently focusing on, and is an integral part of improving ARPU's goals. 2. Long-term considerations and frequent deployment of intelligent hardware are essentially the company's graft of its communication OS from mobile phones to the broader smart hardware market. At present, the company has developed VROS and OS for some wearable devices. The future is to build a hardware+software service ecosystem centered on connecting OS. 3. From a financial point of view, the company currently focuses on asset-light business. It does not require much capital investment except for research and development. Currently, it has 5 billion dollars in cash (only a small amount of short-term debt), and investing in drones+wearables, which represent the general direction of future smart hardware, is a forward-looking expression of the company's management's thinking. In terms of performance, endogenous growth was 91% in 2015. The impetus for strong growth was partly due to the continuous expansion of the number of users. In 2015, 140 million active users of the Contact OS were added, an increase of 68.67%. By the end of 2015, the cumulative number of users of the company's products had reached 659 million; on the other hand, due to the increase in ARPU value, the company's connected OS operating system and other proprietary applications are currently in a period of accelerated monetization. Among them, the game market is the biggest highlight of the future increase in ARPU value. The company has carried out in-depth cooperation with leading platforms at home and abroad, including WeChat, and has successfully operated a variety of high-quality game products since 2015, and is becoming a large-scale game incubator, with tens of times more market space in the future. Profit forecast and valuation: In terms of performance, the company occupies an important “entrance” to the mobile Internet, and there is huge room for domestic and overseas business growth. Net profit is expected to maintain 100% compound growth from 2016 to 2017. In terms of strategic layout, the company's management has an international perspective, excellent investment vision and ecological philosophy, and is actively building a “connecting OS ecosystem” of system+intelligent hardware+software+services. After transferring the share capital, we expect the company to give a “buy” rating of 0.28 yuan, 0.51 yuan, and 0.81 yuan of EPS after dilution from 2016 to 2018. Risk warning: advertising+gaming business growth falls short of expectations, overseas business development falls short of expectations, smart home platforms are progressing slowly