Deeply cultivate the Department of Radio and Television, and make every effort to build a “VR+ radio and television” platform. The company is a leading system integration and solution provider in China, and has established good cooperative relationships with radio and television operators in more than 20 provinces in China over the years. At the same time, it participated in the formulation of technical standards within a number of national radio and television systems in China. With the settlement of strategic cooperation between the company and the four national key laboratories and the establishment of VR industry companies, the company is building a special service and content distribution system for VR+ radio and television platforms based on the transmission advantages of radio and television channels. Currently, the company's technology has taken shape in the laboratory. In the future, it can work hard on content production and splicing for panoramic video, immersive VR, and naked eye 3D video, and integrate third-party resources to open up the radio and television user market. It is worth noting that recently the company has successively signed operation cooperation agreements in the VR field with radio and television companies such as Tianwei Video, Hubei Radio and Television, and Jishi Media, which further reflects the card advantages of the company's VR channel. We believe that the biggest advantage of radio and television transmission lies in the fact that it can concurrently have a large volume of content resources, especially in the field of live video broadcasts. However, the company has been deeply involved in radio and television for many years and is complementary to radio and television channels in terms of content technology, so it is hoped that it will use radio and television channels to access the VR portal of set-top boxes and gain new business model impetus. Restructure Run Education, and the 3.0 version of the alliance model is moving forward. The 3.0 version of Company Run Education is promoted based on an institutional alliance model. Among them, the company will be mainly responsible for the operation, management, and technical support of the platform, and will use the publicity advantages of the Radio and Television Group in Shenzhen to carry out joint promotion with various institutions in the market. Currently, channel follow-up has been reached with China Merchants Bank. At the same time, the company will gather superior resources to attract various educational institutions in the market, and authorize institutions to finance education certification, star ratings, and display alliance agreements, while the Run Education Platform will provide institutions with a series of services such as network management, ERP, and payment and settlement, and receive certain fees. Currently, the company plans to promote VIP services, on-demand voting, and interactive events on the Runshow Market to further attract institutional customers to enter. We believe that the company's development goals are based on the current development potential of the domestic cultural industry and the continuous increase in domestic demand for specialization, differentiation, and vertical education. As far as the regional market is concerned, the company has strong integration advantages and brand advantages in the Shenzhen market. The company's business will also benefit from the acceleration of the integration of the three networks across the country and cloud computing for radio and television. As one of the earliest digital television high-tech enterprises in China, the fund-raising projects listed in 2011 were digital television engineering technology research and development, interactive television platform development and promotion, and development and industrialization of three-network integrated broadcasting and television solutions. Last year, the company signed a strategic cooperation agreement with China Communications Digital New Media, a subsidiary of the State Grid, and will continue to further develop the new media field. It is expected that revenue will continue to increase over the next three years. At the same time, the candy box owned by the cultural media company will continue to be promoted, while the overseas strategy is also expected to gradually carry out batch settlement within the next few years due to the settlement cycle. Investment advice: Without considering the video game business, the net profit attributable to the company in 2016-2018 is expected to be 0.12, 0.17, and 024 million yuan, and the corresponding earnings per share are 0.05, 0.08, and 0.11 yuan. We believe that the company's performance is at a turning point, and the investment in leading urban product projects in the previous phase and the impact on overseas business are expected to gradually ease over the next few years. At the same time, in terms of its original structure, the company will focus more on high-margin platform-based business, and form a division industry group around many years of technological advantages so that the company's technology and business model can grow in the context of the major development of radio and television. More importantly, since the establishment and development mission of the Radio and Television State Grid has been clarified, the company's expansion space is expected to break through in the future. We maintain its “Recommended” investment rating. Related risks: The integration process of the country's three networks is slowing down, the progress of the VR+ radio and television platform business has not met expectations; increased competition in the industry and the risk of the GEM system.