Acquire Smaato and take a stake in Kuaiyou Century, strengthen the layout of the digital marketing field, and expand the mobile marketing service sector. Huayi Jiaxin's wholly-owned subsidiary plans to invest 100% of Smaato's shares with US$148 million in cash. Smaato is headquartered in San Francisco, USA, and operates the world's largest independent mobile ad trading platform (SPX). Smaato's real-time bidding technology and global data resources will have a synergistic effect with Huayi Jiaxin's “digital marketing” and “big data” marketing segments. The company plans to use its own capital of 100 million yuan to invest in Kuaiyou Century and obtain 10% of the shares. Founded in September 2010, Kuaiyou Century has accumulated more than 100,000 publishers media resources, and is an important member of the traffic supply side of the Tencent and Baidu ecosystems. Acquired 69.76% of YOKA's shares to further expand upstream in the digital marketing industry chain. The company plans to acquire 69.76% of Kaiming Fashion's shares with 581 million yuan. Kaiming Fashion's deducted non-net profit from 2016 to 2018 will not be less than 40 million, 52 million, and 64.25 million, respectively. YOKA Fashion Network is the number one vertical fashion brand in China. It has 3.2 million daily active users and 42 million app downloads. It is also a new fashion media jointly invested by internationally renowned venture capital agency IDG, Fashion Media Group, Baidu, etc. YOKA will provide companies with valuable experience and resources in big content and big data marketing. Start an international layout and actively engage with high-quality assets in Europe, America, South Korea and other regions that are in line with the company's strategic direction. The company plans to use its own capital of 21.45 billion won (about 118 million) to subscribe for 10 million new shares issued by Signal Entertainment and obtain 12.62% of the shares. Through integrated resources and cooperation with Huayi Jiaxin, Signal Entertainment is expected to become the third largest entertainment company in Korea after SM and YG Entertainment. Through cross-border investment in the content field, the company officially entered entertainment marketing, built a fashion new media platform, innovated profit models, and achieved remarkable business synergy. Participate in investment in industrial mergers and acquisitions funds, achieve industrial chain integration and expansion, and promote the rapid development of the company. In 2016, the company participated in investment in industrial mergers and acquisitions funds under the theme of Huayi Xinbang, a wholly-owned subsidiary, with a scale of 2 billion yuan. The company will also use various financing methods such as merger and acquisition loans and equity pledges to invest in enterprises in fields related to the company's industry to achieve industrial chain integration and industrial expansion. Furthermore, the company expanded the development of the O2O industry by investing in shares for the first time in seven days to test the e-commerce industry; through cooperation with Yongle Ticketing, it laid out entertainment marketing. Xinqitian is the largest agency operator service provider for home appliances and e-commerce in China, and has won the “Gold Medal” from Tmall for 4 consecutive times. Yongle Ticketing is the leading ticket seller in the Chinese market, and its sports event sales rank first in China. Profit forecast: We expect the company's EPS for 2016-2018 to be 0.27 yuan, 0.31 yuan, and 0.35 yuan respectively. Considering the blue cursors of companies in the same industry, India and Ji Media unanimously predicted PE of 25 to 61 times in 2016, we gave the company 50 times PE in 2016, corresponding to the target price of 13.5 yuan, maintaining the buying rating. Risk warning: Business integration risks, increased industry competition, and performance promises falling short of expectations.