Increase the component business and optimize the revenue structure The company announced on December 1, 2015, that it plans to acquire 25% of GE's Shanghai General Radio and Television Power Components Co., Ltd. (DJV) at a price of 2.5 million US dollars to seek 100% control of an important subsidiary in the components sector. In March 2016, the company adjusted the share acquisition ratio from 25% to 15%, and after the acquisition is completed, the company will hold 90% of DJV's shares. The gross margin of the component sector is high. The company further increased control of DJC, a key subsidiary in the component sector, and increased the component business, which is conducive to improving overall profitability and strengthening the company's ability to withstand risks in the upstream industry. The original “Konka Group” management team joined Radio and Television, and they were optimistic that the company would “introduce new changes in Konka's background management team.” The “blood exchange” positions such as chairman, president, and financial director showed the company's determination to seek breakthroughs in management. Several senior management had prepared rich experience in their respective management fields, and the lineup was luxurious. We expect that the new senior management will bring fresh vitality to the company from the top down. We are optimistic about improving the company's operating efficiency in the long term, improving rates during the period, and reversing performance. At the same time, the company's operating activities in the short term are more worth looking forward to. The investment rating takes into account the company's future accelerated transformation and the effective operation of the newly introduced management team. We expect the company's EPS in 2016-2018 to be -0.062, 0.008, and 0.025 yuan, respectively, and the corresponding PE for 17-18 will be 888X and 280X respectively, covering the first time and giving a “buy” rating. Risks suggest the risk of a continued downturn in the upstream industry, increased risk due to market competition, and the risk that new management's operating performance will fall short of expectations.