The layout of the entire sports industry chain integrates upstream and downstream resources to achieve collaborative development. The company is the earliest listed company in China that focuses on developing the sports industry. It has established a full-industry chain business structure with stadiums as the core, content provision with event services as the core, sports services with sports marketing, sports brokerage, leisure and fitness as the core, and upstream and downstream layout of sports services, as well as related businesses such as sports lotteries and overseas business. The company's various businesses develop collaboratively and smoothly connect to form the ability to integrate resources efficiently. In 2016, the company achieved cumulative operating income of 1,186 billion yuan, an increase of 39.32% over the previous year; realized net profit of 61.099 million yuan and net profit of 58.8539 million yuan after deduction. Among them, the company's sports-related business achieved revenue of 596 million yuan and profit of 39.61 million yuan; the company's real estate-related business achieved operating income of 585 million yuan and realized profit of 16.09 million yuan. In 2017, the company will continue to improve the business of the entire sports industry chain, deepen collaboration, improve the content provision system, enhance the core value of event resources, actively participate in sports public infrastructure projects, and guide sports consumption. It is expected that it will occupy market share and improve performance levels while driving the transformation and upgrading of the sports industry. Build brand events, dig deep into IP value, and provide whole industry chain services around stadiums. Tournament management and operation business is one of the company's core businesses. In 2016, it achieved revenue of 200 million yuan, accounting for about 17% of total revenue; realized profit of 13.95 million yuan, an increase of 27% over the previous year. The “Beijing Marathon” and “Wuhan Marathon” operated by the company are representative of high-quality domestic marathons; the scale of the “Tour China International Road Cycling Race” event has also been further expanded, enhancing public participation. The company completed the operation of the “PGA Tour China Tournament” for 3 consecutive years, promoting the development of golf in China. Stadiums, which are important carriers of the sports industry, are another core business of the company. The company adheres to the entire industry chain business system from stadium consulting, design, construction to operation management, continuously improving the efficiency of stadium operation, and gradually improving the intelligent stadium information management system. In 2016, the company's stadium operation and management business achieved revenue of 125 million yuan and profit of 11.82 million yuan, an increase of 44% over the previous year; it also obtained operating rights for 3 new stadiums. It is expected that in the future, the company will continue to lay out the entire sports industry chain around the two core businesses of events and stadiums, and play a leading role. Profit forecast. The company's future outlook: 1) Sports industry leader, full industry chain layout, with obvious synergistic effects; 2) The “event+venue” combination, while digging deep into IP value through quality events, provides full industry chain services around stadiums, drives sports consumption through the provision of public service products, promotes national fitness, and realizes two-way traffic for competitive events and mass sports; 3) Testing the waters of the PPP model, focusing on sports real estate business in economically developed regions, with stable future cash flow, is expected to become a new profit growth point. We expect the company's EPS for 2017-2019 to be 0.08 yuan, 0.11 yuan, and 0.14 yuan, respectively. Since the effects of the company's real estate development and overall industry chain layout are yet to be seen, we will not rate it yet. Risk warning. The overall development of the sports industry fell short of expectations; the company's entire industry chain layout fell short of expectations.