Key investment matters: 1) The company disclosed its 2016 annual report, with annual revenue of 7.354 billion yuan, an increase of 67.44% over the previous year, net profit of 571 million yuan, an increase of 153.32% over the previous year, net profit of 529 million yuan after deduction, an increase of 158.76% over the previous year, and an EPS of 0.37 yuan, in line with expectations. 2) The company announced that it plans to issue no more than 2,948 billion yuan of convertible bonds for a period of 6 years from the date of issue, with a coupon interest rate of no more than 3.0% per year. After deducting issuance fees, they will be used for the construction of digital marketing cloud platforms, big data processing and application centers, digital advertising trading platforms, regional operation centers, etc., as well as the acquisition of 15% of Shanghai Manku's shares and payment of pre-payment, and technological transformation of pump (motor) intelligent manufacturing bases. Comment: They also made outstanding contributions, and Wan Sheng Weiye performed brilliantly. The increase in the company's performance comes from 1) Wansheng Weiye and the Minimally Innovative Era since December 2015, and Smart Fun Advertising has been consolidated since September 2016, increasing performance; 2) the company's digital business and other subsidiaries and machinery manufacturing businesses have all achieved growth. Shanghai Manku, Shanghai Argon Krypton, Amber Communications, Wan Sheng Weiye, Minimally Invasive Era, and Smart Fun advertising revenue increased by 17.55%, 53.81%, 12.02%, 112.36%, 58.76%, and 112.25% respectively. Deducting non-net profit increased by 14.92%, 16.62%, 18.70%, 25.40%, 3.77%, and 173.39%, respectively. Wansheng Weiye withheld non-net profit of 225 million yuan, 21% higher than performance promises. Other acquisition targets also fulfilled performance promises. The former shareholders of Wansheng Weiye promised to abandon excessive performance rewards and increase the company by about 20 million, which also demonstrated their long-term confidence in the company. One-stop service for all categories in the field of digital marketing, highlighting brand strength. The company's digital marketing services have covered a complete chain of marketing strategies and ideas, media delivery and execution, performance monitoring and optimization, social marketing, precision marketing, and traffic integration, etc., and has built a business system that simultaneously covers brand customers and performance customers, covers all digital media (leading media, long-tail media, precision media), and provides a full range of services. In 2016, the company received 3 gold awards, the annual marketing driver award, and the top 2 Effie effectiveness agencies in Greater China, demonstrating its comprehensive strength in the field of digital marketing. It also cooperates with universities to attract talents by sharing revenue through different creative platforms to form a long-term talent pool. The interactive entertainment sector and WeChat social marketing are expected to gain strength. The company's interactive entertainment sector invests in Century Kunpeng and Midsummer Starry Sky, and is expected to continue to expand in the future, forming an interactive entertainment industry chain with content production, content marketing, and multi-channel monetization. More effort is being made in vertical fields, and segmented market customers form collaboration. It also lays out targets related to the WeChat traffic system and mini-programs with a 1 billion WeChat ecosystem fund, which is expected to benefit from the strength of WeChat advertising; the 8 billion overseas M&A fund will also help overseas deployment. Convertible bonds help deepen the layout of the industrial chain. The company now plans to issue nearly 3 billion convertible bonds for digital marketing cloud platforms (planned investment of 941 million), big data processing and application centers (planned investment of 354 million), digital advertising trading platforms (planned investment of 75 million dollars, total investment of 3.68 billion), regional operation centers and other construction projects (planned investment of 750 million), acquisition of 15% of Shanghai Manku's shares and payment of the initial final payment (planned investment of 207 million), pump (motor) intelligent manufacturing base technology transformation (planned investment of 621 million); big data applications and marketing models are expected to be upgraded. Cash on the books at the end of 2016 was 690 million. Combined with convertible bonds and bank credit lines, strong capital strength is conducive to further expansion, integration and collaboration, and deepening the layout of the digital marketing industry chain. Investment advice: We estimate that the company's net profit for 2017/2018 will be 802/1,024 million yuan and EPS 0.50/0.64 yuan respectively. Considering the company's interactive entertainment sector, WeChat marketing, and overseas layout expectations, etc., the target price was maintained at 19.2 yuan, and the purchase rating was maintained. Risk warning: Competition in the digital marketing industry increases risk, and acquisition integration risks.