Piano sales increased steadily. The company's performance grew well, and the company achieved annual operating income of 389 million yuan, an increase of 5.5% over the previous year; net profit attributable to shareholders of listed companies of 33.28 million yuan, an increase of 7.4% over the previous year; and net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 21.67 million yuan, a decrease of 15.1% over the previous year. Among them, the company achieved revenue of 109 million yuan in the fourth quarter, an increase of 7.3% over the previous year, and realized net profit of 7.02 million yuan, an increase of 9.7% over the previous year. The company's good performance growth is mainly due to steady growth in piano sales. In 2016, it sold 30768 pianos, an increase of 7.4% over the previous year. Among them, sales of upright pianos were 29,278 units, up 9.9% year on year; grand piano sales were 1,490 units, down 6.6% year on year. The piano product structure continues to be optimized, and the main business of the traditional piano and musical instrument accessories of Smart Piano+Art Education is steadily developing. In 2016, sales of products such as electroacoustic pianos, guitars, violins, etc. were added, and high-end Viennese series pianos were developed. Currently, it includes 9 models of upright pianos and 1 grand piano, making the company's product structure more diversified. In 2016, the company's smart piano and art education and training programs were carried out steadily, speeding up the company's transformation into a comprehensive cultural enterprise. The company's culture and art industry development strategy is clear. “Helen Art Education Investment Co., Ltd.” and “Beijing Hailun Information Network Co., Ltd.” were established in 2014 to expand the smart piano and online and offline art education and training markets and enhance sustainable profitability. The company's 2015 non-public stock offering project “Research and Industrialization of Smart Pianos and Internet Supporting Systems” progressed steadily, including the smart piano production line, the intelligent control system production line, and the Internet interactive education platform. Profit forecasts and investment recommendations estimate net profit attributable to shareholders of listed companies in 2017-2019 to be 3684/4140/47.24 million yuan, corresponding to 94/83/73 times PE, respectively. We are optimistic about the company's good progress in the field of smart pianos and art education, and give it a “buy” rating. Risks suggest that the prosperity of the piano market is affected by consumer spending power; there is uncertainty about the progress of the smart piano and piano education business.