Key investment events: The company plans to acquire 100% of Olive Leaf Technology's shares. Comment: The transaction structure is quite reasonable: cash-only acquisitions speed up the transformation, and the payment pace guarantees that the performance of the gamble is complete. The company plans to use 250 million yuan in cash to acquire 100% of the shares of Shenzhen Olive Leaf Technology, and to acquire 100% of the shares of its subsidiary Shanghai at the same time. The original shareholders of Olive Leaf Technology promised not to be less than $2000/2600/34 million yuan in 2017/18/19. The corresponding purchase price valuation was 12.5/9.6/7.4 times, respectively, and the profit growth rate in 2018/19 was 30%/31%, respectively. At the same time, they promised to deduct non-net profit of not less than 15 million yuan at the end of September 2017. The total cash payment was only 30 million yuan before and after the completion of the acquisition, and the balance will be paid 40%/40%/20% respectively after the 2017/18/19 performance commitment is completed. Olive Leaf Technology is a mobile game production and game marketing company. The company is committed to software development, mobile game testing and promotion, AppStore ranking support, mobile Internet solution marketing planning, information flow advertising, and WeChat account promotion. At the marketing level, the company involved media resources to cover more than 600 million independent users, and WeChat content promotion covered tens of millions of fans; the company's representative game titles include Enchantment, Cat Fishing, Bao Go Fishing, and King's Slayer City, etc., and there are various types of games. The company has taken a critical first step in the development of the media field. Subsequent growth can be expected, maintaining an “increase in holdings” rating. Considering only the profit of the subject matter of the acquisition, the company's EPS in 2017/18/19 was 0.16/0.20/0.27 yuan respectively, corresponding to the current stock price PE of 191/147/112, respectively. The company completed the majority shareholder change at the end of February 2016. The new shareholder, Anchang Investment, is an excellent first-tier market investment company focusing on the media direction. The company's continued development in new media is worth looking forward to, maintaining an “increase in holdings” rating. Risk warning: M&A falls short of expectations; industry policy risks.