Key points of the report describe the company's intention to transfer all of its current assets, debts, and personnel related to the manufacturing business to Jiangyin Zhongnan Heavy Industries Co., Ltd., a wholly-owned subsidiary. After the transfer is completed, all production and operation of the company's manufacturing business will be carried out by Zhongnan Heavy Industries, a wholly-owned subsidiary. Incident review transfer plan: The company plans to transfer assets and liabilities related to manufacturing business as of December 31, 2016, as of the transfer reference date, to Zhongnan Heavy Industries, a wholly-owned subsidiary, according to net book value. At the time of transfer, the audited financial data of December 31, 2016 shall prevail. Changes in assets and liabilities that occurred after the transfer benchmark date will be adjusted and transferred in accordance with the facts. As of September 30, 2016, the company had total assets related to manufacturing business of $1,544,537 million, total liabilities of $92,835,900, and owners' equity (net book value) of $621.7011 million (unaudited). The company gradually changed to an investment holding company. After this transfer is completed, Zhongnan Heavy Industries will act as the operating platform for the company's manufacturing business sector to undertake all of the company's existing manufacturing business, while the company will gradually transform into an investment holding company. This transfer is conducive to rationalizing the company's business structure, carrying out capital operations and management of cultural media business, and is conducive to the integration and rapid development of the company's assets. The layout of the major cultural industry chain has begun, and the divestment of the original heavy industry assets has been firmly transformed. The company acquired Datang Huihuang in March 2014 to enter film and television drama production, then acquired Qianyi Zhicheng, Jishang Interactive, Aurora Network, and Xinhua Pioneer through continuous expansion, and participated in or invested in various cultural media industry companies, involving movies, TV dramas, artist brokerage, movies, games, IP resources, music, online dramas, etc., to continuously improve the layout of the big cultural industry chain. The company drives the entire industry chain through the layout of leading IPs, trains artists to seize scarce resources, connects and integrates resources with people, deeply binds to the mango ecosystem, and establishes deep partnerships. At the same time, in order to match the transformation strategy, the company brought in heavyweights in the cultural media industry, such as Liu Chun, Chang Jihong, and Hong Tao, to take the helm. The divestment of all manufacturing assets this time reflects the company's determination to transform the cultural media industry, and is also conducive to the continuous layout of the major cultural industry chain in the future. Risk warning: 1. Risks of policy regulation in the cultural media industry; 2. The risk that mergers and acquisitions will not be as effective as expected.