Operating revenue for the first three quarters increased 86.74% year on year, turning a loss into profit and achieving net profit of 43.66 million yuan. According to the 2016 mid-year report, the company achieved operating income of 139.6 million yuan, an increase of 46.28% over the same period of the previous year; deducted non-net profit of 2002.42 million yuan, turning a loss into a profit over the same period of the previous year. Yesterday, the company released its three-quarter report. In the third quarter alone, the company achieved operating income of 125 million yuan and deducted non-net profit of 236.399 million yuan. The profit for a single quarter in the third quarter exceeded the profit level of the first half of the year. The company's revenue for the first three quarters reached a total of 265 million yuan, an increase of 86.74% over the previous year. After deducting non-net profit of 43.6641 million yuan, the basic income per share was 0.18 yuan/share. The development of various businesses continues to improve. According to the 2016 mid-year report, the operating revenue of operator businesses, including mobile value-added services and mobile video services, increased by 10%, while integrating and optimizing the workforce, operating costs decreased by 23.14% year on year, and gross margin increased by 14.32 points. After establishing a strategy to distribute high-quality international games, the game business cooperated with the well-known game manufacturer Rovio to operate its interactive mobile game product “Angry Birds Impulse”, was launched in April 2016, and the game business revenue increased year-on-year 30.55%. After the game personnel team was streamlined, operating costs dropped sharply, and gross margin increased by 37.96 points; the scale of the company's WiFi and traffic resale business was further expanded, and WIFI with partner airlines such as Sichuan Airlines and Hainan Airlines progressed smoothly, and the mobile Internet industry application business revenue increased 154.46% year on year. The company obtained the first batch of virtual operator licenses from the Ministry of Industry and Information Technology in December 2013, and officially launched the WIFI resale business in 2014, mainly in the B2B business format. The products are not subject to operators or number number segments Restrictions; The Mobile Internet Industrial Park (Beilatitude International Center) completed completion and acceptance in December 2015 and was officially put into commercial use. At the time of disclosure of the company's semi-annual report, the business had already generated revenue of 8.5032 million yuan, which had basically achieved break-even. The three-quarter report revealed that the occupancy rate had exceeded 60%. The increase in majority shareholders' holdings shows confidence in the company's major shareholders. The actual controller Fu Lemin increased the company's shares by 5,100,000 shares in the secondary market in September. The share ratio of the company's shares held changed to 21.25% from 19.26% before the increase in holdings to 21.25%. The average increase in holdings was 18.752 yuan/share and 19.175 yuan/share, respectively. The market value of the increase was close to 100 million yuan, demonstrating the majority shareholders' confidence in the company's future business development. The company's transformation expectations are strong. Although the company's current business turns losses into profits, there is limited room for future development of the operator business. It is difficult for the game business to enter the first tier, and the WIFI resale business alone may experience a period of rapid growth in the future. The company went public in 2007 and currently has a market value of around 5 billion dollars. If it is necessary to expand its revenue scale and increase its market value, in addition to stepping up efforts to develop the mobile WIFI resale business, it is likely to enter a more promising sub-industry to develop business, and expectations for future transformation are quite strong. The profit forecast is based on the current business situation. The net profit growth rate of the company's shareholders in 2016-2018 turned a loss into profit/ 58.21%/55.27%, respectively, and EPS was 0.28/0.44/0.69 yuan per share, respectively. The price-earnings ratio corresponding to 21 yuan was 75/47/30 times, and the initial rating gave an “increase in holdings”. Risk warning: Business transformation falls short of expectations, business growth is slowing down