Highlights of the report describe the incident that the company issued an announcement. It plans to use a cash investment of 10.5 million yuan to pledge the additional registered capital of Qishu Youyu and obtain 3% of the shares of Qishu Youyu. The capital increase will be used for the daily operations of Qishu Youyu. Commenting on the incident, Qishu Youyu is in the first tier of the Internet press release, increasing capital and shares to further deepen cooperation. Kishu Youyu was founded in September 2015. From “Qian Nu Xiao Hun” to the release of “Lost Dream in the Deep Palace” to “Where to Go”, which was shortlisted for the Cannes Film Festival's short film section, Kishu Youyu quickly became the first tier of domestic online publicity. Since its inception, it has produced and distributed a total of 30 films, with a cumulative total of 490 million hits. It has invested in 40 films to be screened, has reserved more than 50 premium film and television projects, more than 100 first-line directors and production teams, and has established a complete integrated marketing mechanism for film and entertainment. Previously, Zhongnan Pictures, a subsidiary of the company, had already launched a strategic cooperation with Kishu Youyu in August, announcing 7 top film lists in collaboration with well-known Netcom directors and another 21 Super Netcom movies. This equity investment further binds the interests of both parties. The Internet has shown explosive growth, and the combination of boutique production has strengthened its advertising to seize the leading market. Online movies were quickly sought after by the market for their advantages such as high controllability of investment costs and short return period of capital, and showed a strong explosive trend in 2015. However, its low entry threshold also flooded the market with low-cost production, and split revenue showed a polarized situation, causing the Internet University to move towards quality production. Looking at the biggest hits on the Internet, they are all well-made, superimposed, and accurately promoted. Judging from the degree of business fit, the cooperation between the two sides is expected to establish an advantage in the leading Internet market: Relying on the strong support of listed companies, Zhongnan Pictures has developed a full industry chain of film and television IP, film and television stars, music, etc., and has strong traditional theatrical film resources. Kishu Youyu can use it to enhance the quality and style of big online movies; Kishu Youyu's strong brand effect and promotion capabilities can enhance the company's profitability. Investment proposal: The company's big cultural industry strategy continues to advance, and endogenous and extrinsic collaboration has formed a large cultural industry chain from artist training and brokerage, content production and distribution, film and television derivatives development, copyright incubation and cultivation to culture and education. This investment cooperation further extends the company's outreach layout and promotes the development of the entire IP industry chain. The company expects EPS of 0.46/0.67/ 0.92 yuan in 16-18, corresponding to PE of 40/27/20 times, respectively, giving it a “buy” rating. Risk warning: Business integration and promotion fell short of expectations, and progress in the extension layout fell short of expectations.