Deep ploughing cultural and entertainment diversified investment holding company. The company's business involves the cultural and entertainment industry, digital visual special effects, co-production film business, property investment and development and trade. Its Digital Kingdom 3.0 Group is one of the largest digital visual effects (VFX) service providers in the US media industry, producing digital visual effects for more than 250 films, such as the Transformers trilogy and Fast 7. With the shift of the company's focus to toB and toC mode, the company will form a business cluster with "special effects + virtual human + VR+ IP copyright investment" as aggregation. The company's 2016H1 revenue was HK $348 million, an increase of 19% over the same period last year.

Travel light: Citic Softbank Corp. is stationed, and the hidden worries of convertible bonds are unlocked. The company's recent announcement released positive: 1) on September 30, 2016, China CITIC (267HK), Softbank Corp. and Zheng Hao acquired convertible bond notes from Harmony Energy; 2) on the same day, CITIC (267Bond), Softbank Corp. and the company signed a subscription agreement, which will place a total of 363 million shares at HK $0.55 per share, or 2.97% of the enlarged share capital. 3) on October 3, 2016, a discounted rights issue was introduced into investor Munsun VR Fund, raising a net amount of HK $307 million. We believe that the entry of Citic Softbank Corp. will unlock the CB hidden danger of suppressing the development and valuation of the company's main business for a long time (Harmony Energy holds 4.8 billion convertible bonds with a conversion share price of only HK $0.04). The fund-raising for media entertainment will provide financial support for the company to focus on entertainment development, supplemented by internal technology accumulation, the company's core chain of entertainment business model is expected to trigger a revaluation of the market.

Deep ploughing main business: with the help of IM360 to create the golden age of VR. As a pioneer of VR, the company became the only company to provide 360-degree live streaming for the Rio Olympic Games and related support services to 22 major television stations around the world with its ultra-high definition VR camera Zeus. IM360 recently formed strategic alliances with giants such as Samsung, ABC, CBS Sports Network, Nike Inc, Warner Music, and Tangde Film and Television, and became the only VR content provider for Youku. Self-developed Teresa Teng virtual human memorial concert will be launched one after another. We believe that VR will gradually shift from conceptual hype to product landing after detonating market hotspots in 2015, while the company has focused on VR business as a strategic focus in 2014, and has launched a number of VR products and technology upgrades. Although the VR cash-out model still needs to be verified by the market, with the company's high-quality IP reserves, intensive cultivation of VR technology and the advantage of channel resources, the company is expected to increase its VR contribution income to 20% in 2016, and combine the powerful late-stage special effects of DD3.0 and DDPO to create a VR golden era.

Active expansion: open the "DD3.0+ DDPO" twin-engine expansion mode. In early 2016, the company acquired an 85% stake in Nicholas Tse's post-production company Lucrative Skill Holdings Limited (renamed DDPO after the acquisition). The acquisition will help strengthen the company's domestic visual effects business and create synergies for the visual effects business (DD3.0) based in North America. At present, DDPO has been selected to provide post-production and visual special effects production services as "the decisive Battle of the Rivers and lakes". With the increasing attention of the domestic audience to the special effects demand, the company is expected to introduce DD3.0 's powerful late-stage special effects technology to fill the gap of high-quality special effects in the domestic market.