Preschool animation IP reserves are abundant, and multi-party cooperation enhances content advantages. The children's video market presents a blue ocean, but high-quality video content suitable for young children in China is still scarce. Shengshi Hotsun, a subsidiary of the company, operates the largest domestic animation copyright library. It has the right to manage all animation film sources, including “New Animation”. It cooperates with major foreign animation groups such as DHX and 9 Story. It grows with you and has exclusive IP development rights for dozens of internationally renowned animation shows such as “Little Tiger Daniel”, “I am Peg and Kitty Cat” in China, and cooperates with Shaanxi Sando to develop 3D children's film content. It also cooperates with Zhongnan Cartoon and China Investment Television to obtain original animation resources and create children's show holding projects. Won the “Favorite Disney” ” and the exclusive operating rights of Kakku Kids. The T2O2O strategy creates a strong channel network to open up upstream content promotion and downstream derivatives markets. The company has strong multimedia communication channels, fully integrates animation and preschool education resources, and opens up content and channels, online and offline. Online channels include the “New Animation” digital channel, the “New Animation” channel of the first TV channel for domestic animation; eLink Video webcasts; and the Zhenpin Yuedong e-commerce channel. Offline channels include schools and kindergartens under Bihai Yinfan, which remotely refers to the technology “Baby Walks the World” O2O closed loop channel. At the same time, they teamed up with Foxconn's Hongfujin, Bihai Yinfan, Qihoo 360, and Remote Indexing Technology to develop smart hardware and other products for children, enter the children's derivatives market, improve the layout of the children's ecosystem, and raise profit levels. The dairy industry and internet finance business are developing collaboratively. The steady growth of the dairy industry and perfect online and offline sales channels will all provide synergy and guidance for the preschool education business; at the same time, through perfect online financial customer resources, the company is expected to become a customer conversion and promotion platform for children's preschool education series products and derivatives. The company's 2016 to 2018 EPS is expected to be 0.48 yuan/0.64 yuan/0.82 yuan respectively, and remains highly recommended. Risk warning: Industrial chain integration risks, preschool animation market growth rate falls short of expectations.