Incidentally, on June 13, 2017, the company announced that it received the “Notice Concerning the List of the First Batch of Pilot Companies for Employees Shareholding of Mixed Ownership Enterprises” from the Guangdong Provincial State-owned Assets Administration Commission. The holding subsidiary of the company, Amoson, was included in the first batch of mixed ownership employee shareholding pilot enterprises. Commenting on Guangdong's national reform, leading the country. Employee shareholding is Guangzhou's core reform method. Guangdong Province issued “Opinions on Provincial Enterprises Developing a Mixed Ownership Economy” in 2014 to determine the main path, starting point and focus of state-owned enterprise reform. Subsequently, relevant reform policies were introduced one after another, and the introduction of strategic investment, overall listing, and asset securitization became the main methods of reform. In 2016, Guangdong Province issued the “Implementation Opinions on Deepening the Reform of State-owned Enterprises” to make detailed arrangements for the new round of state-owned enterprise reform. In January of this year, Guangdong Province also issued the “Implementation Rules for State-owned Mixed Ownership Enterprises Launching Pilot Employee Shareholding”, which stipulates in detail the implementation of pilot employee shareholding by state-owned mixed ownership enterprises. Currently, out of 14 listed companies with the Guangzhou Municipal State-owned Assets Administration Commission as the actual controller, 9 companies have completed employee shareholding. The employee shareholding pilot has achieved benefit bundling, and the company's digital piano business is expected to continue to grow at a high rate. Amoson is a holding subsidiary of the company and is mainly engaged in R&D, production and sales of digital pianos, digital musical instruments and other series of products. In 2016, Amoson produced 412,000 digital pianos, achieving revenue of 89.1694 million yuan, an increase of 26.12% over the previous year. As a high-tech product, digital pianos are more entertaining and functional than traditional pianos, and are one of the directions of industry development. Currently, traditional Chinese pianos account for about 80% of global sales, while digital piano consumption is only 16.67% of global consumption, so there is huge room for the future. As a leading global piano company, the company will continue to benefit from the development of the digital piano market in the future. This time, Amson was selected as an employee shareholding pilot enterprise, which will bind corporate interests with employee interests, maximize employee enthusiasm, and facilitate the long-term rapid development of the company's digital piano business. At the same time, the company plans to speed up Amoson's securitization process. It completed the shareholding system reform in 2016, and plans to apply for listing on the New Third Board. The cultural industry continues to lay out, and the company's transformation is progressing in an orderly manner. In 2016, the company continued to promote the development of the art training business by joining directly managed art centers and art classrooms. At present, the company has completed the unified VI construction of 76 stores, covering 28 provinces. In terms of the film and television media business, Zhuguang Media, a holding subsidiary of the company, completed an investment of 62.1 million yuan in film and television projects in 2016, leading to a 407% year-on-year increase in revenue. At the same time, the company teamed up with Guangzhou Jiayu Advertising to establish Zhejiang Dongyang Zhuguang New Film Media, which is involved in film and television production and artist brokerage businesses, and has successively invested in 12 web drama projects. Furthermore, the company also plans to raise funds through non-public offerings to build projects such as cultural entrepreneurship incubators, cultural industry bases, and art education centers. Currently, the company's non-public offering has been approved by the Securities Regulatory Commission. This non-public offering will further implement the company's big cultural industry strategy integrating piano manufacturing and service, art education, media, film and television, and financial investment. Risk factors The progress of the fund-raising project falls short of the expected risk; competition in the piano manufacturing industry increases the risk; and the management risk of cultural industry expansion. Profit forecasting and investment suggestions On the basis of strengthening the main piano business, the company actively extends the culture and education industry, and at the same time grasps the piano post-service market and establishes a closed loop of “manufacturing - rental and sale - service - education” industry chain to achieve the company's strategic goals of strengthening the main piano business and expanding the cultural industry. We maintained the company's 2017-2019 EPS forecast of 0.20/0.26/0.33 yuan/share (three-year CAGR 28.3%), corresponding PE score of 58/46/36 times, maintaining the company's “buy” rating.