[event]

The company announced and revised the business scope, adding sports project organization services, sports project comprehensive development, sports venues services, cultural tourism activity organization and planning, tourism management services, tourism project development.

[investment points]

1. The layout of the sports industry is carried out in an orderly manner: in October 2015, the company announced the adjustment of its internal organizational structure and the establishment of a new Great Lakes Sports, Culture and Tourism Department to develop sports and culture tourism projects around the company's existing 12 natural lakes. In January 2016, the company was named "Boxing Star Age", which was founded by Hunan world fighting champion Yang Jianping, which was jointly invested by Great Lake Industry Investment Group and Huahu Media. In April 2016, the company's annual report revealed plans to enter the field of sports and culture. We believe that this revision is a solid move into the field of sports and culture mentioned in the previous annual report, and it is expected that the relevant layout will be carried out one after another.

2. Extend the industrial chain around the core IP: the company extends the sports industrial chain around the fighting core IP of the "Boxing Star era". (1) "Boxing Star Times" was jointly invested by world boxing champion Yang Jianping and the Great Lakes Group. Since the second moon phase this year, it has made rapid development, and is committed to creating a "star, entertainment, tide fluidization" international first-class competition. in addition to the operation of fighting events, athlete brokers, offline clubs, film and television have been arranged. (2) the number of people practicing martial arts in China has reached 80 million, and the number of martial arts practitioners in the Rank has reached 1 million. Fighting has a deep population base in China. Fighting is also a better fitness project. At present, the penetration rate of fitness club members in China is only 0.3%, compared with 17.1% in the United States, which has great potential for development. (3) on the basis of constantly cultivating the IP system, the company will extend the industrial chain, and sports brokers and stadiums are expected to become the focus of the company's next stage.

3. "Lake Comprehensive Development + Sports" double main industry drive: the company deepens and refines the previously scattered lake comprehensive development, combined with sports and other new resources, the main directions are "photovoltaic new energy", "aquatic products whole industry chain development", "sports leisure tourism", tamping the original main industry to provide support for the sports industry, two-wheel drive. (1) the company has various types of aquaculture, using young teams to transform 2B to 2C, to complete the products from the supply side to the sales end, to develop e-commerce in line with the Internet trend, and to divide and deep process the products; (2) the company has 1.8 million mu of lake surface, accounting for 4% of the country's fresh water area, and uses vacant lake surfaces to carry out new energy projects such as photovoltaic power generation. (3) vigorously develop water sports (fishing, running around the lake, motorboats, yachts, etc.) and leisure health preservation combined with the scenery of the lake; 4, rich in resources, with strong scarcity: the logic of the company's transformation is clear, develop on the basis of incubating and cultivating the IP competition system, grasp the core resources, and obtain the bargaining power of upstream and downstream. Relying on the two major systems of Hunan Sports Bureau and radio and television, the company is rich in athletes' resources and strong program production ability, which provides strong support for the specialization and dissemination of sports events. At the same time, it has been recognized by many first-class market investment institutions, which opens the imagination space for the docking of sports resources in the future. At present, the securitization of sports industry is in the early stage. Fighting IP is a core resource with great commercial value and can be completely controlled by private capital except football and basketball. As the only A-share company participating in the operation and development of fight events, it has a strong scarcity.

Risk hint: the risk that the development of sports projects does not meet expectations, the risk of fund-raising, and the growth rate of aquaculture is lower than expected.