Incident: The company plans to issue shares to all shareholders of the New Line China Vision and pay cash to purchase 100% of the shares of the New Line China Vision. The project price is 400 million yuan. At the same time, it plans to raise no more than 192.5 million yuan in supporting capital from North Investment and Yingtan Contemporary and Southern Investment's non-public shares at a price of 10.97 yuan/share to pay cash consideration (180 million yuan) and related expenses. Investment points: New Line China Vision focuses on the creative marketing of Internet advertising in the game industry In September 2015, New Line China Vision launched Internet advertising and creative business in the game industry through channels such as websites, self-media, and mobile app applications to provide customers with a full range of marketing services such as product marketing strategy formulation. Currently, it has established cooperative relationships with many famous game companies such as Perfect World, NetEase, and Tencent. Using the new China Vision Internet advertising and marketing channels to accelerate the monetization of the company's content in the field of culture, sports and entertainment, the company retains its core assets such as hot spring theme parks, etc., and actively transforms the two major directions of “outdoor sports and culture and entertainment” by utilizing capital strength and card advantages. Sports, performing arts and other projects are progressing smoothly. The target company can provide efficient Internet promotion services for listed companies' traditional advantageous tourism resources and other industrial layouts in outdoor sports, sports, and entertainment, and enhance the company's brand value. Business synergy continues to enhance the company's overall competitiveness. Through this transaction, the scope of the company's business will be extended to the field of Internet marketing, achieving integration and collaboration of business and resources between the two parties. The 2016-2018 exam preparation results for the new line were 360.00 million yuan, 470.1 million yuan, and 61.0 million yuan, respectively. The price corresponds to the 2016 valuation 11.11 times, and the company's performance will be enhanced later. Profit forecast and valuation: The impact of extended mergers and acquisitions is not yet taken into account. It is estimated that in 2016-2018, the company will achieve operating income of 115 million yuan, 172 million yuan, and 258 million yuan respectively, net profit attributable to the parent company of 11 million yuan, 31 million yuan and 43 million yuan, and EPS of 0.02 yuan, 0.06 yuan and 0.08 yuan respectively. Maintain the company's “Recommended” rating. Risk warning: Approval risk that the target company has a high value-added rate and high dependency on major customers and suppliers.