Asset restructuring and transformation of film and television entertainment: In December 2015, the company issued a major asset restructuring announcement. It plans to issue 166 million shares and pay 2,222 million yuan in cash to acquire 100% of Chuntian Ronghe and Lehua Culture's shares at a transaction price of 4.12 billion yuan. At the same time, Gongda Investment and Yang Wei raised no more than 3.273 billion yuan in supporting capital with a fixed increase of 13.02 yuan/share to pay for the cash price of this transaction and future film and television series. The company officially transformed into a cultural, film, and entertainment industry. Lehua Culture, a scarce A-share artist operation system: Lehua Culture is the first artist agency in China to use the Korean model. The company has established a complete artist selection and training system, fully absorbed Korean artist training and operation experience, provided artists with comprehensive training for singing, dancing, and performing, and then continuously developed artist values through music production, commercial performances, and film and television performances. Currently, artist agents in China are still in their infancy. Loose management and mediocre services are unable to form cohesion with artists and agents, and the investment value of the brokerage market has not been taken seriously. Systematic artist agency must be the general direction of industrial upgrading, and the scarcity of Lehua Culture in the A-share market deserves long-term attention. The integration of film and television artist resources highlights synergy: Spring Ronghe has excellent material selection and content cultivation capabilities in the field of film and TV drama investment, and many film and television productions have received a double harvest of financial returns and word of mouth. Golden Horse Film Emperor Huang Bo's many movies and TV dramas, such as “Yongzheng Dynasty” by famous playwright Liu Heping, and “The Old Pioneer” by director Guan Hu, were all produced by the company. Well-known creators have also established long-term relationships with the company as shareholders. After Gongda Electroacoustic acquires Chuntian Ronghe and Lehua Culture, it will form a development platform covering the entire film, television, music, and artist brokerage industry chain, and the synergy between film and television and artist resources will be highlighted. The plan for 40 film and television productions over the next 2 years is a guarantee for the company's continued rapid growth in performance. Valuation and ratings: We are optimistic about Gongda Electroacoustic's performance in the film and television entertainment market after the restructuring. Referring to the promised performance, we forecast net profit of 3.43, 4.49, and 556 million yuan respectively in 2016-2018, and EPS corresponding to the increased share capital of 0.44, 0.58, and 0.72 yuan respectively. The initial coverage gave an increase rating, with a target price of 16.49 yuan. Risk warning: Risk of restructuring, integration and collaboration falling short of expectations.