Key investment points: Traditional media business: When the transformation and upgrading is underway, we believe that in a situation where the fatigue of the traditional media industry is showing, the results of the reforms that the company began in the traditional business area around the Chengdu Commercial Daily are gradually showing. The three major businesses of printing, distribution, and advertising are closely integrated with the Internet. The decline in the company's traditional media business is expected to gradually slow down and gradually reach a bottom. The company's long painstaking transformation path is gradually showing results. New media business: The boutique strategy has gradually released the company's game business. In the past two years, several influential titles have been launched. The boutique mobile games represented by “National Democracy” and “Dragon Guard” have been well received in the industry. Overall, the boutique mobile games developed and operated by the company are gradually opening up markets at home and overseas. The rapid development of the game business has gradually increased the share of revenue and net profit in the company's new media sector, continuously promoting and accelerating the pace of the company's transformation. Financial business: Mergers and acquisitions, small insurance and new industrial fund cultivation projects. Overall, the company's financial business with small loans and small to medium loans as two wings has strong competitiveness in the province. Furthermore, the company invests with its own capital, which can improve the efficiency of the use of book capital. In particular, the expected return on investment of microfinance companies after operation is relatively stable, which is conducive to improving the company's profitability. Through strict regulation of procedures and control processes, the overall investment risk is controllable. Through industrial funds, the company accelerates attention, investment and cultivation of emerging Internet entrepreneurship projects, and realizes a virtuous cycle of company development. Profit forecasting and investment recommendations We believe that the traditional media transformation and upgrading that the company has been striving for many years and the carefully crafted new business sectors of digital entertainment and industrial finance will be modeled at the beginning of this year, while the gaming and financial services sector will gradually release profits this year. We maintain the company's “increase in holdings” investment rating. We expect the company's EPS for 2016-2018 to be 0.34, 0.45, and 0.52 yuan/share, respectively. Investors are advised to keep an eye on it.