Key investment points Traditional business continued to decline. The new media business began operation The company announced its 2016 quarterly report on April 30. The company achieved total revenue of 223 million yuan in the first quarter, a year-on-year decrease of 29.48%; net profit attributable to shareholders of listed companies was 2,5042 million yuan, a year-on-year decrease of 92.39%. We believe that the decline in the company's performance in the first quarter of this year was mainly due to the downturn in the overall environment of the traditional media industry, which caused the company's traditional media business to continue to decline sharply during the reporting period, which dragged down the company's overall performance level; the company's microfinance business was affected by overdue loan settlement pressure and industry adjustments, and the scale of the business continued to shrink, making the contribution of the microfinance business to the company's profit low; in addition, the year-on-year decline in revenue in the game business also affected the company's performance level. In addition, the company's new products for this year's new media game business are also in their infancy. Among them, the roaming valley “All Democratic People” page game was officially launched on March 10, and the mobile game “Dark for All” also began the first round of recharge testing on App Store, while the mobile game “Curse”, the overseas version of “Battle of Dragons”, and the mobile game “Spicy Panda” have also completed contracts or tests one after another. It is expected that the revenue and profit situation of the new media sector in the first quarter will gradually begin operation in the second quarter. Therefore, the revenue and profit situation of the new media sector in the first quarter is not obvious. We expect the sector's performance to gradually be released in the second quarter. Expand, the company represented by “The Curse of Voldemort” Excellent masterpieces will begin to release profits one after another, forming a favorable support for the company's overall performance. Investment Proposals and Profit Forecast We continue to believe that the company's various traditional business reforms and transformations have begun to move out of the deep water zone. In addition, the acceleration of the operation of the company's new business engine represented by the mobile game business is expected to gradually stabilize and improve the company's overall performance. We continue to be optimistic about the company's independent transformation prospects as a leader in traditional media, keep our profit forecast unchanged for the time being, and continue to give an investment rating of “increased holdings”.