Key investment events: The company announced the signing of the “Hubei Radio and Television - Jiachuang Video” Virtual Reality Industrialization Operation Cooperation Agreement with Hubei Radio and Television. Comment: The “VR+ Radio and Television” model conquered the city, and the company brought Hubei Radio and Television to another city. 1) Signing a VR industrialization operation cooperation agreement with Hubei Radio and Television to jointly build a VR+ radio and television laboratory and talent base and set up a VR channel is a further implementation of the company's “VR+ Radio and Television” strategy; 2) The company's VR progress continues. Since announcing in March that it signed cooperation framework agreements with 4 national key laboratories and institutions, and signing technology development and service contracts with them in April, it is expected that the company will continue to cooperate with Tianwei and Hubei Radio and Television to promote the implementation of VR+ Radio and Television in Shenzhen and Hubei; 3) We believe that VR is the best choice for online 2C at this stage, and the company is expected to continue Join hands with local radio and television network operators to open up online 2C channels. The number of radio and television users in Hubei is huge, and they have joined forces with the company to promote the “VR+ radio and television” strategy. 1) At present, the total number of radio and television digital television terminals in Hubei has reached 8.2864 million, the total number of interactive TV terminals is 1,488,600, and the number of broadband users is 536,200, and the number of users is huge; 2) We believe that a strong partnership will help the rapid construction of VR content and radio channels and accelerate the opening of the online 2C industry chain. With the implementation of the business model in Hubei and Shenzhen, it is expected that the market space will be huge in the future. Profit forecast: We expect the company's EPS for 16/17/18 to be 0.03/0.04/0.04 yuan (not considering the company's VR business contribution), and the current stock price corresponding to PE for the same period is 694/646/620 times, respectively. Although the company's current valuation is relatively high, it continues to be optimistic about the company's “virtual reality+radio and television” channel layout, which is expected to occupy the VR living room entrance, calmly enjoy the VR explosion dividends, and maintain the “increased holding” rating. Risk warning. 1) The pace of development of the VR industry falls short of expectations; 2) The implementation of strategic agreements falls short of expectations.