Key investment points The main business has maintained steady growth, and the media content business has risen sharply. Overall, the company achieved operating income of 5.985 billion yuan in 2015, an increase of 9.34% over the previous year, and realized net profit attributable to shareholders of listed companies of 381 million yuan, an increase of 14.68% over the previous year. The company's revenue mainly comes from advertising production agencies and network transmission services. In 2015, the company's advertising production agency achieved revenue of 2,812 billion yuan, accounting for about 47% of the company's total revenue, up 12.37% from the previous year. Network transmission services achieved revenue of 2,426 billion yuan, accounting for 40.53% of the company's revenue, up 1.66% from the previous year. It is worth noting that in 2015, the company's film and television program production business rose from 52.3588 million yuan last year to 100 million yuan, an increase of 91.62%. The development prospects are promising. The advertising business continues to increase digital marketing and build a major mobile Internet platform. The company began testing the waters of digital marketing business after acquiring Guangzhou Yifeng in 2014. In 2015, it successively acquired three companies, including Ikoski, Jiuzhi Tianxia, and Beijing Zhangkuo (Anwo Media), to strengthen its layout in the digital marketing field. Ikoski focuses on mobile Internet performance advertising; as a mobile Internet media operating platform, the world provides companies with mobile traffic entry points through mobile distribution, app stores, mobile media platforms, etc. As the leading mobile marketing platform in China, Anwo Media has a natural advantage in brand advertising, technical services, and media resources. Currently, the profit contribution ratio of company advertising is 8.33%. We believe that with the continuous penetration of mobile devices in our lives, mobile Internet advertising is growing rapidly. The profit contribution it brings to the company has a strong growth momentum, and the development prospects are broad. The network transmission business joined hands with Ali to incorporate new DVB+OTT methods to create a multi-screen interactive entertainment ecosystem for the home. In 2015, the network transmission business brought the company about 1.1 billion yuan in gross profit, and the gross margin was as high as 45.4%. In June 2015, the company acquired 51% of Beijing Jinjidian and 70% of Shanghai Jiuzhirun's shares, introducing value-added services such as mobile Internet audio and online games to the company's network transmission business. In July, we carried out comprehensive cooperation with Alibaba in the fields of big data, cloud computing, smart cities, IDC, media content, etc., and is committed to building a home digital entertainment business format. Lionsgate on the left and Gu Shun on the right have deeply laid out the entire industry chain from IP operations to film and television distribution and pan-entertainment. By signing a strategic cooperation agreement with Lionsgate, the company began to share the global box office with Hollywood and join forces in cross-border television films. In addition, in October, the company acquired Chengdu Guyuan, which has rich network IP resources, and laid out digital reading and IP operations, creating an entire industry chain for movies and TV dramas, from IP development to film distribution. At the same time, the company is also actively developing IP derivative business, and developing commercials, animations, games, etc. around IP. The company expanded the operation and R&D of online games by acquiring 70% of Shanghai Jiuzhirun's shares in online games. At present, the company's investment in movies and TV dramas is still growing. In 2015, the company's film and television program production business brought in revenue of about 100 million yuan. Compared with the previous year, the increase was as high as 91.62%, and the gross margin was 12.68%. We believe that under the company's positive layout, the company has the potential to explode in the media field. Profit forecasts and investment advice. In 2016, the company will adhere to the combination of external mergers and acquisitions and endogenous development, continue to commit to the integration of the original business with the new media business, and strive to become the country's leading innovative comprehensive media group. Future prospects: 1) Make every effort to build a mobile advertising ecosystem that includes “application distribution, brand advertising, performance marketing, technology platforms, and mobile media” to enhance the competitiveness of the original business; 2) use media and pan-entertainment as the main development line, steadily advance the “media+Internet” strategy and achieve deep integration with new Internet media over a period of three to five years; 3) Actively optimistic about the positive effects of Dachen Venture Capital in transforming the company and improving the industrial chain. We expect the company's 2016-2018 EPS to be 0.29 yuan, 0.33 yuan, and 0.41 yuan, respectively. Referring to comparable companies in the same industry, CITIC Guoan, Tencent Shares, and LiaoInteractive's 2016 PE unanimous expectations were 49.13, 53.24, and 72.09 times, respectively. Due to the company's announcement on April 4 to adjust the restructuring plan, the company's stock trading was suspended from the opening of the market on April 5, 2016. In view of the great uncertainty of this restructuring adjustment, the first coverage will not be rated yet. Risk warning. There is a systemic risk in the general market, and the company's new media layout may be lower than expected.