Key investment events: 1) The company released its 2015 annual report and the report for the first quarter of 2016; 2) the company released a profit distribution plan for 2015 to increase 8 shares for every 10 shares; 3) The company plans to use 100 million yuan of its own capital to establish a wholly-owned subsidiary to promote the “VR+ radio and television” strategy. Comment: Performance was in line with expectations, and revenue and profit declined slightly year over year. 1) In 2015, the company's revenue was 146 million yuan, down 2.59% year on year. Net profit attributable to shareholders of listed companies was 7.1669 million yuan, down 62.04% year on year, in line with market and our expectations; 2) Revenue for the first quarter of 2016 was 25 million yuan, up 51.32% year on year, and net profit attributable to shareholders of the company was -6.22 million yuan, down 43.17% year on year. The field of radio and television is being deeply cultivated, and the VR+ radio and television model is being deployed at an accelerated pace. 1) The company continues to research technologies and products in the field of digital television and new media, including setting up projects to develop OTT business cloud platforms, DVB+OTT terminal “Candy Box” second-generation product development, and “run? “Education” 3.0 version development, etc.; 2) The VR field layout continues to expand. The company signed a strategic framework agreement and technical research contract with the State Key Laboratory, and joined forces with Tianwei Video to build a radio and television virtual reality platform and broadcast center in Shenzhen, and set up a wholly-owned subsidiary to promote the “VR+ Radio and Television” strategy; 3) We believe that radio and television are scarce resources for VR online, and the company has a clear first-mover advantage, and is expected to receive growth dividends in the VR industry. Profit forecast: We expect the company's EPS to be 0.03/0.04/0.04 yuan in 16/17/18 (without considering the company's VR business contribution), and the current stock price corresponding to the same period PE is 705/656/630 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. It is expected to occupy the VR living room entrance, calmly enjoy the dividends of the VR explosion, and maintain the “gain” rating. Risk warning. 1) The VR industry is developing faster than expected; 2) The implementation of the strategic agreement falls short of expectations.