In 2015, the company achieved operating income of 2,859 million yuan, up 18.53% year on year; realized operating profit of 509 million yuan, up 50.96% year on year; realized net profit attributable to parent company of 534 million yuan, up 39.03% year on year; and basic earnings per share of 0.40 yuan. From January to January 2016, the company achieved operating income of 673 million yuan, up 8.16% year on year; realized net profit attributable to parent company of 147 million yuan, up 12.02% year on year; stable performance growth and improved operating efficiency: In 2015, the company's performance growth was stable, operating efficiency improved, gross margin increased 2.11 percentage points year on year, and period expenses decreased by 2.31 percentage points. As a result, the net profit margin increased 2.71 percentage points, which prompted the company's profit to revenue to grow faster. The company maintained a steady growth rate in the first quarter of 2016, gross margin and period expense ratio levels were further improved, and the company's profitability is expected to be further strengthened. Based in Hangzhou, strengthen the “new media” business: The company's cable television network business in Hangzhou has maintained steady and healthy growth. The main stage of the high-definition conversion project has been completed, and the high-definition coverage rate has increased to 52%. The number of mass broadband subscribers is over 600,000. In the future, it will accelerate the evolution of the Hangzhou website to the next generation of the Internet, and promote pilot work on smart terminals based on the TVOS 2.0 operating system. In terms of the new media business, the number of interactive TV users nationwide increased by 31.78% year on year; the Internet TV business continued to maintain its leading position in the country, with user coverage reaching 80 million, market share about 50%, business revenue increased by 181.85% year on year; and mobile TV users reached 30 million. The company grasps the development opportunities of “new media” and maintains its leading position in the industry. Build a cloud platform and get involved in big data: The company will further deepen strategic cooperation with Alibaba Cloud, build a content aggregation cloud platform, enrich the content of all Huashu platforms, and enhance competitiveness. Furthermore, the company is beginning to enter the field of big data and launch precise marketing based on big data. The company will actively expand the big data external industry and work with industry partners to develop big data on government affairs in Zhejiang Province. It is expected to provide platform and service support for the Hangzhou cross-border e-commerce big data center, and will continue to accumulate and expand big data resources. The future development prospects of the big data business are broad, and the company has a certain foresight on the layout of the big data industry. Profit forecast: We predict that the company's 2016-2018 EPS will be 0.44 yuan, 0.49 yuan and 0.52 yuan respectively. Based on its closing price of 19.10 yuan on April 25, 2016, corresponding to 2016-2018 dynamic PE, it is 43.04 times, 38.62 times and 36.72 times, respectively. The valuation level has certain advantages. The company is in a leading position in the industry, and we are optimistic about the company's layout and development in the fields of “new networks”, “new media” and big data. For the first time coverage, a “recommended” rating was given. Risk warning: (1) the promotion of the new network and new media business fell short of expectations; (2) the effects of industrial upgrading fell short of expectations.