Event: Lianzhong recently announced its 2015 annual results. The company's revenue for the full year of 2015 was 769 million yuan, an increase of 61.8% over the previous year. Net profit was 114 million yuan, up 17.1% year on year. Game revenue was 695 million yuan, up 51.5% year on year, and non-game revenue was 74.14 million yuan, up 346.2% year on year, mainly advertising and sponsorship revenue. PC game revenue was 346 million yuan, up 13.1% year on year, and mobile game revenue was 349 million yuan, up 127.9% year on year. The gross profit margin in 2015 was 59.7%, down 2 percentage points from last year, and is basically stable. Opinion: The PC side is growing steadily, Texas Hold'em's performance is impressive, and the mobile device continues to enjoy rapid growth. PC gaming revenue was 346 million yuan, up 13.1% year over year. There were 372,000 monthly paying users, an increase of 14.8% over the previous year. The average monthly income of paying users was 73 yuan, an increase of 3.1% over the previous year. Texas Hold'em benefited from WPT drainage, with revenue reaching 173 million yuan, an increase of 47.6% over the previous year, and 216,000 monthly active users, an increase of 94.6% over the previous year. The mobile game business revenue was 350 million yuan, up 127.9% year on year. There were 18.9 million monthly active users, a year-on-year increase of 22.9%. There were 1.42 million monthly paying users, an increase of 130.9% over the previous year. The average monthly revenue of paying users reached RMB 20.5, an increase of 4.6% over the previous year, and the payment rate reached 7.5%, an increase of 3.5% over the previous year. It mainly benefited from the company's continuous offline game upgrades and cooperation with operators and channels. The acquisition of Peerless during the year led to a significant increase in expenses. Sales and marketing expenses in 2015 were RMB 141 million, an increase of 100.6% over the same period last year. The significant increase in fees is mainly due to the acquisition of Peerless Media Limited and its subsidiaries at the end of June 2015. In addition, marketing activities and administrative staff costs have increased accordingly. In 2015, administrative expenses were RMB 104 million, an increase of 46.0% over the same period last year. The increase in administrative expenses was mainly due to the increase in office rent, professional expenses and personnel expenses due to administrative expenses used to expand office space. R&D expenses in 2015 were RMB 50.6 million, an increase of 41.5% over the previous year. The increase in R&D expenses during the year was mainly due to preparations to implement overseas expansion strategies, while new mobile games and R&D activities generated additional costs and personnel expenses. In 2016, the ecology continued to improve, and new products were continuously launched. The company is expected to continue improving the ecosystem in 2016, and the synergy between various sectors is also expected to increase. It is expected that the company will launch more creative PC and mobile game products to enrich game categories and increase user traffic. According to the company's plan, 2016 WPT will launch a new range of gaming products worldwide, including PC and mobile devices. The company's collaborative products and platforms with chess academies will also be released in 2016. The company will continue to expand overseas, leading overseas expansion with WPT to cover more regions. In terms of e-sports, the company will continue to make efforts to build the world's leading e-sports venue network. Profit forecasts and ratings: We believe that WPT's offline activities will continue to bring traffic to the PC-side business and offline business and enhance customer stickiness, and the mobile business is expected to continue to grow at a relatively rapid pace. New game development and current game improvements will further increase user consumption. In terms of costs, since WPT was acquired and consolidated during the year, and the cost of rent and personnel increases are also listed, it is expected that expenses will remain low in the future. Revenue is expected to continue to increase as the company continues to strengthen the intellectual sports ecosystem and deploy the e-sports business in 2016. We expect overall revenue growth in FY16 by 30% to about 1 billion yuan. Given that a number of large expenses have been combined, it is estimated that the level of various expenses will be reduced in 2016, and net profit will reach 200 million yuan. It is estimated that 2016 and 2017 EPS will be 0.26 yuan and 0.29 yuan respectively, corresponding to 13.27 times PE and 12.06 times. Continue to maintain “Highly Recommended.”