Key investment events: “Battlefield Commander”, a boutique mobile game produced by Borui Gaming, a subsidiary of Borui Communications, achieved good results on iOS and landed on the Android platform on the 16th. Looking at it now, the game is of excellent quality, which may spur Borui to make a breakthrough in the game business. “Battlefield Commander” rose to prominence. On May 18, “Battlefield Commander” landed on the iOS platform, and was recommended by App Stone twice on May 19 and June 9. It received a score of 9.2 points on the TapTap channel, and its reputation on iOS was over 4 stars, showing that both the platform and the market gave the game full recognition and attention, and it went live for about a month, and remained above the top 50 in the iOS bestseller list. On June 18, it was also officially launched on all Android platforms, including App Store, Baidu Games, Sina Games, and TapTap. The fundamentals of the company lie in the reform of state-owned enterprises. Currently, the operating pressure of Borui Communications is mainly due to the decline in traditional newspaper business. Judging from the current situation, it is unlikely that the paper media business will substantially improve in the short term. However, we believe that Borui Communications is more likely to reform state-owned enterprises and rectify loss-making businesses through capital operations. The reason is: 1) Judging from the company's own situation, Borui Communications is a state-owned enterprise with deep reform genes: in the past, the company has used equity incentives; and during the rise of mobile games, it has acquired several game companies; 2) Judging from market conditions, since last year, traditional state-owned cultural listed companies have carried out various reforms. In particular, the recent divestment of paper media business and the change of name to Zhejiang Digital Culture provides a precedent that can be learned from. Currently, in addition to the traditional print media business in Xishan, which is limited by industry restrictions, there is a possibility that other businesses (including games, schools, and finance) will improve further this year. Therefore, we believe that the company's current fundamentals have bottomed out. As long as the company's state-owned enterprise reform substantially progresses, Borui Communications, which has a historically low stock price, will have great investment value. Profit forecasts and investment advice. The 2017-2019 EPS is estimated to be 0.06 yuan, 0.06 yuan, and 0.06 yuan respectively, and the corresponding PE is 114 times, 109 times, and 106 times, respectively. Because the decline in traditional business exceeds our expectations, and asset disposal is unpredictable, we have adjusted the company's profit forecast. Considering that the company's future focus is mainly on the progress of the company's state-owned enterprise reform, and this hypothetical premise involves multiple institutions and has some uncertainty, so there is currently no investment rating advice for the company. Risk warning: game operation conditions or failure to meet expectations; traditional business divestment progress or failure to meet expectations; financial and game industry policies or expectations of changes.