Tiange Interactive was founded in July 2008 and is headquartered in Hangzhou. It is a real-time social video platform whose main products operate in China. The company develops and operates products that enable users to have real-time video interaction through video, voice, text, and virtual item exchanges. As of December 31, 2013, the nine real-time social video communities on our platform covered 26,000 real-time online video rooms, including eight “many-to-many” real-time social video sections (including 9158 videos and Sina) and one “one-to-many” community (Sina Show). The interactive community operated by the company offers a diverse range of rooms, including music, talk shows, social, financial, and education. Users can join and participate in live events. According to third party statistics, in 2013, according to user spending, Tiange Interactive's market share was 33.9%, Huanju Era was 23.1%, Quack Quack Network was 11.6%, and Six-Room Housing was 11.6%. Analyzing its business structure, firstly, by providing users with a variety of virtual items, users can buy these virtual items and give them to chat room hosts or other users to show support or appreciation. This approach can bring high user participation and monetization. The average monthly active users of the company's platform increased from about 7.5 million in 2011 to 10.8 million in 2013, and the average monthly paying users increased from about 194,000 to 270,000. This business is the company's main source of revenue; in addition, the company will also provide users with package services to purchase VIP privileges. VIP privileges include entering fully populated chat rooms, names appearing at the top of the chat room user list, and special titles that symbolize identity. Revenue from video platforms accounted for 96.4% of the company's total revenue in 2013; the company also has revenue from the game business, accounting for total revenue in 2013 Revenue is 0.5%, mainly a mobile game “Three Kingdoms: Battle of Nations” (with a total of about 238,000 and 23,000 active users and paid users), as well as a number of joint third-party online games. The company expects to release six to eight additional mobile games in 2014, including mobile games developed in-house; finally, the company earns advertising revenue through cooperation with Sina Group, which advertises for its advertisers in related products such as Sina Show and Sina Show, accounting for 3.1% of total revenue in 2013. Looking back at the company's previous performance, the company's revenue increased from 384 million yuan in 2011 to 548 million yuan in 2013, with a compound annual growth rate of 19.5%. In terms of net profit, the company recorded losses in 2011, 2012 and 2013 respectively, while adjusted net profit for the same period increased from RMB 140 million to $206 million in 2013, with a compound annual growth rate of 21.3%. From a valuation perspective, the PE corresponding to the adjusted EPS in 2013 according to the median prospectus price is about 23.2 times, and the PE corresponding to 2014 PE is 19.1 times, which is lower than the price-earnings ratio of similar competitors Huanju Era (YY). Currently, the capital market is highly sought after for the Internet “nightclub” concept. We believe that the company has a clear profit model, and at the same time, the use of mobile games to monetize the platform has room for growth, but it may be affected by China's net net action. At the same time, the current revenue structure of the company is relatively uniform compared to the rival reunion era, and there are greater risks, so we recommend careful purchasing.