Incident: Acquisition of Beijing Fairyland Music Network Technology Co., Ltd. to lay out mobile internet lottery. The company announced on March 5 that it will transfer the controlling interest in Fairyland Music, and the specific share transfer ratio is subject to further negotiation. Beijing Fairyland Music Network achieved operating revenue of 43.02 million yuan and net profit of 4.43 million yuan in 2013. Fairyland Music Network has good business partnerships with the three major operators, and has channel advantages. Beijing Fairyland Music Network Technology is a technology company that develops, operates and promotes mobile applications based on the mobile Internet. China Unicom's Wo Store launched the “Wo Lottery” developed by the company on February 26, '14, and was downloaded more than 60,000 times in 5 days. Wo Lottery is a professional lottery betting software officially authorized by Fucai and Sports Lottery. It can purchase various types of lottery tickets for Lucky Lottery and Sports Lottery, and has the characteristics of easy recharge and timely rebates. Since Wonderland Music Network has good cooperative relationships with the three major operators, it has a natural channel advantage in mobile application distribution and promotion. The three major operators may promote through pre-installation of mobile phones. The number of potential customers can reach 100 million levels, and it has strong user expansion capabilities. Successive acquisitions have been completed. The three major companies that have completed the layout of resources, technology, and channels have previously announced that they will acquire Shanghai Liangcai and Shanghai Haoxuan. Among them, Shanghai Liangcai has good cooperative relationships with national lottery and sports lottery companies, while Shanghai Haoxuan has advanced football lottery filtering technology. After the acquisition of Wonderland Music Network, the wholesale sales advantage of Shanghai Liangcai can be used to quickly increase lottery sales and achieve collaboration in the lottery industry chain. Through this acquisition, the company initially established a mobile internet lottery industry chain, thus establishing the three major advantages of resources, technology and channels. The profit forecast and valuation estimate that the company's EPS from 2013 to 2015 will be -0.59, 0.24, and 0.41 yuan/share, respectively, corresponding to 49 times and 28 times PE from 2014 to 2015, respectively. The risk suggests that the introduction of policies related to the national lottery fell short of expectations; market promotion fell short of expectations.