Key investment events: Tianzhou Culture issued an announcement that it plans to repurchase shares to be used as a reserve for equity incentives and employee stock ownership plans. The repurchase price is no more than 17.2 yuan/share, and the repurchase amount is between 200 million and 300 million yuan. The funding source is mainly through self-financing. The share buyback once again showed the company's confidence. We believe that the company's repurchase of some of its shares as an incentive for future company core personnel shows, on the one hand, the company's firm confidence in the stock price; on the other hand, it further illustrates the company's advance layout for long-term development and the binding of interests to core personnel through the form of shares, making the company's future development more secure. Furthermore, the company's management and core business personnel, mainly the main business controllers of the two game development companies, have also increased their holdings of the company's shares through various means, so both the majority shareholders and core employees have shown their firm confidence in the company's development. Mergers and acquisitions initially saw the remaining shares in Technology. The company announced earlier that it plans to acquire the remaining 73% of Chujian Technology's shares (27% has already been acquired), with a purchase price of 1,178 billion yuan. Chujian Technology promised that the 2017-2019 performance will not be less than 140 million, 170 million, and 210 million. We believe that although the company already had a deep layout in the field of game development in the past, it has always lacked resource control over the game channel side. Now, after completing the acquisition of Chujian Technology, the company's layout in the game distribution field has been completed, and the entire game industry chain has also been integrated. In the future, Magic Era and Youai Network will form a good synergy with Chujian Technology, and cooperate with each other in R&D and distribution to maximize the interests of listed companies. First, I saw that technology has a variety of boutique games. Currently, games mainly operated by First Vision Technology include classic works such as “The Three Kingdoms” (with monthly circulation of around 20 million). Furthermore, since First Look Technology is the main distributor, the turnover ratio is very high, and some works have a turnover ratio of more than 50%. On the other hand, the company has also represented various works worth looking forward to this year, including “Qi Tian: God of War,” “Eternity Island,” and “Devouring the World”; at the same time, the company has also reserved the full copyright of IPs, including “Prince Taikoo” and “Arrogant Fairy,” so it is worth looking forward to the development of the entire IP industry chain in the future. Profit forecasting and investment advice. EPS is expected to be 0.46 yuan, 0.57 yuan, and 0.71 yuan respectively in 2017-2019. Since the company suspended trading on January 24 until now, the media sector index has fallen 16%, causing the company to make up for the decline on the first trading day after the company resumed trading. We believe that the company has a high-quality asset structure and will be one of the strongest competitors among second-tier game leaders. Considering that mergers and acquisitions have not yet been completed, we will not make investment rating suggestions for the time being. Risk warning: Asset consolidation falls short of expectations, game operation, or falls short of expectations.