Event: On August 23, the company released its 2017 semi-annual report. During the reporting period, the company achieved operating income of 387 million yuan, an increase of 8.85% over the previous year; net profit attributable to the parent company was 153 million yuan, an increase of 71.84% over the previous year. Top quality dramas contributed significantly, and the film and television business grew rapidly. During the reporting period, the TV drama business achieved revenue of 323 million yuan, an increase of 35.64% over the previous year. The increase in revenue and net profit benefited from the confirmation of the TV station's sales revenue for the first and second seasons of “That Starry Sky, That Sea”. During the reporting period, the subsidiary Dream Star Garden post-produced the second season of “Starry Sky and Sea”. It is expected to be broadcast on Hunan TV and Internet platforms such as iQiyi and Sohu in the 23rd quarter. At the same time, Dream Star Garden has created and prepared a number of IP dramas such as “Give Up on Me, Hold Me” and “Starry Sky”. 2017 was the last year for the subsidiary Dream Star Garden to gamble on its performance, and the full-year performance is expected to continue to exceed expectations. At the same time, Dream Star Garden holds 10% of the shares after the capital increase in Mandala, which will further strengthen the company's film and television production capabilities, expand the industrial chain layout, and ensure rapid growth in the film and television business. The gross margin of the game business increased, and the film and television business developed collaboratively. During the reporting period, the game business achieved revenue of 62,719,800 yuan, a year-on-year decrease of 15.23%; gross profit margin of 87.27%, an increase of 3.3 pct. The game business adheres to IP operations and content innovation as the core, fully explores IP value, and ensures the collaborative development of film, television and game businesses. The first subsidiary, Fengyun Interactive, has set up independent projects to develop games such as the “Sacred War” mobile game, the “Titan Three Kingdoms” mobile game, the “Doulo Continent 2D” page game, “Reckless Desolation H5”, and “School Flower's Personal Master H5”, etc., and plans to launch them in the second half of 2017. A fixed increase of 1.2 billion dollars will be invested in TV drama production, consolidating the company's position in the premium drama production market. The company plans to increase 1.2 billion yuan, all of which will be used for the production of film and television drama projects of its subsidiary Dream Star Garden, including 4 TV series and 5 web dramas, with a total investment of 2,038 billion yuan, of which the company invested 1,881 billion yuan. This fixed increase will provide sufficient working capital for Dream Star Garden, lay a solid foundation for its subsequent premium content production, and consolidate the company's leading position in the premium drama market. Give an investment rating of “increased holdings”. Based on Dream Star Garden's rich reserve of top quality dramas, it can guarantee the rapid growth of the film and television business. At the same time, the film, television, and game businesses are developing collaboratively, and the company's performance is expected to grow steadily. The company was given profit forecasts of 0.40 yuan, 0.49 yuan, and 0.59 yuan for 2017-2019, corresponding to 22 times, 18 times, and 15 times PE, and was given an investment rating of “increased holdings”. Risk warning. Competition in the industry has heightened risk, and the performance of M&A integration targets has fallen short of expectations.