Simei Media (002712.CH/RMB 24.93, no rating) achieved operating income of 3.02 billion yuan (+13.11%) in the first three quarters, net profit attributable to shareholders of listed companies of 190 million yuan (+88.38%), net profit attributable to shareholders of listed companies of 176 million yuan (+95.84%), basic earnings per share of 0.63 yuan (+75%); achieved operating income of 1.21 billion yuan (+44.81%) in the third quarter, net profit attributable to shareholders of listed companies of 55 million yuan (+30.92%) After deduction, net profit attributable to shareholders of listed companies was 46 million yuan (+13.74%), and basic earnings per share were 0.17 yuan (+13.33%). Comment: 1. The acquisition increased the company's performance. During the reporting period, the company completed the acquisition of 100% shares of Zhangwei Technology, 100% of Guanda Film and Television, and 20% of Keyi Communications, and initially established a “IP source+content production+marketing promotion” content industrialization operation platform. Since the first quarter of 2017, the company's revenue has been growing steadily month-on-month. The third quarter achieved revenue of 1,212 billion yuan, an increase of 10.2% over the previous month. In terms of gross margin, the company's overall gross margin for the first three quarters was 15.5%, up 3.66 percentage points from the first three quarters of 2016. As can be seen, the company's new business has significantly improved the company's performance and acquisition volume. 2. The consolidation of targets has expanded each item in the company's statement. Due to the consolidation of acquisition targets such as Wangwei Technology and Guanda Film and Television during the reporting period, there was a significant increase in the company's financial reporting projects. Of these, accounts receivable were 1,161 billion yuan, up 77% from the beginning of the year; inventory balance at the end of the period was 210 million yuan, mainly due to Guanda Film and Television's current liabilities of 125 million yuan, up 12417% from the beginning of the year, mainly due to Guanda Film and Television receiving investment funds. In terms of cash flow, due to the company's expansion of operating activities, net operating cash flow for the first three quarters was -128 million yuan, and net operating cash flow for the third quarter was 35 million yuan, which was positive month-on-month. Going back to the company's 2015-2016 cash flow statement, Q1 and Q2 are the period of the company's business operation. Net operating cash flow is usually net outflow, while Q3 and Q4 are the company's business settlement period, and net operating cash flow is usually net inflow. 3. Overall, the company uses “TV advertising marketing+content marketing+digital marketing” as the business framework to actively develop content marketing and Internet advertising business, while also experimenting with the production of variety shows and movies and TV dramas. In addition, all businesses have maintained steady growth. Furthermore, through the acquisition of Zhihai Yangtao, the company has further strengthened its integrated marketing service capabilities. At present, the company management's holdings reduction plan has been basically implemented. Currently, the total market value is 7.9 billion yuan. Investors are invited to keep an eye on it.