Company News The company released its 2017 annual report. In 2017, the company achieved operating income of 1,321 billion yuan, an increase of 42.57% over the same period last year; net profit attributable to shareholders of listed companies was 310 million yuan, down 40.59% from the same period last year, deducting non-net profit of 300 million yuan, a sharp increase of 64.4% over the previous year, and EPS per share of 0.43 yuan. The performance under review was not in line with expectations, and the film and television business was developing well. The company's annual non-performance was in line with expectations. Revenue from the film and television culture business was 123.694,500 yuan, an increase of 53.34% over the previous year. In 2017, the company screened a total of seven films, including “Never Ending,” “Wolf Warrior 2,” “No Problem Problem,” “Fanghua,” and “A Happy Second Generation of Fairies in the Present Life”. Among them, the 2017 phenomenal film “Wolf Warrior 2,” which was co-produced and distributed by the company, broke many records. In terms of TV dramas, the TV drama “Kyushu: Animal Husbandry in the Sea” produced by the company exceeded 100 million in just 4 hours after its launch, achieving the highest number of broadcasts of 570 million episodes and the highest number of broadcasts in a single day of 240 million. In terms of variety shows, the company participated in investing in the production of two variety shows, “High Energy and Young Talents” and “Happy Drama Club”. Among them, “High Energy Youth Group” rose strongly to the top of the Saturday ratings in the second quarter of 2017, with more than 1.5 billion online hits. In terms of tourism and culture business, based on the extended layout of the original tourist attraction business, the company relied on the existing tourist attraction business experience and team, combined with the company's brand and traffic advantages in the field of film and television culture, and carried out various experiments and exploration. Overall, the company's various businesses have maintained steady development, and the growth rate of the film and television business is outstanding. At the same time, it has prepared a large number of high-quality projects for 2018. In 2018, we continued to deepen our business in movies, TV series, and online series. The company will continue to adhere to the core strategy of “one horizontal, one square, form a big entertainment industry model”, focus on core projects, and build a cultural industry system for the whole industry chain. The company will continue to be deeply involved in the investment and production of movies, TV series and online dramas, artist brokerage, and variety arts. At the same time, it will actively expand the development of tourism and culture business based on its experience and team in the original tourist attraction business, combined with the advantages and resources of the film and television culture business. In terms of vertical expansion, the upstream incubates high-quality IP resources through content production and reserves, the midstream strengthens the construction of service systems such as self-management and publicity, and the downstream is deployed in various fields and enriches long-term revenue. In 2018, the company will launch a number of movies and TV dramas one after another. Stable high-quality film and television products are expected to enhance the stability of the company's performance. We are optimistic about the development of the company's film and television culture business. Risks indicate that the company's risks include, but are not limited to, the following: market risk of sales of film and television products produced by the company, policy regulation risk, increased market competition, risk of increased production costs, etc.