The annual report reduced non-net profit increased by 64%, and the main points of investment for the smooth transformation of the film and television business: the revenue growth rate for the 2017 annual report was 42%, and the growth rate of non-net profit was 64%. In 2017, the company achieved revenue of 1,321 million yuan, a year-on-year increase of 42.57%, and film, television and brokerage revenue of 1,232 billion yuan, an increase of 53.34% over the previous year. Among them, the hit film “Wolf Warrior II”, which the company participated in the distribution of, contributed 300 million yuan in revenue; the company achieved net profit of 310 million yuan, a year-on-year decrease of 40.59%, mainly due to the company's disposal of Longquan Hotel in 2016 and no similar major project disposal during the reporting period; Achieved net deduction of non-recurring profits and losses attributable to shareholders of listed companies Profit was 300 million yuan, an increase of 64.44% over the previous year, mainly due to the rapid growth of the film and television culture business. The company's business transformation was smooth, and the film and television culture business grew rapidly. (1) Film business: In 2017, the company screened seven films. Among them, “Wolf Warrior II” broke a new Chinese movie box office record with a box office of 5.683 billion dollars; the company has abundant reserves of later film projects, including the “Fengshen” series and “Wandering Earth”, which are worth looking forward to. (2) TV series and web series: The broadcast volume of “Kyushu: Animal Husbandry in the Sea”, which was broadcast in 2017, exceeded 100 million in just 4 hours. In the future, the company will continue to adhere to the principles of quality drama production and strengthen its competitiveness around the company's IP reserves and independent development capabilities. (3) Artist brokerage: The company has many talented artists. Currently, there are dozens of contracted actors, directors, and screenwriters. In the future, the company will also build a full-chain business model for the artist industry and provide strong resource support for other business segments of the company. (4) Variety shows: In 2017, the company participated in investing in the production of 2 variety shows “High Energy Youth Group” and “Happy Drama Club”, all of which achieved good results. In the future, the company will integrate innovative variety projects with the company's film and television business to enhance the competitiveness of the company's variety business industry. Adhere to the horizontal and vertical development strategy and build a big entertainment industry model. In 2016, the company achieved the transformation of its main business through the acquisition of Century Partners and Galaxy Culture. In 2017, both companies successfully fulfilled their performance promises. In the future, 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, build a cultural industry system for the whole industry chain, and build a full-chain film, television and entertainment company. Profit forecast. We expect the company's EPS for 2018/2019/2020 to be $0.57, $0.68, and $0.78, respectively. Referring to the valuation situation of film and television companies in the same industry, such as Guang Media, Huayi Brothers, Ciwen Media, and Huace Film and Television, we gave the company a PE valuation of 23 times in 2018 according to the industry average, corresponding to the target price of 13.11 yuan, maintaining an increase in holdings rating. Risk warning. Competition in the market is intensifying. Regulatory policy risk. Project progress falls short of anticipated risks.