Investment Highlights On the evening of March 2, the company announced a joint venture with Linzhi Tencent Technology Co., Ltd. (“Linzhi Tencent”), Beijing Gehua Cable Network Co., Ltd. (“Gehua Cable”), and Beijing Beiguang Wenzi Gehua Venture Capital Center (limited partnership) (hereinafter referred to as “Beiguang Wenzi Gehua”) to establish a joint venture to establish “People's Video Co., Ltd.” (tentative name) (hereinafter referred to as “People's Video”), production and copyright transactions for short informational videos and live broadcasts. After two rounds of investment, the registered capital of the joint venture will reach RMB 75 million, of which the company will invest RMB 45 million in monetary capital, accounting for 60% of the shares. People's Video aims to create a new video brand “People's Video” (tentative name) under the People's Daily social media integration policy. It aims to position itself as a short video and live streaming brand featuring news information and serious content, carry out production, management and copyright cooperation related to original short videos and live streaming platforms, and expand commercialization services such as video shooting services, advertising, and visual image packaging. The copyright of the original content product of the joint venture belongs to People's Online. According to the announcement, People's Online will launch an independent “People's Video” channel on its homepage; Tencent will launch a “People's Video” independent channel on the PC portal and Tencent News client; and Gehua Cable will launch a “People's Video” section on the cable TV terminal platform to distribute “People's Video” content. Performance forecasts and investment recommendations: As one of the most interesting content carriers in the mobile 5G era, short videos have obvious growth potential. The establishment of a joint venture is expected to introduce a market-based mechanism to link video production capabilities with active party media and video resources from photographers. Content distribution through multiple platforms promotes the transformation and upgrading of news and information dissemination methods, and further expands the company's business, which is conducive to the long-term development of the company. The 2017-2019 EPS is expected to be 0.11/0.11/0.13 yuan, respectively. The closing price on March 5 corresponds to PE108X/101X/88X, maintaining the “prudent increase in holdings” rating. Risk warning: Joint venture business falls short of expectations, competition in the short video industry intensifies, and media operation risks