2018 Semi-Annual Report Review: 2018 H1 achieved revenue of 2.122 billion dollars, an increase of 44.77%; realized net profit of 277 million yuan, a decrease of 35.54%; and achieved net profit of 252 million dollars, an increase of 151.29%. Video split payments and accounts receivable repayments increased, and Q2 performance growth was weak. The company's operating cash flow improved. The net operating cash flow of 2018H1 was 423 million yuan, an increase of 208%. The increase in revenue was mainly due to the good box office performance of some films in the first half of the year. The obvious decline in net profit was mainly due to a significant decline in investment income, a decrease of 90.88%. The sale of some shares in Yinhan Technology in the same period last year was 541 million yuan. The increase in non-net profit deducted by 2018H1 is still the film and television project confirmed in Q1. Endogenous growth in the film, television, and entertainment sector has increased dramatically, and the risk of overseas films has been smoothed out. The revenue of film and television entertainment was 1,962 billion dollars, an increase of 94.54%, accounting for an increase of 25pct to 93.89%, mainly due to the outstanding performance of movies such as “Fanghua” (220 million box office) and “predecessor 3” (1.64 billion dollars). Movies, TV dramas, online dramas, and Internet companies progressed steadily during the reporting period. The company also actively promoted international layout and calmed the risk of domestic industry cycle fluctuations through overseas layout. Currently, cooperation projects between the company and STX are progressing steadily. For example, “Jasmine's Card” has achieved good box office results and word of mouth. The sixth season's “Plan H” film list includes “Family of Thieves” and “Hurricane Surge.” The growth rate of the live entertainment sector is declining, and the opening of parks in many places is expected to boost the reality sector in the future. Live Entertainment's revenue was 142 million yuan, an increase of 6.69%. The growth rate declined due to time differences in the progress of various projects. Among them, Huayi Brothers Movie World (Suzhou) was grandly opened on July 23, 2018, and Suzhou Park Investment adopted a shareholding method to confirm brand licensing revenue according to proportion. In the future, the Changsha, Nanjing, and Zhengzhou movie town parks will also open one after another. Actively promote industrial investment layout and continue to explore new business models. Internet entertainment revenue was 32.4755 million, a decrease of 88.12%. The scope of the merger changed due to the loss of control of Yinhan Technology in June 2017 due to the sale of Yinhan Technology in June 2017. In terms of investment, 2018H1 companies have invested in or controlled a total of 8 companies, and Hero Entertainment has performed well. New games launched in 2018 include “Super Kill Apocalypse” and “Battle of Pacman”, etc., and games such as “Ace Warfare: Code Hero” and “Pinnacle Tank: Armored Battle Song” will be launched in the second half of the year. Profit forecast: The company's EPS for 18-20 is expected to be 0.24 yuan, 0.29 yuan, and 0.33 yuan respectively, corresponding to PE 23 times, 19 times, and 16 times, maintaining the “increase in holdings” rating. Risk warning: Live entertainment falls short of expectations; market competition is fierce; risk of fluctuations in film and television projects.