According to the report, the company issued an announcement to acquire 72.38% of Kim Ying-ma's shares through the issuance of shares and payment of cash. After completing the acquisition, the company will hold a total of 98.88% of Kim Young-ma's shares. Key investment points The acquisition of Jin Yingma adds new development impetus. The company will issue 539 million shares at 1,098 yuan/share, acquire 55.88% of Jin Yingma's shares held by 23 natural persons including Tengzhan, and at the same time issue 16.485 million additional shares to Jiang Xueyuan, An Yi Chase, and Huafang Group, raising a total of 181 million yuan, of which 175 million yuan will be used to purchase 16.5% of Jin Yingma's shares held by Tengzhan. The remaining 0.06 billion yuan will be used to pay intermediary fees generated by this offering. After the acquisition is completed, 265% of Jin Yingma's shares already held by the company will be added equity, The company will collectively hold 98.88% of Kim Young-ma's shares. The high performance commitment and long lockdown period underline the confidence of Kim Ying-ma's management that in 2013, Kim Ying-ma's net profit was 74.335 million yuan. The 2014-2016 performance promise was that net profit after deducting non-recurring profit and loss reached 100 million yuan, 135 million yuan, and 169 million yuan respectively. The net profit in 2014 and 2015 increased 35% year on year, and the net profit in 2016 increased 25.2% year on year. After the issuance was completed, the shares held by Jin Yingma's main management, Tengzhan, Liu Jianli, and Yang Li (currently holding 66.18% of Kim Ying-ma's shares in total), were locked down for 5 years, the complete ban was lifted for 8 years, and the ban for other small to medium shareholders was lifted for 3 years and 3 years or less. A relatively high performance commitment and an extremely long five-year lock-down period have highlighted Kim Ying-ma's management's confidence in her own development. Improve overall profitability and valuation. In 2013, Kim Ying-ma's revenue was 225 million yuan, net profit margin was 33%, and ROE was 29.87%. This acquisition is 13.1 times the PE in 2013. If the company's and Kim Young-ma's reports are combined, ROE reaches 8.54%, the company's profitability will be greatly improved. According to WIND's calculation, the dynamic PE of 2014 corresponding to April 17 for film and television companies currently listed in China is 32.2 times. Therefore, after completing the acquisition, the overall valuation level of the company will also increase. If the profit forecast and valuation are calculated after the merger, we predict that the company's earnings per share for the next two years will be 0.55 yuan and 0.71 yuan respectively, and the corresponding dynamic price-earnings ratios will be 19 times and 15 times respectively. After the acquisition is completed, the home appliance composites, film and television industries will develop. In particular, the film and television business is likely to exceed expectations, and will continue to maintain an “increase in holdings” investment rating.