Incident: On the evening of September 28, 2020, it was announced that the company plans to issue 175 million shares (including capital) to the new star Hanyi, with a total capital of no more than 1,054 million yuan. Comment: The fixed increase effectively relieves financial pressure, and the majority shareholders' subscription shows confidence. Xinxing Hanyi, the controlling shareholder of the company, will fully subscribe for the above additional shares in cash for a period of 36 months. After the issuance is completed, the shareholding ratio of Xinxing Hanyi and its co-actors will increase from 31.27% to 47.13%. The funds raised in this non-public offering are mainly used to repay interest-bearing liabilities and supplement working capital. It will effectively ease the company's financial pressure and increase liquidity. At the same time, all major shareholders have subscribed, showing firm confidence in the company's future growth and sports industry. The AFC League has received national attention, and the value of tournament resources has grown. On September 28, 2020, the General Office of the State Council agreed to establish the 2023 AFC Asian Cup China Organizing Committee, with Gou Zhongwen, director of the General Administration of Sports, Chen Jining, mayor of Beijing, as chairman, and Du Zhaocai, deputy director of the General Administration of Sports, as executive chairman. This initiative reflects the country's support and importance for the soccer industry, especially the Asian Cup tournament, in terms of policy environment. It also means that the value of the company's AFC resource package will continue to increase. The frequency of major tournaments has led the sports industry into a strong cycle, and AFC projects will continue to monetize. In 2021-2023, major events such as the European Cup, Olympics, World Cup, and Asian Cup (hosted by China) were frequent. The exposure of soccer programs continued to increase, and the sports industry entered a strong cycle. Beginning in 2021, the company's AFC project has entered a monetization cycle. Along with the increase in sports sentiment, the company's performance is expected to experience explosive growth. The film and television drama business is gradually picking up, helping the company's performance to transition smoothly. On September 19, the contemporary rural drama “Happiness Reaches Ten Thousand Families”, produced by the company, directed by Zheng Xiaolong, and starring Zhao Liying, was launched. The “Sun Jiadong” and “Zhang Fuqing” units of the “Third Batch of “One Hundred Plans” of the State Administration of Radio, Film, and Television, which were co-selected with “Happiness to Ten Thousand Families” and another TV drama “Merit,” which was also produced by the company and directed by Mr. Zheng Xiaolong, also began filming in September. Investment advice: We expect the company's net profit in 2020-2022 to be -1,031/2.82/364 million, with a year-on-year growth rate of -1081.31%/127.31%/29.38%, and EPS of -1.76/0.48/0.62 yuan. The corresponding PE for 2020-2022 is -4/14/11 times, respectively. First coverage, giving a “buy” rating. Risk warning: risk of recurrence of the epidemic, risk of postponement of important events, risk of film and television policy.