Key investment points: Shanghai echoed the withdrawal of the lawsuit and reached a settlement agreement with Integrated Health Care. The acquisition of Integrated Health Care had no impact and proceeded normally. On July 16, Shanghai Huibo Company, a holding subsidiary of France's Echosens, a holding subsidiary of Frey Co., Ltd., filed a civil lawsuit with the Shenzhen Intermediate People's Court over a medical product infringing on the exclusive licensing rights of patents. Since Integrated Healthcare is the target of the proposed acquisition of Peking University Pharmaceutical's major asset restructuring, Peking University Pharmaceutical's trading was suspended on 7.16-7.29. On July 25, Integrated Healthcare reached a settlement with Shanghai Huibo Company and signed a “Settlement Agreement”. It was agreed that Integral Group would pay RMB 26 million to Shanghai, that the French Echosens Company and Shanghai Huibo would license Integrated Healthcare in mainland China to use all seven patents already obtained by French Echosens in mainland China, and Shanghai Echo withdrew the lawsuit. The above matters have no impact on Peking University Pharmaceutical's proposed acquisition of integrated healthcare. Peking University Pharmaceutical will resume trading on 7.30, and integrated medical mergers and acquisitions will proceed normally. We expect that they will be submitted to the Ministry of Finance, the shareholders' meeting, and the Securities Regulatory Commission for approval later. The company's oncology specialty layout has been accelerated, and efforts are being promoted through multiple channels. Integrated medicine is a professional overall solution provider for cancer diagnosis and treatment equipment. Among them, the revenue from the cooperative sharing model for joint construction of oncology centers with hospitals in 2013 accounted for 88% of the total revenue, about 21.4 billion yuan. Currently, there are 25 cooperative cancer diagnosis and treatment centers, which will continue to increase in the future. Furthermore, Peking University Pharmaceutical and Peking University Cancer Hospital and others have signed a strategic cooperation agreement to jointly establish the “Peking University Medical Oncology Hospital Management Company” and use this as a platform to establish the largest oncology specialist medical network in China under the “Peking University Oncology” brand. The company: (1) It has a relatively mature pharmaceutical distribution business platform, (2) relies on hospital network resources with strong shareholders, (3) can rely on the “Peking University Oncology” network in the future, and (4) makes full use of integrated medical oncology equipment sales and cooperative sharing model resources to create diversified oncology specialist services and collaborate through multiple channels. It relies on shareholder resources to create a new generation of medical service leaders and maintain a rating of increased holdings. The company relies on the strong medical resources of shareholders Peking University, Peking University Fangzheng, and Peking University Medical Group to create a new generation of medical service leaders; as the group's hospital asset securitization platform, Peking University Pharmaceutical has a lot of room for future market capitalization and deserves long-term attention. We maintained an EPS of 0.08 yuan, 0.10 yuan, and 0.13 yuan in 14-16, a year-on-year increase of -35%, 18%, and 27%, corresponding to the predicted price-earnings ratio of 202 times, 171 times, and 135 times; if we consider integrated medical mergers and acquisitions, and in 2014 only the fourth quarter of the year, we maintained the 14-16 EPS of 0.09 yuan, 0.21 yuan, and 0.27 yuan, with year-on-year increases of -28%, 121%, and 31%, corresponding to the predicted price-earnings ratio of 182 times, 82 times, and 63 times; maintaining an increase in holdings rating.