It is planned to establish a hospital management company with Peking University Cancer Hospital and other parties. On July 9, Peking University Pharmaceutical signed a strategic cooperation framework agreement to jointly establish “Peking University Medical Oncology Hospital Management Co., Ltd.” with Peking University Cancer Hospital, Peking University Medical Industry Fund, and Xin'an Medical, and using this as a platform to establish the largest oncology specialist medical network in China under the “Peking University Oncology” brand. Peking University Cancer Hospital is the top oncology specialist hospital in the country. Peking University Cancer Hospital is one of the top eight national hospitals under the Peking University Medical School. It is a national oncology key subject unit and the Ministry of Education's key laboratory for malignant tumor transformation research; nearly 20 experts serve as the main leaders of the China Anti-Cancer Association, the Beijing Anti-Cancer Association, the Oncology Branch of the Chinese Medical Association, and the Chairman or Deputy Chairman of various professional committees. The hospital currently has 700 beds, 26 clinical departments, 26 wards, and 13 medical technology departments. The annual number of hospitalizations is more than 23,000, and the annual number of outpatient visits is 280,000. The patients came from all over the country, Hong Kong, Macao, Taiwan, and Southeast Asia. Connect with Peking University Cancer Hospital brands, physicians and management resources. Peking University Pharmaceutical and Peking University Cancer Hospital now plan to establish a joint venture to further link the brand, physicians and management resources of Peking University Cancer Hospital. The joint venture will focus on Beijing-Tianjin-Hebei, and Peking University Cancer Hospital's partner hospitals across the country to expand epitaxial expansion across the country to manage hospitals specializing in oncology. In terms of brand export, the relevant hospitals managed by the joint venture are tentatively named “Peking University Medical XX Cancer Hospital” and “Peking University Cancer Hospital XX Hospital”; in terms of management output, the company will carry out chain oncology services and establish the largest oncology specialist medical network in China under the “Peking University Oncology” brand; in terms of physician export, Peking University Cancer Hospital has agreed to collaborate and cooperate with Peking University Medical Industry Group and medical institutions affiliated with the joint venture company in terms of consultation and referral. Comprehensive layout and specialist breakthroughs. The company and group rely on the Peking University Medical Department's unique strong medical resources in the country to carry out a comprehensive medical service industry layout. There are currently 5 hospitals under the Peking University Medical Group and more than 30 hospital projects that we anticipate are in progress. At the same time, the company is actively making breakthroughs in the specialty field. In June, the company plans to acquire integrated medical care, an overall solution provider for cancer diagnosis and treatment equipment, and in July, it will accelerate its entry into the field of oncology hospital management companies, accelerating the pace of transformation to medical services, further extending the oncology treatment industry chain. Furthermore, the six hospitals of Peking University and Peking University Medical jointly established a psychological hospital, the cooperation between Peking University International Hospital and Peking University Dental Hospital, the establishment of the Wu Jieping Urology Center, and the acquisition of Zhuzhou Kaide Cardiovascular Hospital have also shown that Peking University Medical has made breakthroughs and in-depth cooperation in various fields of expertise. 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 forecast an EPS of 0.08 yuan, 0.10 yuan, and 0.13 yuan for 14-16, a year-on-year increase of -35%, 18%, 27%, corresponding to the predicted price-earnings ratio of 200 times, 169 times, and 133 times; if we consider integrated medical mergers and acquisitions, and 2014 is only combined for the fourth quarter, we forecast an EPS of 0.09 yuan, 0.21 yuan, and 0.27 yuan for 14-16, a year-on-year increase of -28%, 121%, and 31%, corresponding to the predicted price-earnings ratio of 180 times, 81 times, 62 times; maintaining an increase rating.