1. Peking University Medical Industry Group Business Layout The entire Fangzheng Group has been doing pharmaceutical and medical business for more than ten years. Fangzheng Group's medical business is at the level of Peking University Medical Industry Group. The current industrial layout of Peking University Medical Group has six main sectors: 1. Peking University International Hospital: The hospital's property rights belong to Fangzheng Group. It is the Ninth Affiliated Hospital of Peking University. It is currently preparing for opening on December 5 this year. 592 beds will be opened for the first time, with a total of 1,800 beds, gradually opening up. 2. Peking University Medical Industrial Park: At present, 160,000 square meters has been completed. It is expected to open in October this year. The basic business model is to rent out companies that do pharmaceutical research and development, medical devices, and medical consumables, and even some private medical institutions, and through the establishment of certain conditions, they have discovered business opportunities that can be invested in shares. For example, the Peking University Rehabilitation Hospital, which was co-invested with Sequoia, was a project negotiated last year when construction had not yet started. 3. Peking University Medical Industry Holdings: Currently, the holding structure includes Peking University Medical Rehabilitation Hospital, Hunan Zhuzhou Capitol Cardiovascular Specialist Hospital (Level 3, the only one in Hunan Province), and Wu Jieping Urology Center (Ningxia, Wuhan, and Zhuzhou). At the same time, the holding structure also includes the next step of acquiring and merging some medical institutions and carrying out clean-up and incubation to a certain extent. 4. Peking University Medical Industry Fund: According to the $10 billion raised, one-third of the fundraising has already been completed. 5. Fangzheng Pharmaceutical Research Institute: Cooperation with Peking University Medical School. 6. Peking University Pharmaceuticals: The Group's only platform for listed companies in the pharmaceutical sector. 2. Peking University Medical Group's business strategic plan 3. Integrated medical situation 4. The company has built a full industrial chain layout. The future market capitalization space is large, worthy of long-term attention, and maintaining an increase in holdings rating. The company has built a complete industrial chain layout from pharmaceuticals to medical care. Although the short-term valuation is high, the group has the potential to become a leading medical group in China. As the group's hospital asset securitization platform, Peking University Pharmaceuticals has huge future market capitalization space and is worthy of long-term attention. We forecast EPS of 0.08 yuan, 0.10 yuan, and 0.13 yuan for 14-16, with year-on-year increases of -35%, 18%, and 27%, corresponding to predicted price-earnings ratios of 175 times, 148 times, and 116 times; if integrated medical mergers and acquisitions are considered, and 2014 is only the fourth quarter combined, we predict 14-16 EPS of 0.09 yuan, 0.21 yuan, 0.27 yuan, year-on-year growth of -28%, 121%, and 31%, corresponding to the predicted price-earnings ratio of 163 times, 70 times, and 55 times; maintaining the incremental rating.