Main points of investment

Event: the company announced on March 20 that it would conduct a non-public offering of shares. The objects of this non-public offering are natural persons Wang Wei, Wu Zhenfa and Shanghai Hongliu Investment Management Guiyang Langma Information Technology Co., Ltd. (it is proposed to set up Hongliu Great Health Phase 1 Fund to subscribe). The number of shares in this non-public offering is 6314710 shares, and the amount of funds raised is 999997476 yuan. After deducting the issuance costs, 110 million yuan is used for the construction project of health management service platform based on wearable and portable equipment (hereinafter referred to as the wearable equipment project). 90 million yuan is used for drug service O2O platform construction project, and the rest of the raised funds are used to supplement liquidity.

Comments:

Additional investment in wearable equipment, health management platform and drug O2O platform to improve Longma Internet medical industry chain. Longma Information raised a total of 999997476 yuan this time. After deducting the issuance costs, the funds used will be used for the construction projects of the health management service platform for wearable and portable equipment and the O2O platform for pharmaceutical services, as well as to supplement the company's liquidity. Among them, wearable device projects include: first, the development and production of wearable and portable devices of our own brands. Including electronic sphygmomanometer, electronic blood glucose meter, intelligent electronic scale, etc.; second, covering the equipment inspection and data collection channels in offline places of medical and health services such as families and pharmacies. Through the inspection equipment + APP mode, the real-time collection of user data is realized, and the user profile of medical health is constructed. Third, the health service system based on cloud platform and medical resources. By means of contracted doctors, cooperation with offline institutions such as hospitals, pharmacies, and physical examination institutions, and with the support of users' health data, we provide users with a full range of health consultation, medication guidance, diagnosis and treatment consultation to postoperative rehabilitation, from light consultation online response, telephone consultation, active care to private doctors and other multi-level health management services.

Drug O2O platform is based on creating a drug information service platform for individuals and drugstores. Based on the massive data of drugs and pharmacies collected by 39 Health Network Pharma Tong, the project further strengthens cooperation with offline physical pharmacies, and at the same time utilizes the resources of partners of the company's telecom operators to comprehensively build a drug O2O service platform covering drugs, pharmacies and pharmacists' contracted doctors in the form of APP+IVR, including information inquiry, drug purchase discounts, drug consultation, drug management and other functions. The pharmaceutical O2O platform includes three aspects: first, the customer relationship management (CRM) system platform of a single drugstore. Use Langma information system development and operation experience to help drugstores, especially those which can not independently establish and maintain their own customer relationship management system, quickly and easily establish a set of CRM system for users, especially high ARPU value users, to help drugstores strengthen user management and improve service and marketing level; second, App+IVR value-added service platform. Integrate the pharmaceutical service O2O platform with the company's existing IVR business "Health Club" to create a richer and more powerful value-added service platform, and achieve national promotion; third, pharmaceutical service O2O platform. The pharmaceutical service O2O platform with drugstores, pharmacists and contracted doctors as the main body, drugstores, drug consultation and drug purchase concessions as the content, with the use of free and value-added services as the model, to achieve value-added service revenue and advertising revenue. Build a platform and comprehensively lay out the Internet medical industry chain. In the future, the company is expected to fully grasp the information of doctors, patients and drugs, and build an Internet medical ecological platform in an all-round way. Through this additional offering, the company will comprehensively layout the Internet medical industry chain, and is expected to fully control the health information of patients, the professional information of doctors and the price information of drugstores in the future, and form a complete closed-loop system of Internet medical O2O. This has laid a solid foundation for the development of the Internet medical industry in the future. Through the implementation of this fund-raising investment project, the company will build an Internet medical system covering many important sectors of Internet medical care, such as health information services, health management, drug services, Internet hospitals, and so on., It is bound to occupy an important position in the future competition in the Internet medical market.

Sell non-core assets and focus on the Internet medical industry. The company announced the termination and sale of the fund-raising project Longma Network Voice Internet Community Project and used the sale funds and the remaining raised funds to pay for the acquisition of Guangzhou Qisheng Information Technology Co., Ltd., indicating that the company fully embraces Internet healthcare. Highlight the company's confidence in the future of the Internet medical industry. In the future, the company's main business will be more focused, which will undoubtedly be more conducive to the development of the company's Internet medical treatment.

Participate in private banks and lay out the future medical financial business. The company announced that Guiyang Langma Information Technology Co., Ltd. and Guizhou Yibai Pharmaceutical Co., Ltd. decided to be the main sponsors and set up Gui'an Science and Technology Bank Co., Ltd. In the future, Gui'an Science and Technology Bank will focus on three areas: 1, vigorously develop large health medicine and big data industry; 2, the combination of individual-oriented financial services and health management services will help to promote the company's business development in the field of medical and health; 3, to provide comprehensive financial services for the industry will help the company to organize the industrial chain and build a healthy industrial ecosystem.

We believe that Internet medical care is the largest area of market space in the industrial Internet. With the continuous improvement of the degree of aging in China, China's medical market will reach 8 trillion yuan by 2020, and there is a lot of room for Internet improvement. Relying on the efforts of the Guizhou provincial government to develop a large health industry, Langma Information, on the basis of the acquisition of 39 Health Network, comprehensively distributes the Internet medical industry chain through this additional offering, and creates an Internet medical ecological platform of the trinity of doctors, patients and medicine. it is very scarce and has a broad space for development in the future. Maintain the "overweight" rating, with EPS of 0.68,0.92,1.23 yuan respectively in 15-17 years. Risk hints: the innovation business is not progressing smoothly and the impact of national health care policies.