Key investment events: The company plans to purchase 100% of Qisheng Information's shares by issuing shares and paying cash, and raise supporting capital. After the transaction is completed, Langma Information will hold 100% of Qisheng Information's shares. According to the plan, the estimated 100% equity value of Qisheng Information is 650 million yuan, of which the cash consideration is 317.24 million yuan, the share consideration is 332.76 million yuan, the issue price is 56.91 yuan/share, and the number of shares issued does not exceed 5,8471 million shares. In addition, the company plans to raise no more than RMB 216.6 million in supporting capital from no more than 5 other specific investors for the non-public offering of shares, which is intended to be used to pay cash consideration for the purchase of assets. Comment: l Acquired 39 Health Network to enter the online healthcare industry. Langma Information today announced the acquisition of 39 health network entity company Qisheng Information, with an estimated value of 650 million yuan. The acquisition method uses the method of issuing shares plus cash, and plans to issue 5.847 million shares, accounting for 5.46% of the current total share capital. Qisheng Information promises to achieve net profit of no less than 45 million, 55 million, and 65 million after deduction in 14-16 years. The health service industry has vast space in China, and the industry is in a period of accelerated growth. At the same time, the industry is in the early stages of transformation by the Internet and mobile Internet, and enterprises that have grasped the trend of deep integration of healthcare and the Internet have great opportunities for development. The company has officially entered the online healthcare service industry through the acquisition of 39 Health Network, and is facing broad development space in the future. 39 Health Network is the most popular website in the industry, and is on the cusp of deep integration between healthcare and the Internet. 39 Health Network was officially launched in March 2000. It mainly provides medical and health information services such as health information, appointment registration, triage guidance, and online consultation, etc., and profits have been made through the introduction of accurate marketing and other value-added services through the introduction of Internet advertising. It is the oldest, largest, and most popular health portal in China. Please read the last page of information disclosures and important statements - 2 - Company announcements and reviews. According to Alxa data, in terms of the number of independent visitors, the number of visitors to 39 Health Network per million people (March average) was 4,290, which is 40.75% higher than the 3,048 people who ranked second in “seeking medical treatment”, making it a well-deserved leader in vertical segmentation. On the one hand, the core advantage of 39 Health Network is that it has the largest user base in the industry. On the other hand, the company has accumulated a large number of industry resources. The website has established strategic partnerships with a large number of top three hospitals and well-known chief physicians, and has commercial dealings with thousands of medical institutions and a large number of well-known brand drug and medical device manufacturers. After 14 years of hard work, 39 Health Network has a deep track record of both users and merchants, forming a very obvious barrier to competition. Under this environment, Qisheng Information's revenue in 2013 was 107 million yuan, an increase of 66% over the previous year, and net profit of 30.7 million yuan, an increase of 265% over the previous year, showing a very obvious high growth trend. 39 Health Network has broad development prospects, and has made great achievements in precision marketing with big data and O2O in the medical industry. As a leader in the vertical field, 39 Health Network has far greater user accuracy and unit information value than Baidu and general portals such as Baidu. In the future, after 39 Health Network integrates Langma Information, its potential in data mining will be further unleashed. According to data disclosed by the company, in 2013, 39 Health Network ranked fifth in online advertising websites for pharmaceutical companies, and was the only professional vertical website to enter the list. In the future, the company still has full potential for growth after making full use of big data. On the other hand, 39 Health Network has the most resources in the industry on both the user side and the merchant side. In the future, it is expected that offline health management and medical services will be provided to users through the O2O method, and medical treatment methods will be transformed through the Internet, which is conducive to improving the efficiency of the entire health service industry. Investment advice: As the most promising application of the Internet and mobile Internet in the future, online medical care faces broad room for growth in the future. After the merger and acquisition of Enlightenment Information, Langma Information further contributed to the rapid development of leading 39 health networks in vertical segmentation in the field of big data precision marketing and O2O medical services in the future. After the merger and acquisition is completed, Langma Information will become the first A-share online medical service stock. It is fully scarce and reaffirms the “increase in holdings” rating. The EPS for 14-16 was 0.56 yuan, 1.06 yuan, and 1.33 yuan, respectively. Risk Warning: M&A Plan Not Approved, Online Healthcare Service Industry Enters Strong Rival