Incident: The company announced that it has signed a “Cooperation Agreement” with Strong and Life Origin, and plans to obtain at least 30% of Life Origin's shares through acquisitions and capital increases. Origin of Life specializes in biological cell therapy and carries the only stem cell bank in Hebei Province. Established in July 2013, Life Origin is mainly engaged in technical services such as cell and tissue preparation, cryogenic technology development, and transformation of cell biotherapy technology. The main business includes providing stem cell preparation and storage technology services for newborns, technical cooperation and research and development of autoimmune cell therapy with medical institutions with corresponding qualifications, and providing anti-tumor immune cell preparation technology services for cancer patients. The Hebei Stem Cell Bank constructed and operated by the Hebei Provincial Health Planning Commission is a provincial stem cell bank approved by the Hebei Provincial Health Planning Commission. It is also the only stem cell bank in Hebei Province that has obtained a license from the competent health administration department. It began operation in February 2015, and currently has a storage capacity of 100,000 copies of stem cells. Further improve the overall health layout and expand profit outreach. We believe that this acquisition of Life Origin is an important part of improving the company's layout in the health sector. 1) Tumor cell immunotherapy is a revolutionary cancer treatment method. Stem cells have been shown to have remarkable curative effects in the fields of cardiovascular disease, leukemia, and anti-aging. Cell therapy has brought good news to various diseases, and the market space is huge. 2) Cell therapy can have a synergistic effect with medical services. The company is currently actively developing in the field of rehabilitation medicine. In the future, it may graft cell therapy technology into the hospital business, expand profit extension, and lay the groundwork for increasing the added value of hospital business in the future. 3) In the stem cell storage market, the stem cell bank license is a scarce resource. Origin of Life has the only stem cell bank in Hebei Province that has obtained a license from the competent health administration department. Based on the current storage capacity of 100,000 copies, storage income of 20,000 to 30,000 yuan/copy, and a 10-year storage period, it is expected to generate 200 million yuan in revenue every year. The company's future outlook. 1) Backed by the high-quality medical resources of Chongqing Medical University, in the field of medical services, it will be based on rehabilitation medicine and develop in the direction of specialist rehabilitation. It is expected that in 2017-2018, there will be 10 rehabilitation hospitals nationwide; 2) Pharmaceutical leaders in the field of dermatology and tuberculosis, dermatology Internet, OTC strategies, and rich product reserves to protect the steady development of the pharmaceutical business; 3) Agrochemical business is listed and operated independently on the new third board. In the future, listed company resources will focus on the pharmaceutical sector. Other non-medical subsidiaries may also have independent financing expectations: such as Hanjiang Pharmaceutical, the main active pharmaceutical industry, tourism Owners Taibai Mountain tours, etc. Performance prediction and valuation: Since the “Cooperation Agreement” is an agreement of willingness to cooperate, there is still uncertainty about its specific implementation, so we will not consider earnings related to the origin of life in our profit forecast for the time being. It is estimated that in 2015-2017, the diluted EPS considering fixed increases will be 0.39 yuan, 0.49 yuan, and 0.61 yuan, respectively. Maintain the target price of 21.35 yuan/share and maintain the “buy” rating. Risk warning: The growth rate of core varieties falls short of expectations; progress in Internet and medical service projects falls short of expectations.