Key investment points: The company will continue to innovate in business, be optimistic about the company's medical service layout, and innovate the business again. The company wants to raise 900 million yuan to lay out new businesses such as medical services. We judge that medical services are the focus of the company's future layout, and we are strongly optimistic about it. In 2015, the company proposed incorporating “entering the field of medical services” into the core strategy for the next ten years, moving from PPP projects into the field of medical services. In November of last year, the company announced a fixed increase plan to issue no more than 80 million shares and raise 900 million yuan. Major shareholder Deng Guanhua subscribed for some shares, of which 600 million yuan will be used for the Chenzhou regional hierarchical diagnosis and treatment PPP project. The company has now signed a PPP model cooperation contract with the Yizhang County People's Government for the overall relocation project of the Yizhang County Traditional Chinese Medicine Hospital. The contract period exceeds 30 years. The newly built Yizhang County Hospital of Traditional Chinese Medicine aims to meet the standards of second-class TCM hospitals, opens 600 beds, designs 300,000 outpatient visits per year, and discharges 30,000 people a year. Last year, the company signed a framework agreement with the Beihu District People's Government of Chenzhou City to cooperate in the construction of the Chenzhou Third People's Hospital. At the same time, the company introduced a team of experts with successful hospital management experience and advanced foreign enterprise medical management concepts, and acquired Guangzhou Huiqiao to quickly gain experience in hospital information management. In the future, the company will focus on medical services as its strategic center, and there are future expansion expectations. The medical service sector is one of the most prosperous fields in the pharmaceutical field. Future medical revenue will grow faster than pharmaceuticals. In 2014, medical revenue in public hospitals grew by 16.3%, 4 percentage points higher than the 12.1% growth rate of pharmaceuticals. In the future, the share of medical income reflecting the value of doctors will continue to rise, the volume and price of medical services will rise sharply, and revenue growth will continue to outpace drug growth. Good at business innovation In the past, the company successfully expanded in vitro diagnostics. In 2011, the company entered the field of testing and acquired Hangzhou Longxin and Yang Pu Nanxiong. The company's in vitro diagnosis went from nothing, from small to large. In vitro diagnosis revenue in 2011 was less than 60 million yuan, and in 2015 it increased to 220 million yuan. The company has now set up the Guangzhou Yangpu Medical Laboratory to enter the field of diagnostic services such as genetic testing. The company's successful business development in the field of in vitro diagnostics shows that management has strong business innovation capabilities. The majority shareholder increased their holdings by 15.98 yuan/share, demonstrating confidence in development. In July of this year, Mr. Deng Guanhua, the majority shareholder, completed a plan to increase his holdings of the company through “Ruixiang No. 2”. The cumulative increase in holdings was 6,265,675 shares, with an average price increase of 15.98 yuan and an amount of 100 million yuan, demonstrating confidence in the company's development. After the increase in holdings, Mr. Deng Guanhua and his co-actors held a total of 102,613,251 shares of Yangpu Medical shares, accounting for 33.23% of the company's total share capital. The main business is stable and there is still room for growth. In 2015, the terminal market size of medical institutions for low-value consumables in China exceeded 110 billion yuan, a growth rate of about 24%, corresponding to the production-side market of about 50 billion yuan. Although competition is fierce, the industry space is still huge, and vacuum blood collection tube capacity has maintained steady growth.