Key investment points: The announcement was completed, and the majority shareholder participation showed confidence. The company announced the completion of the non-public offering of shares: 245 million additional shares, the issue price was set at 12.23 yuan/share, and the net capital raised was 2,958 billion yuan. Among them, Dongfang Tongzheng, a major shareholder, was allocated 1.6 billion yuan. The lockdown period was 3 years, and the participation rate was over 50%, demonstrating confidence in the company's development. TEDA Manulife Fund, Pacific Securities, Golden Eagle Fund, Jinyuan Shunan Fund, NORD Fund, and Xinhua Fund received a fixed quota of the remaining 1.4 billion yuan. The company's non-public offering of new shares will be issued and listed on the Shenzhen Stock Exchange on September 12. Opening a new chapter in the development of Internet medical care, the main projects this time are telemedicine and health management service platform projects. Service types include remote ECG, remote B-ultrasound, remote DR, remote pathological analysis, and remote consultation. The company has explored a clear business model and will focus on developing high-quality medical resources in Chongqing, Sichuan and other places. The company will continue to develop high-quality medical resources, collaborate with the relevant experience and resources of Chongqing Yade and Jinshengda Air Hospital, vigorously carry out grass-roots telemedicine in line with the major trend of hierarchical diagnosis and treatment, and actively participate in public hospital restructuring, transfer 51% of the shares of Chenzhou First People's Hospital East Hospital Co., Ltd., further expand medical services and seize excellent medical resources to help the company's “pharmacy+medical” two-wheel drive strategy open a new chapter in the company's development. Performance is expected to achieve steady growth. The company's main products, such as cephalosporin preparations and gastrointestinal health, have overcome pressure, obtained good bid results, and maintained a good price system in the context of bidding price reductions, while the API and intermediates business is expected to improve sequentially in the second half of the year. The company's overall gross margin was relatively stable, but high expenses during the period had an impact on net profit. It is expected that subsequent fixed capital increases will help ease financial expenses. We expect annual performance growth of more than 20% to achieve steady growth. Optimistic about the long-term development of the company, maintaining the “buy” rating, the company's EPS in 2016-2018 is expected to be 0.18, 0.23, and 0.28 yuan (considering fixed growth and dilution), and the corresponding PE is 78, 62, and 52 times, respectively. As a leading explorer of Internet healthcare, the company has found a good profit model. A certain valuation premium should be given. According to 80-85 times PE in 2017, the reasonable price range for 6-12 months is 18.4-19.55 yuan, and the first target price is 19 yuan. Maintaining a “buy” rating risk suggests that the bid price reduction has exceeded expectations, and the medical service layout progress is lower than expected.