Events: The company achieved operating income of 1.13 billion yuan in 2015, an increase of 4.85% over the previous year; realized net profit of 141 million yuan, a decrease of 9.62% over the previous year; and realized net profit of 90.89 million yuan after deducting non-return to the mother, an increase of 51.05% over the previous year. The main retail business is operating steadily, and revenue slightly exceeds expectations. 1) Hangzhou Department Store achieved operating income of 1,029 million yuan, accounting for 93% of total revenue; realized profit of 124 million yuan, accounting for 68% of total profit; 2) Hangzhou Grand Hotel and Hangzhou Collection Market had total revenue of 69.78 million yuan, accounting for 6% of total revenue; realized profit of 17.33 million yuan, accounting for 10% of total profit; 3) the company's sales expenses increased 13% year-on-year, due to an increase in monthly expenses over the previous year after the completion of the overall renovation of the Hangzhou Department Store. Management expenses increased 6% year on year, which is an increase in entrustment management fees for the current period compared to the previous year; 4) Non-recurring profit and loss in 2015 was 49.74 million yuan, compared with 95.42 million yuan last year, net profit after deducting non-return from the parent increased faster. The strategy for transforming big health is clear, and the construction of cancer hospitals is progressing steadily. 1) The company's current business is concentrated in the traditional trade service industry. The main revenue sources are Hangzhou-Bai and Hangzhou hotels and collectibles markets, and the cash flow is stable; 2) While developing the traditional trade industry, actively developing a new healthcare service industry, investing in the establishment of Zhejiang Top 100 Medical Industry Investment Co., Ltd., which aims to build a hospital group combining hospitals and clinics; 3) The “Cooperation Agreement” was signed with Zhejiang Cancer Hospital in September 2015 to jointly build, manage and operate the “Zhejiang Xizi International Medical Center”; 4) The Xizi International Medical Center project invests 1.5 billion yuan and plans to build beds 800, construction grade 3 general hospital; 5) The first phase of 300 beds is expected to be put into use in early 2017. The estimated annual revenue for a single bed is 500,000 to 1 million yuan, and the net interest rate is about 10-20%. Lay out the C-end to extend the healthcare industry chain. 1) The company invested 12 million yuan to participate 20% in the establishment of “Hangzhou Quancheng International Health Care Management Center Co., Ltd.” with Dian Diagnosis and Hangzhou Jiebai to jointly build a high-end, specialized and personalized one-stop health management service platform; 2) The Health Management Center provides full-process health management and medical services covering the entire life cycle to high-net-worth customer groups, and establishes a “D2B2C” private family health management service platform to provide family doctor-style health management services and full medical tracking services for members (that is, C-side); for doctors and resident specialized health service agencies (i.e., D-side) provides high-quality customer groups and supporting services for public diagnosis and treatment. Valuation and ratings: We expect the company's 2016-2018 EPS to be 0.39 yuan, 0.42 yuan, and 0.49 yuan respectively, and the corresponding PE is 33 times, 31 times, and 26 times, respectively. We believe that the company's main business is steady. As a target for the scarcity of hospitals specializing in oncology, the big health strategy is progressing steadily and maintaining the “increase in holdings” rating. Risk warning: Project construction progress or failure to meet expectations; main business may decline due to economic conditions.