Incident: The company signed strategic cooperation agreements with Yinkang (Shanghai) Health Development Co., Ltd. (hereinafter referred to as Yinkang (Shanghai)) and Tianjin Advantage Venture Capital Management Co., Ltd. (hereinafter referred to as Advantage Venture Capital). Yinkang (Shanghai) Health Development and Advantage Venture Capital provided the company with a wide range of M&A services and active M&A investment management services, and plans to establish a total of 1.5 billion medical industry mergers and acquisitions funds. Comment: Set up another medical industry merger and acquisition fund to expand the capital strength of mergers and acquisitions, demonstrating the determination for transformation. On the basis of establishing a 1 billion medical industry merger and acquisition fund with Shangxin Capital, the company and Yinkang (Shanghai) Health and Advantage Venture Capital plan to jointly establish a fund management company and a medical industry merger and acquisition fund. The size of the M&A fund is tentatively set at 1.5 billion yuan. The three-party investment ratio of the management company is agreed to be 20% of the capital contributed by the company or the actual controller of the company to the fund management company, 60% for Yinkang (Shanghai) Health and Advantage Venture Capital; in terms of mergers and acquisitions funds, Yinkang (Shanghai) Health and Advantage Venture Capital is responsible for raising part of the capital. This time, the fund mainly invests in medical projects such as hospitals, medical supplies, old-age care, biomedicine, and Internet medicine. A further 1.5 billion medical industry mergers and acquisitions fund was set up, expanding the company's financial strength for mergers and acquisitions of major health industry projects, demonstrating the company's determination to transform. Gather the forces of many parties to make efforts to transform medical care and health. Yinkang (Shanghai) Health Development is a healthcare service group company that specializes in medical care, pension investment, trusteeship management, and self-construction and joint operations, and integrates diversification of health examinations, pharmaceuticals, medical devices, Internet medical care, etc., and is an important subsidiary of Shanghai Yinlai Investment (Group), a well-known comprehensive financial holding company in China. Advantage Venture Capital is a professional organization engaged in strategic consulting, merger and acquisition funds, merger and acquisition consulting, and private equity investment. It has a deep understanding of medical care, pharmaceutical investment, etc., and also has rich mergers and acquisitions experience and extensive financial resources. Combining Yinkang (Shanghai)'s healthy development with rich medical industry resources and management experience, the investment ability of superior venture capital professionals can support the company's transformation in the following areas. (1) It can help companies formulate mergers, acquisitions and restructuring strategies that are in line with the company's industrial transformation direction, and select and explore a number of mature, rapidly growing performance targets that are directly suitable for mergers and acquisitions by listed companies; (2) Yinkang (Shanghai) Health and Advantage Venture Capital can participate in targeted additional financing for listed companies involved in mergers and acquisitions transactions to meet the capital requirements of listed companies in mergers and acquisitions transactions. (3) Yinkang (Shanghai)'s healthy development management experience can be used to solve hospital project operation problems after the company's direct investment or mergers and acquisitions, and priority is given to selecting its medical management team to host the hospital. Although the company has no investment and management experience in the medical and health industry, it actively explores and seeks cooperation with institutions with rich medical and health and other investment experience and resources, quickly accumulates resources in the medical and health industry, selects high-quality mergers and acquisitions targets to reduce investment risks, and uses the partner's medical industry management experience to break through the “pain points” of zero-experience companies transforming the medical and health industry one by one, and achieve rapid transformation into the medical and health sector. The transformation movement continues, and the implementation of the project can be expected. The company positions the medical and health direction as the company's main business in the future. Up to now, in terms of transforming the medical and health industry, the company has set up a 1 billion medical industry merger and acquisition fund with Shangxin Capital, set up a wholly-owned subsidiary, Bangjie Medical Investment Management Company's healthcare sector business, and has cooperated with Yinkang (Shanghai) and an advantageous venture capital strategic cooperation agreement to establish a fund management company and a medical industry merger and acquisition fund. The company continues to move in the field of transforming the healthcare industry, with clear direction, strong execution, and project implementation. The company indicated that the M&A fund set up with Shangxin Capital focuses on strategic investment and is expected to place great importance on the growth space of the invested project industry. The establishment of an industrial fund this time has also made it clear that the fund will mainly invest in medical projects such as hospitals, medical supplies, elderly care, biomedicine, and Internet medicine. It is expected that Internet medical care will represent a promising emerging medical service field, representing the future development direction, emerging technologies represented by gene sequencing, cell therapy, and surgical robots, as well as private hospitals encouraged by policies, will be the company's preferred direction of mergers and acquisitions. We look forward to the implementation and smooth transformation of the company's medical and health industry layout. Earnings forecasts and ratings. Although the company has no experience in investment, operation and management in the medical and health industry, it continues to actively explore and seek cooperation with institutions with rich medical and health care and other investment experience and resources, breaking the “pain points” of companies with zero experience in transforming the medical and health industry one by one, and achieving rapid transformation in the medical and health sector. The establishment of another medical industry merger and acquisition fund shows determination for transformation, and the implementation of the project can be expected. Moreover, after an early correction, the company's current total market capitalization is only about 4 billion dollars, which has a certain margin of safety. We expect EPS in 15-17 to be 0.26, 0.37, and 0.39 yuan respectively, maintaining the “buy” rating. Risk warning. Business expansion falls short of expectations; the risk of uncertainty in advancing major medical and health projects.