Investment highlights: Incident: The company announced the signing of a “Strategic Cooperation Framework Agreement” with the Sichuan Provincial Health Planning Commission and resumed trading on November 6. The government takes the lead, enterprises participate, and resources are integrated to form a joint effort. In order to build a new engine for the economic development of Sichuan Province, give full play to the advantages of all parties, and build an intelligent medical service ecosystem, the two sides signed the “Strategic Cooperation Framework Agreement” on November 5 and held the first “Sichuan Internet+ Health Service Innovation and Entrepreneurship Conference” in Chengdu. It is currently the only listed company that has signed a strategic cooperation agreement with the Sichuan Provincial Health Planning Commission. The agreement includes the cooperation content: 1. The two sides will jointly promote the construction of a medical informatization platform, a WiFi-based hospital informatization unblocking project, an Internet full-process medical treatment service platform, and the WeChat Medical Cloud His construction project. 2. Support Wanfang to develop and establish an “Internet+Healthcare” innovative diagnosis and treatment center, and build “Internet+Healthcare” innovation demonstration projects such as “iTV Health Channel” and “Digital Dentistry”. 3. Wanfang Development assisted the Sichuan Provincial Health Planning Commission in organizing the “Sichuan Internet+ Healthcare Innovation and Entrepreneurship Conference”. 4. At the initiative of the Sichuan Provincial Health Planning Commission, Wanfang Development initiated and cooperated with social capital and professional investment institutions to establish the Sichuan Medical and Health Informatization Innovation and Entrepreneurship Policy Investment Guidance Fund to invest in key areas and key regions that will help advance the Internet medical process and the Sichuan Provincial Health Planning Commission urgently needs. The total amount raised by the fund was RMB 3 billion (initial instalment of RMB 1 billion). WeChat's Wi-Fi model is mature and replicable. Using WeChat Wi-Fi and micropayment platforms, Yihuan Network has greatly solved the problems of difficult medical treatment, such as long queuing for medical treatment at West China No. 2 Hospital. It has functions such as registration, guidance, appointment, and payment, and has a demonstration effect. The mature model can be replicated in other hospitals in the future. This model has been leading the market for 6 months, and has already reached a deep cooperation with WeChat, and will receive more support in the future. The micropayment platform received 400,000 to 500,000 payment traffic a month after launch. iTV media, created in collaboration with China Telecom, brings medical services to families and enables online doctor-patient interaction. In the future, it will also cooperate with WeChat to open up the medical insurance payment process (it has now completed the social security HIS and has the conditions to connect with social security). The digital dental project was initially successful. The digital dental project is cooperating with Baidu to connect West China Dental Hospital with various clinics in Sichuan. It is currently in the pilot phase and can increase clinic revenue by 30%-100%. Not only can clinic doctors have access to high-end surgical practices and training, but each surgical plan is endorsed by Huaxi doctors to ensure the quality of surgery, and also save patients' time and money costs. Baidu is shared through diversion, thus achieving a win-win situation. Build a core platform for Sichuan and continue to expand to the southwest. After the signing of this strategic framework agreement, Wanfang Development will act as the investor and operator of “smart healthcare” in Sichuan Province, marking the company's entry into the “Internet+Healthcare” market in Sichuan Province. The company will use Sichuan Province as the core province and region for intelligent medical care, expand to the southwest region, and build an industrial structure for intelligent medical care in the southwest region. According to the strategic framework agreement, the company will further expand or acquire businesses and assets related to intelligent healthcare. Valuation rating: The company has firmly transformed the medical field, especially in the field of Internet medical care, and has received government support. The WeChat WIFI model in West China Second Hospital is replicable, the internal governance structure is continuously optimized and improved, and it should enjoy high premiums. It is estimated that EPS will be 0.01 yuan, 0.02 yuan, and 0.03 yuan respectively in 15-17, maintaining an incremental rating. Risk warning: The Internet medical layout falls short of expectations.