Recently, the controlling shareholder of Haihong Holdings, the company's controlling shareholder, signed a capital increase agreement with China State-owned Capital Venture Capital Fund Co., Ltd. (hereinafter referred to as “China Venture Capital Fund”). China Venture Capital Fund increased the capital of CNOC by 500 million yuan, of which 300 million yuan was included in registered capital and 200 million yuan in capital reserves. After the capital increase was completed, China Venture Capital Fund's shareholding ratio of CNOC was 75.00%. It became CNOOH's controlling shareholder and indirectly controlled the company. The actual controller of the company was changed from Ms. Kang Qiao to China Guoxin Holdings Co., Ltd. (hereinafter referred to as “China Guoxin”), the actual controller of China Venture Capital Fund. Furthermore, in order to collaborate with central enterprises to settle in, the company adjusted its main business and sold some assets related to pharmaceutical e-commerce and trading business (Guangdong Haihong and Hainan Weihong Trading Center), focusing on PBM and new health services. After Zhonghai Heng, the new actual controller and majority shareholder of China Guoxincheng Corporation, received financial support from the China Venture Capital Fund to increase its capital by 500 million yuan to the controlling shareholder Zhonghai Heng, held 75% of the latter's shares and indirectly controlled Haihong Holdings. China Guoxin became the actual controller of the company through the Guoxin Fund. The majority shareholder, Zhonghaiheng, can receive up to 4.6 billion yuan in new capital within the next 5 years. Its capital strength has increased dramatically, making future financial support for listed companies PBM and new health businesses more secure. This asset sale and introduction of central enterprise shareholders is a win-win cooperation for all stakeholders. Haihong Holdings is gradually selling pharmaceutical e-commerce and trading business, focusing on PBM and new health business. In recent years, the company has gradually focused on its main business. It has successively sold and disposed of e-commerce and trading subsidiaries in various regions, such as Beijing Haihong, Chongqing Weihong, Liaoning Haihong, Jiangsu Weihong, Hainan Haihong, etc., and continues to accelerate business adjustments and sell Guangdong Haihong and Hainan Weihong Trading Center. This sale is beneficial to the company in terms of assets, profit, and business optimization. Haihong's intelligent health insurance review service covers 149 co-ordinated regions, covering 270 million insured people. The intelligent health insurance review service of Haihong Holdings, including contract approval, has covered 24 provinces/municipalities across the country and nearly 200 prefectures and cities (health insurance co-ordinated zones). Among them, 149 health insurance fund co-ordinators in 23 provinces have implemented contract review services, accounting for about 37.63% of the national health insurance co-ordinating units (about 396 health insurance co-ordinating units nationwide), involving 270 million insured persons, involving 500 million health insurance fund coordination units Above, it is ranked first in the country. Profit forecasts and investment ratings assume that the sale of assets from Guangdong Haihong and Hainan Weihong Trading Center will be completed within the year. We believe that after central enterprises enter, the company will become a national health insurance team, removing the obstacles affecting the intelligent health insurance audit business to achieve full charges. We predict that in 2017-2019, the company's operating income will be 0.71/8.21/33.99 billion yuan, a year-on-year increase of -67.1%/1050%/313.9%, respectively, and net profit of 1.22/3.44/1,719 million yuan and EPS of 0.14/0.38 respectively /1.91 yuan. In view of the entry of central enterprises, the actual controller of Haihong Holdings became China's Guoxin. The future development of PBM's main business is more secure, and the “buy” rating will be maintained. Risk warning 1. The progress of PBM business development and implementation fees is lower than expected; 2. Fee standards may vary, and the ratio may be lower than estimated; 3. Macroeconomic risk and market fluctuation risk.