Expand diversified medical service business based on its comprehensive hospitals. The Group began to operate Ruici Hospital in Nantong, Jiangsu Province in 2002. After about 14 years of operation, Nantong Ruici Hospital has become the largest private for-profit general hospital in the region in terms of revenue in 2015. With its experience in general hospital operation, the Group expanded to the medical examination business and established the first medical examination center in Shanghai in 2007. According to Frost Sullivan report, the group is the third largest private medical examination service provider in the Yangtze River Delta region by 2015 earnings, and ranks fourth in China. To further supplement the types of services, the company launched its clinic business in Shanghai in June 2015, and continued to expand its general hospital and physical examination business in the same year. The group plans to enter the specialist hospital market in 2017.

Financial growth is stable. The company maintained continuous financial growth in the previous period: the Group's income increased from 488.9 million in 2013 to 597.8 million in 2014 and further increased to 802.8 million in 2015, and in 2013, 2014 and 2015, its net profit was RMB39.9 million, RMB5.7 million and RMB29.1 million respectively. For the six months ended June 30, 2015 and 2016, the company recorded net losses of 47.7 million yuan and 12.2 million yuan, respectively. The reason for the loss in interim results is that the medical examination business generally results in a net loss in the first half of each year, and corporate customers usually arrange for their employees to have a medical examination in the second half of each year, while its operating costs are evenly distributed throughout the year and account for a large proportion of the related costs and the expenses are fixed. In 2013, 2014 and 2015, and for the six months ended June 30, 2015 and 2016, the Company's adjusted EBITDA was 125.1 million, 117.2 million, 173.8 million, 20.4 million and 80.8 million, respectively.

In the future, we will focus on expanding paediatrics and obstetrics and gynaecology services. The Group is rooted in the Yangtze River Delta region, benefiting from the two-child policy, and is expected to expand its pediatric and obstetrics hospital services in the future. Shanghai and Nantong, Jiangsu Province, where the group is located, have a high proportion of wealthy people, and their willingness to spend on health care is higher than that of the whole country. The Group plans to open three senior specialist hospitals, including an advanced obstetrics and gynecology hospital in Changzhou, Jiangsu Province in the third quarter of 2017, and a maternity hospital and a children's hospital in cooperation with well-known public hospitals in Shanghai in the third quarter of 2017 and the fourth quarter of 2018, respectively, to cope with the demographic dividend brought about by the full opening of the second child by the government. At the same time, the company plans to expand Nantong Ruici Hospital, open eight new medical examination centers and expand two existing medical examination centers in the next two years, and open 10 new clinics by the end of 2016.

It is recommended to subscribe carefully. The company is located in the rich areas of the mainland and has many years of successful operation experience, and has made good achievements in recent business development. At the same time, thanks to the national policy support and the comprehensive opening up of the second child policy, it is expected to have a good business growth capacity in the future. In terms of valuation, the company's 2015 price-to-earnings ratio is 121.32-133.65 times, and the price-to-book ratio is 4.06-4.15 times, which is higher than that of its peers. It is recommended to subscribe carefully.