Langma Information Surges to Daily Limit After Releasing 2016 Annual Report and Filing Prospectus

On March 23, Langma Information released its 2016 annual report. According to the report, the company achieved operating revenue of RMB 398 million during the reporting period, representing a year-on-year increase of 25.72%; net profit amounted to RMB 85.1458 million, reflecting a year-on-year decline of 13.47%.

On March 24, at 9:32 a.m. during the morning trading session, Longma Information (Stock Code: 300288) experienced unusual market activity, with its share price surging by 5.06% to hit a new two-month high (post-adjustment price). As of 10:00 a.m. on March 24, the stock was trading at RMB 27.40 per share, with a trading volume of 43,260 lots, a turnover rate of 2.46%, an amplitude of 2.63%, and a volume ratio of 78.03.

According to the annual report, during the reporting period, the company was mainly engaged in healthcare and internet healthcare, as well as telecom value-added services. In 2016, the company's online internet healthcare business achieved significant breakthroughs, with initial signs of integrated development with offline physical healthcare services.

Meanwhile, in 2016, the company made significant progress in the pharmaceutical distribution sector, further strengthening its healthcare ecosystem. In traditional telecom value-added services, the “Phone Meet-and-Greet” business remained stable, while the mobile virtual network operator (MVNO) business achieved rapid growth, continuing to provide the company with a steady cash flow.

Langma Information's 2016 Revenue Performance Data Source: 《Longma Information 2016 Annual Report》

Under the "Physician-to-Physician Consultation" model proposed by 39 Internet Hospital, patients can directly schedule appointments with Grade A tertiary hospitals in major cities such as Beijing, Shanghai, and Guangzhou from their local areas.Renowned specialists conduct remote consultations, enabling multi-party video conferences among patients, primary care physicians, and top-tier medical experts to help optimizeHigh-quality medical resources are being connected with grassroots hospitals. Since39Since its launch, the internet hospital has partnered with over 100 medical institutions, with the largestMaximize the support and assistance that the remote consultation model brings to primary healthcare institutions.

As of now,39 Internet Hospital has been signedApproximately from Peking Union Medical College Hospital, Peking University,301Wait until exceeding50Over 1,000 expert-level physicians from renowned hospitals; consultation cases are sourced from across China23provinces, municipalities, and autonomous prefectures,28thousands of patient visits for complex and critical cases across various departments。

The development of 39 Internet Hospital has been highly recognized by the capital market. In June and November 2016, 39 Internet Hospital successivelyCompleted two angel rounds.+Financing,Total Financing (RMB)7,000CNY 10,000, current post-money valuation5.7RMB 100 million。

Guizhou (Guiyang) Internet Hospital, with tertiary and secondary hospitals as its core, and community (township) hospitals and village health and family planningService centers, physical pharmacies, and other convenient locations serve as consultation points, making primary healthcare institutions the naturalextension, forming a multi-tiered medical service structure of “hospitals + community health service centers + village family planning and health service rooms.”

Guiyang Internet Hospital deploys telemedicine video systems in convenient pharmacies, community service centers, and township health clinics.frequency devices, or users can directly use the mobile app "Gui Health," where general practitioners provide services to users via remote video consultation.Initial consultation for common and frequently occurring diseases, as well as health advisory services for chronic diseases.

Currently, Guiyang Sixth People's Hospital has established an Internet-based Chronic Disease Management Department, withApprox.Approximately 70 medical professionals provide services to users of the Guiyang Internet Hospital. In 2016, the Guiyang Internet Hospital completed its service network deployment.Approximately 200, surpassing 5,000 daily video consultations。

The Company substantially completed the restructuring and capital increase acquisition of Guiyang Sixth People's Hospital by the end of 2015. In 2016, Guiyang Sixth People's Hospital Co., Ltd.The company is included in the consolidated financial statements of the parent company.

In 2016, Liu Yi Company achieved significant growth in outpatient visits, inpatient admissions, and surgical procedures, driving the company'sSi2016Annual Revenue Achieved10,694.46ten thousand yuan, achieving rapid growth. Compared with2015For the year, first, Liuyi Company due to capitalThe increase in asset valuation has led to a significant year-on-year rise in depreciation and amortization; secondly, Liuyi Company is2016Implemented zero markup on drugs.policy requirements, drug sales no longer generate profits; third, in 2016, Guiyang Sixth People's Hospital introduced a batch of professional technical personnel, concurrentlyProfessors and other senior experts established the Internet-based Chronic Disease Management Department, increasing staffing resources.

In summary,2016Year, Liu Yi CompanyLoss970.1510,000 yuan, achieving a significant reduction in losses on a comparable basis.

The primary factors driving operational improvements at Guiyang No. 6 Hospital include:

1) The company dispatched a new management team to Guiyang Sixth People's Hospital, and despite the lack of significant improvements in the hospital's infrastructure,By strengthening management and improving the quality of medical services, user satisfaction has been enhanced;

2) Guiyang Sixth People's Hospital has actively embraced the internet, and its collaboration with 39 Internet Hospital has significantly enhanced the hospital’s team of experts.Basic medical services can be provided to users more efficiently through the Guiyang Internet Hospital.

The future development strategy of Guiyang Sixth People's Hospital isIntegration of Online and Offline Development, Fully Leveraging the Promoting Role of Internet Healthcare in Physical Medical Services, by Enhancing the Level and Quality of Medical Servicesquantity, achieving leapfrog development for primary healthcare institutions.

The Company reviewed and approved the “Proposal on Consent to Participate in Equity Investment” at the 19th Meeting of the Second Board of Directors and the Fifth Extraordinary General Meeting of 2016.Proposal on the Acquisition of 70.4% Equity Interest in Guizhou Kangxin Pharmaceutical Co., Ltd. by Subsidiary Guiyang Pharmaceutical E-commerce Service Co., Ltd.>, <Regarding"Proposal on Capital Increase and Equity Participation in the Subsidiary Guiyang Pharmaceutical E-commerce Service Co., Ltd. and Related-Party Transactions."

Pharmaceutical E-commerce by Total Gross Merchandise Value3. Acquired a 70.4% equity stake in Kangxin Pharmaceutical for RMB 168 million, paid in cash and shares; meanwhile, the Medical Management Group and LangmaInformation and Wu Wensheng increased the registered capital of the pharmaceutical e-commerce company from RMB 50 million to RMB 300 million, with Langma Information contributing its ownA capital contribution of RMB 98 million.

Upon completion of the capital increase, Langma Information appointed Wu Wensheng as General Manager of Pharmaceutical E-commerce, and Wu Wensheng undertookDuring the tenure as General Manager, the pharmaceutical e-commerce business’s operating revenue (consolidated(reporting operating revenue, tax-inclusive) shall be no less than RMB 3.5 billion, RMB 4.5 billion, RMB 5.5 billion, and RMB 6.5 billion, respectively, for the pharmaceutical e-commerce netProfits (the net profit attributable to the parent company in the consolidated financial statements after deducting non-recurring gains and losses) shall be no less than RMB 110 million, RMB 135 million, and RMB 160 million, respectively.RMB 180 million.

On December 1, 2016, the 23rd meeting of the second board of directors of the company reviewed and approved the “Proposal on Agreeing to Participate in the Equity of the Subsidiary GuiProposal on the Acquisition of a 29.6% Equity Interest in Guizhou Kangxin Pharmaceutical Co., Ltd. by Yangshi Pharmaceutical E-Commerce Services Co., Ltd.>, approving the subsidiaryPharmaceutical e-commerce company acquires 29.6% equity stake in Kangxin Pharmaceutical for RMB 133.2 million; upon completion of the acquisition, Kangxin Pharmaceutical becomes a wholly-owned subsidiary of the pharmaceutical e-commerce company.wholly-owned subsidiary.

39 Health, under Qisheng Information, is China's leading healthcare portal website, dedicated to providing users with high-quality on-Online medical information services.

39Ask a Doctor pioneered the light consultation modelstyle, is China's leading online Q&A platform for healthy living; the Disease Encyclopedia includes14502diseases and symptoms; drug information is specificallyA comprehensive domestic and international drug inquiry website; Mingyi Online is China's largest online consultation platform for renowned physicians, offering services through online Q&A activities.Platform; the medical consultation assistant enables online appointment registration with nearly 10,000 experts, provides access to information on tens of thousands of hospitals across China, offers detailed profiles of physicians, and delivers the most professionalProfessional medical consultation guide for easy appointment booking with specialists.

39 Health has attracted a massive user base through high-quality informational content. Its current monthly reach exceeds 160 million users, and itsIndependentUser Daily Visits (UV) inPCOn computers and mobile devices2016Age has exceeded1,60010,000; Average Daily Page Views（PV) across all terminals, has already exceeded4,50010,000 times。

On this basis,2016Annual Revenue of Nianqisheng Information14,669.5710,000 yuan, net profit6,788.9510,000 yuan, having fulfilled the performance commitments.