CITIC Securities: Suggest continued attention to investment opportunities in the medical and health industry driven by policies.

CITIC Securities research report stated that the "Suggestions of the Central Committee of the Communist Party of China on Formulating the Fifteenth Five-Year Plan for National Economic and Social Development" provides important guidance for the development of the medical and health industry in the next five years. The core of the policy revolves around "implementing a strategy of prioritizing health development and improving the policy and institutional system for health promotion." We have studied this suggestion and summarized key points including: 1. Improving the multi-level medical security system, promoting the development of commercial health insurance; while optimizing drug procurement, medical insurance payment, and surplus fund utilization policies, enhancing the efficiency of medical insurance fund management. 2. Implementing long-term care insurance, which we expect to be one of the key development goals in the next stage of the National Healthcare Security Administration. 3. Supporting the development of innovative drugs and medical devices. 4. Continuing and deepening the direction of medical reform, promoting tiered diagnosis and treatment, deepening the reform of public hospitals with a focus on public welfare, implementing the basic construction project of medical and health care, promoting the intelligent construction of national health for all, etc. The policy reform of the medical and health industry has entered an intensive period, and it is recommended to continue to pay attention to investment opportunities in the medical and health industry driven by policies.