Core Viewpoint - Xinhua Medical (600587.SH) is strategically focusing on innovation and collaboration with its investee company, Huajian Medical (01931), which it holds a 27.29% stake in, indicating a significant shift towards a new business model in the medical sector [1][4]. Group 1: Investment Structure and Strategic Collaboration - Xinhua Medical holds 443.7 million shares of Huajian Medical through its wholly-owned subsidiary, Hualun International, and uses the equity method to account for investment income [4]. - The company has appointed two directors to participate in Huajian Medical's board of 11 members, emphasizing its commitment to strategic oversight [4]. - Xinhua Medical has expressed a strong focus on industry risks and opportunities, providing credibility to Huajian Medical's innovative path [4]. Group 2: Strategic Developments of Huajian Medical - Since July, Huajian Medical has undergone a strategic upgrade centered on "reconstructing the medical innovation asset chain," initiating a dual primary listing in the U.S. [4]. - Key initiatives launched include the "NewCo+RWA" exchange strategy and the issuance of IVDD stablecoins, along with a partnership to establish a tokenized fund for innovative drug intellectual property [4][5]. - In August, Huajian Medical accelerated its strategy by launching a global enhanced Ethereum (ETH) treasury and forming a strategic partnership with HashKey, completing a compliant purchase of 149 million HKD in ETH [5]. Group 3: Market Impact and Future Prospects - The strategic moves aim to address pain points in pharmaceutical innovation by leveraging blockchain technology for intellectual property rights, pricing, and cross-border transactions [5]. - Xinhua Medical's cautious stance suggests potential strategic collaboration opportunities with Huajian Medical regarding its U.S. IPO, with the value of Xinhua Medical's stake in Huajian Medical reaching 4.1 billion HKD based on a market valuation of 15 billion HKD [5][6]. - The integration of stablecoins, Ethereum, and the RWA exchange is expected to create a multi-layered value system that could reshape traditional pharmaceutical intellectual property trading [6][7].