Core Viewpoint - The rapid growth of digital technology in the healthcare sector is driving the development of digital traditional Chinese medicine (TCM), which has become a national strategy in China [1] Group 1: Policy and Strategic Initiatives - The National Administration of Traditional Chinese Medicine and the National Data Bureau issued a notice to promote the integration of big data and artificial intelligence into TCM over the next 3-5 years [1] - The initiative aims to create a "smart TCM" system that supports the modernization of TCM and contributes to the construction of a digital China [1] Group 2: Implementation in Dongying City - Dongying City is actively responding to national policies by focusing on the multiplier effect of data elements and exploring the value of TCM data to enhance high-quality development [1] - A city-wide TCM diagnosis and treatment business supervision system has been established to collect and analyze data from various medical institutions, providing a scientific basis for performance management [1] Group 3: Innovations in TCM Services - Five smart shared TCM pharmacies have been established, allowing grassroots medical institutions to prescribe, process, and deliver TCM, achieving full coverage in the region [2] - By June 2025, these pharmacies had completed over 490,000 TCM prescriptions and delivered over 150,000 orders, significantly improving resident satisfaction and medical experience [2] Group 4: Digital Health Services - The "Dongying Famous Doctors Hall" platform integrates online and offline TCM services, enabling residents to access expert consultations and services from home [3] - The implementation of the "one-stop service" for TCM prescriptions has streamlined the management of TCM services, enhancing the overall patient experience [3]

Core Viewpoint - Public funds are increasingly interested in AI healthcare, with a notable investment in the Hong Kong-listed Chinese medicine chain, Guoshengtang, by prominent public fund institutions like Ruiyuan Fund [1][2][4]. Group 1: Investment Activities - Ruiyuan Fund has significantly increased its stake in Guoshengtang, acquiring 410,000 shares at a price of HKD 38.6889 per share, totaling approximately HKD 15.86 million, raising its holding to 6.04% [3]. - On February 21, Ruiyuan Fund also purchased 753,400 shares at an average price of HKD 33.6615, valued at about HKD 25.36 million, increasing its holding from 4.7% to 5.01% [3]. - Other major funds holding Guoshengtang include Southern Fund, E Fund, and Huashan Fund, with some funds exceeding a 10% holding [3]. Group 2: AI Healthcare Trends - The surge in Ruiyuan Fund's investment is speculated to be linked to the growing trend of AI in healthcare, particularly with Guoshengtang's inclusion in the newly launched China AI Healthcare Index [4][6]. - Guoshengtang has been proactive in integrating AI technologies into its operations, focusing on smart diagnostics, remote healthcare, and electronic medical record management [4][7]. Group 3: Business Model and Market Position - Guoshengtang is recognized as the largest Chinese medicine service chain, serving millions annually, and has been acknowledged for its innovative practices in AI healthcare [6]. - The company has adopted a new OMO (Online-Merge-Offline) business model, expanding its physical presence to 74 clinics across 20 cities, with a focus on digital healthcare solutions [12]. - In the first half of 2024, Guoshengtang reported a revenue of CNY 1.365 billion, a year-on-year increase of 38.4%, driven by its healthcare solutions [12].