Core Viewpoint - The company is undergoing significant changes in its business structure and strategy to adapt to the challenges posed by the aging population and the evolving market for elderly care services, particularly in the context of the "9073" model of elderly care in China [15][21][24]. Group 1: Financial Assessment - The estimated present value of future cash flows for Jiangsu Hekang Elderly Care Industry Group Co., Ltd. is projected to be 73.71 million RMB as of December 31, 2024 [1]. - The pre-tax discount rate calculated for the company is 11.26% [1]. - The weighted average cost of capital (WACC) is adjusted to a pre-tax basis to align with cash flow forecasts, resulting in a WACC of 11.01% [1]. Group 2: Asset Group Recognition - The recognition of asset groups is based on their ability to generate independent cash inflows, considering management's operational decisions and asset usage [2]. - An asset group can be identified if it can independently create revenue, which is crucial for the assessment of goodwill impairment [2]. Group 3: Business Strategy and Market Trends - The company is focusing on the elderly care sector, providing online information services and offline assistance services, with a current user base of approximately 500,000 [10][11]. - The company plans to expand its market presence in economically developed regions, particularly in East and South China, while also exploring opportunities in the less competitive central and western regions [12]. - The government is actively supporting the elderly care industry through various policies, which is expected to enhance market opportunities for the company [20]. Group 4: Industry Overview - China's elderly population is projected to reach 310.31 million by the end of 2024, accounting for 22% of the total population, which presents a significant demand for elderly care services [18]. - The market for smart elderly care is expected to grow rapidly, with projections indicating a market size of 6.8 trillion RMB in 2024, increasing to 7.21 trillion RMB by 2025 [19]. - The industry is facing challenges such as insufficient supply of quality services and a lack of skilled personnel, which need to be addressed for sustainable development [15][21].