Future Development Potential of Jiuan Medical

Good development prospects and great potential. Specific analysis is as follows:

(I) Internal structural adjustment and optimization The current corporate structural adjustment lays the foundation for the implementation of the company's core strategy. The core of the adjustment is to break down the boundaries of the functions, to reduce the size of the various accounting units, and to tighten the staffing. We look for people with the right strategy, the strongest professional ability, and those who can be self-driven to form a team with the same dream and the same values. Up to now, the company has restructured the original departmental settings into an Internet medical board, a pop-up product board, a comprehensive business board, a basic technology board, and a functional service board. For the Internet medical segment, geographically-centered operation teams have been established in Beijing, Tianjin, Shanghai, Guangzhou, Shenzhen, Singapore and the United States.

Explosive segment of about 10 people, independent operation, separate accounting, target incentives, responsible for research and development and provide cost-effective smart hardware products for Xiaomi and WYZE platform. The integrated business segment includes the domestic business department, international trade department, factory and new retail expansion department, and further subdivided the business line in the business segment. The basic technology segment includes the blood pressure, blood glucose, and health product basic technology room, iHealth public **** functional R&D service department, communication module department, artificial intelligence room, and testing room. The technology lines are clearly divided and the division of labor is clear, which helps to improve the efficiency of R&D. The Functional Service Segment includes administrative personnel, finance and other public ****service departments, which are responsible for daily operations and providing services and support for the product, technology and business segments. The above adjustments are profit-centered, with clear core objectives, in line with the company's established development strategy and the requirements of actual operations, and are conducive to reducing operating costs, improving operational efficiency and improving the company's financial position.

(ii) Adhere to the ultimate cost-effective product strategy, and be friends with the user The company insists on the ultimate cost-effective, low gross profit, and strive to product exceeds expectations, price exceeds expectations. Being friends with users, we provide users with products and services that move people's hearts and are priced generously. Product definition, in-depth exploration of user needs and market development trends, focusing on user experience, the requirements of practical functions, convenient operation, good value for money. The company continues to upgrade and iterate in the temperature series products, hoping to meet the user's demand for accurate and fast measurement of thermometers, and continue to create a breakthrough product in the temperature industry.

In addition to this, it will also cooperate with Xiaomi and WYZE, a new online retail platform in the United States, to provide smart hardware products. It should be mentioned that WYZE is exploring Xiaomi's "online new retail" model in the United States, and the platform is growing rapidly and has been recognized by crunchbase, a database of startups, as one of the world's 50 hottest tech companies in 2019. We hope to capitalize on the booming opportunities of new retail and continue to launch explosive products on the Xiaomi and WYZE platforms. During the reporting period, we also launched a variety of consumer electronics products, further enriching our product line: on the basis of the existing head massager and neck massager, we launched a knee massager, which is a full range of knee care with warm sensation heat, red light irradiation, and "pushing and pressing" techniques, and is now sold in Xiaomi channels.

Upgraded nebulizer products, not only compressed nebulizer also launched a small micro-network nebulizer, easy to do at home nebulizer. In addition, the company also developed a pregnancy test pen and ovulation test paper, health low pressure intelligent long charcoal heat belt, warm abdomen and a variety of eye masks and other products during the reporting period. The Company is Xiaomi's partner in the health field. In addition to launching cost-effective products with the help of Xiaomi's channels, the Company is also actively exploring the field of new retail and opening Xiaomi authorized stores at home and abroad. So far, in China, the company has opened six Xiaomi authorized stores and five Xiaomi stores, with sales of nearly 90 million yuan during the reporting period. Five Xiaomi authorized stores have also been opened in Europe.

(C) in the Internet + medical field to actively promote diabetes diagnosis and treatment "O + O" new model In recent years, the company to build "intelligent hardware + APP + cloud platform" hardware and software integration of chronic disease management platform, and take the lead in its application in the field of diabetes management. In recent years, the company has built a "smart hardware + APP + cloud platform" integrated software and hardware chronic disease management platform and taken the lead in applying it to the field of diabetes management. The company has pioneered the establishment of a new model of "O+O" for diabetes diagnosis and treatment, establishing a doctor-centered care team and personalized patient management throughout the entire disease process. Through the intelligent hardware for health data collection, doctors + health care professional team to provide medical diagnosis and treatment and life intervention. At present, it has set up diabetes***similar care clinics in cooperation with more than ten professional medical institutions, including Peking University First Hospital, Chaoyang Hospital, Tianjin Medical University Metabolic Disease Hospital, Tianjin Yellow River Hospital, Shenzhen People's Hospital, etc. It has formed a perfect product system, accumulated a large amount of data, and has formed a highly active and sticky "fan" patient group.

At the same time, the service team is also online to provide consumers with consultation, health counseling and other high value-added services. The model utilizes the Internet, Internet of Things, and cloud technology to extend medical services from in-hospital to out-of-hospital, and from offline to online, effectively enhancing the patient experience, improving the efficiency of the healthcare team, and ultimately realizing the improvement of the level of standardized management of patients and the level of glycemic control up to the standard.

Till now, the company's diabetes treatment program has admitted more than 8,000 patients, with an average glycated hemoglobin (HbA1c) of 6.6%, an attainment rate of 65%, and an adverse rate far lower than the target value of 4%, which is more than double the average attainment level of other domestic and foreign medical institutions, and has been recognized by authoritative hospitals and industry experts at home and abroad. It also delivered a keynote speech as well as an hour-long demonstration at the 2019 Education and Management Symposium of the Diabetes Branch of the Chinese Medical Association, and published six wall papers, one of which was rated as excellent. At the same time, the United States, Singapore's new model of diabetes "O + O" diagnosis and treatment has also begun to land, and the U.S. health insurance has been clear about the way to pay. iHealth Europe's participation in the European Union government's health management program POWER2DM project is also in the clinical research stage.