INDUSTRY OVERVIEW

We believe that the sources of the information in this section are appropriate sources for such information, and have taken reasonable care in extracting and reproducing such information. We have no reason to believe that such information is false or misleading, or that any fact has been omitted that would render such information false or misleading. Our Directors confirm that, after taking reasonable care, there is no adverse change in the market information that would qualify, contradict or have a material impact on such information since the date of the Frost &
Sullivan Report. The information from official government and non-official sources has not been independently verified by us, the Joint Global Coordinators, the Joint
Sponsors, the Joint Bookrunners, the Joint Managers, any of the Underwriters, any of their respective directors and advisers, or any other persons or parties involved in the
Global Offering, and no representation is given as to its accuracy. Accordingly, the official government and non-official sources contained herein may not be accurate and should not be unduly relied upon.
SOURCE OF INFORMATION
We engaged Frost & Sullivan, a market research consultant, to prepare the industry report for use in this prospectus. Frost & Sullivan, founded in 1961, provides market research on a variety of industries, including healthcare. The information from Frost & Sullivan disclosed in this prospectus is extracted from the Frost & Sullivan Report, a report commissioned by us, and is disclosed with the consent of Frost & Sullivan. In preparing the
Frost & Sullivan Report, Frost & Sullivan collected and reviewed publicly available data such as government-derived information, annual reports, trade and medical journals, industry reports and other available information gathered by not-for-profit organizations. The data collected by Frost & Sullivan was last updated in October 2013 based upon data available up to then. Frost & Sullivan adopts a comprehensive data collection model, which includes primary research with the industry stakeholders, secondary research on the government statistics, and data validation process with industry key opinion leaders. Frost & Sullivan assumes that the interviewees are not intentionally providing wrong or misleading information and the government statistics do not contain errors. Frost & Sullivan also assumes no unexpected events such as wars or disasters occur during the relevant forecasting period. Frost & Sullivan has developed its forecast on the following bases and assumptions:
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the social, economic and political environments of the PRC will remain stable during the forecast period, which will ensure a sustainable and steady development of the PRC healthcare industry;

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the PRC healthcare market will grow as expected due to the rising healthcare demand and supply;

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the PRC government will continue to support the healthcare reform, which encourages private capital investments in the healthcare service industry; and

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the Beijing healthcare market will grow during the forecast period and will remain the most sophisticated healthcare market in China.
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INDUSTRY OVERVIEW
We and Frost & Sullivan believe that the basic assumptions used in preparing the Frost &
Sullivan Report, including those used to make future projections, are factual, correct and not misleading. Frost & Sullivan has independently analyzed the information, but the accuracy of the conclusions of its review largely relies on the accuracy of the information collected. We paid Frost & Sullivan a fee of RMB850,000 for preparation and update of its industry report, which is not contingent upon the completion of the Global Offering.
HEALTHCARE SERVICE MARKET OVERVIEW OF CHINA
Healthcare services are the business that provides diagnosis, treatment and prevention of human disease, illness, injury or dysfunction through medical