The company's revenue increased by 6.5% and net profit decreased by 28.45%. In the first half of 2014, the company achieved revenue of 1,179 million yuan, an increase of 6.5%, net profit of 400.4 million yuan, a decrease of 28.45%, net profit after deducting 36.8 million yuan, a decrease of 30.4%, and an EPS of 0.07 yuan. Among them: The second quarter achieved quarterly revenue of 647 million yuan, an increase of 21%, net profit of 017 million yuan, a decrease of 23%, net profit after deducting 16 million yuan, a decrease of 24%, and an EPS of 0.03 yuan, fully in line with expectations. The increase in the company's revenue in the first half of the year was mainly due to the increase in revenue from the pharmaceutical pharmaceutical business and pharmaceutical distribution business; the decline in the company's net profit was mainly due to the decline in the gross margin of APIs, the sharp increase in financial expenses (interest expenses) due to loans for the construction of a soil and water production base in Chongqing, and the increase in depreciation for the consolidation and depreciation of the new plant area. API revenue fell slightly by 2.85%, pharmaceutical drug revenue increased 6.79%, and pharmaceutical distribution business revenue increased 17.44%. In the first half of 2014, the company's pharmaceutical manufacturing business revenue was 697 million yuan, up 10.81% year on year, gross profit margin 20.75%, down 3.5 percentage points year on year; of these: API revenue was 524 million, down 2.85% year on year, gross profit margin 18.14%, down 3.52 percentage points year on year. We expect pharmaceutical revenue to be 95 million, up 6.79% year on year, gross profit margin 46.37% year on year, up 6.4 percentage points year on year. We expect the company to strengthen pharmaceutical business market operations, such as Merro The share of high-value-added varieties such as Peinam and the newly marketed palonosetron has increased the gross profit margin of pharmaceutical drugs. The drug milinone for heart failure has received production approval, and on-site inspections have been completed. After receiving GMP certification, it is expected to be marketed in the second half of the year. The company's pharmaceutical distribution business revenue was 471 million yuan, up 17.22% year on year, gross profit margin was 17.09%, up 2.8 percentage points year on year; of these: drug distribution revenue was 403 million, up 17.44% year on year, gross profit margin 13.13%, up 3.46 percentage points year on year, mainly due to the company's targeted optimization of distribution business structure, reduced the share of low margin net sales business, and expanded high margin agency and pharmacy hosting business; medical device and reagent revenue was 68 million yuan, up 15.91% year on year, gross profit margin 40.54%, down 0.75 percent year on year Percentage points. The expense ratio for the period decreased by 1.64 percentage points, and operating cash flow increased 212% year over year. The company's gross profit margin for the first half of 2014 was 19.12%, down 0.24 percentage points from the previous year. The cost ratio for the period was 14.82%, up 1.64 percentage points year on year, of which: sales expense ratio was 4.63%, up 0.08 percentage points year on year, management expense ratio was 7.04%, up 0.21 percentage points year on year; financial expense ratio was 3.14%, up 1.35 percentage points year on year, mainly due to increased interest expenses. The net operating cash flow per share was 0.05 yuan, an increase of 212% over the previous year, mainly due to receipt of equipment procurement advance payments from Peking University International Hospital and ancillary financing guarantees. Backed by resources from Peking University, the medical service giant has officially set sail. The company relies on the strong medical resources of shareholders Peking University, Peking University Fangzheng, and Peking University Medical Group to build a medical group aircraft carrier: Peking University Medical's 8 top three hospitals and 13 teaching hospitals provide solid support for the company's hospital layout; 5 hospitals, including Peking University International Hospital and Zhuzhou Kaide Hospital, and our anticipated more than 30 ongoing hospital projects have helped the company's hospital business expand vigorously. The company has also signed strategic cooperation agreements with Peking University Cancer Hospital and others to jointly establish the “Peking University Medical Oncology Hospital Management Company” to use this as a platform to establish the largest oncology specialist medical network in China under the “Peking University Oncology” brand. Peking University Fangzheng Group's hospital asset securitization platform, leading a new generation of medical services, maintains an increase in holdings rating. As the group's hospital asset securitization platform, Peking University Pharmaceutical has a lot of room for future market capitalization and deserves long-term attention. We maintained an EPS of 0.08 yuan, 0.10 yuan, and 0.13 yuan in 14-16, a year-on-year increase of -35%, 18%, and 27%, corresponding to the predicted price-earnings ratio of 206 times, 174 times, and 137 times; if we consider integrated medical mergers and acquisitions, and in 2014 only the fourth quarter of the year, we maintained the 14-16 EPS of 0.09 yuan, 0.21 yuan, and 0.27 yuan, with year-on-year increases of -28%, 121%, and 31%, corresponding to the predicted price-earnings ratio of 186 times, 84 times, and 64 times; maintaining the increase rating.