Incident: Qianyuan Pharmaceutical issued 33.8 million shares for the first time. The study concluded that the reasonable price range is 12.55-13.81 yuan. According to our profit forecast, the company's diluted earnings per share in 2011, 2012, and 2013 were 0.42 yuan, 0.55 yuan, and 0.76 yuan. Based on the predicted price-earnings ratio of 30-33 times in 2011, the corresponding reasonable price range was 12.55-13.81 yuan. The actual controllers are six concerted actors including Weng Zhanguo, and six shareholders of the company, including Weng Zhanguo, Han Zhenlin, Zhang Tonghui, Zhao Qun, Zhang Zhenbiao, and Xuanhang, have actually controlled the company together since 2007. All parties have maintained concerted actions on the company's major decisions, and the six shareholders plan to maintain such concerted actions in the future to guarantee control over the company. Together, the six shareholders hold 64.17% of the company's shares before this issue (47.96% after issuance), and are the company's common controlling shareholder and actual controller. The company specializes in providing comprehensive anti-infective products and solutions. With semi-synthetic penicillin compounds and semi-synthetic penicillins, the company has an advantageous position in the field of anti-drug resistant anti-infective drugs. The revenue of the company's penicillin products in the past three years has increased from 127 million to 197 million, with a compound growth rate of 24.46%, ranking among the highest in the industry. The compound growth rate is expected to be 23% in the next three years. The company forward-looking believes that fosfomycin anti-infective drugs will be excellent products in the future. It has already begun to intervene in the past three years, with a compound growth rate of 16.63%. Moreover, in this fund-raising project, there are both projects to expand the production line of phosphomycin APIs and projects to increase fosfomycin preparations. We expect that the company's revenue from phosphomycin products will increase significantly after delivery. Furthermore, the company has begun to deploy antidepressants and central nervous system drugs, and subsequent product tiers have laid the foundation for continued development. The market growth rate of anti-infective drugs with correct strategies and proper marketing is about 14%, which is lower than the growth rate of the pharmaceutical industry. However, the company insists on providing anti-infective drugs that are resistant to drugs, and the blue ocean was discovered in the Red Sea. The compound growth rate of 25.26% in revenue over the past three years confirms the correctness of the company's strategy; furthermore, the company is different from other companies' “refined value-generating investment model”, is committed to the flatten marketing network, and creates added value for dealers in the sales process. Based on this, the company has established a professional marketing team and marketing network, has more than 2,200 distributors nationwide, covers more than 10,000 sales terminals, and has outstanding sales capacity. Fund-raising project analysis The company now plans to publicly issue 33.8 million RMB common shares to the public, and all of the capital raised will be used for projects related to the company's main business. The fund-raising project will resolve the company's production bottlenecks, consolidate the company's R&D level, and lay the foundation for the company's further development. Risks indicate product market competition risks, new product marketing risks, drug price adjustment risks, etc.