Fulgent is the company that provides the largest number of genetic tests for NIH, and its services are spread all over the world. Fulgent is a standardized genetic testing service agency for clinical molecular diagnosis certified by CLIA and CAP in the United States. It provides the most comprehensive genetic testing service to the world with a large genetic database and top technical equipment. On the genetic testing database system of NIH, the most authoritative US national health agency for all reagents, Fulgent is the institution that provides the largest number of genetic tests, serving many countries and regions in the United States, Canada, Australia, Europe, South America and Asia. Fulgent Diagnostics is also the world's highest company that uses next-generation sequencing technology for DNA sequencing and gene copy number analysis, and provides professional genetic consulting services. Its main business is: single gene testing (providing 4,637 single gene test items), multi-gene combination analysis (providing more than 170 test items), exon testing, cancer gene specific testing, and providing testing services other than second-generation sequencing. This investment in Fulgent is one of the important steps in implementing the company's strategic transformation. Through foreign investment, learning advanced technology, and drawing on advanced experience, the company breaks through existing in vitro diagnostic reagent business types and advances into the more advanced field of genetic testing, continuously narrows the gap between the company and international industry giants, and plays a critical role in forming a complete in vitro diagnostic reagent industry chain and enhancing the company's competitiveness in the field of in vitro diagnostic reagents. Fujian Fujun Gene Technology Co., Ltd. is mainly engaged in domestic genetic testing and diagnosis services. Through genetic testing and other means, it provides medical institutions, scientific research institutions, enterprises, institutions, etc. with genomics diagnosis and research services: basic research and clinical application services for reproductive health; basic scientific research services; basic research and clinical application services for complex diseases; basic drug research and clinical application services; basic drug research and clinical application services. This investment to establish Fujun Gene Technology Co., Ltd. can effectively integrate the resource advantages of all parties in technology, talent, market, capital, etc., continue to promote the company's genetic testing and diagnosis services, provide domestic medical institutions and general consumers with world-class genetic diagnosis services, further expand the company's product line in the field of in vitro diagnostic reagents, and inject new development impetus into the company's development. Genetic sequencing has broad market prospects and development space. Genetic sequencing is one of the fastest growing segments of the in vitro diagnostic industry in recent years. Genetic diagnosis can not only track the pathways of infectious diseases, but also predict the risk of individualized diseases and effectively predict various diseases such as cancer, diabetes, and Down syndrome, thus providing effective help for later prevention and treatment. As an important development direction for the country now and for some time to come, genetic testing has broad market prospects and development space. The main reasons for the steady increase in the company's performance in 2015 were: 1) the optimization of the product structure, the increase in the company's revenue and the increase in the overall gross margin level; 2) the increase in net profit brought about by acquired companies such as Shenzhen Chemical Communications and Hunan Chemical Communications; 3) the newly established company Xilong Medical contributed profits. Continue mergers and acquisitions, integrate high-quality resources, and vigorously develop IVD business. In 2014, the company quickly entered the IVD field through the acquisition of new continents, and continued to expand its presence in the IVD field. Subsequently, the Xilong Medical Diagnostic Center and the Jiaxing Qingshi Xilong Equity Investment Fund were established, the capital of Yonghe Sunshine Biotech was increased, and Shenzhen Chemical Communications and Hunan Chemical Communications were acquired, further optimizing the product structure in the diagnostic field. Since this year, the company has announced plans to acquire 70% of each of Fuzhou Xinbei and Shanghai Xibei in order to enter the field of reagents and POCT in Shanghai. The company continues to carry out integrated mergers and acquisitions upstream and downstream of the in vitro diagnosis industry chain, and is expected to become a leading enterprise in the in vitro diagnosis industry in China. Set up three platforms for e-commerce of reagents, medical devices and large-scale chemicals to create advanced O2O suppliers in domestic segments. Xilong (Shanghai) Medical Service Co., Ltd., e-commerce platforms “Pay Network”, and “Dr. Mao Laboratory” are progressing smoothly. The company will rely on advanced marketing models and have strong supporting service capabilities, which is conducive to improving the company's economic efficiency and market competitiveness, and becoming a new profit growth point for the company. Maintain the company's “buy” rating. The company is steadily advancing in the direction of expansion and strengthening in the field of in vitro diagnosis. Combining the three platforms, the company will build an advanced O2O supplier in domestic segments, introduce advanced technology for gene sequencing from abroad, expand the company's product line in the field of in vitro diagnostic reagents, and inject new development impetus into the company's development. Without considering the impact of foreign investment yet, the company's EPS for 2015-2017 is expected to be 0.39, 0.66, and 0.92 yuan respectively, giving it a “buy” rating. Risk warning: There is a risk that fund-raising projects will not meet expectations; the transformation process will progress slowly, and foreign investment will not meet expectations.