Core views: Event: Investment in the construction of Ningxia and Shangri-La Industrial Park, establishment of a merger and acquisition fund company issued an announcement. Through the holding subsidiary Liupanshan Traditional Chinese Medicine Resources Development Co., Ltd., in Longde County, Ningxia, it plans to invest in the construction of the Ningxia Liupanshan Green Chinese Medicine Industrial Park (Phase I) project in Longde County, Ningxia, with a total investment of 220 million yuan; through the subsidiary Yunnan Shangri-La Health Industry Development Co., Ltd., it plans to invest in the construction of the Shangri-La Health Industrial Park in the Shangri-La Economic Development Zone, with a total investment of 180 million yuan. Wutong Fuxin, Wutong Asia Pacific, and Yinda Investment plan to jointly initiate the establishment of Guangzhou Wutong New Healthcare Industry Investment Fund with a total scale of 1 billion yuan, an initial investment of 300 million yuan, and an initial investment of 300 million yuan. The company will invest 60 million yuan as a limited partner. Accelerate the layout of the entire Chinese medicine industry chain and seize the opportunity to integrate the industry ① Ningxia Company is a subsidiary holding 70% of the company's shares. Through the Ningxia Company, it invests in the Ningxia Liupanshan Green Traditional Chinese Medicine Industrial Park (Phase I) project, which is mainly used to build production and processing bases for traditional Chinese medicine formula granules, traditional Chinese medicine extracts, and traditional Chinese medicine tablets. ② The Yunnan Company is a subsidiary holding 50% of the company's shares. Through the Yunnan Company's investment in the construction of the Shangri-La Health Industrial Park, the main activities include the construction of a GAP base for plateau medicinal plants, production and processing of Chinese medicine tablets, and research and development of new resource products such as maca. By setting up local industrial parks in Ningxia and Yunnan, which are rich in Chinese herbal medicine resources, the company is expected to make rational use of local traditional Chinese medicine resources, reduce costs, strengthen the entire industry chain layout of Chinese herbal medicines, tablets, and formula granules, and accelerate the integration of the entire Chinese medicine industry. By setting up an industrial merger and acquisition fund, the company is expected to continue to expand and enrich Chinese herbal medicine resource reserves, Chinese medicine tablet product categories, Chinese medicine tablet comprehensive processing and manufacturing capabilities, and Chinese medicine terminal customer channels for Chinese medicine tablets over the years through investment in Hunan Chunguang Jiuhui Modern Chinese Medicine Company, the acquisition of Huqiao Pharmaceutical Co., Ltd., and the acquisition of Hubei Tianji Chinese Medicine Tablet Co., Ltd. Through the establishment of an industrial merger and acquisition fund, it is expected that professional resources will be concentrated to serve the company's external mergers and acquisitions needs. The 16-18 performance is expected to be 0.42 yuan/share, 0.50 yuan/share, and 0.57 yuan/share, respectively. The company's traditional business endogenous improvement, the tablet extension industry integration, and TCR technology is comparable to international leaders. We expect the company's 16/17/18 EPS to be 0.42/0.50/0.57 yuan (2015 EPS is 0.27 yuan). The current stock price corresponds to PE36/34/30 times, maintaining the “buy” rating. Risk indicates that the progress of drug development is low and that the progress of drug development is low; the risk of merger and acquisition integration;