1. Company performance: the company recorded a turnover of about 985 million yuan, an increase of 25.7% over 2014. The profit attributable to the owner of the parent company is about 302 million yuan, up 47 per cent from 2014. The EPS is 0.37 yuan, and the increase in profit is mainly due to the decrease of sales expenses and the ideal sales of specialist drugs.

2. API production resumes: the decline in revenue in 2014 is mainly due to the significant decline in production and sales of related products as a result of the GMP transformation of antibiotics. With the completion of the transformation of GMP, production will resume rapidly, and the series of APIs increased by 63% in 2015. The adjustment of the structure of the API is the reason for the loss, which will be improved later.

3. Ann series: under the background of the decline in industry prices, the prices of Angola series have increased by 30% and the volume has increased by 1%. The reason is: although the Ann series has many competitors, the company makes the brand by doing a good job in quality. Has been using imported accessories to ensure the good quality of products, through more than 10 years of brand building, the company won among many competitors, the trust of patients is very high.

4. Bidding strategy: the bidding policy is strict this year, and the overall price reduction will be relatively large. The company's response strategy is to take the high-end route, mainly relying on the quality advantages of products, in line with the international level of generic drugs, through full communication with provincial bidding, strive for separate pricing, do not engage in price war. For bidding, where the price is very low, the strategy of abandoning is adopted, and 14 provinces give up bidding.

5. the channels are constantly refined: in the 16 provinces that have won the bid, the channels are constantly refined to achieve rural health centers. at present, large hospitals control fees very strictly, and the company will continue to refine and strengthen the channels at the grass-roots level in the future.

6. R & D: the company attaches great importance to R & D and has bought 2 approvals this year. Consistency evaluation will continue to be done, each variety will be done, and the company is confident to pass. There are two varieties to be put on the market this year, and the sales prospect of proton pump inhibitor esomeprazole will be very broad, surpassing entecavir. AstraZeneca PLC's original research drug is sold on a scale of billions in China.

7. The net interest rate increased significantly: the net interest rate increased from 26.2% in 2014 to 30.7% in 2015, thanks to the increase in product prices and the control of cost.

8. Growth target for this year: the performance growth target for 2016 is above 20%.

9. Summary and suggestions: the company has a rich product line, a number of products have been selected into the catalogue of low-cost drugs, and the profits of specialist drugs have increased rapidly. The company has better cost control and payback, outstanding product quality and brand, proper bidding strategy and certain advantages, and is expected to maintain faster growth than the industry in the future. at present, the valuation is low, so it is suggested to pay active attention to it.