The annual report's performance exceeded expectations and the 2015 annual report was announced on February 2. Operating revenue was 780 million yuan, up 35.06% year on year; net profit attributable to listed companies was 78 million yuan, up 97.83% year on year; and earnings per share were 0.28 yuan, which greatly exceeded previous forecasts. The distribution plan is: a cash dividend of 1 yuan (tax included) for every 10 shares, and 5 additional shares for every 10 shares. 2015 was an inflection point, and 2016 entered a rapid development trajectory. Using the capital market, epitaxial expansion has accelerated through mergers, acquisitions and restructuring to establish a pharmaceutical integration framework with three major sectors: traditional Chinese medicine preparations and Chinese medicine tablets, chemical raw materials and pharmaceutical intermediates, biopharmaceuticals, and research and development. In 2015, companies such as Dongli Enterprise Management, Longxi Baohetang Pharmaceutical, Wannianchang Pharmaceutical, and American Biopharmaceutical Company were successively acquired, enriching the company's main business and increasing the company's revenue and net profit. 2016 will continue to focus on the development strategy of “one main and two wings, involved in biomedicine” and accelerate the implementation of mergers, acquisitions and restructuring projects. By industry, traditional Chinese medicine and chemicals are basically equally divided by industry. Sales revenue of traditional Chinese medicine preparations was 220 million yuan, up 36.23% year on year; revenue from Chinese herbal medicines and traditional Chinese medicine drinks was 216 million yuan, up 18.79% year on year; the two together accounted for 55.77% of revenue. Chemical raw materials and intermediates achieved revenue of 315 million yuan, an increase of 22.09% over the previous year, accounting for 40.37% of revenue. As can be seen, traditional Chinese medicine and chemical medicines account for about the same share of revenue, and are equally divided. In the future, with the development of biopharmaceuticals, the main business will show a three-part world pattern. The investment strategy raised the profit forecast. We expect earnings per share for 2016-2018 to be 0.43 yuan, 0.61 yuan, and 0.93 yuan, respectively, corresponding to PE of 90 times, 63 times, and 42 times, respectively. In view of the establishment of an inflection point in the company's performance and entering a period of rapid development, we continue to give it a “recommended” rating. Risks suggest that prices of Chinese herbal medicines fluctuate greatly; epitaxial expansion is lower than expected; new product development risks, etc.