Notice: On April 9, the company signed a cooperation contract with Jinan University. Both parties participated in the research and development of “anti-tumor nanopharmaceuticals,” a type of new chemical drug with good anti-tumor activity and pre-clinical results, and reached an agreement on R&D promotion, clinical trial research, intellectual property rights, product production and sales, etc. “Anti-tumor nanopharmaceuticals” are innovative anti-tumor drugs with important clinical value independently developed by Jinan University, and their application prospects are promising. The main advantage of this drug is that it effectively improves the solubility of antitumor drugs, enhances their stability in the human body, controls their release in the human body and targeted selectivity, and overcomes problems such as toxicity and instability through nano-chemical technology of antitumor drugs. Early preclinical results show that the drug has good effects on various tumors such as breast cancer, cervical cancer, liver cancer, and lung cancer, and has low toxicity, and has great application prospects. Preliminary estimates suggest that the project will require a total capital of 75-85 million yuan, and the company will temporarily pay 6.5 million yuan to Jinan University. The payment and settlement methods are as follows: within 20 working days after this contract is signed, the company will pay Jinan University 2.5 million yuan for the pharmacy and pilot tests of the project; the toxicology, pharmacokinetics and clinical research expenses will be paid separately by the company to a third party agency. The two parties jointly negotiated and reported actual sales; and within 20 working days after the production approval of the State Food and Drug Administration, 2 million yuan of R&D funds were paid to Jinan University. Intellectual property patent ownership and revenue distribution are mutually beneficial and win-win: the company enjoys the right to apply for patents, and Jinan University researchers join as inventors in the form of natural persons; both parties share the right to use and transfer technical secrets; for products produced based on this technology, the company uses 1% of sales of such products to Jinan University every year, and Jinan University redistributes them according to relevant regulations. Anti-tumor drugs will become a new profit growth point for the company. This cooperation means that the company will enter a new field of anti-tumor drugs, develop new leading drug varieties, enrich the product structure, and enhance development momentum, thereby enhancing the core competitiveness of the company's products and ability to innovate independently, and form new profit growth points, in line with the company's future development strategy. Antineoplastic drugs will become the company's future profit growth point. This cooperation means that the company will enter a new field of anti-tumor drugs, develop new leading drug varieties, enrich the product structure, and enhance development momentum, thereby enhancing the core competitiveness of the company's products and ability to innovate independently, and form new profit growth points, in line with the company's future development strategy. Risk warning: Risk of clinical results falling short of expectations, approval of new drugs, and sales. Profit forecasts and valuations. We expect the company's EPS for 2014-2016 to be 0.29 yuan/0.37 yuan/0.54 yuan, respectively. Maintaining the “buy” rating, the target price is 16.2 yuan.