The company released its 2014 annual report and achieved annual revenue of 227 million yuan (+4.57%). Net profit of 53.61 million yuan (-16.63%) was realized. Earnings per share were $0.34 (-15.00%). The company plans to pay 1 yuan in dividends for every 10 shares and increase 10 shares by 8 shares. In addition, the company released a performance forecast for the first quarter of 2015. Net profit was 158.64 million yuan to 17.454 million yuan, an increase of 0-10% over the previous year. Comment: Revenue grew steadily, and the decline in net profit narrowed quarter by quarter. Driven by traditional products such as the incubator series, especially foreign markets, the company achieved revenue of 227 million yuan in 2014, an increase of 4.57% over the previous year. Affected by market development expenses, increased R&D investment, and reduced interest income, etc., net profit of 53.61 million yuan was realized throughout the year, a year-on-year decrease of 16.33%. However, judging from the company's quarterly data, the decline in growth rate narrowed from quarter to quarter. By Q4, net profit fell 1.8% year on year, which was basically the same as the same period last year. The growth rate of major products stopped falling and rebounded, and product categories continued to be enriched. During the reporting period, infant incubators achieved revenue of 123 million yuan, an increase of 7.85% over the previous year. The baby radiation warmer achieved revenue of 51.0462 million yuan, a slight decrease of 3.04% over the previous year. The revenue of neonatal jaundice treatment equipment was 22.5022 million yuan, down 9.11% from the previous year, and the revenue growth rate of major products improved markedly from '13. The company focused on reproduct development. The R&D investment during the reporting period was 11.862 million yuan, an increase of 18.96% over the previous year. The share of R&D investment in revenue increased from 3.7% in 2012 to 5.22% in 2014. In 2014, a number of new products and upgraded products were launched, such as medical air-oxygen mixers, neonatal jaundice treatment beds, neonatal jaundice treatment devices, and infant incubators. Profitability has declined, and net cash flow has maintained a relatively rapid growth rate. The increase in sales and R&D expenses and the decrease in interest income caused the company's net interest rate to drop by 6 percentage points. In 2014, the company's net operating cash flow increased 20% year on year to 67.79 million yuan, with excellent performance. Profit forecasts and ratings. The estimated EPS from 2014 to 2016 is 0.38, 0.43, and 0.49 yuan, and the corresponding PE is 113, 99, and 87 times. As a leading enterprise in the field of infant care equipment, the company benefits from the country's continuous investment in the field of maternal and child health care. At the same time, the new wave of baby booms brought about by the two-child policy will also drive an increase in demand for the company's products. The upgrading of existing products and the development of new products is the continuous driving force for the company's long-term development. Furthermore, the company has abundant monetary capital. It is hoped that it will seize industry opportunities for industrial integration, achieve epitaxial development, be optimistic about the company's future development, and maintain an increase in holdings rating.