Event: The company released its 2014 annual report, achieving annual revenue of 1,575 billion yuan (+12.05%), net income of 302 million yuan (+14.15%), net operating cash flow of 396 million yuan (+179.24%), and earnings per share of 0.66 yuan (+15.79%). The company plans to distribute a cash dividend of 2 yuan (tax included) for every 10 shares. Comment: The company is operating steadily, and revenue has maintained steady growth. In 2014, the company achieved revenue of 1,575 billion yuan (+12.05%), non-net profit deducted from the mother's mother of 302 million yuan (+14.15%), and maintained a steady increase in revenue. On a quarterly basis, similar to 2013, the fourth quarter was still the peak of the company's revenue and net profit, achieving revenue of 563 million yuan and net profit of 136 million yuan in a single quarter, accounting for 35.77% and 43.70% of the year, respectively. The core variety Yindan Xinnaotong achieved revenue of 532 million yuan, an increase of 13.17% over the previous year. The non-pharmaceutical business declined to varying degrees. During the reporting period, the pharmaceutical business achieved revenue of 1,553 billion yuan (+13.24%), of which Yindan single product has completed tenders in 19 provinces including Liaoning, using the base drug bidding opportunity, and contributed 532 million yuan (+13.17%) throughout the year, becoming the main driving force for maintaining steady growth in the company's performance, with revenue share rising from 32% to 34%. Second-tier varieties such as Vitamin C Yinkao tablets, rapid cough stop syrup, and Jin Gan capsules have also maintained steady growth, while third-tier potential varieties such as children's Chai Gui antipyretic granules, Shuangyang Throat Paralytic Granules, Cough Relief Granules, and Compound Yizhi Yellow Flower Spray have maintained rapid growth from a low base. By region, revenue growth in the south-central and northwest regions has maintained rapid growth, with a growth rate of around 30%. With the further advancement of the 15-year tender for basic drugs, the company's varieties such as Yindan will maintain relatively rapid growth. In terms of non-pharmaceuticals, sales revenue from Chinese herbal medicines, beverages, and fertilizer all declined to varying degrees. Annual revenue was 9 million (-19.34%), 5.57 million (-54.84%), and 5.35 million (-28.66%), respectively. Since the non-pharmaceutical business is already the company's non-priority business, it is expected that future revenue may decline further. The results of “opening up resources and saving money, increasing revenue and reducing expenses” are obvious, and profitability is constantly improving. Improving profitability has become the core of the company's work for 14 years. By strengthening the optimization of production and management systems, production costs have been reduced by 0.66 percentage points, the cost ratio for the period has decreased by 0.35 percentage points, and the overall net interest rate has increased by 0.58 percentage points. The varieties being studied have positioned major diseases, and the integration of pharmaceuticals and medical services is progressing steadily. In terms of diabetes formulations and medical services, Tangning Tongluo capsules obtained the “Medical Institution Formulation Registration Approval” in August 2014. They began to be used in Guizhou Bailing Traditional Chinese Medicine Diabetes Hospital in December, and are expected to be replicated and promoted through a chain approach in the future. In terms of new hepatitis B drugs, the company's new class 1.1 chemical drug tefentae received phase I clinical approvals for APIs and formulations issued by the CFDA in December 2013 and January 2014. In 2014/5, clinical trials were successfully initiated at the First Affiliated Hospital of Soochow University. Furthermore, the novel drug delivery system, epirubicin liposome, is suitable for a variety of tumors. It is currently in the pre-clinical research stage and is progressing smoothly. Profit forecasts and ratings. EPS is expected to be 0.80, 0.99, and 1.24 yuan from 2015 to 2017, and corresponding PE is 64X, 52X, and 42X. As a leading pharmaceutical company, the company's core variety, Yindan Xinniaotong, is progressing along with the bidding, and can be expected to be released. Tangning Tongluo Capsule uses in-hospital formulations and follows a chain business model. It has become a new platform, and there is a lot of room for development. Furthermore, the company's new drug layout in the fields of hepatitis B and anti-cancer is also worth looking forward to, maintaining an increase in holdings rating.