Event: The company released its 2019 annual report and achieved operating income of 3.476 billion yuan, an increase of 31% over the previous year, and net profit of 490 million yuan, an increase of 41.41% over the previous year. The protective gloves business is steady, and Baisheng International has fulfilled its performance commitments as scheduled. The production capacity of protective gloves continues to expand, and the short-term epidemic drives downstream demand growth. In 2019, the company's health protective gloves business achieved revenue of 1,678 billion dollars, an increase of 4.95% over the previous year, and sold 17.348 billion gloves, an increase of 11.12% over the previous year. The glove business is the company's traditional main project. Currently, the company's glove production capacity has exceeded 18 billion units/year. Nearly 600 million yuan of the company's convertible bond projects will be invested in health protection gloves projects in the near future, which will increase the production capacity of health protective gloves by 6 billion units/year. The increase in the company's glove production capacity will continue to strengthen the company's leading position in the industry. In the short term, demand for medical and protective products has increased dramatically due to the novel coronavirus pneumonia epidemic. Affected by this, the company's first-quarter performance increased 50%-60% year over year. Baisheng International fulfilled its performance commitments as scheduled, and mergers and acquisitions enrich the cardiovascular and cerebrovascular field layout. In 2018, the company entered the cardiovascular field through the merger and acquisition of CBCH II (Baisheng International). In 2019, the company's cardiac intervention device business revenue was 1,737 billion yuan, and CBCH II achieved a non-net profit of 462 million yuan in 2019, fulfilling the performance promise as scheduled. In 2019, while integrating Baisheng International, the company transferred 10.16% of the shares of Suzhou Tongxin Medical Devices Co., Ltd. to promote clinical, registration and market development of the fully magnetic levitation artificial heart “CH-VAD” in the global market. Currently, the company is promoting the acquisition and capital increase of NVT, a leading Swiss transcatheter aortic valve replacement (TAVR) implant device company, in an effort to increase TAVR on the medical device gold track. The company continues to expand the field of high-value consumables through mergers and acquisitions to achieve diversified product layout. We continue to be optimistic about the company, maintain a “buy” rating, and the production capacity of protective gloves continues to increase, and the current downstream demand is strong; the layout of the cardiovascular sector continues to expand. We maintain the company's original 2020-2021 EPS forecast of 0.78 yuan and 0.93 yuan, while adding the 2022 EPS forecast to 1.08 yuan. Continue to be optimistic about the company and maintain a “buy” rating. Risk warning: The risk of capacity expansion falling short of expectations, and the risk of fluctuations in downstream demand.