Incident: On May 19, the company issued an announcement on the latest developments in the matter involving coenzyme Q10 products. The company received a notice from the lawyer that the US Supreme Court refused to accept Kaneka's appeal. Kaneka is no longer able to continue appealing, and the case has been officially closed. In the end, Kim Dawei won the case, and Kaneka lost. The Jindawei CoQ10 patent lawsuit lasted nine years. Japan's Kaneka (Zhong Yuan Chemical) company sued in 2011. There were four appeals in the middle. In the end, Jindawei won the lawsuit. The Coenzyme Q10 product did not infringe on its “340 patent” rights. In March 2011, Japan's Kaneka Corporation filed a lawsuit with the US District Court for the Central District of California (hereinafter referred to as the District Court), accusing several companies including the company (including Zhejiang Pharmaceutical and Shenzhou Biotech) of infringing on one or more of their “340 patent” rights registered in the US, and submitted a 337 investigation application to the US International Trade Commission in June of the same year. In November 2012, the US International Trade Commission issued a Commission decision that the company did not infringe on the alleged claims in Patent No. 340 and did not violate Section 337. The district court then ruled in December 2013 that the company had not infringed Kaneka's Patent No. 340. Since then, Kaneka filed an appeal in 2014, 2019, and 2020, respectively, and the US Supreme Court rejected her appeal in May 2020. Since then, Kaneka has been unable to continue appealing. The case has been formally closed. Jin Dawei won the case, and Jindawei's Coenzyme Q10 series products did not infringe on Kaneka's “340 Patent” claims. Kaneka is an established integrated chemical company in Japan and is known as the “father of Coenzyme Q10”. The final victory in this patent case is exciting, and the company's production, operation and export of Coenzyme Q10 will go more smoothly. In 1977, Kaneka first fermented a specific strain of yeast to produce the highest quality CoQ10. After more than 30 years of development and research, Kaneka's CoQ10 has become the gold standard in the industry. Before China broke through technical barriers to coenzyme Q10 production around 2005, Zhong Yuan Chemical had a monopoly position in the coenzyme Q10 industry for a long time. When the company was sued in Kaneka's patent case in 2011, it actually faced a huge test. On the one hand, Kaneka is strong, and on the other hand, if it loses the lawsuit, the company may have to pay a reasonable license fee to Kaneka before it can continue to export Coenzyme Q10 products to the US. However, with the company's control of independent intellectual property rights over the core technology of coenzyme Q10 product production, it responded positively to this lawsuit. Despite Kaneka's many appeals, in the end, the company still won the case, and the dust settled. Although the company's CoQ10 products have basically maintained normal production and operation in this lengthy lawsuit, a complete victory in the lawsuit will make the company's Coenzyme Q10 products more recognized by the world, and production, operation and exports will go more smoothly. The company has always attached importance to R&D and intellectual property protection, and also respects the intellectual property rights of others. The company will continue to provide the best quality products and services to domestic and foreign Coenzyme Q10 customers. Investment suggestions: This year, Jindawei CoQ10 is expected to have profits of more than 600 million yuan, vitamin A and D3 profits of about 600 million yuan, and brand health products profits of more than 100 million yuan. According to segmental valuations, coenzyme Q10, vitamin A, and D3 are valued 15 times due to product price increases and segment premiums, brand health products have a target market value of 19.5 billion yuan, and a target price of 31.65 yuan. Currently, there is still room for stock prices of 54% from the target price. The company's current stock prices are still about 54% of the target price. The company's EPS in 2020-2022 is expected to be 2.01, 2.35, and 2.60 yuan, and the corresponding PE is 10.3 times, 8.8 times, and 7.9 times, respectively, maintaining the “highly recommended” rating. Risk warning: market expansion falls short of expectations, downstream demand falls short of expectations, product prices drop sharply