Incident: 1) Recently, the company announced that the chairman and some directors have increased their holdings or intend to increase their shares in the company; 2) The company announced that Qixian County and Xiangcheng Single Plasma Collection Stations have received “Single Plasma Collection Permits”.

The shareholding plan for directors and executives highlights the company's long-term investment value. An Wenqi, the chairman and actual controller of the company, completed an increase of 0.45 million shares and 0.01 million shares of the company's shares through centralized bidding transactions. In addition, the chairman, some directors, and executives of the company plan to increase their holdings of the company within the next 6 months using their own capital. The total increase in their holdings will not be less than 1.22 million shares or more than 2.42 million shares. This plan to increase holdings shows that the company's board members and executives recognize the company's long-term investment value and confidence in future development.

Qixian and Xiangcheng pulp stations have been approved for mining, and the amount of slurry can be expected to increase in 2024. According to data from the 7th National Population Census and the Statistical Bulletin on the National Economic and Social Development of Xiangcheng County, the resident population of Qi County was 0.93 million in 2020, and the resident population of Xiangcheng County was 0.68 million in 2021. The company was approved by Henan Province to build 7 new pulp stations in 2022, and the sixth and seventh pulp stations in Qixian County and Xiangcheng were approved for mining. The new pulp station is expected to accelerate the growth of the company's pulp volume in 2024. As the amount of pulp increases and shifts gears, the profit margin of the company's blood products business is expected to continue to increase.

Profit forecast: The company's net profit for 2024-2026 is expected to be 1.68 billion yuan, 1.87 billion yuan, and 2.07 billion yuan respectively. The company's fresh pulp plants have been approved for mining one after another, and we are optimistic about their future growth potential.

Risk warning: Risks such as the amount of pulp collected falling short of expectations, the release of the quadrivalent influenza vaccine falling short of expectations, and insufficient progress in research and development.