Event: The company released its 2014 annual report and achieved annual revenue of 1,254 billion yuan, a year-on-year decrease of 3.87%. Net profit of RMB 30.52 million was realized, a year-on-year decrease of 8.97%. Earnings per share were 0.065 yuan, a year-on-year decrease of 19.98%. During the reporting period, the company's net operating cash flow increased significantly year-on-year, reaching 89.54 million yuan. Comment: Revenue declined slightly year over year, and the fourth quarter results were beautiful. On the one hand, it was affected by industry GSP certification, company GSP certification and GMP transformation. At the same time, the company adjusted its product structure to reduce sales of low-profit products, resulting in annual revenue of 1,254 billion yuan, a year-on-year decrease of 3.87%. Net profit of RMB 30.52 million was realized, a year-on-year decrease of 8.97%. On a quarterly basis, the fourth quarter's performance was impressive. It achieved revenue of 382 million yuan in a single quarter, accounting for 30% of total annual revenue, and net profit of 20.82 million yuan, an increase of 30.37% over the previous year, contributing 65% of the annual net profit. Chinese medicine tablets are the company's main source of profit, and solid preparation revenue has maintained high growth. During the reporting period, the company achieved revenue of 460 million yuan in pharmaceutical distribution, a year-on-year decrease of 2.09%, and Chinese medicine tablets achieved revenue of 429 million yuan, the same level as the previous year. The main business of Chinese medicine tablets is mainly produced by the subsidiary Tongjuntang Pharmaceutical. The net profit during the reporting period was 34.5 million yuan, which is the company's main source of profit. In terms of other products, traditional Chinese medicine oral liquid achieved revenue of 315 million yuan, a year-on-year decrease of 13.07%. Biochemical Pharmaceuticals achieved revenue of 26 million yuan, a sharp increase of 27.72% over the previous year, making it the business with the fastest revenue growth. Profitability remained stable, and net cash flow improved significantly. In 2014, the gross sales margin increased slightly by 0.5 percentage points, the cost ratio increased slightly by 0.5 percentage points during the period, and the net sales interest rate remained stable. The company's net operating cash flow increased significantly over the same period last year, reaching 89.54 million yuan, with excellent performance. Profit forecasts and ratings. EPS is expected to be 0.19, 0.25, and 0.30 yuan from 2015 to 2017, and the corresponding PE is 69, 54, and 45 times. The company's endogenous profitability has been greatly improved, and at the same time, extrinsic mergers and acquisitions are expected to continue, maintaining the buying rating.