The target of HongRi pharmaceutical's merger and acquisition is mainly the exclusive varieties of traditional Chinese medicine and new drugs of category 1.1

On August 19, Zheng Dan, Secretary of board of HongRi Pharmaceutical (300026 SZ), said in the investigation of institutions that the company plans to consider m & A after the completion of this fixed increase and expansion of production capacity, "the main target of M & A is the exclusive varieties of traditional Chinese medicine and 1.1 new drugs" Zheng Dan further said that in the future, M & A will focus on traditional Chinese medicine projects and try to choose exclusive varieties; chemical and generic drugs will not be considered because of the fierce competition for imitations and short market occupation time Chemical drugs will try to rely on category 1.1 innovative drugs Sun Changhai, general manager of the company, also said that "if there is no patent for chemical drugs, there will be no good market" In the research product reserve of HongRi pharmaceutical industry, there are 4 kinds of 1.1 chemicals, which are respectively kurosamine B (KB) mesylate for injection, new anti-cancer drug toluenesulfonamide injection (PTS), anti hepatitis C chemicals and ml-4000 for arthritis treatment In addition, there are some exclusive varieties of traditional Chinese medicine, such as naoxinduotai capsule The company's main product, Xuebijing injection, is the exclusive product of traditional Chinese medicine In the evening of August 18, the company disclosed its annual report for the first half of 2014 The report shows that in the first half of 2014, the company realized an operating revenue of 1.248 billion yuan, an increase of 32.67% year on year; the net profit attributable to shareholders of the listed company was 220 million yuan, an increase of 33.51% year on year, of which the sales revenue of the main product Xuebijing injection was nearly 600 million yuan, an increase of 23.97% year on year.