1. The barriers to industry factors are not strong enough, and the recognition is still not enough. Although Fuxiang Pharmaceutical occupies more than half of the market share of sulbactam products, and its high-end antibiotics and inhibitors are listed as specialty raw materials, but because ordinary antibiotics are generally listed as raw materials, Fuxiang itself cannot avoid the source of antibiotics. The gross profit margin of antibiotics has remained low all year round, and the market has become accustomed to its low price trend. Through a "Penan" high-end upgrade, it is difficult to change from a sparrow to a phoenix, let alone the direction of future expansion of production for a company with relatively low gross profit margin. 2. The company's strategic factors combined with the slow transformation of preparations. In the future, companies will convert raw materials into integrated preparations and only by extending downstream can they go further. As finished products, the gross profit margin of preparations will be higher than that of semi-finished raw materials and intermediates. At present, Huahai Pharmaceutical, which has taken the lead in "preparation integration", already has more than 50% of its revenue coming from preparations. Of course, compared with more than 80% of the preparation revenue of overseas API giants such as Dr. Reddy, there is still room for improvement. In contrast, judging from the revenue structure of Fuxiang Pharmaceutical, less than 1% of its preparations have just started. Compared with Minova, which was launched in 2017, it was already on the market in 2015 with great fanfare and enthusiasm for transformation and integration of preparations. 3. Market factors API’s share price is generally overdrawn. Taking June as an example, the three major Sartan companies have basically seen the largest increase of 40%-50% in more than half a month. As a patented raw material, Aoxiang Pharmaceutical has the highest increase of more than 70%. As an antibiotic raw material Fuxiang Pharmaceutical and Xianghai Pharmaceutical also experienced increases of 30%-40%. Moreover, Fuxiang Pharmaceutical paid dividends again in late May, and was supported by the announcement of doubling its interim results in advance, which gave it the flavor of selling after speculation. 4. There are many types of antibiotic raw materials and medicines. It should be noted that not all antibiotic APIs are APIs. Some varieties that have just passed the patent period or have higher added value should be classified as specialty APIs, such as penem and β-lactamase inhibitors. This is The core product of Fuxiang Pharmaceutical.