Core Viewpoint - The Chinese biotechnology and innovative pharmaceutical industry has experienced volatility due to previous overvaluation, uncertainty in national medical insurance drug pricing, delays in business expansion expectations, and year-end fund sell-offs [1] Industry Summary - Market liquidity remains robust, making valuations of quality companies increasingly attractive [1] - Business expansion activities are ongoing, with the potential for large transactions still present, and further price downside risks appear limited [1] - The rising proportion of innovative drugs and accelerated profit growth indicate that the current pullback is a healthy consolidation, providing attractive opportunities for deployment in the coming year [1] Company Summary - For CSPC Pharmaceutical Group, delays in executing business expansion have weakened investor confidence, creating more attractive buying opportunities; assuming business expansion resumes as expected, its price-to-earnings ratio remains very appealing [1] - The company is expected to complete several smaller business expansion transactions before year-end, with third-quarter performance potentially serving as a recent catalyst [1] - For Sinopharm Group, improvements in accounts receivable days and the initiation of the 14th Five-Year Plan will support the recovery of profit momentum; the current stock price offers an attractive dividend yield and a low price-to-earnings ratio, indicating significant upside potential as operational efficiency continues to improve [1]