Yo. One has to be very careful when vested in pharmaceuticals.
E.G.: You got to know what's in their product innovation pipeline, small molecules drugs (traditional medicine market) are very competitive now against pricing war. You also need to follow-up on the phases of their clinical trials (usually phase 2B/ 2C) depending on the clinical 'disease'; each country regulatory landscape with a timeframe of at least 5 years ahead, in this case China FDA guys ...
RE: Drugs, Biologics. These are classified under FDA NDA (new drug application) or BLA, and the applicant fees weigh a bombshell! Just the initial FDA preparation fees will cost at least $1 Million (& we haven't talked about filing, maintenance fees down the road).
One good way, of analysing pharma companies, is to look at their licensing-partnership strategies; whether they are striking enough deals to offset cashburn due to drugs regulatory requirements. Many Co. went bust this financial cycle as they are heavily committed in their trials without realising the sales of the products in time ... ... hence, a common 'trick' is to look at the Co. if they have any lead products that are on FDA fast track under 'Orphan Drug' designation ...
I like Sihuan; but on the other hand, there are so many San Diego companies listed on Nasq. And now, i somehow tend to compare china Co. against similar competitors/ comparables in the U.S. first. See if the global pharma industry can support the existence of both U.S. and P.R.C. ... do your own gut feel & assess if the China guys have a [true] competitive advantage in terms of utility, moat, other than just mere low in pricing ...