M.R. Henderson

China Medicine Drops Despite Improved Q1

Three Questions, and I'd invest:

Are their relationships in the right place? Anyone well connected on the board, children of former premieres?

Accounts receiveable declined 25%. Is this solely due to the government lowering prices? If this company must purchase and import everything it auctions over the internet, what is the longest period for inventory turnover? Have import barriers ever blocked these products' historically, due to political spats?

Most importantly, how many internet drug auction points of entry are there into the Chinese market? Does Alibaba have a presence here? This is something that if abused could lead to widespread closure.