Longjin Pharmaceutical(002750)2025-04-24 16:20Financial Performance - The company reported a negative total profit, net profit, and net profit after deducting non-recurring gains and losses for the fiscal year 2024, which may lead to delisting from the Shenzhen Stock Exchange [4]. - The company's audited operating revenue for the fiscal year 2024 is below 300 million RMB, which is a critical threshold for maintaining its listing status [4]. - The company's operating revenue for 2024 was ¥66,479,185.17, a decrease of 23.25% compared to ¥86,622,523.39 in 2023 [6]. - The net profit attributable to shareholders for 2024 was -¥41,443,575.30, an improvement of 41.58% from -¥70,941,451.11 in 2023 [6]. - The total revenue for 2024 was ¥66,479,185.17, a decrease of 23.25% compared to ¥86,622,523.39 in 2023 [44]. - The pharmaceutical manufacturing sector generated ¥48,309,868.71, accounting for 72.67% of total revenue, down 35.15% from the previous year [44]. - The planting industry saw a significant increase in revenue to ¥13,724,716.18, representing a 207.00% growth from ¥4,470,573.66 in 2023 [44]. Cash Flow and Investments - The net cash flow from operating activities for 2024 was -¥34,236,642.36, showing a 12.80% improvement from -¥39,260,741.79 in 2023 [6]. - The company’s investment activities generated a net cash flow of ¥84,878,649.07 in 2024, an increase of 51.46% from ¥56,040,440.79 in 2023 [59]. - The company has invested a total of 28,196,000 RMB in entrusted financial management, with 5,313,000 RMB in outstanding balances [171]. Assets and Liabilities - The total assets at the end of 2024 were ¥574,398,586.84, a decrease of 9.06% from ¥631,634,251.67 at the end of 2023 [6]. - The total liabilities decreased from ¥90,507,766.87 to ¥80,185,043.61, a reduction of approximately 11.6% [199]. - Total current assets decreased from ¥384,056,293.30 to ¥338,177,284.73, a decline of approximately 11.97% [197]. - Total non-current assets decreased from ¥247,577,958.37 to ¥236,221,302.11, a decline of about 4.9% [198]. - The company reported a significant increase in cash reserves, indicating improved liquidity position [197]. Research and Development - The company’s R&D investment accounted for 20% of sales revenue, with over 20% of employees dedicated to R&D efforts [40]. - The company has undertaken two major national drug creation projects and one key national research project, enhancing its innovation capabilities [40]. - The company is actively engaged in the research and development of high-end chemical generics and innovative drugs, particularly in the cardiovascular and metabolic categories, to expand its product line and enhance its competitive advantage [82]. Market and Product Strategy - The company is focused on enhancing its core competitiveness through the development of its pharmaceutical manufacturing business and the establishment of technical R&D platforms [37]. - The company aims to expand its market presence by adjusting its sales structure and enhancing its marketing strategies across various channels, including collaborations with mainstream commercial partners [77]. - The company is facing increased revenue pressure due to price reductions in its core product, with a new marketing strategy aimed at stabilizing sales and promoting recently launched products [76]. Governance and Management - The company has established a robust governance structure, ensuring compliance with relevant laws and regulations, and maintains effective communication with investors [91]. - The company operates independently from its controlling shareholders in terms of business, personnel, assets, and finances, ensuring no conflicts of interest or unfair transactions [93]. - The company has a complete and independent financial management system, with no interference from controlling shareholders in its financial decisions [94]. Environmental and Social Responsibility - The company emphasizes safety and environmental protection in its production processes, having established safety management systems and undergone safety standard certification, but acknowledges the potential for accidents and regulatory challenges [84]. - The company actively engages in social responsibility initiatives, including educational funds and donations to support rural revitalization efforts [135]. - The company has achieved a reduction in pollutant emissions during production, adhering to approved discharge limits and monitoring environmental impact [135]. Risks and Challenges - The company faces risks from regulatory changes in the pharmaceutical industry, which could adversely affect sales and overall performance, particularly for its core product, the injection of Ligusticum Chuanxiong [80]. - The company is at risk of reduced non-core income due to a single product structure and high R&D costs, which could significantly impact its net profit if cash management returns decline or government subsidies decrease [85]. - The company may face asset impairment risks if the performance of acquired assets or capitalized R&D expenditures does not meet expectations, potentially affecting its financial results [86]. Shareholder Engagement - The total number of ordinary shareholders at the end of the reporting period was 30,822, compared to 29,091 at the end of the previous month, indicating an increase in shareholder engagement [180]. - The largest shareholder, Kunming Qunxing Investment Co., Ltd., holds 39.40% of the shares, totaling 157,782,293 ordinary shares [181]. - The company has not experienced any changes in its controlling shareholder during the reporting period [182]. Audit and Compliance - The audit opinion issued for Longjin Pharmaceutical's financial statements was a standard unqualified opinion, reflecting fair presentation according to accounting standards [190]. - The audit report emphasizes the importance of internal controls in preventing material misstatements due to fraud or error [194]. - The internal control audit report was issued with a standard unqualified opinion, consistent with the board's self-evaluation [129].