新荷花港股IPO：财务造假疑云未散，毛利率下滑成掣肘

Core Viewpoint - Sichuan Xin He Hua Chinese Medicine Co., Ltd. is attempting to list on the Hong Kong Stock Exchange after multiple failed IPO attempts, highlighting significant underlying issues that need to be addressed [1][5]. Financial Performance - Xin He Hua's revenue for 2022, 2023, and 2024 is approximately 780 million, 1.146 billion, and 1.249 billion yuan respectively, with corresponding net profits of 77.4 million, 104 million, and 89.1 million yuan [3]. - The company is experiencing a decline in profit margins, with gross profit margin decreasing from 21.1% in 2022 to 17.1% in 2024, particularly in toxic medicinal slices, which fell from 29.7% to 19.1% [3]. - The operating cash flow for 2024 is reported at -46,700 yuan, with trade receivables amounting to 5.58 billion yuan, representing 44.7% of revenue, indicating cash flow pressure [5]. Company Background - Established in 2001 and headquartered in Chengdu, Xin He Hua is one of the largest suppliers of Chinese medicinal slices, ranking second in China by revenue in 2023 [3]. - The company has a diverse product range, including toxic and ordinary medicinal slices, with operations extending beyond China to countries like Vietnam and Malaysia [3]. IPO History - Xin He Hua's IPO journey has been tumultuous, with the first attempt in 2010 being halted due to allegations of financial fraud, which claimed that a significant portion of its revenue was derived from fictitious transactions [4]. - The company made another attempt in 2020 but withdrew its application due to concerns over its core product competitiveness and internal controls [4]. Industry Challenges - The Chinese medicinal slice industry faces challenges such as price volatility in raw materials, which directly impacts pricing and costs [6]. - Xin He Hua's reliance on a limited product range poses risks; any changes in market demand or supply chain disruptions could significantly affect its performance [6].