HAINAN HAIYAO(SZ:000566) Hua Xia Shi Bao·2025-04-21 07:50Core Viewpoint - Hainan Haiyao has reported significant financial losses in its 2024 annual report, with a revenue decline of 33% and a net profit loss of approximately 1.53 billion yuan, marking a troubling trend of negative net profits for eight consecutive years [2][10][11]. Financial Performance - The company achieved a revenue of approximately 990.7 million yuan in 2024, down from 1.48 billion yuan in 2023, representing a 33% decrease [5][10]. - The net profit attributable to shareholders was approximately -1.53 billion yuan, a substantial increase in losses compared to -106.5 million yuan in 2023 [5][10]. - The company's cash flow from operating activities was -17.55 million yuan, a decline of 116.95% year-on-year [11]. - The asset-liability ratio reached 90.34%, an increase of 28.83% compared to the previous year, indicating worsening financial health [11]. Business Overview - Hainan Haiyao's main business focuses on the health industry, including intermediates, raw materials, chemical preparations, modern traditional Chinese medicine, and medical services [6]. - The company has three production bases located in Jiangsu, Chongqing, and Hainan, and has a full industrial chain production capability for its anti-infection drugs [6]. Challenges and Issues - The company has faced continuous revenue decline since 2018, with revenues dropping from a peak of 2.47 billion yuan in 2018 to 990.7 million yuan in 2024 [6][10]. - Hainan Haiyao has reported significant asset impairment and credit impairment losses totaling 7.49 billion yuan, raising concerns about asset quality [10]. - The company has been under regulatory scrutiny due to compliance issues, leading to fines and required corrections [14][15]. Future Prospects - Hainan Haiyao is attempting to accelerate its R&D efforts, with ongoing clinical trials for innovative drugs and plans for new product registrations [12]. - The company has also engaged in asset disposals to improve cash flow, but these measures are seen as insufficient to address the broader financial challenges [13]. - The management changes and ongoing compliance issues pose additional risks to the company's recovery efforts [14][15].