Zhendong Pharmacy(SZ:300158) Chang Jiang Shang Bao·2025-04-21 23:46Core Viewpoint - Zhendong Pharmaceutical (300158.SZ) has reported a continuous decline in performance, with significant losses attributed to non-operational factors such as arbitration issues, overdue trust products, and inventory impairment [2][4][5]. Financial Performance - In 2024, the company achieved revenue of 2.971 billion yuan, a year-on-year decrease of 18.1%, and a net loss of 1.329 billion yuan, with losses widening compared to the previous year [2][3]. - The company has experienced a decline in revenue for three consecutive years, with total losses accumulating to 1.424 billion yuan [4][5]. - For Q1 2025, Zhendong Pharmaceutical reported revenue of 755 million yuan, a year-on-year decrease of 3.53%, and a net profit of 1.1572 million yuan, down 94.99% year-on-year [8]. Asset Decline - Total assets decreased from 10.104 billion yuan in Q1 2022 to 4.635 billion yuan in Q1 2025, representing a reduction of approximately 54% over three years [8]. Operational Challenges - The decline in revenue is attributed to multiple external factors, including significant price reductions due to provincial alliance drug procurement, restricted market access in certain regions, and the impact of outpatient policy on retail traffic [5][6]. - The retail pharmacy industry has seen a closure rate rise to 5.7%, and the overall market for traditional Chinese medicine is experiencing a downturn, with a comprehensive price index dropping by 9.6% year-on-year [5]. Non-Operational Factors - The company cited major arbitration matters, overdue trust products, and inventory impairment as significant contributors to its substantial losses [4][5]. - Zhendong Pharmaceutical faced a claim of approximately 1.467 billion yuan from Beijing Landi Pharmaceutical Co., which was settled for 500 million yuan following arbitration [6][7]. Impairment and Financial Strategy - In 2024, the company recognized impairment losses totaling 291 million yuan, which will reduce the operating profit for the reporting period [8]. - The company announced it would not distribute profits for 2024, indicating a focus on financial recovery [8].