ER-KANG(300267) Sou Hu Cai Jing·2025-04-23 06:53Core Viewpoint - The overall performance of Erkang Pharmaceutical in 2024 was poor, with significant declines in revenue and profit, despite efforts to diversify into various sectors including excipients, APIs, finished drugs, and new energy materials [1][4]. Group 1: Financial Performance - The company's operating revenue for 2024 was 1.14 billion yuan, a year-on-year decrease of 36.09% [1]. - The net profit attributable to shareholders was -373 million yuan, a substantial decline of 91.16% year-on-year [1]. - The non-recurring net profit was -369 million yuan, down 59.24% compared to the previous year [1]. Group 2: Business Segments - In the excipients sector, the main products included medicinal ethanol, glycerin, modified starch, and starch capsule series, with modified starch and starch capsules generating 56.41 million yuan in revenue, an increase of 81.89% year-on-year; however, this was insufficient to reverse the overall revenue decline [4]. - The API segment saw the successful application for QYHN raw material drugs, enriching the product structure, but growth in this area did not compensate for declines in other segments [4]. - Finished drug sales included products like sulfanilamide sodium injection and aminohexanoic acid injection, with traditional Chinese medicine products achieving 99.98 million yuan in revenue, a significant increase of 461.40% year-on-year, yet overall finished drug growth could not offset losses in other areas [4]. Group 3: New Energy Materials - The company has made progress in the new energy materials sector, particularly with lithium carbonate, and has invested in a beneficiation plant project in Nigeria, which has begun production and is seen as a new growth point; however, its contribution to overall performance remains limited [4][5]. Group 4: Operational Challenges - The company's "sales-driven production" model has not been effective, as changes in market supply and demand for composite excipients and intermediates led to reduced sales volumes and prices, negatively impacting revenue and profits [6]. - Despite efforts to manage procurement and adjust strategies in response to rising raw material prices, the company faced significant cost pressures that were not alleviated [6]. - Overall sales performance was poor, failing to enhance market share despite attempts to optimize product structure and focus on competitive products [6].