JYPC(SZ:002198) Sou Hu Cai Jing·2025-05-02 13:27Core Viewpoint - Recently, Jiaying Pharmaceutical (002198), known as the "first stock of traditional Chinese medicine," has attracted market attention due to issues related to the occupation of funds by related parties [1][2]. Group 1: Fund Occupation Issues - From September 2024 to January 2025, Jiaying Pharmaceutical was reported to have a total of approximately 235 million yuan occupied by related parties for non-operational purposes, which was concealed through a "transfer at the beginning of the month and return before the end of the month" method [1][3]. - The funds were returned in full only on January 23, 2025, after being transferred out and back each month without board approval or disclosure [4][5]. - The related party involved is Hunan Yaojuneng Pharmaceutical Co., Ltd., which is controlled by the current chairman of Jiaying Pharmaceutical, Li Neng [4][5]. Group 2: Corporate Governance and Management Changes - Li Neng became the chairman of Jiaying Pharmaceutical shortly after acquiring a 7% stake through his company, Yaojuneng, at a premium price, which raised concerns about potential conflicts of interest [5][6]. - The internal control report indicated that the fund occupation began just one month after Li Neng took office, suggesting a rapid shift in financial practices [5][6]. Group 3: Financial Performance and Market Position - Jiaying Pharmaceutical's revenue for 2024 was reported at 376 million yuan, a decrease of 29.46% year-on-year, while net profit fell by 39.94% to 20.61 million yuan [9]. - The company experienced a significant drop in its core products' market performance due to intensified competition and policy impacts, leading to a drastic decline in profitability [9]. - In the first quarter of 2025, the company reported a revenue increase of 28.8% year-on-year, reaching 122 million yuan, with net profit soaring by 197.2% to 15.4 million yuan [9].