SFPM(SZ:002737) Xin Lang Zheng Quan·2025-07-10 07:43Core Viewpoint - The sudden resignation of key executives at Aihua Pharmaceutical raises concerns about the company's performance, as it faces a significant decline in revenue and profit in the first quarter of 2025, despite its flagship product achieving over 1 billion in sales in 2023 [1][2][3]. Group 1: Executive Changes - The resignation of Vice President Chen Liang marks the second departure of a core executive within two months, following the retirement of senior executive Ma Xin [1][2]. - Aihua Pharmaceutical has seen four vice presidents leave in the past year, indicating instability in the management team [1]. - The appointment of new Vice President Xiao Lin, who has extensive experience in the pharmaceutical industry, suggests a strategic shift towards professional academic promotion [2][4]. Group 2: Financial Performance - In Q1 2025, Aihua Pharmaceutical reported a revenue of 663 million, a year-on-year decline of 56%, with net profit dropping over 70% to 59 million [2][3]. - The company's traditional products, such as the pediatric cough syrup, are facing growth bottlenecks, and a drastic reduction of 79% in sales expenses indicates a decline in channel momentum [3]. - Despite the challenges, the company maintains a gross margin of 54%, which may reflect a focus on cash flow management during the transition period [3]. Group 3: Strategic Direction - The management changes coincide with a potential strategic shift from advertising-driven growth to a more professional and academic approach in marketing [2][5]. - The company aims to balance innovation and product development while addressing the challenges posed by recent executive departures and declining financial performance [5][7]. - Aihua Pharmaceutical is attempting to find equilibrium between legacy practices and necessary transformations to sustain its market position [7].