CONBA(SH:600572) Hua Xia Shi Bao·2025-09-18 12:24Core Viewpoint - The recent suspension of procurement qualifications for acetylcysteine effervescent tablets produced by Zhejiang Jinhua Kang En Bei Pharmaceutical Co., Ltd. due to non-compliance with regulations poses significant challenges for the company, particularly during its critical transformation phase into "Traditional Chinese Medicine (TCM) Health" [2][3][9]. Group 1: Company Performance and Financial Impact - In 2022, the sales revenue of acetylcysteine effervescent tablets was nearly 300 million yuan, with a year-on-year growth of over 16% in 2023, estimated to reach approximately 350 million yuan, accounting for over 5% of total revenue [2]. - The company's revenue for the first half of 2025 was 3.358 billion yuan, with a net profit of 354 million yuan, both showing a decline, continuing the downward trend from 2024 [5]. - The core chemical drug business saw a revenue drop of 11.22% in the first half of 2025, primarily due to the failure to win bids in the national centralized procurement [5][10]. Group 2: Quality Control and Regulatory Issues - The National Medical Products Administration announced the suspension of sales and recall measures for acetylcysteine effervescent tablets due to non-compliance with specifications, which directly impacts the business line reliant on this product [3][8]. - The quality issues have exposed vulnerabilities in the company's quality control processes, raising concerns about its strategic execution capabilities [2][11]. Group 3: Strategic Transformation Challenges - The company is undergoing a critical transformation into "TCM Health," facing difficulties as traditional Chinese medicine revenues are projected to decline in 2024, and the chemical drug sector has suffered quality setbacks [2][9]. - The company's recent restructuring efforts, including the introduction of a state-owned entity as a controlling shareholder, have not alleviated the pressures from price reductions in centralized procurement and rising raw material costs [9][10]. - Despite increasing R&D investments, the company's R&D intensity has decreased, indicating challenges in maintaining competitive innovation levels [10]. Group 4: Market Position and Brand Value - As of September 16, 2025, the company's market value was 11.384 billion yuan, ranking 23rd in the TCM sector, reflecting a significant decline in industry standing [8]. - The recent quality crisis is expected to have long-term implications for brand value and consumer trust, particularly in the respiratory medication sector [11].