NEPG(SZ:000597) Zhong Guo Jing Ying Bao·2025-11-12 23:40Core Viewpoint - Northeast Pharmaceutical is facing significant financial challenges, highlighted by a recent court ruling mandating the company to pay a substantial compensation of 16.45 million yuan due to a long-standing contractual dispute, which could impact its profitability significantly [3][5]. Legal Dispute - The legal issue dates back to 2016, involving a lawsuit initiated by Beijing Huade Parking Management Co., which sought a total compensation of 87.57 million yuan from Northeast Pharmaceutical and its subsidiary [4]. - The recent court ruling partially favored the plaintiff, ordering Northeast Pharmaceutical to pay 16.45 million yuan, while other claims were dismissed [4]. Financial Performance - Northeast Pharmaceutical's financial performance has been declining, with a reported revenue of 8.243 billion yuan and a net profit of 358 million yuan in 2023, showing a year-on-year growth of 2.34% [7]. - However, in the first three quarters of 2025, the company reported a revenue of 5.478 billion yuan, a decrease of 10.69% year-on-year, and a net profit of 173 million yuan, down 16.96% [7]. - The company's cash reserves have also decreased by 19.57% year-on-year, with accounts receivable rising to 2.251 billion yuan, indicating potential liquidity issues [7]. Strategic Transformation - In response to ongoing financial pressures, Northeast Pharmaceutical is pursuing a strategic transformation by acquiring a 70% stake in Beijing Dingcheng Peptide Source Biotechnology Co., aiming to enter the innovative drug sector [8]. - This acquisition focuses on developing CAR-T and TCR-T therapies, with expectations for new products to enter the IND application and clinical trial phases by 2025 [8]. - However, the acquisition has raised concerns due to Dingcheng Peptide Source's early-stage product development and high debt levels, which may pose additional financial burdens on Northeast Pharmaceutical [8].