Huasun(SZ:000790) Hua Xia Shi Bao·2026-02-06 09:17Core Viewpoint - Chengdu Huasheng Technology Group Co., Ltd. is expected to report a net loss of 270 million to 330 million yuan in 2025, marking a decline of 3935.75% to 4832.59% year-on-year, indicating a severe financial crisis for the company [2][3]. Financial Performance - The company's revenue has shown significant volatility, with operating income dropping from 873 million yuan in 2022 to 864 million yuan in 2024, and a projected revenue of only 457 million yuan in the first three quarters of 2025, a year-on-year decrease of 31.02% [5][6]. - The net profit attributable to shareholders has plummeted from 41.22 million yuan in 2022 to a loss of 6.69 million yuan in 2024, marking the first loss since 2016 [5][6]. - As of the end of Q3 2025, the company's total assets were 1.862 billion yuan, down 17.2% from the previous year, and net assets attributable to shareholders were 932 million yuan, down 9.1% [6]. Operational Challenges - The core product, Sanqi Tongshu Capsule, has seen its price halved due to national centralized procurement, leading to a drastic reduction in revenue and profit contributions [4][5]. - The company has faced a series of structural challenges, including a significant reduction in inventory by downstream customers to mitigate price volatility risks, further compressing short-term revenue [4][5]. - Strategic adjustments, such as scaling down the construction steel structure business, have negatively impacted overall performance in the short term [5]. Market Reaction - Following the earnings forecast, the company's stock price has come under pressure, reflecting investor concerns about its future development [7]. - The company’s liquidity is under strain, with cash reserves of only 149 million yuan against current liabilities of 800 million yuan, indicating potential operational difficulties [7]. Strategic Responses - The company is attempting to address its financial challenges through a strategic reduction of non-core assets and optimizing resource allocation [8]. - Huasheng Technology has initiated a plan to raise up to 450 million yuan through a private placement to alleviate liquidity pressures [7][10]. Industry Context - The challenges faced by Huasheng Technology are indicative of broader issues within the traditional Chinese medicine industry, particularly in light of deepening reforms in the pharmaceutical system and the increasing prevalence of centralized procurement policies [9]. - The Chinese traditional medicine market is projected to exceed 580 billion yuan by 2030, driven by an aging population, which presents both challenges and opportunities for companies in the sector [10].