BUCHANG PHARMA(SH:603858) 市值风云·2025-06-12 13:09Core Viewpoint - The financial performance of Buchang Pharma has significantly deteriorated in 2024, with a revenue drop of 17% and a net loss of 5.5 billion yuan, marking a 274% decline in net profit compared to the previous year [2][3][4]. Financial Performance Summary - In 2024, the company's operating revenue was 11 billion yuan, down from 13.25 billion yuan in 2023, reflecting a decrease of 16.91% [3]. - The net profit attributable to shareholders was a loss of 553.8 million yuan, compared to a profit of 319 million yuan in 2023, indicating a decline of 273.62% [3][4]. - The company also reported a significant impairment of goodwill amounting to 853 million yuan, primarily related to its subsidiaries [5][20]. Business Operations and Challenges - The decline in revenue and profit is attributed to the removal of several products from the medical insurance catalog and increased scrutiny on certain products, leading to reduced sales [4][13]. - The company has faced continuous challenges since 2020, with total revenue decreasing from 160 billion yuan in 2020 to 110 billion yuan in 2024, a drop of over 30% [16]. Goodwill Impairment and Acquisitions - Buchang Pharma's acquisitions of Jilin Tiancai and Tonghua Guhong from 2012 to 2015 resulted in a total goodwill of approximately 50 billion yuan, which constituted 33% of the company's total assets at that time [8][9]. - The company has been forced to recognize substantial goodwill impairments, totaling 45.3 billion yuan from 2021 to 2024, which is 88% of the initial goodwill [24]. Sales and Marketing Expenses - The company's sales expense ratio has consistently exceeded the industry average, with a sales expense rate of 39% in 2024, significantly higher than the industry average of 28% [27][28]. - A large portion of the sales expenses (93%) is allocated to market and academic promotion fees, raising concerns about the efficiency of spending [29][30]. Research and Development - Despite claims of transitioning to a product-driven and technology-driven company, Buchang Pharma's R&D expenditure has remained low, with a research expense rate of only 2-3% over the past five years [35]. - The company has increasingly capitalized its R&D expenses, with the capitalized portion rising from 26% in 2020 to 52% in 2024, which may obscure the true profitability [37][38].