ST葫芦娃危局

Core Viewpoint - ST HuLuWa is facing significant governance issues, including delayed financial disclosures, high executive turnover, and internal control deficiencies, which have led to regulatory penalties and a substantial decline in revenue from its digestive system drugs [1][2][3][4]. Group 1: Governance and Management Issues - The company failed to disclose its expected losses of 250 million to 280 million yuan for the 2024 fiscal year within the required timeframe, leading to disciplinary actions from the Shanghai Stock Exchange [1][4]. - The resignation of long-serving chairman and general manager Liu Jingping in March 2025, followed by the quick departure of his successor Zhang Mingrui, highlights instability in the executive team [5][6]. - Previous compliance issues included a warning to the former deputy general manager for short-term trading by relatives, indicating significant governance lapses [6][7]. Group 2: Financial Performance and Market Challenges - ST HuLuWa's revenue from digestive system drugs plummeted by 56.94% in 2024, while sales expenses remained high, exacerbating financial strain [1][9]. - The company reported a sales expense of 611 million yuan in 2024, accounting for 43% of its revenue, significantly higher than competitors like Kuihua Pharmaceutical and Taiji Group, which maintained sales expense ratios below 30% [13]. - The company’s R&D expenses surged by 77.79% to 202 million yuan in 2024, but saw a drastic decline of 78.87% in the first quarter of 2025, raising concerns about the sustainability of its innovation pipeline [13]. Group 3: Industry Context and Competitive Landscape - The pediatric medication market is undergoing significant changes, with public hospitals increasing their market share from approximately 40% in 2019 to 50.1% in 2024, while retail pharmacy shares have fluctuated [10]. - Competitors like Kuihua Pharmaceutical and Jichuan Pharmaceutical are rapidly expanding their market presence in pediatric medications, leveraging unique products and aggressive strategies [10][11]. - The company has 116 projects in development, including seven innovative traditional Chinese medicines, but faces stiff competition from other firms launching similar products [12][13].