Core Viewpoint - Fujian Guangshentang Pharmaceutical Co., Ltd. is undergoing a stock issuance process, facing inquiries from the Shenzhen Stock Exchange regarding its financial matters and business operations [1] Financial Performance - The company reported revenues of 385.77 million yuan, 422.71 million yuan, 441.46 million yuan, and 97.61 million yuan over the reporting periods, with net profits of 132.18 million yuan, -354.23 million yuan, -199.54 million yuan, and -30.42 million yuan, indicating continuous losses [2] - The shift from generic to innovative drugs has led to increased R&D expenses and a decline in gross margins due to the inclusion of antiviral drugs in the national centralized procurement list, resulting in a 33.33% decrease in drug sales prices in 2023 compared to 2022 [2] - The gross margins over the last three years were 18.54%, 2.59%, and 8.57% [2] Procurement and Inventory - The procurement amounts from the top five suppliers were 39.34 million yuan, 97.64 million yuan, 79.83 million yuan, and 7.89 million yuan, with respective proportions of 39.86%, 56.57%, 60.53%, and 50.64% of total procurement [3] - The company has adopted a sales-driven production model, with significant increases in prepayments due to the sales of its product, Taizhongding [3] - Inventory values at the end of each period were 68.66 million yuan, 111.48 million yuan, 114.48 million yuan, and 121.13 million yuan, with a substantial increase in inventory impairment provisions expected due to product expiration [3] R&D and Financial Ratios - The number of R&D personnel decreased from 112 to 76, while R&D expenses were 185.46 million yuan, 132.96 million yuan, 44.05 million yuan, and 6.10 million yuan, with a declining R&D expense ratio [4] - The asset-liability ratios were 36.07%, 64.74%, 72.42%, and 73.45%, with a significant increase in 2023 due to financial liabilities recognized from a subsidiary's capital increase [4] - The liquidity ratios (current and quick) were consistently below industry averages, indicating potential liquidity challenges [4] Fundraising Projects - The company plans to raise 976.87 million yuan, with allocations of 598.38 million yuan for innovative drug R&D, 88.49 million yuan for traditional Chinese medicine industrialization, and 290 million yuan for working capital [5] - The innovative drug R&D project includes two drugs for chronic hepatitis B treatment, with significant capital expenditures planned for their development [5] - The traditional Chinese medicine project aims to acquire drug approvals for new products, with an expected internal rate of return of 23.22% [5] Previous Fundraising - Previous fundraising of 514 million yuan has been fully utilized, with some funds redirected due to unmet expectations from prior projects [6] - The company faces challenges in transitioning to innovative drugs, but successful implementation of fundraising projects could provide new growth opportunities [6]