Core Viewpoint - Jiangxi Biological has distributed a total of 126 million yuan in dividends from 2023 to 2024, which accounts for 80.25% of its net profit during the same period, raising concerns about financial sustainability before its IPO [1][2]. Financial Performance - Jiangxi Biological reported revenues of 142 million, 198 million, and 221 million yuan over the past three years, with corresponding profits of 26.468 million, 55.481 million, and 75.14 million yuan, totaling 157 million yuan in profit [2]. - The company achieved gross profits of 107 million, 134 million, and 155 million yuan, with gross margins of 75.4%, 67.8%, and 70.3% respectively [2]. Dividend Distribution - The company declared dividends of 10 million yuan in May 2023 and 76 million yuan in October 2023, followed by an additional 40.1 million yuan in September 2024, leading to a cumulative dividend payout of 126 million yuan [2]. Shareholding Structure - The controlling shareholder, Jing Yue, holds approximately 76.64% of the voting rights through Hainan Zhizheng and Qianhai Tianzheng [2]. Expenditure Analysis - Jiangxi Biological's sales expenses from 2022 to 2024 totaled 94.62 million yuan, with over 70% allocated to promotional activities, primarily for academic conferences and hospital promotions [3]. - In contrast, R&D expenditures have significantly decreased, with a 43.5% year-on-year drop in 2024 to 13.68 million yuan, representing only 6.33% of revenue, which is below the industry average of 15%-20% [3]. R&D and Quality Control Issues - The company’s R&D spending in 2024 was less than half of its distribution costs, indicating a concerning imbalance favoring marketing over research [3]. - Jiangxi Biological has faced penalties for producing substandard drugs, including a fine of 1.33 million yuan in 2018 for producing defective tetanus antitoxin, highlighting ongoing quality control issues [3]. - The company's MSCI ESG rating is only CCC, significantly below the industry average of BB, reflecting its quality management challenges [3].