Core Viewpoint - The stock price of Hongyuan Pharmaceutical has experienced a dramatic decline since its IPO, dropping from 45 yuan to 13.7 yuan, raising concerns about the company's performance and underlying issues [1][5]. Group 1: IPO and Initial Performance - On March 20, 2023, Hongyuan Pharmaceutical listed on the Shenzhen Stock Exchange's ChiNext, but the stock price opened below the issue price, falling by 16.1% to close at 41.95 yuan on the first day [1][4]. - The issue price was set at 50 yuan per share with a price-to-earnings ratio of 41.21, significantly higher than the industry average of 26.98, contributing to investor skepticism and the subsequent price drop [4]. Group 2: Financial Performance - In the first half of 2023, the company's net profit attributable to shareholders plummeted by 78.51%, with cash flow from operating activities declining by 198.11% [5][7]. - For the entire year of 2023, the projected net profit is expected to be between 83 million and 97 million yuan, representing a year-on-year decline of 80.91% to 77.69% [5]. Group 3: Market Conditions and Competition - The decline in performance is attributed to intense competition in the lithium battery materials sector, where the price of lithium hexafluorophosphate has remained low, impacting profitability despite increased sales volume [7]. - Additionally, the pharmaceutical sector faces heightened competition due to national procurement and medical insurance policies, leading to decreased unit prices for products like metronidazole, further eroding profit margins [7]. Group 4: Stock Price Decline - Following the initial high of 45 yuan, the stock price has continued to decline, reaching a low of 11.41 yuan by September 10, 2024, and closing at 13.28 yuan on May 7, 2025, representing a drop of over 70% from the issue price [7][8]. Group 5: Fundraising and Investor Sentiment - The company raised 15.45 billion yuan through its IPO, more than double the expected amount, but faced criticism for investing 2 billion yuan in financial products the day after listing, leading to accusations of "money-grabbing" [9][10]. - Investors have suffered significant losses, with many expressing dissatisfaction in online forums regarding the company's stock performance and financial results [12].