Core Viewpoint - Sunshine Nuohuo is involved in a civil lawsuit with Hunan Hengsheng Pharmaceutical over a contract dispute regarding the development of Ticagrelor, with the amount in question being 20 million yuan [1][3]. Company Summary - Sunshine Nuohuo's stock closed at 48.4 yuan per share, down 2.36%, with a market capitalization of 5.421 billion yuan [1]. - The company announced that it had already made a provision for bad debts amounting to approximately 36.44 million yuan related to Hunan Hengsheng Pharmaceutical [4]. - The company has stated that it will actively respond to the lawsuit, asserting that the production license should automatically transfer to them due to Hunan Hengsheng's failure to pay the agreed development fees [3][7]. Financial Performance - Sunshine Nuohuo's revenue from 2021 to 2023 was 494 million yuan, 677 million yuan, and 932 million yuan, respectively, with year-on-year increases of 42.12%, 37.06%, and 37.76% [7]. - The company's net profit for the same period was 102 million yuan, 142 million yuan, and 180 million yuan, maintaining over 25% growth each year [7]. - In 2024, the company achieved revenue of 1.078 billion yuan, a year-on-year increase of 15.7%, but the net profit decreased by 8.31% to 165 million yuan [7]. Industry Context - The pharmaceutical outsourcing (CXO) industry experienced a revenue growth rate above 30% from 2018 to 2022, with net profit growth rates exceeding 50% [10]. - The industry has seen a slowdown in performance, with many companies reporting declining or stagnant financial results in 2023 [10]. - Sunshine Nuohuo is attempting to stabilize its long-term growth by focusing on innovative drugs, improved new drugs, and generic drugs, as well as expanding into the animal health sector [10].