Core Viewpoint - ST Longjin is facing delisting due to a net profit loss in the recently disclosed 2024 annual report and revenue falling below 300 million, triggering delisting conditions [2][14]. Company Overview - Longjin Pharmaceutical was established in September 1996, focusing on the research, production, and sales of modern traditional Chinese medicine and high-end chemical generics [2]. - The company’s representative products include injection of Ligusticum Chuanxiong, injection of fibrinolytic enzyme, and injection of Bivalirudin, with Ligusticum Chuanxiong being the core product [2]. Stock Performance - Longjin Pharmaceutical was listed in 2015 during a bull market, with its stock price peaking at 135 yuan before experiencing a significant decline, dropping to around 6 yuan within two years [2]. - In 2019, the company invested 15 million yuan to acquire a 51% stake in Yunnan Muya Agricultural Technology Co., which focuses on large-scale industrial hemp cultivation, leading to a stock price surge from 5 yuan to 23.5 yuan in two months [4]. - The stock was heavily speculated upon due to the industrial hemp concept, achieving multiple trading halts in 2021, earning the title of the "first industrial hemp stock" [4]. Financial Performance - From 2021 to 2024, Longjin Pharmaceutical's revenue showed a drastic decline: 702.5 million, 123 million, 86.62 million, and 66.48 million respectively, with net profits of 3.093 million, -56.12 million, -70.94 million, and -41.44 million, indicating three consecutive years of losses [7]. - The company was placed under delisting risk warning by the Shenzhen Stock Exchange in the previous year due to a negative net profit and revenue below 100 million [8]. Recent Developments - Following the delisting risk warning, Longjin Pharmaceutical's stock faced a series of trading halts, with the price plummeting to around 1 yuan after multiple trading suspensions [9][11]. - Currently, there are nearly 30,000 shareholders, many of whom are stuck with high-priced shares and reluctant to sell [14]. Industry Context - The number of listed companies in A-shares has exceeded 5,000, with an increasing number of delistings each year, highlighting the importance of avoiding poorly performing stocks [16].

Operating Overview - The total operating revenue of ST Longjin (002750) for 2024 was 66.48 million yuan, a year-on-year decrease of 23.25% [2] - The net profit attributable to shareholders was -41.44 million yuan, an increase of 41.58% year-on-year; the net profit after deducting non-recurring gains and losses was -50.46 million yuan, up 37.78% year-on-year [2] - Despite poor annual performance, the fourth quarter showed improvement with total operating revenue of 19.87 million yuan, a year-on-year increase of 27.65% [2] Profitability Analysis - The company's profitability improved in 2024, with a gross margin of 64.25%, an increase of 5.53% year-on-year [3] - The net profit margin was -70.66%, an increase of 27.36% year-on-year, indicating that the company remains in a loss position [3] Cost and Expense Analysis - Total sales, management, and financial expenses amounted to 66.58 million yuan, accounting for 100.15% of revenue, a decrease of 7.73% year-on-year [4] - The reduction in sales expenses was primarily due to the implementation of centralized procurement price linkage policies in non-centralized procurement provinces [4] Cash Flow Situation - The operating cash flow per share was -0.09 yuan, an increase of 12.8% year-on-year, indicating some improvement [5] - However, the average operating cash flow over the past three years relative to current liabilities was -78.8%, suggesting ongoing concerns regarding cash flow [5] Asset and Liability Situation - The company's cash and cash equivalents amounted to 262 million yuan, a year-on-year increase of 24.2%, indicating a healthy cash position [6] - Accounts receivable decreased by 27.86% year-on-year to 8.75 million yuan, reflecting improved collection [6] Development Prospects and Risks - The company has been deeply involved in the pharmaceutical manufacturing industry for many years, holding nearly 40 domestic and foreign invention patents [7] - However, the product structure remains single, with revenues from other chemical generic drugs being relatively small [7] - The company faces multiple risks, including industry policy changes, research and development innovation, management, and safety and environmental protection [7] Summary - Overall, ST Longjin showed some recovery in profitability in 2024, but the overall operating condition remains under significant pressure [8] - The company needs to further optimize its product structure, enhance market competitiveness, and strengthen cash flow management and risk prevention for sustainable development [8]