Core Viewpoint - *ST Longjin (002750.SZ) has been announced for delisting by the Shenzhen Stock Exchange due to continuous financial losses and failure to meet revenue thresholds [1][7]. Company Overview - *ST Longjin, officially known as Kunming Longjin Pharmaceutical Co., Ltd., was established in September 1996 and listed on the Shenzhen Stock Exchange in 2015. The company focuses on the development, research, production, and sales of therapeutic drugs for cardiovascular and metabolic diseases, with its main product being the Longjin injection of Ligusticum chuanxiong [5]. - The company experienced stable revenue growth in its first three years post-listing, with revenues of 181 million, 224 million, and 304 million yuan, and net profits of 54 million, 58 million, and 19 million yuan respectively from 2015 to 2017. However, since 2018, the company's profitability has sharply declined, with net profits remaining negative from 2019 onwards [5][7]. Financial Performance - In 2024, *ST Longjin reported annual revenue of 66 million yuan, a year-on-year decline of 23.25%, marking five consecutive years of revenue below 100 million yuan. The net loss was 41 million yuan, although this represented a 41.58% improvement year-on-year. However, the company still reported a non-recurring net loss of 50 million yuan [7]. - The company's reliance on a single product, the Longjin injection, has been detrimental, as this product has consistently accounted for over 90% of its revenue. Following regulatory changes and price reductions, the sales volume of this product dropped significantly, leading to a devastating impact on the company's financial health [8][9]. Market Challenges - The Longjin injection's sales fell by nearly 20% in 2017 due to regulatory warnings about severe allergic reactions. In 2021, the product's price was drastically reduced by 67% during a procurement process, leading to a further decline in sales [8]. - The company has attempted to diversify its product offerings and explore new markets, including industrial hemp, but these efforts have largely failed. The industrial hemp initiative faced regulatory challenges and a reduction in planting area, while the development of cardiovascular generic drugs has been slow, with the first product only receiving approval at the end of 2024 [10][11]. Industry Context - Since 2025, three other traditional Chinese medicine injection companies have also faced delisting from the A-share market due to similar financial struggles, highlighting a broader trend of challenges within the industry [12].

Core Viewpoint - The safety concerns surrounding traditional Chinese medicine (TCM) injection solutions, particularly the case of a patient who died after receiving a Schisandra injection, have reignited discussions about the risks associated with these products and the need for improved regulatory oversight [1][3][11]. Industry Overview - The market for TCM injection solutions has seen a significant decline, with total market size dropping from 831.3 billion in 2015 to 479.8 billion in 2023, a nearly 50% reduction [7]. - Major companies in the sector, such as ST Longjin and Dali Pharmaceutical, have faced severe financial difficulties, with ST Longjin's revenue declining by 36.19% to 0.48 billion in 2024 [8][9]. - Despite the challenges, some companies remain optimistic about the potential for TCM injections, with predictions that products like Kanyuan Pharmaceutical's Hot Toxic Ning injection could benefit from increased insurance coverage and expanded indications [5]. Regulatory Environment - The National Medical Products Administration (NMPA) has been actively revising the instructions for TCM injections, adding warnings about severe allergic reactions and requiring monitoring after administration [11][12]. - Recent changes in the 2023 medical insurance drug directory have relaxed some payment restrictions on TCM injections, allowing for broader use in clinical settings [13][14]. - However, the existing risk management system still has shortcomings, such as delayed implementation of revised instructions and insufficient training for medical staff on proper medication use [12]. Safety Concerns - Reports indicate that adverse reactions to TCM injections, particularly allergic reactions, are common, especially among older patients [3][6]. - The complexity of TCM injection formulations and the potential for contamination during production contribute to safety risks [6][10]. - The industry faces ongoing scrutiny regarding the quality control of TCM injections, with calls for stricter regulations and better monitoring of adverse reactions [10][15]. Future Outlook - The TCM injection industry must navigate its way out of the current downturn by focusing on product upgrades, regulatory compliance, and enhancing safety monitoring systems [10][16]. - Companies are encouraged to adopt modern scientific methods to assess the safety of TCM injections and to implement stricter quality control measures [16].

Core Viewpoint - *ST Longjin is facing the risk of delisting due to continuous financial losses and regulatory challenges in the traditional Chinese medicine injection market, particularly affecting its main product, the injection of lamp flower extract, which previously accounted for over 90% of its revenue [1][4][11]. Company Overview - Longjin Pharmaceutical was established in September 1996 and listed on the Shenzhen Stock Exchange in 2015, focusing on the development, research, production, and sales of therapeutic drugs for cardiovascular and metabolic diseases, with its leading product being the injection of lamp flower extract [3][4]. - The company was the first in China to produce and list the injection of lamp flower extract, achieving sales of 34.52 million bottles in 2013. However, since 2018, the company's profitability has sharply declined, with continuous losses from 2019 to the present [3][5]. Financial Performance - The 2024 performance forecast indicates that Longjin Pharmaceutical expects a net profit loss of between 29.82 million yuan and 44.38 million yuan, with a non-deductible net profit loss ranging from 38.00 million yuan to 56.56 million yuan. This is attributed to a 67% price drop of the lamp flower extract due to centralized procurement policies [4][5]. - From 2019 to 2023, the company's net profit has been negative for five consecutive years, with losses of 39.89 million yuan, 2.53 million yuan, 1.03 million yuan, 57.34 million yuan, and 81.10 million yuan respectively [5]. Market Challenges - The injection of lamp flower extract has seen a significant decline in sales, dropping from 2.858 million bottles in 2017 to 1.278 million bottles in 2021, largely due to stricter regulations and limitations on its use in medical insurance [7][8]. - The traditional Chinese medicine injection industry is experiencing a downturn, with the market size for hospital use of traditional Chinese medicine injections plummeting over 50% from 2016 to 2022, from 88.06 billion yuan to 40.61 billion yuan [11]. Regulatory Environment - The regulatory landscape has tightened, with the National Medical Insurance Directory limiting the reimbursement and usage of traditional Chinese medicine injections, particularly affecting the lamp flower extract [8][11]. - The company has faced challenges such as safety re-evaluation pressures, market competition, and public trust issues due to adverse reactions associated with traditional Chinese medicine injections [13][14]. Strategic Adjustments - Experts suggest that traditional Chinese medicine companies should enhance product quality through re-evaluation, strengthen clinical research, and optimize product structures to adapt to market demands and regulatory changes [15][16]. - Longjin Pharmaceutical has attempted to diversify its product offerings and increase research and development investments, but has yet to find new growth points [9][16].