Core Viewpoint - Jiangsu Sihuan Bioengineering Co., Ltd. (referred to as "Sihuan Bio" or "*ST Sihuan") expects to increase revenue without profit in the first half of 2025, projecting revenue of approximately 180 million to 190 million yuan, a year-on-year increase of 70.12% to 79.57%, while net profit attributable to shareholders is expected to be a loss of 9 million to 13 million yuan, widening from a loss of 11.0581 million yuan in the same period last year [1][2]. Group 1: Financial Performance - Sihuan Bio's revenue is projected to grow significantly due to bulk sales of seedlings by its wholly-owned subsidiary, Jiangsu Chenwei Ecological Park Technology Co., Ltd., despite a slight decline in revenue from its main subsidiary, Beijing Sihuan Bio-Pharmaceutical Co., Ltd. [2] - The company has reported continuous losses for four consecutive years, with revenues of 351 million yuan, 270 million yuan, 235 million yuan, and 204 million yuan from 2021 to 2024, and corresponding losses of 34.79 million yuan, 48.79 million yuan, 75.27 million yuan, and 110 million yuan [6][8]. Group 2: Legal and Regulatory Issues - Sihuan Bio is facing ongoing financial burdens due to securities false statement liability disputes, with 188 investors filing lawsuits against the company, totaling 41.2075 million yuan in claims [3]. - The company has been penalized by the China Securities Regulatory Commission (CSRC) for false disclosures regarding its actual controller, leading to administrative penalties and market bans for the former actual controller, Lu Keping [4][5]. Group 3: Market Challenges - The company is experiencing significant sales pressure due to intensified competition and price reductions in the pharmaceutical industry, particularly in the context of centralized drug procurement [7][8]. - Despite an increase in research and development (R&D) personnel and investment, the company’s core pharmaceutical business has not shown substantial improvement, relying instead on non-core business revenue for short-term gains [8].

Core Viewpoint - Jiangsu Sihuan Biological Co., Ltd. has been placed under delisting risk warning due to its poor performance in 2024, leading to a significant drop in stock price and market capitalization [1][2]. Financial Performance - The company reported a revenue of 204 million yuan in 2024, a year-on-year decline of 13.55% [2]. - The net profit attributable to shareholders was -109 million yuan, a substantial decrease of 46.13% year-on-year [2]. - Cumulatively, the company has incurred losses of nearly 270 million yuan over the past four years, with a loss of over 100 million yuan in 2024 alone [2]. Market Challenges - Increased pressure from centralized drug procurement and intensified industry competition have significantly impacted the company's sales [3]. - The company's core products have seen a substantial decline in market share due to price reductions and competition from generic drugs [3]. Research and Development - The company has been increasing its R&D personnel from 16 in 2020 to 37 in 2024, with R&D expenses growing by 31.09% year-on-year in Q1 2025 [3][4]. - Despite the increase in R&D investment, the total amount remains below 30 million yuan, which is insufficient to develop competitive new products [4]. Operational Issues - The company's diversification into landscaping and ecological projects has not improved performance and has instead become a burden due to asset impairment losses [5]. - The company has faced significant challenges related to its actual controller, leading to legal and financial repercussions that have further eroded investor confidence [6][7]. Legal and Regulatory Challenges - The company has been subject to administrative penalties and market bans due to false disclosures, resulting in ongoing litigation with investors totaling approximately 27.32 million yuan [7]. - The recent changes in control and ongoing legal issues have severely damaged the company's reputation in the capital market [7].