April 21Buffalokingmegawayspragmatic, Xinguang Pharmaceutical (SZ300519, share price 11Buffalokingmegawayspragmatic.50 yuan with a market capitalization of 18BuffalokingmegawayspragmaticAccording to the 2023 annual report, the company achieved 270 million yuan in revenue last year, down 23.07% from the same period last year, and its net profit was 64.36 million yuan, down 40.86% from the same period last year. During the reporting period, the company's three core products, namely Huangqi Shengmai Yin, Sheng Jin Dan capsule and American Ginseng Oral liquid, all experienced a year-on-year decline in business income.
According to the China Securities News, there are inconsistencies in the annual report disclosed by Xinguang Pharmaceutical (300519). For example, the company disclosed in its 2023 annual report that its weighted average return on equity in 2021 was 0.14%, but in its 2022 annual report (corrected), it disclosed a weighted average return on equity of 13.80% in 2021.
Why is the company's financial data inconsistent? On the afternoon of April 22, a person from the securities department of Xinguang Pharmaceutical told the Daily Economic News over the phone that the company also noticed the inconsistencies in the above data, mainly due to operational errors and imperfections of the original system.
Net profit fell by more than 40% last year
Xinguang Pharmaceutical Co., Ltd. is mainly engaged in the research, development, production and sales of proprietary Chinese medicine, chemical medicine and health food. its main products are Huangqi Shengmai Yin, Shenjindan capsule and American ginseng oral liquid. According to the company's annual report, the company can produce 6 dosage forms and has 49 drug production approval numbers and 2 health food approval numbers. Among them, the core product Huangqi Shengmai is drunk in coronary heart disease patients with deficiency of both qi and yin, palpitation and shortness of breath, and middle-aged and senile weakness.
In 2023, Xinguang Pharmaceutical achieved revenue of 270 million yuan, down 23.07% from the same period last year, and its net profit was 64.36 million yuan, down 40.86% from the same period last year. From a product point of view, the company's revenue of Huangqi Shengmai drink was 206 million yuan, down 24.00% from the same period last year, accounting for 76.09% of revenue; revenue of Shenjindan capsule was 22.93 million yuan, down 14.75% from the same period last year, accounting for 8.48% of revenue; revenue of American ginseng oral liquid was 33.61 million yuan, down 28.04% from the same period last year, accounting for 12.43% of revenue.
At present, Xinguang Pharmaceutical Co., Ltd. mainly generates revenue from Zhejiang Province. In 2023, revenue in Zhejiang Province accounted for 90.75%.
At present, Xinguang Pharmaceutical Co., Ltd. is relatively concentrated in its products. Huangqi Shengmai Yin, which accounted for more than 70% of its revenue last year, directly determines the company's performance. In February this year, investors asked Xinguang Pharmaceutical on an interactive platform: is Huangqi Shengmai drink produced by the company included in the scope of health insurance? In response, the company replied that Huangqi Shengmai Yin was not included in the 2023 edition of the national basic medical insurance, industrial injury insurance and maternity insurance drug catalogue.
Xinguang Pharmaceutical said in its annual report: "by the end of 2022, all local medical insurance catalogs will be digested and withdrawn, and the national medical insurance catalogue will be implemented. Huangqi Shengmai Yin, the company's leading product, will face the risk of market changes after it withdraws from the health insurance catalogue."
There are two main reasons for the decline in performance
It is worth noting that, in addition to poor performance, Xinguang Pharmaceutical also has inconsistent data.
In the 2023 annual report disclosed by Xinguang Pharmaceutical, the company disclosed a weighted average return on net assets of 0.14% in 2021, but in its 2022 annual report (corrected), it also disclosed a weighted average return on equity of 13.80% in 2021. In addition, in the 2022 report (corrected), the company disclosed that the weighted average return on net assets in 2020 was 0.12%, but in the 2021 and 2020 annual reports, the company also disclosed that the weighted average return on net assets in 2020 was 12.26%.
On the afternoon of April 22, a relevant person from the securities department of Xinguang Pharmaceutical told the Daily Economic News over the phone that the company also noticed the inconsistency of the above letter data. "the main reason is that the original annual report system has been changed."BuffalokingmegawayspragmaticAfter we copied and pasted it and pasted it into a percent sign, there was a data difference. We didn't check it out either. " It said that the inconsistency of the letter data is mainly due to operational errors and imperfections of the original system.
For the reasons for the sharp decline in the company's performance in 2023, the company said: first, the company's Huangqi Shengmai drink withdrew from health insurance, and second, the price of raw materials rose sharply last year. "Huangqi Shengmai Yin will all withdraw from health insurance in 2023, and we are still working hard (to re-enter the health insurance catalogue)." It also said that the company is also actively exploring the market outside Zhejiang Province.
