Luoxin Pharmaceuticals provides a guarantee of no more than 120 million yuan for Shandong Luoxin.

Radar Finance | Text by Yang Yang | Edited by Li Yihui

On March 20, Luoxin Pharmaceutical (Stock Code: 002793) announced that it provided guarantees for its controlling subsidiary, Shandong Luoxin Pharmaceutical Group Co., Ltd. The company and its controlling subsidiaries plan to provide guarantees totaling no more than 648 million RMB to the controlling subsidiary within 2025, including a specific guarantee limit of 505 million RMB for Shandong Luoxin.

Recently, the company signed a “Maximum Principal Guarantee Contract” with Linyi Luozhuang Branch of China Construction Bank Corporation, with a guarantee limit of 120 million RMB for Shandong Luoxin. Currently, Shandong Luoxin is operating well with no record of dishonesty.

After this guarantee, Luoxin Pharmaceutical’s guarantee balance for Shandong Luoxin reached 1,214.3937 million RMB. Following this guarantee, the total guarantee limit for the company and its controlling subsidiaries is 1,856 million RMB, accounting for 134.27% of the latest audited net assets of the listed company.

It is noteworthy that the company has no overdue external guarantees and has not been involved in legal disputes or incurred losses due to guarantee issues.

According to Tianyancha, Luoxin Pharmaceutical was established on May 11, 1998, with a registered capital of approximately 1.0876 billion RMB. The legal representative is Liu Zhenteng, and the registered address is No. 4, Building 18, Luoqi Road, Luozhuang District, Linyi City, Shandong Province. Its main business involves the research, production, and sales of pharmaceutical products.

Currently, the company’s chairman is Liu Zhenteng, the secretary is Jiang Ying, with 3,196 employees. The actual controllers are Liu Baqi and Liu Zhenteng.

The company has 26 associated companies, including Shandong Luoxin Pharmaceutical Sales Co., Ltd., Shanghai Luoxin Pharmaceutical Co., Ltd., Shandong Luoxin Pharmaceutical Group Co., Ltd., Luoxin Hong Kong Holdings Limited, and Shandong Luoxin Lekang Pharmaceutical Co., Ltd.

In terms of performance, the company’s operating income for 2022, 2023, and 2024 was 3.588 billion, 2.364 billion, and 2.647 billion RMB, respectively, with year-over-year changes of -44.62%, -34.11%, and 11.99%. Net profit attributable to the parent was -1.226 billion, -660 million, and -965 million RMB, with year-over-year changes of -401.79%, +46.03%, and -46.04%. During the same period, the company’s asset-liability ratios were 59.22%, 49.73%, and 66.34%.

Regarding risks, Tianyancha data shows the company has 91 internal Tianyan risks, 16 surrounding risks, 42 historical risks, and 85 early warning risks.