Eagle Eye Warning: Yukang Pharmaceutical's Operating Revenue Significantly Declined

Sina Finance Listed Company Research Institute | Financial Report Hawk-Eye Early Warning

On March 20, Yuekang Pharmaceutical Co., Ltd. released its 2025 annual report.

The report shows that the company’s total operating revenue for the full year of 2025 was 2.446 billion yuan, down 35.3% year over year; net profit attributable to the parent was -262 million yuan, down 312.09% year over year; non-recurring items net profit attributable to the parent was -288 million yuan, down 359.98% year over year; and basic earnings per share were -0.59 yuan/share.

Since it went public in December 2020, the company has conducted cash dividends 4 times, with cumulative cash dividends of 1.092 billion yuan already implemented.

The listed company financial report hawk-eye early warning system conducts intelligent quantitative analysis of Yuekang Pharmaceutical’s 2025 annual report from four major dimensions: performance quality, profitability, capital pressure and safety, as well as operating efficiency.

I. Performance quality

During the reporting period, the company’s revenue was 2.446 billion yuan, down 35.3% year over year; net profit was -275 million yuan, down 326.66% year over year; and net cash flow from operating activities was 340 million yuan, down 22.35% year over year.

From an overall performance perspective, it is necessary to focus on:

• Operating revenue fell sharply. During the reporting period, operating revenue was 2.45 billion yuan, down significantly by 35.3% year over year.

• Net profit attributable to the parent fell sharply. During the reporting period, net profit attributable to the parent was -262 million yuan, down significantly by 312.09% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Net profit attributable to the parent (yuan) | 185 million | 124 million | -262 million | | Net profit attributable to the parent growth rate | -44.87% | -33.05% | -312.09% |

• Non-recurring items net profit attributable to the parent fell sharply. During the reporting period, non-recurring items net profit attributable to the parent was -288 million yuan, down significantly by 359.98% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Non-recurring items net profit attributable to the parent (yuan) | 132 million | 111 million | -288 million | | Non-recurring items net profit attributable to the parent growth rate | -50.89% | -16.33% | -359.98% |

• Operating profit was negative for three consecutive quarters. During the reporting period, operating profit for the most recent three quarters was -50 million yuan, -60 million yuan, and -70.74 million yuan, continuously negative.

| Item | 20250630 | 20250930 | 20251231 | | Operating profit (yuan) | -48.235 million | -57.0155 million | -70.7428 million |

• First time net profit turned into a loss in the past three years. During the reporting period, net profit was negative at -275 million yuan.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (yuan) | 187 million | 121 million | -275 million |

Combining cash flow quality, it is necessary to focus on:

• Net cash flow from operating activities continues to decline. In the past three annual reports, net cash flow from operating activities was 790 million yuan, 440 million yuan, and 340 million yuan, respectively, with a continuous decline.

• Net cash flow from operating activities / net profit continues to deteriorate. In the past three half-year reports, the ratio of net cash flow from operating activities to net profit was 4.19, 3.61, and -1.24 respectively, continuing to decline, showing a downward trend in earnings quality.

II. Profitability

During the reporting period, the company’s gross margin was 50.19%, down 13.16% year over year; net profit margin was -11.23%, down 450.34% year over year; and return on equity (weighted) was -7.61%, down 319.94% year over year.

From the company’s operations-side perspective, it is necessary to focus on:

• Sales gross margin continues to decline. In the past three annual reports, sales gross margin was 62.67%, 57.8%, and 50.19% respectively, with a continuously downward trend.

• Sales net profit margin continues to decline. In the past three annual reports, sales net profit margin was 4.47%, 3.21%, and -11.23% respectively, with a continuously downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Sales net profit margin | 4.47% | 3.21% | -11.23% | | Sales net profit margin growth rate | -40.12% | -28.23% | -450.34% |

Combining the company’s asset-side perspective, it is necessary to focus on:

• Average return on equity over the last three years is below 7%. During the reporting period, weighted average return on equity was -7.61%; the weighted average return on equity over the most recent three fiscal years averaged below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on equity | 4.85% | 3.46% | -7.61% | | Return on equity growth rate | -42.4% | -28.66% | -319.94% |

• Return on equity continues to decline. In the past three annual reports, the weighted average return on equity was 4.85%, 3.46%, and -7.61% respectively, with a continuously downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Return on equity | 4.85% | 3.46% | -7.61% | | Return on equity growth rate | -42.4% | -28.66% | -319.94% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was -5.87%, with an average value below 7% across the three reporting periods.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | 4.23% | 3.51% | -5.87% |

Regarding whether there is an impairment risk, it is necessary to focus on:

• The year-over-year change rate of asset impairment losses exceeds 30%. During the reporting period, asset impairment losses were -40 million yuan, up 58.68% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Asset impairment losses (yuan) | -62.4055 million | -101 million | -41.5435 million |

III. Capital pressure and safety

During the reporting period, the company’s asset-liability ratio was 36.34%, down 3.16% year over year; the current ratio was 1.54, and the quick ratio was 1.27; total debt was 735 million yuan, of which short-term debt was 658 million yuan; short-term debt accounted for 89.46% of total debt.

From the perspective of short-term funding pressure, it is necessary to focus on:

• The ratio of short-term to long-term debt increased significantly. During the reporting period, short-term debt / long-term debt increased significantly to 6.48.

• The ratio of net cash flow from operating activities to current liabilities continues to decline. In the past three annual reports, the ratio of net cash flow from operating activities to current liabilities was 0.37, 0.29, and 0.2 respectively, continuing to decline.

| Item | 20230630 | 20240630 | 20250630 | | Net cash flow from operating activities (yuan) | 487 million | 242 million | -7.2225 million | | Current liabilities (yuan) | 2.122 billion | 1.823 billion | 1.331 billion | | Net cash flow from operating activities / current liabilities | 0.23 | 0.13 | -0.01 |

From the perspective of capital management and control, it is necessary to focus on:

• The ratio of interest income to cash and cash equivalents is less than 1.5%. During the reporting period, cash and cash equivalents were 1.02 billion yuan, and short-term debt was 530 million yuan; the company’s average ratio of interest income to cash and cash equivalents was 0.753%, below 1.5%.

From the perspective of capital coordination, it is necessary to focus on:

• The company has relatively abundant funds. During the reporting period, the company’s working capital requirement was -370 million yuan, and working capital was 910 million yuan. Operating activities and investing/financing activities both brought the company relatively ample funds. The company’s cash payment capability was 1.28 billion yuan, and the efficiency of funds utilization is worth further attention.

IV. Operating efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 4.45, down 11.34% year over year; inventory turnover ratio was 1.99, down 7.24% year over year; and total asset turnover ratio was 0.45, down 31.09% year over year.

From long-term assets, it is necessary to focus on:

• Total asset turnover continues to decline. In the past three annual reports, total asset turnover was 0.7, 0.65, and 0.45 respectively; the company’s total asset turnover capability is weakening.

• Unit fixed-asset income-producing value declines year by year. In the past three annual reports, the ratio of operating revenue to the original value of fixed assets was 2.89, 2.63, and 1.87 respectively, continuing to decline.

Click on Yuekang Pharmaceutical’s hawk-eye early warning to view the latest early-warning details and a visual preview of the financial report.

Sina Finance Listed Company Financial Report Hawk-Eye Early Warning Overview: The listed company financial report hawk-eye early warning is an intelligent, specialized analysis system for listed company financial reports. Hawk-eye early warning aggregates a large number of authoritative financial experts, such as accounting firms and listed companies, to track and interpret the latest financial reports of listed companies from multiple dimensions, including company performance growth, earnings quality, capital pressure and safety, and operating efficiency, and to提示 potential financial risk points in a graphical and textual format. It provides technical solutions for professional, efficient, and convenient identification and early warning of financial risks in listed companies for financial institutions, listed companies, regulatory authorities, and others.

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