Kunming Longjin Pharmaceutical Co., Ltd. (stock code: 002750), since its establishment in 1996, has focused on R&D, production and sales of modern proprietary Chinese medicines and high-end chemical generic drugs. As a national high-tech enterprise, Longjin Pharmaceutical has taken a place in the treatment of cardiovascular and endocrine diseases with many domestic and foreign invention patents. The company's sales strategy, which is guided by clinical value and centered on academic promotion, has successfully expanded to thousands of medical institutions across the country.

In terms of assets and liabilities, Longjin Pharmaceutical's 2023 three-quarter report shows that the company's total assets were 683 million yuan, down from 747 million yuan at the end of the previous year. Total liabilities were $101 million, down from $142 million at the end of the previous year, while net assets fell from $605 million at the end of the previous year to $582 million. The balance ratio fell from 19.06% to 14.77%, indicating an improvement in the company's financial structure. In terms of goodwill, the end of the reporting period was 1.086,600 yuan. This is due to the company's holding merger with Shanghai Rouyishi Biotechnology Co., Ltd. and the goodwill confirmed on the merger date.

In terms of profit, Longjin Pharmaceutical faces major challenges. Revenue fell from 103 million yuan in the same period last year to 71.05535 million yuan, a decrease of 30.87%. This was mainly due to the year-on-year decline in sales of the company's main products after the implementation of centralized volume procurement by the Proprietary Chinese Medicine Alliance. Net profit was also affected. Net profit attributable to shareholders of listed companies fell sharply to -26.6424 million yuan, down 703.15% from -3,317,200 yuan in the same period last year, mainly due to a decline in operating income and a decrease in financial income and government subsidies.

In terms of cash flow, net cash flow from operating activities was -478.924 million yuan, down 212.80% from -153.106 million yuan in the same period last year. This change is mainly due to a decline in operating income and an increase in cash inflows from sales products, as well as an increase in the payment of value-added tax and additional taxes by parent companies.

Taken together, Longjin Pharmaceutical faced quite a few challenges in the third quarter of 2023. The decline in operating income and net profit reflected intense market competition and changes in the external environment. However, the decline in the company's balance ratio and the reduction in debt also showed the company's efforts and effectiveness in financial management.

For investors, although Longjin Pharmaceutical is under pressure to decline in performance in the short term, the company's deep cultivation and continuous optimization of the financial structure in the field of proprietary Chinese medicines and chemical generic drugs have provided the foundation for its long-term development. Investors should comprehensively consider various factors such as the company's market competitiveness, R&D capabilities, financial conditions, and industry trends when considering investment decisions.

This article only represents the judgments made by analysts themselves or analysts based on AI analysis. It cannot be used as an investment indicator, nor does it constitute any investment advice. The original purpose of this article was to help investors analyze and judge capital market data in the most intuitive and fastest way and from the most professional perspective.