① In 2023, the company's net profit to mother was 100 million yuan to 120 million yuan, turning a loss into a profit, and achieving the first increase in performance since 2018. ② Since the entry of state-owned assets in Shanxi in 2021, the internal control and sales system has been continuously optimized, and the agency expects the company's operations to reach an inflection point.
Financial Services Association, January 30 (Reporter Zhang Liangde) On the evening of January 29, Guang Yuyuan (600771.SH) issued a performance reversal announcement. The company expects net profit to be 100 million yuan to 120 million yuan in 2023, turning a loss into a profit. This is the first time since the company's performance continued to decline in 2018.
A company executive said at an exchange meeting in the middle of last year that since Shanxi's state-owned assets joined in 2021, the internal control and sales system has been continuously optimized to promote cash availability, continuous decline in accounts receivable, continuous increase in cash on the books, and continuous improvement of the company's financial indicators.
In the company's pre-profit announcement, Guang Yuyuan also summarized several reasons for the increase in performance in 2023: implementing various measures to improve quality and efficiency, strengthening marketing control and digital intelligent management, and implementing daily budget control. Core business line performance generally increased, and comprehensive gross margin increased. In particular, the share of sales of specialty Chinese medicines continued to increase, and sales expenses decreased year-on-year. The overall increase in the company's net profit led to an increase in the company's net profit, turning a loss into a profit.
Company sources said these results were hard to come by. With the deepening of reforms, the well-known brand power is slowly becoming stronger, and the company's market voice has gradually increased visibly.
As a traditional Chinese medicine company with a long history, Guangyuyuan has major products such as Dingkundan, Guiling Ji, Angong Gyuhuang Pills, Gyuhuang Qingxin Pills, and Nishihuang Pills. Li Xiaojun, chairman of the company, said, “The Shanxi Provincial Committee and provincial government have always attached great importance to Guang Yuyuan. As a state-owned holding enterprise, Guang Yuyuan is one of the main carriers of the strong traditional Chinese medicine province in Shanxi.”
An investment agency manager told the Financial Federation reporter that they value the company's product capabilities are indeed outstanding on the one hand, and that state-owned assets give investment institutions more confidence after entering the market.
As the company's internal control and management capabilities improve and the financial situation continues to improve, the management of the investment agency believes, “The real inflection point may soon be reached.”
At the same time, the company also disclosed a series of announcements to correct accounting errors and make retroactive adjustments to the financial statements for the first three quarters of 2016 to 2023.
According to the announcement, the company's profit amount from 2016 to 2020 was adjusted downward. Losses in 2021 and 2022 decreased by 270 million yuan and 155 million yuan respectively, and net profit increased by 70 million yuan in Q3 2023, but there was no change in the profit and loss direction of the financial statements for the corresponding year.
According to the results of this early accounting error correction, the company's holding subsidiary, Shanxi Guangyuyuan Sinopharm Co., Ltd. did not complete the net profit targets promised by the original holding stock Dongxi Dongsheng Group Co., Ltd. in 2016, 2017, and 2018, and the company must be compensated.
Regarding the correction of the company's early accounting errors, Guang Yuyuan received an inquiry letter from the Management Department II of a listed company on the Shanghai Stock Exchange, requesting the company to further verify and further explain the causes and effects.