Xiangxue Pharmaceutical (Stock Code: 300147) is a company specializing in the research and production of traditional Chinese medicine, committed to promoting innovation and high-quality development of the traditional Chinese medicine industry. With the support of national policies, the company actively responds to the call for revitalization of traditional Chinese medicine, continuously improves the quality management of traditional Chinese medicine materials and the supervision level of traditional Chinese medicine preparations. Xiangxue Pharmaceutical focuses on innovative research and development of traditional Chinese medicine, optimizes the traditional Chinese medicine review and approval mechanism, improves the management level of traditional Chinese medicine standards, and actively participates in the globalization of traditional Chinese medicine regulation. Faced with challenges in the pharmaceutical industry, the company strives to maintain competitiveness in the market through innovation and high-quality development, contributing to the development of the traditional Chinese medicine industry.

According to Xiangxue Pharmaceutical's quarterly report in 2024, the total assets at the end of the period were 8.24 billion yuan, a decrease of 0.49% from 8.281 billion yuan at the beginning of the period. The total liabilities at the end of the period were 5.955 billion yuan, a decrease of 0.20% from 5.967 billion yuan at the beginning of the period. Goodwill remains unchanged at both the end and the beginning of the period, at 200 million yuan. The asset-liability ratio rose from 72.06% at the beginning of the period to 72.27% at the end of the period, indicating that the company's liabilities have also decreased while the assets have decreased, but the asset-liability ratio has increased slightly, showing that the company's financial leverage has increased slightly. The return on equity (ROE) decreased from 0.29% at the beginning of the period to -1.25% at the end of the period, reflecting a decrease in the company's profitability during this period.

In terms of profit, Xiangxue Pharmaceutical's operating income for this reporting period was 569 million yuan, a year-on-year decrease of 3.37%. Operating profit changed from 151.6 million yuan in the same period last year to -166.8 million yuan, and net profit changed from 82.8 million yuan in the same period last year to -286.3 million yuan. The gross profit margin decreased from 39.71% in the same period last year to 35.83% in this reporting period, and the net profit margin decreased from 1.41% in the same period last year to -5.03%. These data indicate that the company's profitability during this reporting period has significantly decreased, mainly due to the decrease in gross profit margin, decrease in government subsidies, and increase in non-operating expenses during this period.

In terms of cash flow, Xiangxue Pharmaceutical's net cash flow from operating activities in this reporting period was 258.1 million yuan, a year-on-year decrease of 53.05%. The subtotals of cash inflows from operating activities were 502 million yuan, a year-on-year decrease of 9.00%, and the subtotals of cash outflows from operating activities were 476 million yuan, a year-on-year decrease of 4.13%. Although the company still maintained positive cash flow in operating activities, the net amount has decreased significantly, reflecting certain challenges in the company's cash flow management in daily operations.

Overall, Xiangxue Pharmaceutical faced significant operating pressure in the first quarter of 2024. Although the company has accumulated profound experience in the research and production of traditional Chinese medicine and has the support of national policies, changes in market environment and challenges in internal management have led to unsatisfactory financial performance during this reporting period. In the future, the company needs to further strengthen cost control, improve operational efficiency, and actively expand the market to cope with changes in industry competition and market demand.