Changjiang Pharmaceutical Group Co., Ltd. (stock code: 300391), referred to as Changyao, is a company that focuses on pharmaceutical research and development, production, and sales. The company is committed to providing high-quality pharmaceutical products and services to meet market demand. However, the financial report data for the first quarter of 2024 shows that the company is facing severe financial challenges.

At the end of this reporting period, Changyao's total assets were 3.432 billion yuan, a decrease of 0.40% from the end of the previous year of 3.446 billion yuan. The asset-liability ratio increased from 70.48% at the beginning of the period to 72.72% at the end of the period, indicating an increase in pressure on the company's liabilities. Total liabilities increased from 2.428 billion yuan at the beginning of the period to 2.496 billion yuan at the end of the period, an increase of 2.78%. Although the goodwill remained unchanged at 236 million yuan, the equity attributable to shareholders of the listed company decreased from 195 million yuan to 148 million yuan, a decrease of 24.35%.

In terms of profits, Changyao's performance is not optimistic. The first quarter of 2024 operating income was 590.9 million yuan, a year-on-year decrease of 56.80%. Operating costs also decreased correspondingly by 56.54%, to 54.6 million yuan. The net profit attributable to shareholders of the listed company was -47.51 million yuan, a year-on-year decrease of 106.92%. The net profit after deducting non-recurring gains and losses was -45.66 million yuan, a year-on-year decrease of 97.65%. The basic earnings per share and diluted earnings per share were both -0.1356 yuan, a year-on-year decrease of 107.02%. The weighted average return on net assets decreased from -2.91% in the same period last year to -27.72%. These data reflect that the company faces significant pressure in terms of revenue and profits, mainly due to business suspension and bad debt provision increases in accounts receivable.

In terms of cash flow, the net cash flow generated by Changyao's operating activities was -32.82 million yuan, a year-on-year decrease of 234.82% compared to 24.34 million yuan in the same period last year. The subtotal of cash inflow from operating activities decreased by 76.05% year-on-year to 59.81 million yuan, while the subtotal of cash outflow decreased by 58.91% year-on-year to 92.63 million yuan. The subtotal of cash inflow from financing activities increased significantly by 1347.23% year-on-year to 59.69 million yuan, mainly due to the increase in borrowings. The net cash flow generated by financing activities was 31.5 million yuan, an increase of 197.70% year-on-year compared to -32.24 million yuan in the same period last year. The net increase in cash and cash equivalents was -3.98 million yuan, a year-on-year decrease of 53.00%.

In summary, Changyao faced multiple challenges in the first quarter of 2024, such as a significant decline in revenue, increasing net loss, and tight cash flow. The company needs to take effective measures to improve its financial situation, enhance operational efficiency, and cope with the current market environment and financial pressure.