On December 9th, Financial Associated Press reported (by reporter He Fan) that at the earnings conference held today, Guangxi Liuyao Group (603368.SH) Chairman Zhu Chaoyang denied the existence of major risks that should have been disclosed but were not and believed that the company's stock price did not match its value. On the other hand, the company's continuously growing accounts receivable have been criticized; regarding this, the company secretary Xu Yang stated that the company will strengthen efforts to collect payments by enhancing the assessment of repayment indicators for business personnel. Additionally, Xu Yang introduced the progress of the company’s AI scenario application business, which investors are concerned about.

At the earnings conference, an investor asked, "Why does the company's value not receive recognition from institutions or large capital? Does the company have hidden risks?" Zhu Chaoyang responded, "Currently, the company's market cap and stock price do not match its value. The company has always focused on its main business development and aims to win the attention and recognition of the capital markets and broad investors with solid operating performance. There are no major risks that should have been disclosed but were not."

The high accounts receivable remain a significant issue for Guangxi Liuyao Group. According to the Q3 report for 2024, as of September 30th of this year, the company's accounts receivable amounted to 11.734 billion yuan, accounting for 53.26% of total assets.

Xu Yang indicated that the high accounts receivable are determined by the company's business structure, which is primarily hospital sales. Since the company's main sales clients are medical institutions with a long repayment cycle, this directly results in high accounts receivable. As the company's sales scale expands, accounts receivable correspondingly increases. In terms of countermeasures, the company will strengthen the assessment of repayment indicators for business personnel on one hand and adopt various settlement methods to reduce the impact of accounts receivable on the other. He believes that if the medical insurance fund prepayment work is implemented, it will help improve the efficiency of collecting accounts receivable and alleviate the financial pressure on medical circulation enterprises.

On November 11th, the National Medical Insurance Administration and the General Office of the Ministry of Finance issued a notice on "Doing a Good Job in the Prepayment of Medical Insurance Funds," requiring the establishment and improvement of a unified basic medical insurance fund prepayment system at the national level to relieve financial pressure on medical institutions.

In terms of intelligent AI health services, Xu Yang told Financial Associated Press reporters that the company will carry out in-depth cooperation with Huawei Cloud in areas such as "Pangu big model for the pharmaceutical industry," "cloud infrastructure field," and "AI innovation field," for joint technological exploration and application cooperation in fields like medical circulation, new retail in pharmaceuticals, and pharmaceutical production and R&D. "Currently, relevant cooperation is advancing in an orderly manner, and relevant internal testing work is being carried out."

Zhu Chaoyang previously revealed at an earnings conference that "the AI pharmacist assistant created by the company, 'AGui Pharmacist,' is undergoing online testing, and it is expected to launch intelligent AI health services within the year."