Lanzhou Foci Pharmaceutical Co Ltd

Lanzhou Foci Pharmaceutical Co Ltd maintains a relatively strong liquidity position, with a current ratio of 2.9, indicating that it has 2.9 times more current assets than current liabilities. However, the company reported negative operating cash flow of -6.76 million CNY and capital expenditure of -7.56 million CNY, suggesting ongoing cash outflows from operations and investments. The debt-to-equity ratio is low at 0.04, indicating that the company is not heavily leveraged and relies primarily on equity financing.

In terms of profitability, the company's return on equity (ROE) is 1.0%, and return on assets (ROA) is 0.71%, both of which are relatively low compared to industry benchmarks. The net income of 17.71 million CNY is modest relative to the company's total assets of 24.84 billion CNY, indicating limited asset utilization efficiency. The gross profit margin is 33.7%, which is in line with the industry average, but the operating margin of 8.6% is below the median for the pharmaceutical sector.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic and regulatory risks. The company's revenue of 224.55 million CNY is derived from pharmaceutical products, with no material revenue from other sources.

Looking ahead, the company's growth trajectory appears modest. The most recent actual revenue of 544.58 million CNY is lower than the full-year revenue of 224.55 million CNY, suggesting a possible seasonal or reporting period mismatch. Analysts have not provided forward-looking revenue or EPS estimates, limiting visibility into future performance. The company's capital expenditure of -7.56 million CNY indicates ongoing investment in infrastructure or production capacity, but the negative operating cash flow suggests that these investments are not yet generating positive returns.

The company faces moderate liquidity risk due to its negative operating cash flow and capital outflows. While the debt-to-equity ratio is low, the negative net cash position after subtracting total debt raises concerns about short-term liquidity. The risk of dilution is low, as the number of shares outstanding has not changed between basic and diluted shares. No recent equity issuance or dilutive events have been reported.

Recent filings and transcripts do not indicate any material events or strategic shifts. The company's financial performance remains stable but unremarkable, with no significant changes in its business model or market position.

Lanzhou Foci Pharmaceutical Co Ltd (002644.SZ) has been formally classified within the Healthcare economic sector, with its primary activity identified as Pharmaceuticals & Medical Research. This taxonomic update provides a clearer structural definition of the company’s operational focus, aligning its market positioning with the broader healthcare industry framework. In terms of risk profile, the company’s dilution risk has been assessed as low, indicating a stable capital structure with minimal immediate threat of share value erosion from new issuances. This assessment offers a baseline of confidence regarding equity integrity for investors monitoring capital management practices. Conversely, liquidity risk has been flagged at a medium level, suggesting potential constraints in the ease of trading or market depth for the stock. This distinction highlights a divergence between the stability of the company’s equity base and the fluidity of its secondary market transactions, a factor that may influence trading strategies and execution costs. The company currently operates without reported analyst coverage, index membership, or disclosed top holders, reflecting a limited presence in institutional tracking and public market analysis. These structural gaps underscore the importance of the newly established risk and sector classifications as primary reference points for evaluating the firm’s market standing.

Debt-to-equity ratio of 0.04 is substantially lower than the cohort median of 0.18, reflecting a conservative capital structure.

Net income surged 89.5% year-over-year in the latest period, showing significant recent earnings momentum.

Operating income increased 69.6% year-over-year, highlighting a strong recovery in core operational profitability.

Revenue CAGR of -5.9% over four years reflects a persistent long-term decline in sales volume.

Cash conversion ratio is in the bottom quartile of the cohort, suggesting poor cash generation relative to earnings.

Revenue ¥211.6M, −2,1% YoY; Operating income +18,4% YoY.

• ▍Revenue ¥211.6M, −2,1% YoY
• ▍Operating income +18,4% YoY
• ▍Net income +16,9% YoY
• ▍Net margin 10.7%

Revenue ¥291.5M, +7,3% YoY; Operating income −7,2% YoY.

• ▍Revenue ¥291.5M, +7,3% YoY
• ▍Operating income −7,2% YoY
• ▍Net income −47,0% YoY
• ▍Net margin 3.8%

Revenue ¥194.7M, −7,1% YoY; Operating income +121,1% YoY.

• ▍Revenue ¥194.7M, −7,1% YoY
• ▍Operating income +121,1% YoY
• ▍Net income +167,9% YoY
• ▍Net margin 4.1%

Revenue ¥213.2M, −5,0% YoY; Operating income −39,3% YoY.

• ▍Revenue ¥213.2M, −5,0% YoY
• ▍Operating income −39,3% YoY
• ▍Net income −39,5% YoY
• ▍Net margin 5.0%

Revenue ¥216.1M; Operating income ¥22.9M.

• ▍Revenue ¥216.1M
• ▍Operating income ¥22.9M
• ▍Net margin 9.0%

Revenue ¥271.7M; Operating income ¥24.1M.

• ▍Revenue ¥271.7M
• ▍Operating income ¥24.1M
• ▍Net margin 7.7%

Revenue ¥209.7M; Operating income ¥4.1M.

• ▍Revenue ¥209.7M
• ▍Operating income ¥4.1M
• ▍Net margin 1.4%

Revenue ¥915.5M, −6,6% YoY; Operating income −6,0% YoY.

• ▍Revenue ¥915.5M, −6,6% YoY
• ▍Operating income −6,0% YoY
• ▍Net income −18,1% YoY
• ▍Free cash flow −8,5% YoY
• ▍Net margin 5.4%

Revenue ¥980.2M, −15,7% YoY; Operating income −15,4% YoY.

• ▍Revenue ¥980.2M, −15,7% YoY
• ▍Operating income −15,4% YoY
• ▍Net income −10,6% YoY
• ▍Free cash flow +18,8% YoY
• ▍Net margin 6.1%

Revenue ¥1.16B, +11,6% YoY; Operating income −41,7% YoY.

• ▍Revenue ¥1.16B, +11,6% YoY
• ▍Operating income −41,7% YoY
• ▍Net income −38,2% YoY
• ▍Free cash flow −37,0% YoY
• ▍Net margin 5.8%

Revenue ¥1.04B, +27,5% YoY; Operating income +27,2% YoY.

• ▍Revenue ¥1.04B, +27,5% YoY
• ▍Operating income +27,2% YoY
• ▍Net income +16,5% YoY
• ▍Free cash flow +135,3% YoY
• ▍Net margin 10.4%