Chongqing Lummy Pharmaceutical Co Ltd

Chongqing Lummy Pharmaceutical Co Ltd has a relatively strong liquidity position, with a current ratio of 2.55, indicating that it has more than twice as many current assets as current liabilities. However, the company's liquidity is assessed as medium risk, and its net cash position is negative after subtracting total debt, suggesting potential short-term financial constraints. The company's cash and equivalents amount to 8,046,710 CNY, which is significantly lower than its long-term debt of 262,318,940 CNY.

In terms of profitability, the company reported a net income of 5,903,470 CNY, but it also recorded an operating loss of 15,183,560 CNY, indicating that its core operations are not currently generating sufficient revenue to cover operating expenses. The return on equity (ROE) is 0.28%, and the return on assets (ROA) is 0.2%, both of which are below the typical thresholds for strong performance in the pharmaceutical industry.

The company's revenue is concentrated in a single business segment, as no specific segments are disclosed in the available data. Geographically, the company is primarily focused on the Chinese market, with no significant international revenue reported. This concentration may expose the company to regional economic and regulatory risks.

The company's growth trajectory appears to be mixed. While it reported a revenue of 200,626,960 CNY, the operating loss suggests that the company is not effectively converting this revenue into operating profits. The capital expenditure of -38,801,790 CNY indicates that the company is investing in its operations, but the negative value suggests that the company is not generating enough cash from operations to fund these investments.

The company's risk profile includes medium liquidity risk and low dilution risk. The key flag of negative net cash after subtracting total debt highlights the company's liquidity challenges. The dilution risk is assessed as low, and there is no indication of significant dilution pressure in the near term.

Recent events and filings indicate that the company has reported a negative EPS of -0.13 CNY and a revenue of 775,686,200 CNY, which is lower than the full-year revenue of 200,626,960 CNY. These figures suggest that the company's performance may be inconsistent or subject to seasonal variations.

Cash conversion of 20.8% ranks best-in-class among 859 pharmaceutical peers, indicating superior operational efficiency.

Debt-to-equity ratio of 0.13 exceeds the cohort median of 0.18, suggesting a conservative capital structure.

Dilution risk is assessed as low, providing relative stability for existing shareholders compared to higher-risk peers.

Credit risk is flagged as high, raising concerns about the company's ability to meet its financial obligations.

Revenue ¥775.7M, −2,5% YoY; Operating income −92,3% YoY.

• ▍Revenue ¥775.7M, −2,5% YoY
• ▍Operating income −92,3% YoY
• ▍Net income −53,4% YoY
• ▍Free cash flow −12,9% YoY
• ▍Net margin -17.4%

Revenue ¥1.23B; Operating income -¥70.6M.

• ▍Revenue ¥1.23B
• ▍Operating income -¥70.6M
• ▍Net margin -8.2%