Hangzhou TianMuShan Pharmaceutical Enterprise Co Ltd

The company's capital structure is highly leveraged, with a debt-to-equity ratio of 6.19, indicating a significant reliance on debt financing. Its liquidity position is weak, as evidenced by a current ratio of 0.74, suggesting that the company may struggle to meet its short-term obligations. The price-to-book ratio of 118.59 indicates that the market is valuing the company's equity at a premium relative to its book value, despite the company's negative net income and operating income.

Profitability metrics are deeply negative, with a return on equity of -0.471 and a return on assets of -0.0263, both well below the typical thresholds for a profitable pharmaceutical firm. The company reported a net loss of 8,777,940 CNY and an operating loss of 13,530,320 CNY, which is a significant deviation from the industry norm of positive operating margins. The gross profit of 7,288,210 CNY is also below the median for its industry, indicating inefficiencies in cost management or pricing power.

The company's revenue is concentrated in a single geographic market, with no disclosed international operations, which increases its exposure to local economic and regulatory risks. There is no information available on revenue by business segment, but the lack of diversification in both product and geographic markets suggests a high concentration risk.

The company's growth trajectory is negative, with a net loss in the most recent reporting period and no indication of a turnaround in the near term. The operating cash flow is negative at -28,128,420 CNY, and capital expenditures of -3,669,600 CNY suggest that the company is not investing in growth or modernization. The absence of positive revenue growth or margin expansion in the historical data indicates a lack of momentum.

The company faces significant financial risk, with a liquidity risk score of medium and a negative net cash position after subtracting total debt. The risk of dilution is currently low, but the company's high debt load and negative cash flow could necessitate future equity issuance, which would dilute existing shareholders. The company has not disclosed any recent capital raising activities, but the need to service its 115,324,840 CNY in long-term debt could pressure the company to raise additional capital.

There are no recent filings or transcripts available to provide insight into the company's strategic direction or operational performance. The lack of recent disclosures makes it difficult to assess the company's response to market conditions or its plans for addressing its financial challenges.

Net income grew 15.6% year-over-year to CNY 17.6 million, demonstrating improved profitability despite revenue decline.

Revenue CAGR of 9.5% over four years indicates long-term top-line growth potential for the pharmaceutical company.

Cash conversion ratio of 3.2 ranks best-in-class among 857 pharmaceutical peers, highlighting superior cash generation efficiency.

Gross profit remained robust at CNY 100.4 million, maintaining strong margins despite operating income compression.

Dilution risk is assessed as low, providing stability for existing shareholders amidst financial restructuring efforts.

Debt-to-equity ratio of 6.19 places the company in the bottom quartile, indicating excessive leverage compared to peers.

High credit risk and medium liquidity risk flags suggest significant financial distress and potential solvency challenges.

Revenue ¥108.9M, −25,9% YoY; Operating income −83,9% YoY.

• ▍Revenue ¥108.9M, −25,9% YoY
• ▍Operating income −83,9% YoY
• ▍Net income −126,7% YoY
• ▍Free cash flow −98,0% YoY
• ▍Net margin -62.0%

Revenue ¥147.1M; Operating income -¥38.0M.

• ▍Revenue ¥147.1M
• ▍Operating income -¥38.0M
• ▍Net margin -20.3%