Shenlian Biomedical (Shanghai) Co., Ltd. (stock code: 688098) is a high-tech enterprise focusing on R&D, production and sales of veterinary biological products. The company's main business is veterinary preventive biological products and veterinary diagnostic products, and has two major veterinary drug GMP production bases in Shanghai and Lanzhou. The products already marketed by Shenlian Biotech include pig foot-and-mouth disease vaccine, cattle and sheep foot-and-mouth disease vaccine, swine ring vaccine, foot-and-mouth disease and African swine fever diagnostic reagents. Among them, pig foot-and-mouth disease type O and type A bivalent inactivated vaccines are important products of the company.
In terms of assets and liabilities, Shenlian Biotech's 2023 three-quarter report shows that the company's total assets increased slightly from 1,605 billion yuan at the end of the previous year to 1,611 billion yuan. Total liabilities fell to $89.5521 million at the end of the previous year, while net assets increased from $1,497 million to $1,522 million. The balance ratio was reduced from 6.75% to 5.56%, indicating an improvement in the company's financial structure.
Shenlian Biotech's revenue declined during the reporting period, from $287 million in the same period last year to $239 million, or 16.46%. Operating profit and net profit also declined year-on-year, from 87.8861 million yuan and 72.3991 million yuan to 43.1951 million yuan and 36,4844 million yuan, respectively. Gross margin and net profit margin also fell from 75.63% and 25.25% to 72.1% and 15.24%, respectively. The main reason for these changes is the continued downturn in the pig breeding industry and the impact of the national “fight first, then make up later” policy, which has led to a decline in the total amount of government bidding and procurement of foot-and-mouth disease vaccines, and the increase in market-based sales revenue not meeting expectations.
In terms of cash flow, the total cash inflow from operating activities of Shenlian Biotech decreased from 147 million yuan in the same period last year to 142 million yuan, while the subtotal cash outflow from operating activities increased from 188 million yuan to 196 million yuan. This shows that the company's cash inflows from operating activities have decreased, while cash outflows have increased, reflecting a certain amount of financial pressure.
In summary, Shenlian Biotech faced a series of challenges in 2023, including industry downturn, policy changes, and uncertainty about the market-based sales process. Despite this, the company's balance and liability structure has improved and maintained a high proportion of R&D investment, indicating that the company is still actively investing resources to maintain competitiveness.
For investors, considering Shenlian Biotech's position in the industry and the diversity of its product line, and the company's continued investment in R&D, although it is facing challenges in the short term, its long-term development potential is still worth paying attention to. Investors should pay close attention to the company's future market-based sales strategy and overall industry trends to make more informed investment decisions.
This article only represents the judgments made by analysts themselves or analysts based on AI analysis. It cannot be used as an investment indicator, nor does it constitute any investment advice. The original purpose of this article was to help investors analyze and judge capital market data in the most intuitive and fastest way and from the most professional perspective.