Nucien Pharmaceutical, the pharma manufacturer registered in Hunan and with its head office in Guangzhou, is walking on thin ice as the poor financial performance continues.
Hunan Nucien Pharmaceutical (Chinese: 湖南南新制药) (688189) recently disclosed its financial results for the quarter ended March 31, 2022.
Sales for Q1 2022 were CNY 197 million (USD 29.52 million), down 21.51% compared to the same period last year. The net income attributable to shareholders was CNY 11.81 million, down 52.13% compared to the same quarter last year.
The net income attributable to shareholders after deducting non-recurring gains and losses was CNY 7.38 million, a decrease of 56.07% over the previous year. The net cash flow from operating activities was CNY -61.04 million.
Nucien’s financial performance in 2021 was not great due to continuous coronavirus outbreaks in China and the deepening of the National Centralized Drug Procurement (NCDP) policy, which damped prices of drugs and medical equipment through negotiation led by public healthcare officials
According to its FY2021 results, Nucien’s operating revenue totalled CNY 685 million, down 37.08% compared to FY2020. The net income attributable to shareholders was CNY -167 million while it was CNY 133 million in 2020.
The net income attributable to shareholders after deducting non-recurring gains and losses was CNY -179 million, a decrease of CNY 304 million, or 243%, compared to the previous year. The net cash flow from operating activities was CNY -63.11 million while it was CNY -291 million in the previous year.
Nucien was listed on the Shanghai Stock Exchange STAR Market on 26 March, 2020 at an issue price of CNY 34.94 apiece. Its shares first dropped below the issue price on 20 August, 2021, down to CNY 34.10 apiece. Nucien closed up 0.33% at CNY 15.25 on May 6, 2022, as of today.
Nucien founded in 2006, engages in the research and development, production, and sales of pharmaceuticals. It has a wide range of products including antibiotics, antipyretic, analgesic, anti-infective drugs and drugs for cardiovascular and cerebrovascualr diseases.