New Risk • May 12
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 35% per year over the past 5 years. High level of non-cash earnings (26% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Apr 24
First quarter 2026 earnings released: CN¥0.031 loss per share (vs CN¥0.26 profit in 1Q 2025) First quarter 2026 results: CN¥0.031 loss per share (down from CN¥0.26 profit in 1Q 2025). Revenue: CN¥92.9m (down 18% from 1Q 2025). Net loss: CN¥2.77m (down 112% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Apr 23
Suzhou Fushilai Pharmaceutical Co., Ltd., Annual General Meeting, May 14, 2026 Suzhou Fushilai Pharmaceutical Co., Ltd., Annual General Meeting, May 14, 2026, at 14:30 China Standard Time. Location: No. 16, Haiwang Road, New Materials Industrial Park, Changshu, Jiangsu China Announcement • Mar 31
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report Q1, 2026 Results on Apr 23, 2026 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report Q1, 2026 results on Apr 23, 2026 Announcement • Dec 31
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report Fiscal Year 2025 Results on Apr 23, 2026 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report fiscal year 2025 results on Apr 23, 2026 New Risk • Oct 24
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 31% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 30% per year over the past 5 years. High level of non-cash earnings (31% accrual ratio). Reported Earnings • Oct 24
Third quarter 2025 earnings released: EPS: CN¥0.34 (vs CN¥0.16 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.34 (up from CN¥0.16 in 3Q 2024). Revenue: CN¥98.7m (up 2.9% from 3Q 2024). Net income: CN¥30.3m (up 114% from 3Q 2024). Profit margin: 31% (up from 15% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report Q3, 2025 Results on Oct 24, 2025 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report Q3, 2025 results on Oct 24, 2025 Reported Earnings • Aug 25
Second quarter 2025 earnings released: EPS: CN¥0.21 (vs CN¥0.067 loss in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.21 (up from CN¥0.067 loss in 2Q 2024). Revenue: CN¥110.8m (down 7.9% from 2Q 2024). Net income: CN¥19.1m (up CN¥25.3m from 2Q 2024). Profit margin: 17% (up from net loss in 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. Announcement • Jul 02
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 Declared Dividend • Jun 09
Dividend reduced to CN¥0.091 Dividend of CN¥0.091 is 85% lower than last year. Ex-date: 12th June 2025 Payment date: 12th June 2025 Dividend yield will be 0.3%, which is lower than the industry average of 1.9%. Sustainability & Growth Dividend is covered by earnings (24% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 36 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 73% to shift the payout ratio to a potentially unsustainable range, which is more than the 29% EPS decline seen over the last 5 years. New Risk • May 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Earnings have declined by 33% per year over the past 5 years. High level of non-cash earnings (20% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (7.7% net profit margin). Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥29.20, the stock trades at a trailing P/E ratio of 77x. Average trailing P/E is 30x in the Pharmaceuticals industry in China. Total loss to shareholders of 24% over the past three years. Announcement • Apr 23
Suzhou Fushilai Pharmaceutical Co., Ltd. Proposes Final Cash Dividend for 2024 Suzhou Fushilai Pharmaceutical Co., Ltd. announced on 22 April 2025 the profit distribution proposal for 2024 as final Cash dividend of CNY 0.91000000 per 10 shares (tax included). New Risk • Apr 23
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 20% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 293% Paying a dividend despite having no free cash flows. Earnings have declined by 33% per year over the past 5 years. High level of non-cash earnings (20% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.8% average weekly change). Profit margins are more than 30% lower than last year (7.7% net profit margin). Reported Earnings • Apr 22
Full year 2024 earnings released: EPS: CN¥0.18 (vs CN¥1.22 in FY 2023) Full year 2024 results: EPS: CN¥0.18 (down from CN¥1.22 in FY 2023). Revenue: CN¥429.5m (down 12% from FY 2023). Net income: CN¥16.4m (down 85% from FY 2023). Profit margin: 3.8% (down from 23% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Apr 22
Suzhou Fushilai Pharmaceutical Co., Ltd., Annual General Meeting, May 16, 2025 Suzhou Fushilai Pharmaceutical Co., Ltd., Annual General Meeting, May 16, 2025, at 14:30 China Standard Time. Location: No. 16, Haiwang Road, New Materials Industry Park, Changshu, Jiangsu China Announcement • Mar 31
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report Q1, 2025 Results on Apr 22, 2025 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report Q1, 2025 results on Apr 22, 2025 Board Change • Jan 26
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Chuanxing Cao was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Dec 31
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report Fiscal Year 2024 Results on Apr 22, 2025 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report fiscal year 2024 results on Apr 22, 2025 Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: CN¥0.16 (vs CN¥0.12 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.16 (up from CN¥0.12 in 3Q 2023). Revenue: CN¥95.8m (up 5.0% from 3Q 2023). Net income: CN¥14.2m (up 31% from 3Q 2023). Profit margin: 15% (up from 12% in 3Q 2023). The increase in margin was driven by higher revenue. New Risk • Sep 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 357% Paying a dividend despite having no free cash flows. Earnings have declined by 10% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.8% net profit margin). Announcement • Sep 30
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report Q3, 2024 Results on Oct 23, 2024 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report Q3, 2024 results on Oct 23, 2024 Reported Earnings • Aug 23
Second quarter 2024 earnings released: CN¥0.067 loss per share (vs CN¥0.49 profit in 2Q 2023) Second quarter 2024 results: CN¥0.067 loss per share (down from CN¥0.49 profit in 2Q 2023). Revenue: CN¥120.3m (down 15% from 2Q 2023). Net loss: CN¥6.14m (down 114% from profit in 2Q 2023). Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥26.99, the stock trades at a trailing P/E ratio of 37.3x. Average trailing P/E is 27x in the Pharmaceuticals industry in China. Total loss to shareholders of 30% over the past year. Announcement • Jun 29
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report First Half, 2024 Results on Aug 23, 2024 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report first half, 2024 results on Aug 23, 2024 Declared Dividend • Jun 07
Dividend increased to CN¥0.60 Dividend of CN¥0.60 is 3.5% higher than last year. Ex-date: 12th June 2024 Payment date: 12th June 2024 Dividend yield will be 2.3%, which is higher than the industry average of 1.9%. Sustainability & Growth Dividend is covered by earnings (83% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 22% per year over the past 2 years and payments have been stable during that time. The company's earnings per share (EPS) would need to decline by 7.6% to shift the payout ratio to a potentially unsustainable range, which is less than the 12% EPS decline seen over the last 5 years. Announcement • Jun 06
Suzhou Fushilai Pharmaceutical Co., Ltd. Announces Implementation of Final Profit Distribution Plan (A Shares) for 2023, Payable on 12 June 2024 Suzhou Fushilai Pharmaceutical Co., Ltd. announced 2023 final profit distribution plan to be implemented (A shares) as Cash dividend/10 shares (tax included): CNY 6.00520200. Record date: 11 June 2024, Ex-date: 12 June 2024, Payment date: 12 June 2024. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to CN¥28.14, the stock trades at a trailing P/E ratio of 38.9x. Average trailing P/E is 31x in the Pharmaceuticals industry in China. Total loss to shareholders of 30% over the past year. Reported Earnings • Apr 24
First quarter 2024 earnings released: EPS: CN¥0.063 (vs CN¥0.56 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.063 (down from CN¥0.56 in 1Q 2023). Revenue: CN¥96.3m (down 39% from 1Q 2023). Net income: CN¥5.79m (down 89% from 1Q 2023). Profit margin: 6.0% (down from 33% in 1Q 2023). The decrease in margin was driven by lower revenue. Announcement • Apr 23
Suzhou Fushilai Pharmaceutical Co., Ltd., Annual General Meeting, May 15, 2024 Suzhou Fushilai Pharmaceutical Co., Ltd., Annual General Meeting, May 15, 2024, at 14:30 China Standard Time. Location: No. 16, Haiwang Road, New Materials Industry Park, Changshu, Jiangsu China Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥23.18, the stock trades at a trailing P/E ratio of 13.5x. Average trailing P/E is 27x in the Pharmaceuticals industry in China. Total loss to shareholders of 42% over the past year. Announcement • Mar 30
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report Q1, 2024 Results on Apr 23, 2024 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report Q1, 2024 results on Apr 23, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥23.30, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 25x in the Pharmaceuticals industry in China. Total loss to shareholders of 47% over the past year. Announcement • Dec 29
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report Fiscal Year 2023 Results on Apr 23, 2024 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report fiscal year 2023 results on Apr 23, 2024 New Risk • Oct 20
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Short dividend paying track record (1 year of continuous dividend payments). Share price has been volatile over the past 3 months (6.5% average weekly change). Reported Earnings • Oct 20
Third quarter 2023 earnings released: EPS: CN¥0.12 (vs CN¥0.41 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.12 (down from CN¥0.41 in 3Q 2022). Revenue: CN¥91.3m (down 27% from 3Q 2022). Net income: CN¥10.8m (down 71% from 3Q 2022). Profit margin: 12% (down from 30% in 3Q 2022). The decrease in margin was driven by lower revenue. Announcement • Sep 30
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report Q3, 2023 Results on Oct 25, 2023 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report Q3, 2023 results on Oct 25, 2023 Reported Earnings • Aug 22
Second quarter 2023 earnings released: EPS: CN¥0.49 (vs CN¥0.55 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.49 (down from CN¥0.55 in 2Q 2022). Revenue: CN¥140.9m (up 7.9% from 2Q 2022). Net income: CN¥44.7m (down 11% from 2Q 2022). Profit margin: 32% (down from 38% in 2Q 2022). The decrease in margin was driven by higher expenses. Announcement • Jul 01
Suzhou Fushilai Pharmaceutical Co., Ltd. to Report First Half, 2023 Results on Aug 22, 2023 Suzhou Fushilai Pharmaceutical Co., Ltd. announced that they will report first half, 2023 results on Aug 22, 2023 Announcement • Jun 02
Suzhou Fushilai Pharmaceutical Co., Ltd. Announces Cash Dividend on A Shares for 2022, Payable on 08 June 2023 Suzhou Fushilai Pharmaceutical Co., Ltd. announced Cash dividend/10 shares (tax included) of CNY 5.80000000 on Class A shares for the year 2022. Record date is 07 June 2023. Ex-date is 08 June 2023. Payment date is 08 June 2023. Reported Earnings • Apr 18
First quarter 2023 earnings released: EPS: CN¥0.56 (vs CN¥0.58 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.56. Revenue: CN¥156.5m (up 10% from 1Q 2022). Net income: CN¥51.6m (up 29% from 1Q 2022). Profit margin: 33% (up from 28% in 1Q 2022). The increase in margin was driven by higher revenue. Board Change • Nov 16
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 2 experienced directors. No highly experienced directors. Non-Employee Supervisor Xuezhen Jia is the most experienced director on the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 26
Third quarter 2022 earnings released: EPS: CN¥0.41 (vs CN¥0.41 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.41. Revenue: CN¥125.6m (down 4.9% from 3Q 2021). Net income: CN¥37.1m (up 30% from 3Q 2021). Profit margin: 30% (up from 22% in 3Q 2021). The increase in margin was driven by lower expenses. Announcement • Sep 14
Suzhou Fushilai Pharmaceutical Co., Ltd. Announces Management Appointments Suzhou Fushilai Pharmaceutical Co., Ltd. announced at the EGM held on September 9, 2022 that the company approved election of Qian Xiangyun, Bian Aijin and Shen Yingxian as non-independent directors; Chen Zhong, Tu Jiasheng, Jin Chunqing as independent directors and Wu Lei and Jia Xuezhen as non-employee supervisors. Valuation Update With 7 Day Price Move • Sep 01
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥46.16, the stock trades at a trailing P/E ratio of 28.7x. Average trailing P/E is 32x in the Pharmaceuticals industry in China. Reported Earnings • Aug 24
Second quarter 2022 earnings released Second quarter 2022 results: EPS: CN¥0.55. Net income: CN¥50.1m (up CN¥50.1m from 2Q 2021). Announcement • Jun 02
Suzhou Fushilai Pharmaceutical Co., Ltd. Final Announces Cash Dividend on A Shares for 2021, Payable on June 8, 2022 Suzhou Fushilai Pharmaceutical Co., Ltd. announced final Cash dividend/10 shares (tax included): CNY 4.00000000 on A shares. Record date is 07 June 2022, Ex-date is 08 June 2022 and Payment date is 08 June 2022. Announcement • May 20
Suzhou Fushilai Pharmaceutical Co., Ltd. Approves Cash Dividend for 2021 Suzhou Fushilai Pharmaceutical Co., Ltd., at the AGM held on 18 May 2022 approved Cash dividend/10 shares (tax included) of CNY 4.00000000 for 2021. Announcement • Apr 28
Suzhou Fushilai Pharmaceutical Co., Ltd. Proposes Profit Distribution for 2021 Suzhou Fushilai Pharmaceutical Co., Ltd. announced profit distribution proposal for 2021 as final Cash dividend/10 shares (tax included): CNY 4.00000000. Reported Earnings • Apr 27
First quarter 2022 earnings released First quarter 2022 results: EPS: CN¥0.58. Revenue: CN¥141.8m (flat on 1Q 2021). Net income: CN¥39.9m (up CN¥39.9m from 1Q 2021). Profit margin: 28% (up from null in 1Q 2021).