Fusen Pharmaceutical (1652.HK) Q4 2024 Earnings Report

Fusen Pharmaceutical reported QQ4 2024 revenue of 64.85 million CNY with a gross profit of 28.38 million CNY and a gross margin of 43.76%. Despite a stable quarter on a QoQ basis, annual comparisons show a material decline: revenue fell by 43.4% year over year, gross profit dropped 52.9%, operating income declined 64.9%, and net income deteriorated by 187.9%. The quarter produced a net loss of 75.92 million CNY and an EPS of -0.10 CNY, pressured by a substantial charge to total other income/expenses (net) of -57.07 million CNY and elevated operating expenses. On the positive side, operating cash flow was healthy at 69.99 million CNY and free cash flow reached 62.51 million CNY, underscoring a cash-generative core despite the bottom-line weakness.

The balance sheet shows meaningful liquidity stress, with a current ratio of 0.60 and a cash ratio of 0.0273, indicating near-term liquidity risk unless working capital dynamics improve. Total debt stood at 383.69 million CNY (net debt 362.64 million CNY), while cash and cash equivalents were 21.06 million CNY. The company carries a sizable accumulated other comprehensive income balance (363.49 million CNY), which cushions equity but does not substitute for operating profitability. Relative to peers, Fusen trails in profitability metrics, which compounds equity risk in a market that emphasizes scalable margins and cash generation.

Looking ahead, management did not publish explicit QQ5 guidance in the materials. The near-term path hinges on restructuring the expense base, optimizing working capital, and pursuing revenue growth in core product lines and potential new proprietary/integrated medicine offerings. The stock’s investment case remains tethered to improvement in operating leverage and a return to positive net income, supported by stronger cash flow generation and disciplined balance-sheet management.