The largest stock price decline is nearly 90%! Two major IPO fundraising projects will incur losses by 2025. TuoXin Pharmaceutical announces a private placement plan.

If you want to invest in stocks, just look at the Golden Qilin analyst research reports—authoritative, professional, timely, and comprehensive. Help you uncover high-potential theme opportunities!

Reported by: Zhang Guangri | Edited by: Wu Yongjiu

On the evening of March 27, TuoXin Pharmaceutical released its 2025 annual report. In the past two years, the company has continued to incur losses, and the loss amount has also expanded. Due to performance declines and other factors, TuoXin Pharmaceutical’s share price has fallen significantly as well. Compared with the company’s historical peak, the maximum decline in its share price is close to 90%. TuoXin Pharmaceutical also released a plan for a follow-on offering to raise additional funds, but a reporter from The Daily Economic News (hereinafter referred to as “The Economic News reporter”) noticed that the results of the company’s two major IPO projects have not met expectations, and in 2025 both have remained in a loss-making state.

TuoXin Pharmaceutical is a technology-innovation enterprise that integrates R&D, production, and sales of chemical synthesis and biobased fermentation nucleotide (acid) raw materials and pharmaceutical intermediates. In China, it has strong capabilities in the development and production of nucleotide (acid) raw materials and pharmaceutical intermediate products.

In the past two years, TuoXin Pharmaceutical’s performance has continued to decline sharply. The 2025 annual report released on the evening of March 27 shows that in 2025 the company achieved operating revenue of 378 million yuan, down 10.28% year over year from 2024; net profit was a loss of 69.661 million yuan, with the year-over-year decline reaching as much as 250.32%. In 2024, TuoXin Pharmaceutical’s net profit was a loss of 19.8849 million yuan, representing a year-over-year decline of 108.18% compared with 2023.

The main reasons for TuoXin Pharmaceutical’s pressure on 2025 performance are as follows: affected by fluctuations in end-market demand for certain API products and the decline in market prices, the sales revenue scale and gross margin of the company’s related products both fell to some extent, directly impacting the company’s overall profitability.

In terms of its operating development layout, there are three points about TuoXin Pharmaceutical that are worth paying attention to: after the company’s fund-raising projects complete conversion to fixed assets, the newly added capacity is still in the ramp-up stage of gradual release, leading to higher unit fixed costs; to expand the health-focused business segment, the company’s related new products began to be rolled out to the market in 2025, and the smaller production scale in the early stage makes unit costs relatively high; lastly, the company is actively positioning itself in specialty APIs with potential for market development. With high R&D spending, this creates periodic pressure on profits for the current period.

Due to performance declines and other reasons, TuoXin Pharmaceutical’s share price has also fallen sharply over the past two years. Using the previously adjusted basis for dividends (cash dividends), TuoXin Pharmaceutical’s stock price in 2020 reached a peak of 229.25 yuan, while in 2025 the company’s share price fell to a low of 23.20 yuan. Compared with the highest point, the maximum decline in TuoXin Pharmaceutical’s share price is close to 90%! As of March 30, 2026, TuoXin Pharmaceutical’s closing price was 28.44 yuan, with a market value of about 3.599 billion yuan.

However, TuoXin Pharmaceutical’s balance sheet is still relatively healthy. According to Eastmoney, as of December 31, 2025, the company’s cash and cash equivalents were about 140 million yuan, its trading financial assets were about 105 million yuan, and it had no short-term borrowings or long-term borrowings.

On the same day it released its 2025 annual report, TuoXin Pharmaceutical also released a plan for the 2026 issuance of shares to specific targets using a simplified procedure. The plan shows that the total amount of funds to be raised in this issuance will not exceed 227.8895 million yuan (including this amount). After deducting issuance expenses, the net proceeds will be used entirely for the “Raw Materials Drugs and Healthy Dietary Supplement Biomanufacturing Base Construction Project (Phase I)” project.

（Image source: a screenshot from the TuoXin Pharmaceutical announcement）

TuoXin Pharmaceutical listed on the ChiNext board in 2021, but the company’s IPO raised-projects failed to achieve the expected results. Among TuoXin Pharmaceutical’s IPO raised-projects, two projects promised returns: “Construction Project for Nucleoside-Series Specialty API and Pharmaceutical Intermediates” (hereinafter referred to as the “API and Intermediates Project”) and “Annual Output of 1,000 Tons of Nucleoside-Series Food Nutrient Fortifiers Project” (hereinafter referred to as the “Fortifier Project”). After achieving the promised targets, the average annual net profits would be 65.327 million yuan and 73.8373 million yuan, respectively.

The actual investment amounts for the “API and Intermediates Project” and the “Fortifier Project” were approximately 240 million yuan and 61.03 million yuan, respectively. Both of the above two projects reached the scheduled state of being ready for use in June 2025. However, the actual benefits in 2025 were clearly far below expectations: the loss amounts were 6.9474 million yuan and 9.6841 million yuan, respectively.

（Image source: a screenshot from the TuoXin Pharmaceutical announcement）

TuoXin Pharmaceutical stated that because the above projects are in the capacity ramp-up stage, the benefits from scale have not yet been fully released; combined with intensifying industry competition and changes in market supply-and-demand patterns, the company adjusted certain products’ production schedules. The capacity utilization rate of the relevant products did not reach the optimal level, resulting in the project’s actual benefits falling short of expectations.

Will the company’s capacity utilization rate for the IPO raised-projects in 2026 increase significantly? Can it turn losses into profits? With the company having relatively ample funds on hand, why does it still choose to raise funds through a follow-on offering? Over the past two years, the company’s stock price has fallen significantly; what measures has the company taken in terms of market value management? The Economic News reporter sent the above questions to the securities department of TuoXin Pharmaceutical, but as of the time of publication, no response had been received.

Cover image source: Zhu Yu

Massive information and precise interpretation—only on the Sina Finance APP