On the evening of January 29, Guangyuyuan released its 2023 performance forecast. The company expects to achieve a net profit attributable to the parent company of 100 million yuan to 1 in 2023200 million yuan, an increase of 4 over the same period last year (statutory disclosure data).$9.9 billion to $5$1.9 billion, an increase of 3$4.9 billion to $36.9 billion yuan to turn losses into profits. 
As for the reasons for turning losses into profits, Guangyuyuan said that the performance of core business lines has generally increased, the comprehensive gross profit margin has increased, especially the proportion of high-quality Chinese medicine sales has continued to increase, and the sales expense ratio has decreased year-on-year, which has comprehensively increased the company's net profit. On the same day, Guangyuyuan also issued an announcement on the correction of accounting errors and retrospective adjustments in the previous period to adjust the financial statements from 2016 to 2022. The company said that after the adjustment, it will not lead to a change in the nature of the profit and loss of the company's disclosed financial statements from 2016 to 2022. 
It is worth mentioning that Guangyuyuan will complete the transfer of actual control in 2021, and Shanxi state-owned assets will officially become the owner. Just last month, Li Xiaojun, a state-owned asset from Shanxi, took office and became the new chairman of Guangyuyuan. Some industry insiders said that Shanxi state-owned assets have been in charge for two years, and the correction of accounting errors is more like a centralized solution to the previous problems. With the new chairman in place, Guangyuyuan, a veteran pharmaceutical company with a history of nearly 500 years, is expected to bid farewell to the problem and travel lightly. Pre-profit up to 1200 million yuanAccording to the performance forecast, Guangyuyuan expects to achieve a net profit of 100 million yuan to 1 million yuan in 2023200 million yuan, an increase of 4 over the same period last year (statutory disclosure data).$9.9 billion to $5$1.9 billion, an increase of 3$4.9 billion to $36.9 billion yuan to turn losses into profits. At the same time, the company expects to achieve a net profit of 0900 million to 1$100 million, an increase of 4 over the same period last year (statutory disclosure data).$9.8 billion to $5$1.8 billion, an increase of 3$4.8 billion to $36.8 billion yuan, to achieve a turnaround. Regarding the reasons for the change in performance, Guangyuyuan said that the company strengthened internal control and management, resolutely implemented various measures to improve quality and efficiency, strengthened marketing control and digital and intelligent management, and accurately implemented daily budget control. The performance of the core business line generally increased, the comprehensive gross profit margin increased, especially the proportion of high-quality Chinese medicine sales continued to increase, and the sales expense ratio decreased year-on-year, which comprehensively increased the company's net profit and turned losses into profits. It is worth mentioning that in the previously disclosed third quarter report of 2023, Guangyuyuan's net profit attributable to the parent company for the current period was 2448720,000 yuan, deducting the net profit of 1364270,000 yuan. After adjustment, the company's net profit attributable to the parent company in the first three quarters of 2023 was 9155080,000 yuan. Based on this calculation, Guangyuyuan is expected to achieve a net profit attributable to the parent company of 844 in the fourth quarter of 2023920,000 yuan to 2844920,000 yuan. It is not difficult to see that this data has been much better than the previously disclosed data of the three quarterly reports. The original major shareholder is required to compensate the listed companyWhile disclosing the performance of a significant turnaround, Guangyuyuan also corrected accounting errors and retrospectively adjusted the financial statements from 2016 to 2022, and retrospectively adjusted the financial statements issued in 2023. The company's self-inspection found that there were cross-period recognition of operating income and sales expenses from 2016 to 2022, resulting in accounting errors from 2016 to 2022. 
Specifically, this correction of accounting errors will lead to a decrease of 7,074 in the company's operating income from 2016 to 2020810,000 yuan, 13164640,000 yuan, 32,439270,000 yuan, 1419500,000 yuan, 2159240,000 yuan, and the operating income from 2021 to 2022 increased by 23,888 respectively250,000 yuan, 13,602580,000 yuan; As a result, the company's net profit from 2016 to 2020 decreased by 4382830,000 yuan, 20146780,000 yuan, 33,442930,000 yuan, 7338030,000 yuan, 2106230,000 yuan, and the net profit from 2021 to 2022 increased by 27,031 respectively410,000 yuan, 15484980,000 yuan. Since the former major shareholder Dongsheng Group had made commitments to the company's performance from 2016 to 2018, the correction of the accounting error caused Guangyuyuan to fail to fulfill the above performance commitments, and Dongsheng Group needed to compensate the listed company. In this regard, Guangyuyuan said that it attaches great importance to the recovery of performance commitment compensation, fully protects the interests of the company and all shareholders, and fulfills its information disclosure obligations in a timely manner in accordance with relevant rules. On the evening of the same day, the Shanghai Stock Exchange also issued a letter of inquiry to Guangyuyuan, requiring the company to explain the details related to the correction of the above-mentioned accounting errors. 
Clean up old accounts or travel lightIt has four core varieties of Turtle Age Collection, Dingkun Dan, Angong Niuhuang Pill and Niuhuang Qingxin Pill, and its reputation has attracted much attention in the A** field. As a traditional Chinese medicine enterprise and pharmaceutical brand that has been passed down from generation to generation for nearly 500 years, Guangyuyuan is one of the first batch of "Chinese time-honored brand" enterprises of the Ministry of Commerce. What the outside world does not know is that although it has been growing on the land of Shanxi for nearly 500 years, in the past period, Guangyu is far from in the hands of Shanxi enterprises. It was not until 2021 that Shanxi state-owned assets took Guangyuyuan back to their hometown. In 2021, Shennong Technology Group took over the actual control of Guangyuyuan, and Shanxi state-owned assets officially became the owner. Shennong Science and Technology Group is a provincial state-owned large-scale agricultural science and technology enterprise formed by the Shanxi Provincial Party Committee and the provincial government to integrate the province's agricultural science and technology resources. It is understood that Shanxi state-owned assets have carried out three special actions of "100 days of arrears, cost reduction and efficiency increase, and incremental expansion", and listed the reduction of receivables, destocking, market development and payment collection indicators as assessment standards. According to the 2022 annual report, in order to integrate into the regulatory requirements of state-owned assets, Guangyuyuan has optimized and improved 45 sub-items in 6 major items such as top-level design, production and research and development, market channels, functional management, operation guarantee, and capital operation, and sorted out and optimized 21 control systems. With the gradual clearing of historical problems, Shanxi State-owned Assets has also sent a new chairman of the board of directors, intending to make new articles on the broad reputation. In January 2023, Li Xiaojun from Shanxi's state-owned assets system took over the position of Secretary of the Party Committee and Chairman of Shennong Technology Group. In December of the same year, Li Xiaojun took office and became the new chairman of Guangyuyuan. 
It is worth looking forward to how the "golden signboard" will be interpreted"The core varieties such as the turtle age set are well-known products in the market, the products are good, how to make the performance, it depends on the determination and action of Shanxi state-owned assets. A private equity person said. It believes that Dingkun Dan is a product of the national medical insurance catalogue and the national essential drug catalogue. Considering that the "2023 Medical Insurance Drug Catalogue" has been officially implemented on January 1, 2024, and a large number of drugs have lifted or relaxed the restrictions on medical insurance payment, Dingkun Dan, a subsidiary of Guangyuyuan, as a drug that lifts payment restrictions, may provide new impetus for the sales performance of this product in the future. On January 15, 2024, the General Office of ** issued the "Opinions on Developing the Silver Economy and Improving the Well-being of the Elderly". It mentions that the application of traditional Chinese medicine in the field of health care should be expanded, and traditional Chinese medicine services such as geriatric diseases and chronic disease prevention and treatment should be developed. As a traditional Chinese medicine product for the prevention and treatment of stroke coma, encephalitis, meningitis, toxic encephalopathy hemorrhage and sepsis, Angong Niuhuang Pill, a product of Guangyuyuan, has been included in the prevention and treatment plan of many provinces. From the product point of view, Guangyuyuan has four core varieties of Guilingji, Dingkun Dan, Angong Niuhuang Pill, Niuhuang Qingxin Pill and other more than 100 kinds of traditional Chinese medicine approval numbers. The core products Dingkun Dan and Guilingji have been selected into 14 guidelines and 7 textbooks for recommended drugs, and a total of 26 SCI** articles have been published. Since the launch of the real-world research project of Angong Niuhuang Pill and Niuhuang Qingxin Pill, the research results have been tracked. The above-mentioned private equity sources said that Shanxi state-owned assets are expected to bring strong support to Guangyuyuan, and its nearly 500 years of traditional Chinese medicine "golden signboard" has gradually emerged, and the company's vision of becoming a "leader in high-quality traditional Chinese medicine" is worth looking forward to.