Hainan Haiyao, as a company whose main business is biomedicine, attracted much attention when it first went public. However, in recent years, there has been little trading volume in the market for the following three reasons.
First of all, the company's own operating conditions did not meet the expectations of market investors. Although the company relies on Hainan's superior natural environment and rich marine resources to actively carry out research, development and production of marine drugs, the market value of its research results has not been fully recognized, and it has failed to attract investors' attention and sustained financial support.
Secondly, subject to the general environment of the domestic and foreign pharmaceutical markets, the company's performance has never been fundamentally improved. In recent years, the domestic pharmaceutical market has implemented a "centralized procurement" policy, which has led to increasing pressure on drug prices. The company's production costs and gross profit margins have been greatly affected. The outbreak of the global epidemic has further dragged down the performance of the entire pharmaceutical industry.
Finally, its own governance issues also directly affect the company's trading conditions. The company's senior management changes frequently and the internal management system is not perfect. In addition, relevant personnel of the company have also been exposed to illegal activities such as information disclosure violations, which has caused investors to have doubts and worries about the company.
To sum up, the main reason why Hainan Haiyao's trading volume is low is its own poor operating performance and market environment, as well as the existence of corporate governance issues. Only by improving its competitiveness and governance level can it win more investor trust and financial support in the market.