They are under pressure because of

They are under pressure because of lack of funds. Kangmei has raised a lot of money since listing and is now heavily in debt. By the end of 2018, the company's debt had reached 9.1 billion yuan. Of this, short-term loans amounted to 11.6 billion yuan, long-term loans amounted to 700 million yuan, and bonds payable amounted to 16.8 billion yuan. The amount of equity financing was about 16.3 billion yuan. In addition, almost all of Kangmei's top 10 shareholders have pledged their shares, indicating that the company faces a shortage of funds and huge pressure to repay debts.Stress of mismanagement. The net cash flow generated by the activity is well below the net profit. Net cash ratio is the ratio of net cash flow to net profit, used to measure the level of profitability of a business. In general, the closer the net cash ratio is to 1, the higher the profitability. Kangmei's net cash ratio over the past four years has been well below 1, indicating the low quality of the company's profits. The actual operating situation of Kangmei Pharmaceutical is relatively poor.