Investment Rating - The report maintains a rating of "Accumulate" for the company [1][2] Core Views - The company reported a revenue of 41.04 billion RMB for H1 2024, a year-on-year increase of 2.7%, while the net profit attributable to shareholders was 2.55 billion RMB, a decrease of 9.3% [1][2] - The company plans to distribute a cash dividend of 0.40 RMB per share, totaling 650 million RMB, which accounts for 25.51% of the net profit for H1 2024 [2] - The company is focusing on a major brand strategy, with four business segments forming a complete industrial chain, enhancing brand value from pharmaceuticals to health products [2] Financial Summary - Revenue (in million RMB): - 2022A: 70,788 - 2023A: 75,515 - 2024E: 79,410 - 2025E: 83,117 - 2026E: 86,410 [1][5] - Net Profit (in million RMB): - 2022A: 3,967 - 2023A: 4,056 - 2024E: 4,245 - 2025E: 4,499 - 2026E: 4,739 [1][5] - EPS (in RMB): - 2022A: 2.44 - 2023A: 2.49 - 2024E: 2.61 - 2025E: 2.77 - 2026E: 2.92 [1][5] Business Segment Performance - Revenue by segment for H1 2024: - Traditional Chinese Medicine: 4.06 billion RMB, +8.2% YoY - Chemical Medicine: 2.12 billion RMB, -17.1% YoY - Health Products: 6.54 billion RMB, -7.2% YoY - Commercial Business: 27.82 billion RMB, +6.1% YoY [2] Profitability Metrics - Gross Margin for H1 2024: 19%, down 1.8 percentage points YoY [2] - Net Margin for H1 2024: 6.5%, down 0.8 percentage points YoY [2] - ROE (Return on Equity) projections: - 2024E: 11.3% - 2025E: 11.0% - 2026E: 10.6% [1][6]

广州白云山医药集团股份有限公司 GUANGZHOU BAIYUNSHAN PHARMACEUTICAL HOLDINGS COMPANY LIMITED 2024 年半年度报告 2024 年 8 月 重要提示 （一）本公司董事会、监事会及其董事、监事、高级管理人员保证本半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律 责任。 （二）本公司董事出席了第九届董事会第十四次会议，其中，独立非执行董事陈亚进先 生和孙宝清女士以通讯方式参加了会议；独立非执行董事黄民先生未能亲自出席本次董事会 会议，委托独立非执行董事黄龙德先生代为出席并行使表决权；执行董事张春波先生因个人 原因缺席本次董事会会议。 （三）本公司负责人杨军先生、主管会计工作负责人刘菲女士及会计机构负责人吴楚玲 女士声明：保证本半年度报告中财务报告的真实、准确、完整。 （四）经董事会审议的本报告期利润分配预案或公积金转增股本预案 经本公司董事会审议，本公司拟以实施权益分派股权登记日登记的总股本为基数分配利 润，向全体股东每 10 股派发现金红利 4.00 元(含税)。截至 2024 年 6 月 30 日，本 ...

Financial Performance - The company reported a revenue of RMB 41,042,815 thousand for the first half of 2024, representing a year-on-year increase of 2.68% compared to RMB 39,970,331 thousand in the same period last year[11]. - Net profit attributable to shareholders decreased by 9.31% to RMB 2,549,565 thousand from RMB 2,811,248 thousand in the previous year[11]. - The total profit amounted to RMB 3,229,403 thousand, a decrease of 8.59% compared to the previous year[20]. - Basic earnings per share decreased to RMB 1.568, down 9.31% from RMB 1.729 in the same period last year[13]. - The total comprehensive income for the six months ended June 30, 2024, was approximately ¥2.67 billion, down from ¥2.92 billion in 2023, reflecting a decline of 8.5%[76]. Cash Flow and Assets - The net cash flow from operating activities showed a significant decline, amounting to RMB (2,036,740) thousand, a decrease of 174.97% compared to RMB (740,710) thousand in the same period last year[11]. - The cash and cash equivalents as of June 30, 2024, were RMB 14,471,487 thousand, down from RMB 19,823,544 thousand at the end of 2023[32]. - The company's total liabilities decreased by 5.47% to RMB 34,251,472 thousand compared to the beginning of the year[33]. - The company's total assets at the end of the reporting period were RMB 77,970,661 thousand, a decrease of 0.78% from RMB 78,586,878 thousand at the end of the previous year[11]. - Current assets totaled approximately $51.94 billion as of June 30, 2024, down from $55.98 billion at the end of 2023, reflecting a decrease of about 7.3%[68]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of RMB 4.00 per 10 shares, totaling RMB 650,316,379.60 thousand, which accounts for 25.51% of the net profit attributable to shareholders for the first half of 2024[4]. - The proposed cash dividend distribution amounts to RMB 650,316,379.60, with a plan to distribute by the end of November 2024[55]. - The top ten shareholders held a combined 69.68% of the company's shares, with the largest shareholder, Guangyao Group, owning 45.04%[17]. Business Development and Strategy - The company focused on integrating digital economy with the pharmaceutical health industry, enhancing market development and brand influence[21]. - New product launches in the health sector included various flavors of Wanglaoji herbal tea, expanding the product matrix[21]. - The company aims to expand its international market presence by promoting the Wanglaoji brand globally[57]. - The company will focus on increasing the market share of medical device business and enhancing the profitability of retail operations[57]. - The company is actively exploring strategic acquisitions to enhance its market presence and operational capabilities[79]. Research and Development - R&D expenses totaled RMB 391 million, with 12 drug-related approvals obtained during the reporting period[22]. - The company is actively promoting the development of high-level technological self-reliance, enhancing its R&D platforms, and expanding its product development pipeline, including innovative drug research and generic drug consistency evaluation[23]. - The company has invested in new product development and technology to strengthen its market position and drive future growth[79]. Financial Strategy and Investments - The company has made significant progress in capital operations, with a new fund size expanding to RMB 1 billion and the application for listing on the New Third Board accepted on June 17, 2024[23]. - The company has issued a total of RMB 1 billion in asset-backed securities related to accounts receivable as part of its financial strategy[66]. - The company has ongoing investments in the "Guangyao Baiyunshan Biomedical and Health R&D Headquarters Project" with a planned investment of RMB 1.099 billion, of which RMB 316 million has been invested so far[46]. Operational Challenges - The decline in net cash flow from operating activities was attributed to increased cash payments for raw materials and pharmaceuticals by the company's subsidiaries[14]. - The gross profit margin for the main business decreased by 1.72 percentage points to 18.89%[26]. - The company reported a credit impairment loss of approximately ¥82.13 million for the first half of 2024, reflecting challenges in credit quality across its segments[81]. Employee and Management Changes - The company has a total employee count of 28,760, with total employee compensation amounting to approximately RMB 2.036 billion for the first half of 2024[65]. - The company has appointed a new Chief Financial Officer, effective from March 15, 2024[62].

Financial Performance - The company's operating revenue for the first quarter reached RMB 22,946,212 thousand, representing a year-on-year increase of 6.09%[7] - Net profit attributable to shareholders was RMB 1,958,118 thousand, reflecting a growth of 2.59% compared to the same period last year[7] - Basic and diluted earnings per share were both RMB 1.204, marking a 2.59% increase from the previous year[7] - Total operating revenue for Q1 2024 reached RMB 22.95 billion, an increase of 6.1% compared to RMB 21.63 billion in Q1 2023[29] - Operating profit for Q1 2024 was RMB 2.45 billion, up from RMB 2.35 billion in Q1 2023, reflecting a growth of 4.2%[30] - Net profit attributable to shareholders for Q1 2024 was RMB 1.96 billion, compared to RMB 1.91 billion in Q1 2023, representing an increase of 2.5%[30] - Total comprehensive income for Q1 2024 reached approximately CNY 2.03 billion, a 3.57% increase from CNY 1.96 billion in Q1 2023[32] - Basic and diluted earnings per share for Q1 2024 were CNY 1.204, up from CNY 1.174 in Q1 2023, reflecting a growth of 2.55%[32] Cash Flow - The net cash flow from operating activities was negative at RMB (3,138,187) thousand, a decrease of 10.54% year-on-year[7] - Cash inflow from operating activities in Q1 2024 was approximately CNY 16.79 billion, compared to CNY 15.16 billion in Q1 2023, marking an increase of 10.73%[35] - Net cash flow from operating activities for Q1 2024 was negative CNY 3.14 billion, worsening from negative CNY 2.84 billion in Q1 2023[35] - Cash inflow from investment activities in Q1 2024 totaled CNY 75.78 million, a significant decrease of 73.32% from CNY 284.04 million in Q1 2023[36] - Net cash flow from investment activities was negative CNY 282.99 million in Q1 2024, improving from negative CNY 638.06 million in Q1 2023[36] - Cash inflow from financing activities in Q1 2024 was CNY 6.27 billion, slightly down from CNY 6.77 billion in Q1 2023, a decrease of 7.43%[36] - Net cash flow from financing activities increased to CNY 1.94 billion in Q1 2024, up from CNY 1.57 billion in Q1 2023, representing a growth of 23.36%[36] Assets and Liabilities - Total assets at the end of the reporting period amounted to RMB 78,703,490 thousand, a slight increase of 0.15% from the end of the previous year[7] - Total liabilities decreased to RMB 39.99 billion as of March 31, 2024, down from RMB 41.91 billion as of December 31, 2023, a reduction of 4.6%[26] - Current liabilities totaled RMB 34.12 billion, a decrease of 5.8% from RMB 36.24 billion at the end of 2023[26] - Non-current liabilities increased to RMB 5.87 billion, up from RMB 5.67 billion, marking a growth of 3.6%[26] - Total equity attributable to shareholders rose to RMB 36.88 billion, an increase of 5.6% from RMB 34.92 billion at the end of 2023[27] Assets Composition - As of March 31, 2024, the total current assets amounted to RMB 55,959,814,735.97, slightly down from RMB 55,983,713,725.09 as of December 31, 2023[23] - The total non-current assets increased to RMB 22,743,675,532.53 from RMB 22,603,164,039.00, indicating a growth in long-term investments[24] - Cash and cash equivalents decreased to RMB 19,754,460,865.10 from RMB 21,308,844,204.44, showing a decline of approximately 7.3%[23] - Accounts receivable rose to RMB 16,715,572,929.90 from RMB 15,112,494,798.69, representing an increase of about 10.6%[23] - The inventory decreased to RMB 9,848,755,918.40 from RMB 11,507,099,742.41, indicating a reduction of approximately 14.4%[23] Other Financial Information - Non-recurring gains and losses for the period totaled RMB 124,577 thousand, after accounting for tax and minority interests[13] - The company received government subsidies amounting to RMB 96,378 thousand during the reporting period[10] - The weighted average return on net assets was 5.45%, a decrease of 0.33 percentage points compared to the previous year[7] - The company did not conduct an audit for the first quarter financial statements[5] - Research and development expenses for Q1 2024 were RMB 186.14 million, slightly higher than RMB 179.39 million in Q1 2023, indicating a focus on innovation[29] - The company reported a tax expense of RMB 420.62 million for Q1 2024, compared to RMB 385.93 million in Q1 2023, reflecting an increase of 9.0%[30] - Other comprehensive income after tax for Q1 2024 was RMB 1.51 million, recovering from a loss of RMB 5.96 million in Q1 2023[30] - The impact of exchange rate changes on cash and cash equivalents was an increase of CNY 2.43 million in Q1 2024, compared to an increase of CNY 1.80 million in Q1 2023[37] Shareholder Information - The total equity attributable to shareholders is not explicitly mentioned but is implied to be stable given the slight changes in total assets and liabilities[24] - The company has not disclosed any significant changes in shareholder relationships or actions among the top shareholders[21] - The company has not reported any participation in margin financing or securities lending activities by the top shareholders[21] - There are no significant new strategies or product developments mentioned in the provided documents[22]

Financial Performance - The company's operating revenue for Q1 2024 was CNY 22,946,212, representing a year-on-year increase of 6.09%[4] - The net profit attributable to shareholders for the same period was CNY 1,958,118, reflecting a growth of 2.59% compared to the previous year[4] - Basic and diluted earnings per share for Q1 2024 were both CNY 1.204, an increase of 2.59% from the same period last year[5] - Total operating revenue for Q1 2024 reached CNY 22,946,211,891.84, an increase of 6.1% compared to CNY 21,628,521,022.04 in Q1 2023[19] - Net profit for Q1 2024 was CNY 2,031,724,927.91, compared to CNY 1,969,054,925.32 in Q1 2023, representing a growth of 3.2%[21] - The company reported a total comprehensive income of CNY 2,033,231,749.61 for Q1 2024, compared to CNY 1,963,092,974.12 in Q1 2023[21] Cash Flow - The net cash flow from operating activities was negative at CNY (3,138,187), a decline of 10.54% year-on-year[4] - In Q1 2024, the company reported cash inflows from operating activities totaling CNY 16,789,987,378.48, an increase from CNY 15,161,136,193.40 in Q1 2023, representing a growth of approximately 10.7%[23] - The net cash outflow from operating activities was CNY (3,138,186,616.77), compared to CNY (2,838,882,221.33) in the same period last year, indicating a decline in operational cash flow[23] - Investment activities generated a net cash outflow of CNY (282,996,800.88) in Q1 2024, a decrease from CNY (638,055,604.71) in Q1 2023, reflecting improved cash management in investments[25] - The net cash flow from financing activities was CNY 1,939,655,468.86, compared to CNY 1,571,436,553.79 in the previous year, indicating a positive trend in financing[25] Assets and Liabilities - The total assets at the end of the reporting period were CNY 78,703,490, a slight increase of 0.15% from the end of the previous year[5] - Current assets totaled ¥55,959,814,735.97, showing a marginal decrease from ¥55,983,713,725.09[16] - Total liabilities as of Q1 2024 were CNY 39,990,236,195.46, a decrease from CNY 41,909,053,857.29 in the previous year[20] - The total non-current liabilities amounted to CNY 5,870,219,387.47, an increase from CNY 5,673,763,356.34 in the previous year[20] Shareholder Information - The total equity attributable to shareholders increased to CNY 36,878,108, up 5.61% from the previous year[5] - The number of ordinary shareholders at the end of the reporting period was 92,562[8] - The largest shareholder, Guangzhou Pharmaceutical Group Co., Ltd., held 45.04% of the shares[9] Expenses - Total operating costs for Q1 2024 were CNY 20,666,670,426.99, up from CNY 19,332,774,093.08 in Q1 2023, reflecting a year-over-year increase of 6.9%[20] - Research and development expenses for Q1 2024 amounted to CNY 186,139,000.55, compared to CNY 179,389,510.16 in Q1 2023, indicating a rise of 3.9%[20] - The company paid CNY 1,744,322,516.63 in employee compensation during Q1 2024, compared to CNY 1,665,413,999.81 in Q1 2023, reflecting a 4.7% increase in labor costs[23] - The company’s tax payments amounted to CNY 832,382,327.22 in Q1 2024, down from CNY 1,006,065,170.89 in the same period last year, suggesting improved tax efficiency[23]

Financial Performance - The company achieved a consolidated net profit attributable to shareholders of RMB 4,055,678,691.49 for the year 2023, with a base net profit of RMB 1,684,022,544.74[2] - The company achieved a net profit of CNY 1.8 billion, which is a 15% increase compared to the previous year[18] - The company's operating revenue for 2023 reached RMB 75,515,404 thousand, an increase of 6.68% compared to RMB 70,788,155 thousand in 2022[21] - The total profit for the year was RMB 5,110,498 thousand, reflecting a year-on-year increase of 1.33%[29] - The net profit attributable to shareholders for 2023 was RMB 4,055,679 thousand, reflecting a growth of 2.25% from RMB 3,966,522 thousand in the previous year[21] - The company's total assets of the company at the end of 2023 amounted to RMB 78,586,878 thousand, representing a 5.25% increase from RMB 74,665,299 thousand in 2022[21] - The company's total liabilities at the end of 2023 were RMB 41,909,054 thousand, a slight increase of 2.15% from RMB 41,027,441 thousand in 2022[21] - The return on equity attributable to shareholders decreased to 11.61% in 2023 from 12.37% in 2022, a decline of 0.76 percentage points[22] - The company's net assets attributable to shareholders increased to RMB 34,919,281 thousand in 2023, up by 8.90% from RMB 32,065,125 thousand in 2022[21] - The asset-liability ratio improved to 53.33% in 2023, down from 54.95% in 2022, indicating better financial stability[22] Dividend and Profit Distribution - A cash dividend of RMB 0.749 per share (including tax) is proposed, totaling RMB 1,217,717,420.80, based on a total share capital of 1,625,790,949 shares at the end of 2023[2] - The company plans to submit the profit distribution proposal for approval at the 2023 annual general meeting[2] - The company plans to retain the remaining undistributed profits for future distribution, with no capital reserve fund conversion to share capital for this year[2] Risk Management and Compliance - The company has not identified any significant risks that could materially affect its production and operations during the reporting period[4] - The financial report has been audited by Da Xin Certified Public Accountants, providing a standard unqualified audit opinion[1] - The company has confirmed that there are no non-operational fund occupations by controlling shareholders and related parties[3] - The company has not violated any regulatory decision-making procedures in providing guarantees[3] - The board of directors and senior management have ensured the accuracy and completeness of the financial report[1] Market and Product Development - Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited reported a revenue of CNY 10.5 billion for the fiscal year 2023, representing a year-over-year increase of 12%[18] - User data indicates that the company expanded its customer base by 20%, reaching a total of 5 million active users[18] - The company plans to launch three new products in the next quarter, focusing on innovative drug formulations and enhanced delivery systems[18] - Future guidance estimates a revenue growth of 10-15% for the upcoming fiscal year, driven by new product launches and market expansion strategies[18] - The company is investing CNY 500 million in R&D for new technologies aimed at improving drug efficacy and safety[18] - Market expansion efforts include entering two new provinces in China, projected to increase market share by 5%[18] - The company is exploring potential mergers and acquisitions to enhance its product portfolio and distribution capabilities[18] - The company has received regulatory approval for five new drug registrations, expected to contribute an additional CNY 300 million in revenue[18] Research and Development - The company invested a total of RMB 782 million in R&D during 2023, resulting in 11 production approvals for drugs including hydrochloride dapoxetine tablets[35] - The company has established a comprehensive technology innovation system with 5 national-level R&D institutions and 1 national-level enterprise technology center[69] - The company has established 3 provincial and 1 municipal research platforms, along with 6 national and 10 provincial qualifications in research[35] - The company has a strong talent pool, including 3 Nobel Prize winners and over 100 high-level talents with doctoral degrees[70] - The company applied for 134 patents, including 110 invention patents and 24 utility model patents, and received 89 patent grants, with 67 being invention patents[155] Supply Chain and Operations - A new supply chain strategy is being implemented to reduce costs by 8% over the next year[18] - The procurement model has been unified across subsidiaries to enhance cost efficiency and quality control, particularly for bulk Chinese medicinal materials[50] - The company has established multiple medicinal herb planting bases to ensure quality and control costs[147] - The company has a comprehensive supply chain system, integrating raw material procurement, R&D, production, distribution, and retail[66] Marketing and Sales Strategy - The retail network has expanded to 157 outlets, with 51 designated stores for retail business under the "dual-channel" model[32] - The company has established new subsidiaries in Heilongjiang and Shaoguan, enhancing its sales network across Guangdong Province and the Greater Bay Area[32] - The company has a strong marketing network, serving over tens of thousands of customers across more than 30 provinces, cities, and autonomous regions in China[67] - The company is actively expanding its market presence through strategic brand integration and marketing initiatives[64] Regulatory Environment and Industry Trends - The pharmaceutical manufacturing industry in China saw a revenue decline of 3.7% year-on-year, totaling RMB 252.06 billion, with total profits down 15.1% to RMB 34.73 billion[42] - The company is focusing on enhancing product and technology quality management, completing the establishment of a drug adverse reaction monitoring system[37] - The pharmaceutical industry is experiencing accelerated restructuring and integration, with mergers and acquisitions becoming the mainstream approach characterized by strategic resource complementarity and strong alliances[184] - The company plans to enhance the consistency evaluation of generic drugs to improve production efficiency and reduce costs, while actively participating in national procurement tenders[119] Future Outlook and Strategic Initiatives - The company plans to enhance its capabilities in quality management and innovation in response to the new manufacturing policies issued in January and December 2023[125] - The company aims to improve its operational management capabilities in its medical services sector, enhancing service levels and establishing complementary relationships between its hospitals[190] - The company will continue to strengthen talent management and risk control mechanisms to support sustainable and high-quality development[193] - The company is committed to strengthening its capital operations, including plans for a new three-board listing and establishing venture capital funds to support innovation projects[192]

证券研究报告 | 公司动态点评 2024 年 03月 29日 白云山（600332.SH） 23 年业绩稳健增长，24 年高质量发展可期 财务指标 2022A 2023A 2024E 2025E 2026E 增持（维持评级） 营业收入（百万元） 70,788 75,515 81,013 86,289 91,125 股票信息 增长率yoy（%） 2.6 6.7 7.3 6.5 5.6 归母净利润（百万元） 3,967 4,056 4,545 5,079 5,665 行业 医药 增长率yoy（%） 6.6 2.2 12.1 11.8 11.5 2024年3月28日收盘价（元） 28.65 ROE（%） 12.6 11.6 12.0 12.1 12.2 总市值（百万元） 46,578.91 EPS最新摊薄（元） 2.44 2.49 2.80 3.12 3.48 流通市值（百万元） 40,278.78 P/E（倍） 11.7 11.5 10.2 9.2 8.2 总股本（百万股） 1,625.79 P/B（倍） 1.5 1.3 1.2 1.1 1.0 流通股本（百万股） 1,405.89 资料来源：公司财报，长城证券产 ...

Financial Performance - The company achieved a consolidated net profit attributable to shareholders of RMB 4,055,678,691.49 for the year 2023, with the parent company reporting a net profit of RMB 1,684,022,544.74[4]. - The company's revenue for 2023 reached RMB 75,515,404 thousand, an increase of 6.68% compared to RMB 70,788,155 thousand in 2022[19]. - Net profit attributable to shareholders for 2023 was RMB 4,055,679 thousand, reflecting a growth of 2.25% from RMB 3,966,522 thousand in the previous year[19]. - The net profit after deducting non-recurring gains and losses increased by 9.53% to RMB 3,635,521 thousand from RMB 3,319,308 thousand in 2022[19]. - The company reported a total profit of RMB 5,110,498 thousand for 2023, which is a 1.33% increase year-on-year[28]. - The company's total liabilities increased by 2.15% to RMB 41,909,054 thousand from RMB 41,027,441 thousand in 2022[19]. - The return on equity for 2023 was 11.61%, a decrease of 0.76 percentage points from 12.37% in 2022[21]. - Basic earnings per share for 2023 were RMB 2.495, up from RMB 2.440 in 2022, representing a growth of 2.25%[21]. - The asset-liability ratio improved to 53.33% in 2023, down from 54.95% in 2022, indicating better financial stability[21]. - The company achieved a total revenue of RMB 75,515,404 thousand in 2023, representing a year-on-year growth of 6.68%[49]. Dividends and Profit Retention - A cash dividend of RMB 0.749 per share (including tax) is proposed, totaling RMB 1,217,717,420.80, based on a total share capital of 1,625,790,949 shares as of the end of 2023[5]. - The company plans to retain the remaining undistributed profits for future allocation, with no capital reserve fund conversion into share capital for this year[5]. - The company has a retained undistributed profit of RMB 8,389,265,344.67 at the end of the reporting period after accounting for the cash dividend and statutory surplus reserve[4]. Risk Management and Compliance - The report indicates that there are no significant risks that materially affect the company's production and operations during the reporting period[5]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders and their related parties[5]. - The financial report has been audited by Da Xin Accounting Firm, which issued a standard unqualified audit report[4]. - The board of directors and senior management have confirmed the accuracy and completeness of the financial report[4]. - The company has implemented a comprehensive risk management system to identify, assess, and manage significant risks, ensuring effective internal controls and regular reporting to the board[136]. - The internal control and risk management systems have been evaluated as sufficient and effective by the audit committee, confirming compliance with corporate governance codes[135]. Research and Development - The company invested RMB 782 million in R&D expenses for the year 2023[32]. - The company has established 3 provincial-level and 1 municipal-level research platforms[32]. - The company has 5 national-level R&D institutions and 17 provincial-level technology centers, enhancing its technological innovation capabilities[53]. - The company has a total of 154 ongoing research projects, focusing on new drug development and consistency evaluation of generic drugs[96]. - The major R&D project for rabies vaccine development saw an investment of RMB 68,290.30 thousand, reflecting a significant increase in R&D efforts[105]. Market Expansion and Product Development - The company launched new health products, including various flavored herbal teas and fruit juice beverages, to expand its product offerings[30]. - The company expanded its retail network, increasing the number of retail outlets to 157, with 51 designated for dual-channel operations[29]. - The company is actively pursuing internationalization by participating in international exhibitions and accelerating local adaptations of its products[30]. - The company is investing in new healthcare projects, including hospitals and healthcare service companies, to enhance its market presence[46]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product portfolio[159]. Corporate Governance - The company has a governance structure that guarantees equal rights for all shareholders, especially minority shareholders[145]. - The company has established a written service contract for each director and supervisor, with a term of approximately three years[185]. - The company maintains liability insurance for directors, supervisors, and senior executives to provide protection against legal actions[186]. - The board is responsible for formulating and reviewing corporate governance policies and compliance with legal regulations[195]. - The company has appointed independent non-executive directors with extensive experience in various medical and financial fields, enhancing governance and oversight[161][162][163][164]. Financial Management and Compensation - The total compensation for the chairman, Li Chuyuan, was RMB 1,743.68 thousand for the reporting period[173]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period was RMB 20,824.85 thousand[181]. - The remuneration decision process for directors and senior management involves the board's remuneration and assessment committee, which proposes remuneration based on industry standards and company performance[179]. - The company’s independent directors' remuneration is determined based on proposals approved by the shareholders' meeting[181]. Operational Efficiency and Cost Management - The company aims to enhance management efficiency and reduce production costs through optimization strategies[34]. - The company has established a unified procurement platform to enhance cost efficiency and risk management in sourcing raw materials[41]. - The cost of raw materials accounted for 74.20% of total costs, with a slight decrease in the proportion compared to 75.85% in the previous year[63]. - The company is focused on advancing its research and development capabilities, including new drug development and collaboration with hospitals and research institutions[121].

Financial Performance - Net profit attributable to shareholders reached RMB 4,055,678,691.49 in 2023[1] - The company's net profit for 2023 is RMB 1,684,022,544.74[1] - Revenue for 2023 reached RMB 75,515,404 thousand, a 6.68% increase compared to 2022[12] - Net profit attributable to shareholders in 2023 was RMB 4,055,679 thousand, a 2.25% increase from 2022[12] - Operating cash flow decreased by 41.37% to RMB 4,103,625 thousand in 2023[12] - Total assets grew by 5.25% to RMB 78,586,878 thousand at the end of 2023[12] - Basic earnings per share (EPS) for 2023 was RMB 2.495, a 2.25% increase from 2022[14] - Weighted average return on equity (ROE) decreased by 0.90 percentage points to 12.07% in 2023[14] - Revenue for 2023 reached RMB 75,515,404 thousand, a year-on-year increase of 6.68%[19] - Net profit attributable to shareholders was RMB 4,055,679 thousand, up 2.25% year-on-year[19] - The company's revenue for the reporting period reached RMB 75,515,404 thousand, a year-on-year increase of 6.68%[40] - Revenue for the reporting period reached RMB 75,515,404 thousand, a year-on-year increase of 6.68%[46] - Net profit attributable to shareholders was RMB 4,055,679 thousand, up 2.25% year-on-year[46] - Operating cash flow decreased by 41.37% to RMB 4,103,625 thousand due to increased procurement settlements by subsidiaries[46] - Investment cash flow improved by 57.06% to RMB -3,114,859 thousand, driven by reduced bank deposits and equity investments[46] - The company's net cash flow from operating activities for 2023 was RMB 4,103,625 thousand, a decrease of RMB 2,895,451 thousand compared to the previous year[66] - The company's overall gross margin for the reporting period was 18.61%, with the major pharmaceutical segment achieving a gross margin of 48.74%[88] - The company's R&D investment for the reporting period was RMB 852.193 million, accounting for 1.13% of operating revenue and 2.32% of net assets, with a capitalization ratio of 8.22%[98] - The company's R&D investment is lower than the industry average of RMB 1.862709 billion, but higher than some peers like Guoyao (RMB 98.86474 million) and Tongrentang (RMB 366.08308 million)[98] - Sales expenses totaled RMB 6,104,738 thousand, with employee compensation accounting for 49.76% of the total sales expenses[101] - Advertising and promotional expenses amounted to RMB 1,082,172 thousand, representing 17.73% of the total sales expenses[101] - The company's total sales expenses accounted for 8.08% of its revenue, higher than the industry average of 5,846,395 thousand[103] - The company's external equity investment increased by RMB 221,578 thousand to RMB 1,805,641 thousand at the end of the reporting period[104] - The fair value change loss of other non-current financial assets was RMB 79,088 thousand, resulting in a year-end balance of RMB 1,005,936 thousand[107] - The company's investment in Chongqing Pharmaceutical Holdings decreased by RMB 2,859 thousand, with a year-end balance of RMB 129,182 thousand[108] - Wanglaoji Health Company achieved a net profit of RMB 1,459,802 thousand, with a total revenue of RMB 10,012,829 thousand and a total profit of RMB 4,434,130 thousand[111] - The pharmaceutical company generated a net profit of RMB 637,189 thousand, with a total revenue of RMB 52,538,650 thousand and a total profit of RMB 3,269,537 thousand[111] - The company's cash and cash equivalents as of December 31, 2023, were RMB 19,823,544 thousand, a decrease of RMB 981,155 thousand from the beginning of the year[62] - The company's bank borrowings as of December 31, 2023, were RMB 11,159,204 thousand, an increase of RMB 483,354 thousand from the beginning of the year[63] - The company's long-term liabilities as of December 31, 2023, were RMB 5,673,763 thousand, an increase of 56.20% from the end of 2022[63] - The company's equity attributable to shareholders as of December 31, 2023, was RMB 34,919,281 thousand, an increase of 8.90% from the end of 2022[63] - The company's accounts receivable turnover ratio for 2023 was 5.45 times, a decrease of 1.59% compared to 2022[62] - The company's inventory turnover ratio for 2023 was 5.49 times, an increase of 1.49% compared to 2022[62] - The company's debt-to-asset ratio as of December 31, 2023, was 53.33%, a decrease from 54.95% at the end of 2022[67] - The company's overseas assets as of December 31, 2023, were RMB 396,029 thousand, accounting for 0.50% of total assets[68] - Available distributable reserves amounted to RMB 8,389,265 thousand as of December 31, 2023[125] Dividends and Retained Earnings - The company plans to distribute a cash dividend of RMB 0.749 per share, totaling RMB 1,217,717,420.80[2] - The company's retained earnings at the end of the period were RMB 8,389,265,344.67[1] - The company's retained earnings at the beginning of the year were RMB 8,063,724,029.08[1] - The company's cash dividend for 2022 was RMB 1,190,078,974.68[1] Share Capital and Reserves - The company's total share capital is 1,625,790,949 shares[2] - The company's statutory surplus reserve for 2023 is RMB 168,402,254.47[1] Financial Statements and Audits - The company's financial statements are prepared in accordance with Chinese Accounting Standards[1] - The company's audit report was issued by Da Xin Certified Public Accountants[1] - The company's auditor is Da Xin Certified Public Accountants (Special General Partnership), located at Room 1504, College International Building, No. 1 Zhichun Road, Haidian District, Beijing[11] - The company's board confirmed that the financial statements for 2023 reflect a true and fair view of the group's financial position and cash flows[198] - The company's audit committee was established in August 1999 and is responsible for reviewing financial reporting quality, internal controls, and risk management systems[199] - The 9th board's audit committee was formed on May 30, 2023, with 4 independent non-executive directors as members[199] Company Information and Governance - Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (GYBYS) is the legal Chinese name of the company, with its headquarters located at No. 45 Shamian North Street, Liwan District, Guangzhou, China[10] - The company's A-share is listed on the Shanghai Stock Exchange with the stock code 600332, and its H-share is listed on the Hong Kong Stock Exchange with the stock code 0874[11] - The company's registered and office address is at No. 45 Shamian North Street, Liwan District, Guangzhou, China, with no historical changes in the registered address[10] - The company's website is http://www.gybys.com.cn, and its annual reports are disclosed on the Shanghai Stock Exchange and Hong Kong Stock Exchange websites[10] - The company's legal representative is Li Chuyuan, and the Board Secretary is Huang Xuezhen[10] - The company's unified social credit code is 9144010163320680X7, and its annual reports are prepared at the Board Secretary's office[11] - The company's designated information disclosure newspapers include "Shanghai Securities News," "Securities Times," "China Securities Journal," and "Securities Daily"[10] - The company's Hong Kong office is located at Room 2005, 20th Floor, Tower 2, Lippo Centre, 89 Queensway, Hong Kong[10] - The company's initial registration date was September 1, and the registration location was No. 45 Shamian North Street, Liwan District, Guangzhou, China[11] - The company fully complied with the Corporate Governance Code under Appendix C1 of the Hong Kong Stock Exchange Listing Rules during the reporting period[129] - The company's governance structure complies with the requirements of the Company Law, Securities Law, and relevant regulations of the China Securities Regulatory Commission[133] - The company's internal control and risk management systems were deemed adequate and effective by the Audit Committee and the Board of Directors[134] - The company conducts semi-annual and annual internal control self-assessments and risk management reviews[136] - The company revised the Independent Director System and formulated the Working Rules for Independent Director Special Meetings to further promote standardized operations[138] - The company focused on advancing special audits of key subsidiaries, evaluating internal control systems, and providing reasonable audit opinions[139] - The company expanded the scope of risk monitoring and initially established a "1+N" online risk control supervision platform[139] - The company has established and revised the "Insider Information Registration System" to ensure compliance and prevent insider trading, with no violations reported as of the end of the reporting period[140] - The company has implemented measures to ensure independence from its controlling shareholder, Guangzhou Pharmaceutical Holdings Limited, in terms of assets, personnel, finance, and operations[142] - The company has addressed the issue of business competition with Huacheng Pharmaceutical, a subsidiary of Guangzhou Pharmaceutical Holdings, by initiating a transfer of Huacheng Pharmaceutical's 100% equity to the company, although the transfer has been delayed due to land valuation and relocation issues[143][144] - The company has a comprehensive governance structure that ensures equal rights for all shareholders, including minority shareholders, and adheres to relevant laws and regulations in convening and conducting shareholder meetings[145][147] - The company's 2022 Annual General Meeting was held on May 30, 2023, with all proposals approved, and the resolutions were disclosed in major financial newspapers on May 31, 2023[148] - The company's 9th Board of Directors consists of 11 members, including executive directors and independent non-executive directors, with terms starting from May 30, 2023[187][188] - The Board of Directors is responsible for major decisions including financial budgets, profit distribution, capital adjustments, and significant acquisitions[188] - The company has implemented a cumulative voting system for director elections, and independent non-executive directors can serve for a maximum of six consecutive years[189] - The company has purchased and maintained Directors and Officers Liability Insurance to provide appropriate protection for its directors, supervisors, and senior officers[185] - The company held 11 Board of Directors meetings in 2023, discussing matters such as periodic reports, appointment of financial and internal control audit institutions, related party transactions, and external investments[192] - The company has a clear division of responsibilities between the Chairman and the General Manager, with the Chairman overseeing Board operations and the General Manager managing daily production and operations[189] - All directors participated in continuous professional development during the reporting period, with the company arranging regular professional training for each director[190] - The company has established a standard code of conduct for securities transactions by directors and supervisors, with no reported violations during the reporting period[186] - The Board of Directors is responsible for corporate governance functions, including policy review, compliance monitoring, and training oversight for directors and senior management[191] - The company's directors and supervisors have no significant interests in any transactions, arrangements, or contracts involving the group's business during the reporting period[186] - The company held a total of 11 board meetings during the year, with 2 being in-person, 7 via communication methods, and 2 combining both in-person and communication methods[194] - The company has 4 independent non-executive directors, accounting for more than one-third of the board members[195] - Independent non-executive directors attended all 11 audit committee meetings during the reporting period[200] - The audit committee reviewed the company's 2022 and 2023 semi-annual financial reports, internal audit risk control reports, and fundraising usage reports[200] - The company's independent non-executive directors submitted confirmation letters regarding their independence in accordance with HKEX Listing Rule 3.13[197] - The company's independent non-executive directors did not raise any objections to board proposals or non-board review matters during the reporting period[196] - The company did not provide any loans or loan guarantees to directors, supervisors, or senior management during the reporting period[197] R&D and Innovation - The company invested RMB 782 million in R&D in 2023, obtaining 11 drug production approvals and 2 clinical trial approvals[23][24] - The company's subsidiary, Baiyunshan Hanyang, was included in the State Council's "Science and Technology Reform Enterprise" list[24] - The company's subsidiary, Baiyunshan Hanyang, obtained CNAS certification, enabling international-standard testing capabilities[24] - The company's subsidiary, Baiyunshan Hanyang, was recognized as a "Guangdong Provincial Specialized and Sophisticated SME"[24] - The company has 154 R&D projects in progress, covering new drug development, generic drug consistency evaluation, and secondary development of products[90] - The company secured 2 international awards, 2 national-level scientific research awards, and 1 provincial-level award during the reporting period[91] - The company applied for 134 patents, including 110 invention patents, and obtained 89 patent authorizations, including 67 invention patents[91] - The company obtained 2 drug clinical trial approval notices, 8 drug registration certificates, 3 chemical API marketing approval notices, and 1 drug supplementary application approval notice during the reporting period, enriching product variety and expanding overseas market business[94] - Key R&D projects include HG030 tablets (TRK inhibitor) for NTRK and ROS1 fusion mutation-positive solid tumors in Phase I clinical trials[92] - BYS10 tablets (RET inhibitor) for non-small cell lung cancer and medullary thyroid carcinoma are in Phase I clinical trials[93] - The company is conducting secondary development research on Shujin Jianyao Pills for lumbar disc herniation and lumbar spinal stenosis[93] - New drug approvals include Dapoxetine Hydrochloride Tablets (30mg and 60mg) for premature ejaculation treatment[95] - Overseas market expansion includes Xinyi Biyan Pills registered in Australia and Jiawei Huoxiang Zhengqi Pills registered in Canada[96] - The company has 3 chemical API marketing approvals for Cefdinir, Refined Olive Oil, and Chlorpheniramine Maleate[96] - R&D expenditure is capitalized only after entering Phase III clinical trials, with earlier stage expenses recognized as current period costs[97] - R&D investment in the freeze-dried human rabies vaccine (Vero cell) research project increased by 85.47% year-on-year to RMB 68,290.30 thousand[100] - The anti-tumor Trk inhibitor Class 1 new drug Phase Ib clinical trial research project saw a 16.95% decrease in R&D investment to RMB 22,625.71 thousand[100] - The anti-tumor chemical drug Class 1 new drug RET inhibitor BYS10 tablet Phase I clinical research project experienced a 22.60% decrease in R&D investment to RMB 19,385.41 thousand[100] Product Portfolio and Sales - The company's pharmaceutical retail network expanded to 157 stores, with 51 designated as "dual-channel" retail outlets[22] - The company launched new products such as Camellia-flavored herbal tea and durian-flavored herbal tea, enriching its health product portfolio[21] - The company's subsidiary, Baiyunshan Hospital, added six new medical departments and launched an internet hospital[22] - The company operates 28 pharmaceutical manufacturing enterprises, including 3 branches, 23 subsidiaries, and 2 joint ventures[30] - The company has 324 products included in the National Medical Insurance Catalog and 331 products in the Provincial Medical Insurance Catalog[30] - The company's major traditional Chinese medicine products include Xiaochaihu Granules, Banlangen Granules, and Huatuo Zaizao Pills[30] - The company's chemical drug products include Jinge (Sildenafil Citrate) and Amoxicillin[31] - The company's health products include Wanglaoji Herbal Tea, Ciliji Series, and Lixiaoji Series[32] - The company's medical business is in the layout and investment expansion phase, focusing on medical services, traditional Chinese medicine health, modern elderly care, and medical devices[32] - The company has established a unified procurement platform to manage the procurement of raw materials, packaging materials, and equipment, improving bargaining power and risk resistance[33] - The company has integrated internal sales resources and established an e-commerce sales system, including flagship stores on Tmall and JD.com[35] - The company operates 157 retail pharmaceutical outlets, including 60 "Jianmin" pharmacy chain stores, 63 Guangzhou Pharmaceutical chain stores, 22 Hainan Guangyao Chenfei chain stores, and 12 retail stores under subsidiaries[37] - The company has over 2,000 product specifications and more than 90 exclusive production varieties, with 40 different dosage forms[41] - The company owns 10 China Famous Trademarks, 22 Guangdong Famous Trademarks, and 27 Guangzhou Famous Trademarks, including the well-known brands "Wanglaoji" and "Baiyunshan"[41] - The company has 12 member enterprises certified as China Time-honored Brands, with 6 national intangible cultural heritage items[42] - The company and its joint ventures operate over 80 GAP-certified medicinal material bases[43] - The company has established the largest pharmaceutical logistics distribution center in South China and serves over 30 provinces, municipalities, and autonomous regions[43] - The company possesses 5 national-level R&D institutions, 1 national-level enterprise technology center, and 2 postdoctoral workstations[44] - The company has a high-level talent pool including 3 Nobel laureates, 21 academicians

Financial Performance - The company achieved a consolidated net profit attributable to shareholders of RMB 4,055,678,691.49 for the fiscal year ending December 31, 2023, representing a significant increase from the previous year's net profit of RMB 1,684,022,544.74[6]. - The company's operating revenue for 2023 reached RMB 75,515,404 thousand, an increase of 6.68% compared to RMB 70,788,155 thousand in 2022[26]. - Net profit attributable to shareholders for 2023 was RMB 4,055,679 thousand, reflecting a growth of 2.25% from RMB 3,966,522 thousand in the previous year[26]. - The total profit for the year was RMB 5,110,498 thousand, an increase of 1.33% compared to the previous year[47]. - The net profit after deducting non-recurring gains and losses was RMB 3,635,521 thousand, which is a 9.53% increase from RMB 3,319,308 thousand in 2022[26]. - The company's total assets at the end of 2023 amounted to RMB 78,586,878 thousand, up 5.25% from RMB 74,665,299 thousand in 2022[26]. - The company's total liabilities increased by 2.15% to RMB 41,909,054 thousand compared to RMB 41,027,441 thousand in the previous year[26]. - The gross profit margin for the main business improved slightly to 18.61%, an increase of 0.05 percentage points year-on-year[62]. - The total comprehensive income for the year ended December 31, 2023, was approximately CNY 4.25 billion, a slight decrease of 0.3% compared to CNY 4.26 billion in 2022[145]. Dividends and Profit Allocation - The proposed cash dividend is RMB 0.749 per share, totaling RMB 1,217,717,420.80, based on a total share capital of 1,625,790,949 shares[6]. - The company plans to retain the remaining undistributed profits for future allocation, with no capital reserve fund conversion to share capital for this year[6]. Compliance and Transparency - The board of directors has confirmed the accuracy and completeness of the financial report, which was audited by Da Xin Certified Public Accountants[6]. - The company is committed to maintaining transparency and has ensured that all information is available on the Shanghai Stock Exchange and Hong Kong Stock Exchange websites[5]. - The company emphasizes compliance with Chinese accounting standards in its financial reporting[5]. - The annual report is available in both Chinese and English, with the Chinese version being the authoritative text in case of discrepancies[8]. - The audit committee confirmed that the financial reports accurately reflect the company's financial status without any significant misstatements or fraud[126]. Market and Industry Trends - The pharmaceutical industry is experiencing a transformation period, facing challenges such as price reductions and rising raw material costs, while also benefiting from policies promoting innovation and development[25]. - The overall trend in the pharmaceutical industry indicates continuous growth in demand due to an aging population and increased health awareness, supported by government policies[24]. - The company is focused on future growth strategies, including potential market expansions and new product developments[5]. Product and Service Development - The company operates 28 pharmaceutical manufacturing entities, including 12 time-honored Chinese medicine brands, with 324 products included in the National Medical Insurance Catalog[18]. - The health products segment includes beverages and health supplements, with strong brand value in the herbal tea market, particularly the Wanglaoji brand, which holds a significant market share in China[20]. - The company is expanding its healthcare services and medical device investments, focusing on traditional Chinese medicine and modern elderly care[22]. - The company is leveraging digital and intelligent technologies to create new development opportunities in the pharmaceutical sector[24]. - Key products such as Qingkailing series and Wanglaoji herbal tea saw significant sales growth during the reporting period[49]. Financial Management and Investments - The company's cash flow from operating activities decreased by 41.37% to RMB 4,103,625 thousand from RMB 6,999,076 thousand in 2022[26]. - The company invested RMB 3.34 billion to establish the WBA Alliance Fund, marking a significant step in its transformation in the biopharmaceutical health industry[57]. - Research and development expenses totaled RMB 782,144 thousand, a decrease of 4.55% compared to RMB 819,454 thousand last year[59]. - The company plans to enhance its marketing integration and innovation models, particularly in the OTC market and e-commerce, to drive growth[104]. Employee and Organizational Development - The total number of employees in the group is 28,048, with 2,062 in the parent company and 25,986 in major subsidiaries[111]. - The company emphasizes employee development through a comprehensive training system that covers all levels of staff, from production workers to senior management[118]. - The company has a diverse educational background among employees, with 10,057 holding bachelor's degrees and 799 holding postgraduate degrees[115]. Audit and Internal Control - The audit committee held 11 meetings in 2023, reviewing the financial reports for 2022 and the first three quarters of 2023, ensuring compliance and accuracy[123]. - The company has established a robust internal control system, ensuring compliance with laws and regulations, and protecting shareholder rights[128]. - The company reappointed Da Xin Certified Public Accountants as its financial audit firm for 2023, confirming their qualifications and independence[124]. Strategic Initiatives - The company will focus on the integration of digital economy and pharmaceutical health industry in 2024, aiming for high-quality development across various business segments[104]. - The company plans to accelerate its overseas market expansion to increase international brand recognition[107]. - The company will continue to strengthen capital operations and explore opportunities for mergers and acquisitions to optimize its business structure[109].