Financial Performance - The company's revenue for 2018 was HKD 1,137,626,000, representing a 12.8% increase from HKD 1,008,522,000 in 2017[12] - Profit attributable to owners of the company increased by 79.9% to HKD 418,269,000 from HKD 232,559,000 in the previous year[12] - Total equity attributable to owners of the company rose by 22.5% to HKD 2,210,543,000 compared to HKD 1,804,346,000 in 2017[12] - Basic earnings per share increased by 79.5% to HKD 70.67 from HKD 39.38 in 2017[12] - The total dividend for the year was HKD 11.8 cents, up 13.5% from HKD 10.4 cents in 2017[12] - The gross profit for 2018 was HKD 746,371,000, up from HKD 682,404,000 in 2017, indicating a growth of 9.4%[19] - The operating profit for 2018 was HKD 466,936,000, significantly higher than HKD 276,828,000 in 2017, representing an increase of 68.7%[19] - The overall gross margin for 2018 was 65.6%, down from 67.7% in 2017, due to inflationary pressures on production costs[36] - The net profit attributable to the company's owners was HKD 418,269,000, an increase of 79.9% from 2017, with a net profit margin of 36.8%[37] Research and Development - The company has over 60 products in various development stages across multiple therapeutic areas, including cardiovascular and oncology[7] - Research and development expenses amounted to over HKD 290,000,000, which is 25.5% of the total revenue for 2018[27] - The company invested HKD 290,177,000 in R&D activities in 2018, which is 25.5% of annual revenue, the highest among local pharmaceutical companies[36] - The company is focusing on innovative product development across multiple therapeutic areas to drive future growth, including new products such as Mylotarg® and Sancuso®[75] - The company has made significant progress in drug development, with the approval of Sancuso® by the National Medical Products Administration of China, enhancing its position in the oncology field[41] - The company has completed four registered clinical studies, including the Phase III clinical study of Azilsartan[42] Market Strategy and Expansion - The company aims to become a successful biopharmaceutical group in Asia, providing innovative products to combat diseases[9] - The company is expanding its production capabilities with new facilities in Guangzhou, focusing on solid dosage forms like tablets and capsules[8] - The company has established extensive partnerships with over 20 international firms to enhance its product offerings in China[7] - The company is focusing on expanding its product line and accelerating clinical development plans to meet market demands[27] - The company aims to enhance its market position as one of China's leading specialty pharmaceutical companies through asset restructuring and independent biotech company formation[28] Clinical Trials and Approvals - The company has made progress in clinical trials, including approvals for PD-L1 and TG02, as well as new drug applications for Sancuso®[26] - The clinical trial for the anti-PD-L1 monoclonal antibody ZKAB001 has commenced, with the first patient recruited for cervical cancer treatment[44] - The global Phase III clinical trial for Pexa-Vec has begun in China, with over 400 patients recruited out of a target of 600[45] - A Phase II clinical study for cyclosporine A eye gel has recruited half of its target of 240 patients, expected to complete by mid-2019[46] - The Phase III clinical trial for the acne treatment Adapalene/Clindamycin gel has begun, aiming to recruit 1,650 patients by the end of 2019[49] Financial Management and Risks - The company is implementing a cautious financial policy to minimize credit risk and closely monitor liquidity to meet funding needs[69] - The group is actively managing foreign exchange risks and may consider using forward contracts to hedge against currency fluctuations[71] - Pricing and subsidy restrictions in drug pricing are expected to be a major challenge in 2019, prompting a strategic resource reallocation[74] - The group faces business risks including significant market fluctuations, economic downturn pressures in China, and price competition from other market players[132] - The group has implemented financial risk management policies to address currency, interest rate, credit, and liquidity risks, with monthly reviews of management accounts and capital structure by the board[133] Corporate Governance - The board is responsible for maintaining effective internal control and risk management systems to manage risks associated with achieving business objectives[131] - The group has established a corporate development department in 2012 to oversee strategic planning and development layout[90] - The audit committee, composed of three independent non-executive directors, reviews the group's financial reporting process and internal controls[190] - The company has adopted corporate governance measures to protect the interests of shareholders, investors, customers, and employees[196] - The board has not established a nomination committee due to its small size, with the chairman responsible for identifying suitable candidates for board positions[197] Employee and Operational Growth - The group reported an increase in employee count to 1,028 as of December 31, 2018, up from 963 in 2017, reflecting growth in operations[74] - The company is committed to enhancing its human resources management and development strategies to support its growth[101] - The group operates a mandatory retirement plan in Hong Kong, requiring employees to contribute 5% of their monthly salary, capped at HKD 1,500, with the employer matching this contribution[184] Shareholder Relations - The company successfully released value from several pharmaceutical investment projects in the capital market, providing additional profits to shareholders[32] - The company recorded a one-time net gain of approximately HKD 214,154,000 from the deemed sale of its stake in a joint venture, contributing to its financial performance[37] - The company has engaged in related party transactions during the year, as disclosed in the consolidated financial statements[161] - The independent non-executive directors confirmed that the related transactions were conducted on normal commercial terms and in the interest of shareholders[175]