香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 - 1 - 1643 內幕消息公告 正面盈利預警 本公告乃由現代中藥集團有限公司（「本公司」，連同其附屬公司，統稱「本集團」）根據香港聯合 交易所有限公司證券上市規則（「上市規則」）第13.09條以及香港法例第571章證券及期貨條例第 XIVA部項下的內幕消息條文（定義見上市規則）而作出。 本公司董事（分別為「董事」及「董事會」）謹此知會本公司股東（「股東」）及有意投資者，根據對董 事會目前可得的最新資料及本集團截至2025年6月30日止六個月（「本期間」）的未經審核綜合管 理賬目作出的初步評估，本集團預期於本期間錄得本公司股權持有人應佔溢利不少於人民幣 2.0百萬元，而截至2024年6月30日止六個月則錄得虧損約人民幣6.9百萬元。董事會認為業績由 虧轉盈主要由於處置物業、廠房及設備之虧損大幅減少。截至2024年6月30日止六個月，由於 拆除製劑車間，本集團錄得了巨額處置物業、廠房及設備之虧損。 儘管 ...

格隆汇8月15日丨现代中药集团(01643.HK)宣布，本公司将于2025年8月29日（星期五）举行董事会会 议，其中议程包括考虑及批准本公司及其附属公司截至2025年6月30日止六个月的中期业绩及其公告以 供发布及考虑派发中期股息的建议（如有）。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Modern Chinese Medicine Group Co., Ltd. 1643 董事會會議召開日期 現代中藥集團有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將於2025年8月29日 （星期五）舉行董事會會議，其中議程包括考慮及批准本公司及其附屬公司截至2025年6月30日 止六個月之中期業績及其公告以供發佈及考慮派發中期股息之建議（如有）。 承董事會命 現代中藥集團有限公司 執行董事 張宏麗 香港，2025年8月15日 於本公告日期，董事會成員包括三名執行董事，分別為孫新磊女士、張宏麗女士及賈豔茹女 士；及三名獨立非執行董事，分別為劉淩女士、梁子榮先生及黃志堅先生。 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 重新提交 致：香港交易及結算所有限公司 公司名稱: 現代中藥集團有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年8月8日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01643 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 現代中藥集團有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01643 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | 本 ...

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue and net profit were approximately RMB 214.1 million and RMB 9.7 million, representing a decrease of 37.8% and 80.0% respectively compared to the fiscal year ending December 31, 2023[7]. - The company's sales revenue in Northeast China for the fiscal year 2024 was approximately RMB 114.9 million, a decrease of about 38.9%, accounting for over 53.7% of total revenue[8]. - The group recorded revenue of approximately RMB 214.1 million for the fiscal year 2024, a decrease of about RMB 130 million or 37.8% compared to 2023, primarily due to temporary production stoppage for maintenance work[18]. - The overall gross margin decreased from approximately 30.3% in 2023 to about 25.8% in 2024, mainly due to rising raw material costs and fixed cost absorption during the production stoppage[20]. - Selling and distribution expenses decreased by approximately 8.6% to about RMB 22.3 million in 2024 from RMB 24.4 million in 2023, primarily due to reduced transportation costs[21]. - Cash generated from operating activities significantly increased to approximately RMB 59.0 million in 2024 from RMB 8.5 million in 2023, mainly due to a substantial increase in cash inflow from working capital[25]. - Capital expenditures for 2024 were approximately RMB 116.7 million, significantly higher than RMB 13.4 million in 2023, primarily related to the purchase of properties, plants, and machinery[32]. Market and Product Development - The company currently has around 60 types of traditional Chinese medicine products, with major products including various herbal capsules and pills aimed at treating conditions related to energy, cardiovascular health, digestive issues, and gynecological symptoms[8]. - The Chinese traditional medicine market is expected to continue growing in 2025, driven by increasing consumer demand and government support for traditional medicine policies[9]. - The company plans to enhance its product portfolio through ongoing innovation and research and development, aiming to create more value for shareholders[11]. - The introduction of new technologies and equipment in the production process is expected to improve product quality and production efficiency[9]. - The government is increasingly emphasizing the importance of traditional Chinese medicine, which is expected to enhance the competitiveness of traditional Chinese medicine products in the international market[9]. Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices[57]. - The board held two regular meetings in 2024, discussing and making decisions on all significant matters related to the group's business activities and operations[57]. - The company is committed to reviewing and monitoring its corporate governance practices to ensure compliance with the Corporate Governance Code[59]. - The board is responsible for the development direction and control of the company's business, formulating policies, strategies, and plans to create value for shareholders[61]. - The company emphasizes the importance of good corporate governance for its sustainable development[57]. Shareholder Communication and Investor Relations - The company emphasizes effective communication with shareholders to enhance investor relations and ensure transparency in business performance and strategies[107]. - The company has established a shareholder communication policy to promote effective engagement and empower shareholders to exercise their rights[108]. - The company has maintained regular communication with institutional investors and analysts to keep them informed of its developments[107]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the company's performance in environmental, social, and governance aspects for the reporting period from January 1, 2024, to December 31, 2024[118]. - The company is committed to sustainable development and has conducted stakeholder engagement to identify key concerns in ESG matters[119]. - The company has established an environmental management system to identify, monitor, and reduce environmental risks[125]. - The company complies with pollution discharge regulations in Hebei Province, China, and has not encountered any significant violations of environmental laws during the reporting period[125]. - The company has obtained pollution discharge permits for all production facilities and has implemented pollution control systems to monitor emission levels[127]. Employee and Workplace Safety - The company has established a health and safety environment, with no recorded work-related fatalities or lost workdays due to injuries in the past three years[156]. - The company emphasizes mental health, providing counseling services and promoting work-life balance through various activities[156]. - The company has a zero-tolerance policy for harassment and discrimination, ensuring a safe and inclusive work environment[162]. - The company has developed emergency plans and conducts regular reviews to maintain workplace safety and effectiveness[155]. Supply Chain Management - The company has a total of 29 approved suppliers across various regions in China, ensuring a stable supply of raw materials[168]. - The company conducts regular reviews of suppliers' production sites to ensure compliance with quality and environmental regulations[168]. - The company has established a quality management system that adheres to GMP standards, managing all stages of the production process[173]. - The company has implemented a supplier classification system to allocate resources effectively, focusing on quality, environmental impact, and compliance[166]. Community Engagement and Corporate Social Responsibility - The group promotes a culture of giving back to the community, encouraging employee participation in charitable activities[182]. - The company is committed to community investment, focusing on areas such as education and health[191]. - The group aims to enhance efforts in various corporate social responsibility areas, including greenhouse gas reduction and employee development and training opportunities[199].

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was RMB 214,068,000, a decrease of 37.8% compared to RMB 344,075,000 for the fiscal year ending December 31, 2023[4] - Gross profit for the fiscal year 2024 was RMB 55,197,000, down 47.1% from RMB 104,175,000 in 2023[4] - The net profit for the year was RMB 9,670,000, representing an 80.2% decline from RMB 48,795,000 in the previous year[4] - Basic and diluted earnings per share for 2024 were RMB 1.61, a decrease of 80.2% compared to RMB 8.13 in 2023[4] - The company reported a total comprehensive income of RMB 11,336,000 for 2024, down from RMB 49,955,000 in 2023, a decline of 77.3%[4] - Interest income for 2024 was RMB 766,000, down from RMB 906,000 in 2023, reflecting a decline of 15.4%[24] - The net loss from the sale of properties, plants, and equipment was RMB 8,589,000 in 2024, with no such loss reported in 2023[24] - The total tax expense for the year ending December 31, 2024, was RMB 5,149,000, significantly lower than RMB 19,511,000 for the year ending December 31, 2023, indicating a decrease of 73.7%[25] - Employee costs, including director remuneration, amounted to RMB 15,458,000 in 2024, down from RMB 17,062,000 in 2023, a reduction of 9.4%[24] - The cost of inventory for the year ending December 31, 2024, was RMB 158,871,000, compared to RMB 239,900,000 in 2023, representing a decrease of 33.7%[24] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 491,348,000, an increase from RMB 479,644,000 in 2023[5] - The company's cash and cash equivalents decreased to RMB 229,668,000 in 2024 from RMB 286,266,000 in 2023, a decline of 19.7%[5] - Inventory levels decreased to RMB 30,549,000 in 2024 from RMB 46,466,000 in 2023, a reduction of 34.3%[5] - Non-current assets increased significantly to RMB 187,802,000 in 2024 from RMB 92,019,000 in 2023, an increase of 103.3%[5] - The company's total equity rose to RMB 484,225,000 in 2024, compared to RMB 472,889,000 in 2023, an increase of 2.5%[5] - Trade receivables from third parties decreased to RMB 88,928,000 in 2024 from RMB 103,603,000 in 2023, a decline of approximately 14.3%[28] - The aging analysis of trade receivables shows that amounts within 30 days decreased to RMB 29,963,000 in 2024 from RMB 38,038,000 in 2023, a drop of about 21.5%[29] - Trade payables to third parties increased to RMB 32,577,000 in 2024 from RMB 31,278,000 in 2023, indicating a rise of approximately 4.1%[31] - The total liabilities of the group as of December 31, 2024, were approximately RMB 56.1 million, compared to RMB 55.6 million as of December 31, 2023[47] - The capital-to-debt ratio was approximately 0.03% as of December 31, 2024, up from 0.02% as of December 31, 2023[47] Market and Operations - The company operates primarily in China, with all assets and liabilities located in the region[21] - The company has only one operating and reportable segment, which is the production of traditional Chinese medicine in China[21] - The Chinese traditional medicine market is expected to grow steadily, with a market size reaching RMB 100 billion, driven by increased health management awareness and government support[36] - The company produces around 60 types of traditional Chinese medicine products, targeting various health issues, including those related to cardiovascular and digestive systems[37] - The company has established a distribution network of 105 distributors covering approximately 53 cities in China, supported by over 37 marketing personnel with relevant experience[38] - The company plans to expand its distribution network in South China and East China, with an expected completion date by the end of 2025[39] Revenue and Sales - The total revenue for the year ending December 31, 2024, was RMB 214,068,000, a decrease of 37.8% compared to RMB 344,075,000 for the year ending December 31, 2023[23] - The top three best-selling products in 2024 contributed approximately 27.6%, 16.3%, and 10.7% to total revenue, respectively[40] - Revenue contributions by region for 2024 were as follows: Northeast RMB 114.9 million (53.7%), East RMB 18.3 million (8.5%), South RMB 35.4 million (16.5%), North RMB 35.5 million (16.6%), Southwest RMB 6.1 million (2.9%), and Northwest RMB 3.9 million (1.8%) [41] - The overall gross margin decreased from approximately 30.3% in 2023 to about 25.8% in 2024, primarily due to rising raw material costs and fixed cost absorption during the production halt[42] - Operating profit before tax decreased by approximately 78.3% to about RMB 14.8 million in 2024 from RMB 68.3 million in 2023, mainly due to the temporary production halt for repairs[46] Expenses and Investments - The company’s sales and distribution expenses decreased by approximately 8.6% to about RMB 22.3 million in 2024 from RMB 24.4 million in 2023[44] - The company’s administrative and other operating expenses significantly decreased by approximately 20.2% to about RMB 9.1 million in 2024 from RMB 11.4 million in 2023[44] - The group's capital expenditure for 2024 was approximately RMB 116.9 million, significantly higher than RMB 13.4 million in 2023[54] - The total capital expenditure commitment for 2023 was RMB 120,638,000, related to the construction agreement for a pharmaceutical building expansion, which was completed in 2024[35] - The group did not hold any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during 2024[52] Dividends and Recommendations - The board of directors recommended no final dividend for the years ended December 31, 2024, and 2023[27] - The board has decided not to recommend the payment of a final dividend for the year 2024, similar to the decision for 2023[55] Compliance and Reporting - The company has adopted new and revised Hong Kong Financial Reporting Standards, which are not expected to have a significant impact on the consolidated financial statements[20] - The group will report to relevant authorities regarding the new contract arrangements, expected to be implemented in the second half of 2026[61] - There were no major contingent liabilities as of December 31, 2024, consistent with the previous year[48] - The group had no assets pledged as of December 31, 2024, remaining unchanged from the previous year[50]

Financial Performance - Revenue decreased from approximately RMB 180.1 million in the same period last year to approximately RMB 76.6 million, a decline of about 57.5%[2] - Gross profit fell from approximately RMB 59.2 million to approximately RMB 21.7 million, representing a decrease of about 63.3%[2] - The company recorded a loss attributable to owners of RMB 6.9 million for the period, compared to a profit of RMB 27.6 million in the same period last year[2] - The overall gross margin decreased from approximately 32.9% to about 28.3%, primarily due to rising raw material costs[5] - The company incurred a loss before tax of RMB 4,328,000, compared to a profit of RMB 39,256,000 in the same period last year[33] - The total comprehensive loss for the period was RMB 6,296,000, a significant decline from a comprehensive income of RMB 30,140,000 in the previous year[33] - The company reported a loss of RMB 6,852,000 for the six months ended June 30, 2024, compared to a profit of RMB 27,580,000 for the same period in 2023[36] Expenses and Liabilities - Sales and distribution expenses decreased by approximately 15.3% to about RMB 10.5 million, mainly due to reduced freight costs[6] - Administrative and other operating expenses increased by approximately 24.2% due to additional miscellaneous costs incurred during the temporary shutdown[6] - Total liabilities decreased to approximately RMB 32.4 million from RMB 55.6 million as of December 31, 2023[8] - The capital debt ratio increased to approximately 0.10% from 0.02% as of December 31, 2023, mainly due to an increase in other borrowings[8] Cash Flow and Investments - The net cash generated from operating activities for the period was approximately RMB 74.4 million, a significant increase from RMB 3.7 million in the same period last year[9] - The net cash used in investing activities was approximately RMB 114.0 million, up from RMB 4.2 million in the same period last year, primarily due to the acquisition of property, plant, and equipment[9] - The total capital expenditure for the period was approximately RMB 114.4 million, compared to RMB 4.9 million for the year ended December 31, 2023, mainly related to the purchase of property, plant, and equipment[15] Assets and Equity - Total assets as of June 30, 2024, were approximately RMB 499.0 million, down from RMB 528.5 million as of December 31, 2023[8] - The company's total assets as of June 30, 2024, were RMB 304,362,000, down from RMB 436,513,000 at the end of 2023[34] - The company’s equity as of June 30, 2024, was RMB 466,593,000, a slight decrease from RMB 472,889,000 at the end of 2023[34] - The company’s cash and cash equivalents decreased to RMB 247,054,000 at the end of the reporting period, compared to RMB 286,266,000 at the beginning[37] Shareholder Information - Major shareholder Modern Biotechnology holds 402,000,000 shares, representing 67% of the company's equity[25] - The company has not issued any share options since its listing on January 15, 2021, and there are no unexercised options as of June 30, 2024[26] - The company's issued and fully paid share capital as of June 30, 2024, was RMB 5,010,000, with a total of 600,000 shares issued[63] Future Outlook and Strategy - The company remains confident in the future prospects of the Chinese economy and the traditional Chinese medicine industry, driven by government policies and market demand[4] - The company plans to expand its distribution network in South and East China, with an allocation of approximately HKD 19.7 million for this purpose[17] - The company aims to enhance brand awareness through media marketing and promotional activities, with a planned allocation of approximately HKD 12.0 million[17] Other Financial Information - The company has no significant contingent liabilities as of June 30, 2024, consistent with December 31, 2023[10] - There were no major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[14] - The company has no significant foreign exchange risk as most of its business and borrowings are denominated in RMB[11] - The company has no assets pledged as of June 30, 2024, consistent with December 31, 2023[12] - The board does not recommend the payment of an interim dividend for the period, consistent with the same period last year[15] - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[50] - The total income tax expense for the six months ended June 30, 2024, was RMB 2,524 thousand, a decrease of 78.4% compared to RMB 11,676 thousand for the same period in 2023[46] - The foreign exchange reserve increased to RMB 8,792,000 as of June 30, 2024, from RMB 8,236,000 at the beginning of the year[36] - The company’s accumulated profits as of June 30, 2024, were RMB 299,464,000, down from RMB 306,316,000 at the beginning of the year[36] - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which did not have a significant impact on the financial statements[41] - The company's total liabilities and equity as of June 30, 2024, were RMB 466,593,000, reflecting the overall financial position of the company[36] Trade and Receivables - Trade receivables from third parties as of June 30, 2024, amounted to RMB 28,616 thousand, a decrease from RMB 103,603 thousand as of December 31, 2023[52] - Trade payables as of June 30, 2024, were RMB 25,008 thousand, down from RMB 48,802 thousand as of December 31, 2023[55] - The company has no single external customer contributing 10% or more to total revenue for the six months ended June 30, 2024, and 2023[42] Management and Governance - The total remuneration for key management personnel for the six months ended June 30, 2024, was RMB 691,000, compared to RMB 1,054,000 for the same period in 2023, indicating a decrease[64] - The mid-term financial statements were approved by the board of directors on August 22, 2024[65]

Financial Performance - Revenue decreased from approximately RMB 180.1 million in the same period last year to approximately RMB 76.6 million, a decline of about 57.5%[1] - Gross profit fell from approximately RMB 59.2 million to approximately RMB 21.7 million, a decrease of about 63.3%[1] - The loss attributable to the company's owners for the period was RMB 6.9 million, compared to a profit of RMB 27.6 million in the same period last year[1] - Basic and diluted loss per share changed from a profit of RMB 4.6 cents to a loss of RMB 1.14 cents[2] - The company reported a loss attributable to owners of the company of RMB 6,794,000 for the six months ended June 30, 2024, compared to a loss of RMB 6,852,000 in the same period of 2023[16] - The company reported a loss of approximately RMB 6.9 million after tax for the period, a shift from a profit of approximately RMB 27.6 million in the same period last year, mainly due to reduced revenue from the temporary production stoppage and losses from the disposal of property, plant, and equipment[28] Assets and Liabilities - Total assets decreased from RMB 436.5 million at the end of 2023 to RMB 304.4 million as of June 30, 2024[3] - Current liabilities decreased from RMB 48.9 million to RMB 25.8 million, a reduction of approximately 47.3%[3] - The company's net assets decreased from RMB 472.9 million to RMB 466.6 million[3] - As of June 30, 2024, the total assets of the group were approximately RMB 499.0 million, a decrease from RMB 528.5 million as of December 31, 2023[29] - The debt-to-equity ratio was approximately 0.10% as of June 30, 2024, up from 0.02% as of December 31, 2023, mainly due to an increase in other borrowings[29] Revenue and Sales - Revenue for the six months ended June 30, 2024, was RMB 76,624,000, a decrease of 57.5% compared to RMB 180,091,000 for the same period in 2023[12] - The company recorded a total revenue of approximately RMB 76.6 million for the period, a decrease of about RMB 103.5 million or 57.5% compared to approximately RMB 180.1 million in the same period last year due to temporary production stoppage for repairs[26] - The two best-selling products, Shenqi Filler Pill and Qi Blood Double Supplement Pill, accounted for approximately 46.9% and 45.0% of total revenue respectively during the period[26] Expenses - Employee costs, including directors' remuneration, decreased to RMB 4,165,000 in 2024 from RMB 8,674,000 in 2023, reflecting a reduction of 52.1%[13] - Sales and distribution expenses decreased by approximately 15.3% to about RMB 10.5 million from approximately RMB 12.4 million in the same period last year, mainly due to reduced freight costs[27] - Administrative and other operating expenses increased by approximately 24.2% compared to the same period last year, primarily due to additional miscellaneous costs incurred during the temporary production stoppage[27] Cash Flow and Capital Expenditure - The net cash generated from operating activities during the period was approximately RMB 74.4 million, significantly up from RMB 3.7 million in the same period last year[30] - Capital expenditure for the period was approximately RMB 114.4 million, a substantial increase from RMB 4.9 million for the year ended December 31, 2023, primarily related to the acquisition of properties, plants, and equipment[33] Market and Strategy - The Chinese pharmaceutical market is projected to grow at a compound annual growth rate of 7.0%, with an expected market size exceeding RMB 510 billion by 2024[25] - The company plans to enhance its product portfolio in line with favorable government policies to promote the integration of traditional Chinese medicine into broader development strategies[25] - The group plans to enhance its distribution network in Northern and Eastern China, although the timeline has been adjusted due to economic conditions[36] Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the group's unaudited interim results for the period[40] - The interim report for 2024 will be sent to shareholders and available on the stock exchange and the company's website at an appropriate time[41] Other Information - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on the financial statements[8] - The company did not recommend the payment of an interim dividend for the period, consistent with the same period last year[18] - There have been no significant events occurring after the reporting period up to the date of this announcement[39] - The group had no significant contingent liabilities as of June 30, 2024, consistent with the previous reporting period[31] - The group had no major investments, acquisitions, or disposals during the period, nor any plans for such activities as of June 30, 2024[33] - The company adopted a stock option plan approved by shareholders on December 18, 2020, with no options granted since the listing date of January 15, 2021, resulting in no unexercised options as of June 30, 2024[38]

Financial Performance - For the fiscal year 2023, the company's revenue and net profit were approximately RMB 344.1 million and RMB 48.8 million, representing a decrease of 13.9% and 44.4% respectively compared to 2022[8]. - The company's revenue for the fiscal year 2023 was approximately RMB 344.1 million, a decrease of about RMB 55.6 million or 13.9% compared to 2022[23]. - The overall gross profit margin decreased from approximately 42.7% in 2022 to about 30.3% in 2023, primarily due to rising procurement costs[27]. - Operating profit before tax decreased by approximately 45.1% from RMB 124.3 million in 2022 to RMB 68.3 million in 2023, mainly due to changes in government policy and reduced orders from distributors[30]. - The net cash generated from operating activities for the year 2023 was approximately RMB 8.5 million, a significant decrease from RMB 125.8 million in 2022, mainly due to reduced operating profit and cash inflow from working capital[33]. - The capital expenditure for the year 2023 was approximately RMB 5.1 million, down from RMB 11.7 million in 2022, primarily related to the purchase of properties, plants, and machinery[41]. - The board of directors proposed not to declare a final dividend for the year 2023, consistent with the previous year[42]. - No final dividend has been proposed for the fiscal year 2023[131]. - The board has not set a predetermined dividend payout ratio, allowing for flexibility based on the company's financial condition[130]. Market and Product Overview - The company's main product sales in Northeast China for 2023 amounted to approximately RMB 188.2 million, a decrease of about 14.4%, accounting for over 54.7% of total revenue[9]. - The Chinese pharmaceutical market is expected to maintain a good development trend, with a projected market size of RMB 1,797.7 billion in 2023 and an anticipated increase to RMB 1,931.2 billion in 2024[10]. - The company currently has approximately 60 types of traditional Chinese medicine products, targeting various therapeutic effects including cardiovascular, digestive, and gynecological conditions[9]. - The top three best-selling products in 2023 contributed approximately 29.5%, 15.3%, and 10.1% to total revenue, respectively[23]. - Revenue contributions by region for 2023 were RMB 188.2 million (54.7%), RMB 29.4 million (8.5%), RMB 56.3 million (16.4%), RMB 57.2 million (16.6%), RMB 7.3 million (2.1%), and RMB 5.7 million (1.7%)[24]. Distribution and Marketing Strategy - The company has 88 distributors covering about 40 cities in China, with a strategic focus on the Northeast region[9]. - The company plans to implement both online and offline marketing strategies to create more value for shareholders[13]. - The company aims to expand its operations beyond Northeast and South China, leveraging its established distribution network[20]. - The company has established a distribution network with 88 distributors covering about 40 cities in China, supported by over 37 marketing personnel with relevant experience[20]. Leadership and Governance - The company has appointed new executives and board members in November 2023, indicating a shift in leadership[5]. - Zhang Hongli, the CEO, has over 32 years of experience in the pharmaceutical industry, overseeing overall business operations since her appointment in December 2019[50]. - The company has appointed Jia Yanru as an executive director on November 3, 2023, who has over 20 years of financial management experience in the pharmaceutical sector[53]. - The company has a structured board with independent directors overseeing key committees, including the remuneration and audit committees[56][65]. - The company emphasizes compliance and investor relations under the supervision of experienced executives like Jia Yanru[53]. - The leadership team is well-rounded with expertise in finance, management, and industry-specific knowledge, positioning the company for future growth[50][65]. - The company has adopted the corporate governance code as the basis for its governance practices, ensuring compliance with all applicable provisions except for a deviation noted in section C.2.1[70]. - The board of directors is responsible for the company's business development direction and control, establishing policies and strategies to create shareholder value[73]. - The company has implemented an independent board evaluation mechanism to enhance board effectiveness and ensure independent judgment in safeguarding shareholder interests[81]. - The chairman and CEO roles were separated as of November 3, 2023, ensuring compliance with corporate governance best practices[82]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the company's performance in environmental, social, and governance aspects for the period from January 1, 2023, to December 31, 2023[139]. - The company conducted a stakeholder engagement survey to identify key concerns and interests related to ESG matters[143]. - The company aims to enhance its sustainable business strategies based on stakeholder feedback and assessments[143]. - The company has maintained communication with external stakeholders, including government agencies and the public, to ensure compliance and corporate social responsibility[143]. - The board emphasizes the importance of sustainable development and is committed to regular monitoring and investment in sustainability initiatives[150]. - The company has implemented an environmental management system to identify, monitor, and reduce environmental risks[151]. - The company has complied with all relevant environmental laws and regulations during the reporting period[153]. - The company aims to peak carbon emissions by 2030 and achieve carbon neutrality by 2050[176]. - The company plans to reduce Scope 1 and Scope 2 greenhouse gas emissions by 20% by 2030 compared to 2023 levels[176]. Employee and Workplace Policies - The company employs 191 full-time employees in China, a slight decrease from 194 in 2022[180][181]. - The gender distribution among employees is 58 males and 133 females, with a focus on equal pay and opportunities[181][182]. - The company has established a health and safety framework to minimize the risk of infectious diseases and ensure a safe working environment[185]. - The company has not recorded any work-related fatalities or lost workdays due to injuries in the past three years[186]. - The company emphasizes mental health and work-life balance, providing counseling services and stress-relief activities for employees[186]. - The average training hours per employee in 2023 was approximately 32 hours, slightly down from 33 hours in 2022, with a 100% participation rate in training programs[189]. - The company adheres strictly to labor laws, with no incidents of child labor or forced labor reported during the reporting period[194]. Supply Chain Management - The supply chain management system is crucial for developing high-quality products, with a focus on balancing quality, environmental impact, reliability, and compliance[195]. - The company conducts annual supplier evaluations based on criteria including production licenses, quality standards, and compliance with environmental regulations[197]. - The company ensures that suppliers meet national environmental protection and occupational health safety laws during the production process[198]. - The company has implemented a transparent and fair supplier review process to maintain long-term relationships with suppliers[195]. - The group has a diversified supplier base with a total of 28 approved suppliers across various regions in China as of 2023[200]. - No product recalls or quality complaints were reported during the reporting period, indicating adherence to internal and national quality standards[199].