5月23日，截至港股收盘，恒生指数上涨0.24%，报23601.26点。福森药业（01652.HK）收报0.39港元/ 股，上涨30.0%，成交量430.9万股，成交额160.42万港元，振幅45.0%。 最近一个月来，福森药业累计涨幅11.11%，今年来累计跌幅62.5%，跑输恒生指数17.37%的涨幅。 财务数据显示，截至2024年12月31日，福森药业实现营业总收入3.26亿元，同比减少42.36%；归母净利 润-1.89亿元，同比减少420.39%；毛利率49.88%，资产负债率70.25%。 机构评级方面，目前暂无机构对该股做出投资评级建议。 资料显示，福森药业有限公司除提供核心产品双黄连类感冒药外,福森药业有限公司从事研发、生产及 销售多种用以治疗感冒及发热、心血管疾病及贫血的中成药及西药产品。福森药业有限公司对优质非处 方药及按现代剂型调配的处方中成药产品拥有专门知识。 （以上内容为金融界基于公开消息，由程序或算法智能生成，不作为投资建议或交易依据。） 本文源自：金融界 作者：行情君 行业估值方面，药品及生物科技行业市盈率（TTM）平均值为5.54倍，行业中值6倍。福森药业市盈 率-1.09倍， ...

Financial Performance - The company's revenue for 2024 was RMB 326.03 million, a significant decrease from RMB 565.61 million in 2023, representing a decline of approximately 42.3%[6]. - The gross profit for 2024 was RMB 162.64 million, down from RMB 299.51 million in 2023, indicating a decrease of about 45.5%[6]. - The company reported a net loss of RMB 188.80 million for 2024, compared to a loss of RMB 36.30 million in 2023, marking a significant increase in losses[6]. - Revenue decreased by approximately RMB 239.6 million or 42.4% to about RMB 326.0 million for the year ended December 31, 2024, down from approximately RMB 565.6 million in 2023[15]. - The company's gross profit for 2024 was approximately RMB 162.6 million, with a gross margin of about 49.9%, down from a gross profit of approximately RMB 299.5 million and a gross margin of 53.0% in 2023[17]. - The company reported a net loss of approximately RMB 188.8 million for the year ended December 31, 2024, representing a significant increase in loss of about 420.2% compared to the previous year[12]. Expenses and Liabilities - Research and development expenses reached RMB 106.26 million in 2024, which contributed to the overall loss for the year[9]. - The total liabilities increased to RMB 869.80 million in 2024, up from RMB 781.52 million in 2023, reflecting an increase of about 11.3%[7]. - Selling and distribution expenses decreased by approximately RMB 58.5 million or 42.0% to about RMB 81.0 million in 2024, compared to RMB 139.5 million in 2023[19]. - The company achieved a significant reduction in general and administrative expenses, which fell by approximately RMB 14.6 million or 19.5% to about RMB 60.3 million in 2024[20]. - Financing costs net increased to approximately RMB 18.8 million in 2024 from RMB 8.8 million in 2023, mainly due to increased interest on loans and foreign exchange losses[22]. Market and Future Outlook - Future market uncertainties remain the biggest challenge, but management aims to achieve profitability through refined management and quick adjustments[10]. - The company plans to enhance its product pipeline with new products pending approval, which could contribute to future revenue growth[9]. - The company expects to participate in national centralized procurement, with flagship products successfully winning bids, which is anticipated to drive significant sales growth in 2025[14]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with some exceptions noted[68]. - The board of directors is responsible for overseeing the company's overall strategy and performance, including risk management and internal controls[71]. - The company has provided liability insurance for its directors and senior management to cover potential legal liabilities incurred during the performance of their duties[72]. - The independent non-executive directors have confirmed compliance with the non-competition agreement provided by the controlling shareholders[70]. - The company has established a comprehensive internal control system to monitor financial performance and risk management[72]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development and has implemented measures to reduce environmental impact, including energy-saving and emission-reduction initiatives[125]. - The company aims to create a green pharmaceutical enterprise, actively promoting clean production and pollution reduction to support national carbon neutrality goals[137]. - The company is focused on enhancing its ESG governance framework and internal controls to ensure scientific and rational decision-making[125]. - The company has established a comprehensive ESG governance structure, with the Audit Committee responsible for overseeing ESG reporting processes and risk management[135]. - The company is committed to enhancing product quality and safety, accelerating the development of innovative products, and strengthening quality control measures[145]. Climate Change and Risk Management - The company is facing physical risks from extreme weather affecting supply chains and production facilities, and is implementing strategies such as diversified procurement and facility reinforcement[150]. - The company is investing in new technologies and processes to adapt to extreme weather, including the development of resilient medicinal materials[148]. - The company has established a climate risk management process, identifying and analyzing climate-related risks annually within its governance structure[162]. - The company aims to reduce carbon emissions by 20% by 2025 compared to 2020 levels, with a target to decrease unit product energy consumption by 5% and increase green electricity procurement rate to 10%[165]. Employee and Stakeholder Engagement - The company emphasizes the importance of employee development and training, focusing on innovative drug research and optimizing the traditional Chinese medicine industry chain[140]. - The company has identified key stakeholders, including employees, consumers, suppliers, and investors, and has established multiple communication channels to address their concerns[142]. - The workforce composition is 50.91% female and 49.09% male, reflecting the company's commitment to gender diversity[97].

Revenue and Profitability - Revenue for the year ended December 31, 2024, was approximately RMB 326.0 million, a decrease of about 42.4% compared to RMB 565.6 million for the year ended December 31, 2023[2]. - Gross profit decreased by approximately 45.7% to RMB 162.6 million for the year ended December 31, 2024, down from RMB 299.5 million for the year ended December 31, 2023[2]. - The gross profit margin for the year ended December 31, 2024, was approximately 49.9%, a decrease of about 3.1% from approximately 53.0% for the year ended December 31, 2023[2]. - The loss attributable to equity holders for the year ended December 31, 2024, was approximately RMB 188.8 million, compared to a loss of RMB 36.3 million for the year ended December 31, 2023[2]. - Basic loss per share for the year ended December 31, 2024, was approximately RMB 0.26, compared to RMB 0.05 for the year ended December 31, 2023[2]. - The company reported a significant operating loss of RMB 188.8 million for 2024, attributed to a substantial decline in revenue due to market demand and intense competition[11]. - The group reported a net loss of approximately RMB 188.8 million for the year ending December 31, 2024, representing a significant increase in losses of about 420.2% compared to the previous year[38]. - The group's pre-tax loss was RMB 190,446,000 for 2024, compared to a loss of RMB 29,448,000 for 2023, reflecting a significant increase in losses[27]. Financial Position - The company's total assets amounted to RMB 778.5 million as of December 31, 2024, slightly up from RMB 776.9 million in 2023[6]. - The company's current liabilities increased to RMB 772.4 million in 2024 from RMB 664.5 million in 2023, indicating a rise in short-term financial obligations[6]. - The company’s total liabilities reached RMB 465.7 million in 2024, down from RMB 679.2 million in 2023, suggesting a reduction in overall debt levels[6]. - The company's total equity attributable to shareholders was RMB 465.7 million in 2024, a decrease from RMB 679.2 million in 2023, indicating a decline in shareholder value[6]. - The group's total liabilities amounted to approximately RMB 869.8 million as of December 31, 2024, an increase of 11.3% from RMB 781.5 million in 2023[60]. - The group's equity attributable to shareholders was approximately RMB 369.7 million as of December 31, 2024, down from RMB 563.5 million in 2023[53]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to RMB 21.1 million in 2024 from RMB 34.8 million in 2023, showing a decline in liquidity[6]. - As of December 31, 2024, the company's net current liabilities amounted to RMB 312.83 million, with a commitment to repay bank loans and other borrowings totaling RMB 303.54 million within one year[11]. - The group’s current liabilities amounted to RMB 312.8 million, with a commitment to repay bank and other loans of RMB 303.5 million within one year[37]. - The company continues to adhere to a prudent cash management policy to maintain strong liquidity for future growth opportunities[59]. Expenses and Cost Management - Employee costs for the year ending December 31, 2024, were RMB 78,257,000, down from RMB 103,881,000 in 2023, reflecting a reduction of approximately 25%[21]. - The cost of goods sold for the year ending December 31, 2024, was RMB 164,227,000, compared to RMB 269,244,000 in 2023, showing a decrease of about 39%[23]. - Selling and distribution expenses decreased by approximately RMB 58.5 million or 42.0% to approximately RMB 81.0 million for the year ended December 31, 2024, in line with reduced revenue[46]. - Research and development expenses for 2024 were approximately RMB 106.3 million, an increase of RMB 41.1 million compared to 2023[39]. - The group experienced an operating loss of approximately RMB 67.5 million in 2024, compared to an operating profit of approximately RMB 20.0 million in 2023[39]. Taxation - The group reported a tax provision of RMB 9,194,000 for 2024, compared to RMB 12,725,000 for 2023, indicating a decrease of approximately 27.5%[24]. - The effective tax rate for the group's Chinese subsidiaries is 25% for both 2024 and 2023, while the Hong Kong profits tax rate remains at 16.5%[25]. - The group has no taxable profits in Hong Kong for 2024, consistent with 2023, and is not required to pay any Hong Kong profits tax[25]. - The group’s subsidiaries are set to maintain their high-tech enterprise status until October 28, 2027, and December 28, 2026, respectively, which will continue to provide tax benefits[25]. Shareholder Information - The board of directors does not recommend the payment of any final dividend for the year ended December 31, 2024 (no dividend for the year ended December 31, 2023)[2]. - The company has issued 739,301,000 ordinary shares as of December 31, 2024, down from 749,596,000 shares in 2023[34]. - The company repurchased a total of 5,734,000 shares at a total cost of approximately HKD 7.1 million, which were all cancelled by December 31, 2024[70]. - The repurchase was authorized by shareholders to enhance net asset value and earnings per share, benefiting shareholders overall[71]. Future Outlook and Strategy - The company plans to enhance sales efforts, including accelerating the sale of existing inventory and implementing stricter cost control measures to improve operational cash flow[15]. - The group anticipates that participation in national centralized procurement will drive significant sales growth in 2025[41]. - The group plans to optimize its R&D project plans and control R&D expenses within reasonable limits for future sustainability[41]. Corporate Governance - The company has adopted corporate governance practices in compliance with the listing rules, with a focus on maintaining effective oversight and management[66]. - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of December 31, 2024, in accordance with international financial reporting standards[36].

Financial Performance - The company reported a net loss attributable to shareholders of approximately RMB 36.9 million for the first half of 2024, compared to a profit of RMB 16.5 million in the same period of 2023, indicating a significant decline in performance[7]. - Revenue for the first half of 2024 was approximately RMB 196.3 million, a decrease of about 41.6% from RMB 336.4 million in the same period of 2023[7]. - Gross profit fell by approximately 40.9% from RMB 179.1 million in the first half of 2023 to RMB 105.9 million in the first half of 2024, aligning with a total revenue decrease of about 41.6%[14]. - Operating loss for the six months was RMB 36,539 thousand, compared to an operating profit of RMB 38,801 thousand in the prior year, reflecting a significant shift in performance[86]. - Total comprehensive loss for the period amounted to RMB 37,055 thousand, compared to a total comprehensive income of RMB 16,360 thousand in the previous year[88]. - The company's net asset value decreased to RMB 519,160 thousand from RMB 562,226 thousand at the end of 2023, reflecting a decline of approximately 7.7%[91]. - The company's equity holders' share of the loss for the period was RMB 36,949,000, compared to a profit of RMB 16,447,000 in the same period last year, reflecting a challenging operating environment[96]. Research and Development - Research and development expenses for the first half of 2024 amounted to approximately RMB 57.1 million, significantly higher than RMB 24.0 million in the same period of 2023, reflecting the company's commitment to R&D[7]. - The company has 60 ongoing research projects, with 7 projects currently under review by the National Medical Products Administration, and expects to launch at least 20 new products in the next three years[9]. - Research and development expenses increased significantly to RMB 57,059 thousand, compared to RMB 24,028 thousand in the same period of 2023, marking an increase of approximately 137.5%[86]. Cost Management and Efficiency - The company plans to enhance production efficiency and reduce costs through upgrades to production equipment and the implementation of photovoltaic power generation projects[9]. - The total capital expenditures amounted to approximately RMB 46.0 million in the first half of 2024, down from RMB 73.3 million in the first half of 2023[27]. - The company anticipates that market demand will gradually recover, leading to improved sales performance as inventory levels normalize[9]. Shareholder Information - The major shareholders include Full Bliss Holdings Limited with 27.53% and Rayford with 24.03% of the shares[47]. - The largest shareholder, Mr. Cao Changcheng, holds 72.18% of the shares through controlled entities[39]. - The company has a stock option plan that was adopted on June 14, 2018, with no stock options granted during the six months ended June 30, 2024[49]. - The company has 16,000,000 unexercised stock options under the stock option plan, representing approximately 2.13% of the issued share capital[50]. Liquidity and Financial Position - Cash and cash equivalents decreased to approximately RMB 2.8 million as of June 30, 2024, from RMB 34.8 million as of December 31, 2023[29]. - The group has committed to enhancing collection efforts on receivables from government-related entities to improve liquidity[1]. - The group anticipates that, assuming the success of the measures taken, it will have sufficient funds to meet its liabilities for at least the next twelve months[1]. - As of June 30, 2024, cash and cash equivalents stood at RMB 2,823,000, a significant drop from RMB 78,299,000 at the end of June 2023, highlighting liquidity challenges[97]. Inventory and Receivables - Inventory as of June 30, 2024, totaled RMB 140,835,000, down from RMB 161,718,000 as of December 31, 2023, representing a decrease of approximately 12.9%[121]. - Trade receivables as of June 30, 2024, were RMB 155,749,000, a decrease from RMB 183,482,000 as of December 31, 2023, indicating a reduction of about 15.1%[122]. Financing and Debt - Financing costs net increased from RMB 2.2 million in the first half of 2023 to RMB 7.4 million in the first half of 2024, mainly due to increased loan interest[20]. - The debt-to-equity ratio increased from 60.9% as of December 31, 2023, to 67.0% as of June 30, 2024, primarily due to increased bank loans[30]. - Total bank and other loans amounted to RMB 347,944,000 as of June 30, 2024, compared to RMB 342,256,000 as of December 31, 2023, showing a slight increase[129]. Corporate Governance - The company has complied with all applicable corporate governance codes except for a specific provision regarding the company secretary[71]. - The company reported no significant events occurring after the reporting period[149].

Financial Performance - Revenue decreased by approximately 41.6% from RMB 336.4 million in the first half of 2023 to RMB 196.3 million in the first half of 2024[2] - Gross profit fell by about 40.9% from RMB 179.1 million in the first half of 2023 to RMB 105.9 million in the first half of 2024[2] - The company reported a loss attributable to equity holders of approximately RMB 36.9 million in the first half of 2024, compared to a profit of approximately RMB 16.5 million in the first half of 2023[2] - Operating loss for the first half of 2024 was RMB 36.5 million, a significant decline from a profit of RMB 38.8 million in the same period of 2023[3] - The group reported total revenue of RMB 196,322,000 for the six months ended June 30, 2024, compared to RMB 336,437,000 for the same period in 2023, representing a decrease of approximately 42%[12] - The group’s basic loss per share for the six months ended June 30, 2024, was RMB 36,941,000, compared to a profit of RMB 16,456,000 for the same period in 2023[17] - For the first half of 2024, the company reported a net loss attributable to shareholders of approximately RMB 36.9 million, compared to a net profit of 16.5 million in the same period of 2023, indicating a significant decline in profitability[27] - The company's revenue for the first half of 2024 was approximately RMB 196.3 million, representing a decrease of about 41.6% compared to RMB 336.4 million in the same period of 2023[27] - The gross profit margin for the first half of 2024 was 53.93%, slightly up from 53.24% in the same period of 2023, despite the overall decline in revenue[27] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 833.2 million, an increase from RMB 776.9 million as of December 31, 2023[4] - Cash and cash equivalents decreased to RMB 2.8 million from RMB 34.8 million as of December 31, 2023[4] - Trade receivables decreased from RMB 183.5 million in December 2023 to RMB 155.7 million as of June 30, 2024[4] - The company’s total liabilities increased to RMB 690.8 million as of June 30, 2024, compared to RMB 664.5 million as of December 31, 2023[4] - The net value of current liabilities was (RMB 186.6 million) as of June 30, 2024, compared to (RMB 97.7 million) as of December 31, 2023[4] - The company's net current liabilities as of June 30, 2024, were RMB 186,614,000, indicating potential liquidity challenges[8] - The total equity attributable to shareholders decreased from RMB 563,518,000 in 2023 to RMB 520,460,000 in 2024, a decline of 7.7%[5] - The company's net asset value decreased to RMB 519,160,000 from RMB 562,226,000, reflecting a decline of 7.7%[5] - The debt-to-asset ratio increased from 60.9% as of December 31, 2023, to 67.0% as of June 30, 2024, primarily due to an increase in bank loans[43] Research and Development - The company reported a significant increase in research and development expenses, totaling RMB 57.1 million in the first half of 2024 compared to RMB 24.0 million in the first half of 2023[3] - The company has 60 ongoing research projects, including 43 chemical drug formulation projects, 14 chemical raw material drug projects, and 3 traditional Chinese medicine projects[28] - The company expects to launch at least 20 new products in the next three years, covering major therapeutic areas such as anti-infectives, cardiovascular, central nervous system, blood diseases, and anti-tumor[28] - R&D expenses increased from RMB 24.0 million in the first half of 2023 to RMB 57.1 million in the first half of 2024, driven by continued investment in new product development[36] - The company has 7 projects currently under review by the National Medical Products Administration, with 6 projects submitted for review in the first eight months of this year[28] Cash Flow and Financing - As of June 30, 2024, the company's cash and cash equivalents were only RMB 2,823,000, raising concerns about its ability to meet operational and financial needs in the next twelve months[8] - The company successfully renewed bank loans amounting to RMB 20,000,000 to alleviate liquidity pressure[8] - The company is negotiating with creditors to restructure existing payables and loan terms to ease cash flow pressures[8] - The total trade payables as of June 30, 2024, were RMB 61.7 million, a decrease from RMB 129.5 million at the end of 2023, indicating improved cash flow management[22] - The net financing cost increased from approximately RMB 2.2 million in the first half of 2023 to approximately RMB 7.4 million in the first half of 2024, primarily due to an increase in loan interest[37] Taxation - The effective corporate income tax rate for the group’s Chinese subsidiaries remained at 25% for the six months ended June 30, 2024[15] - The group’s subsidiary, Henan Fusen Pharmaceutical Co., Ltd., benefited from a preferential income tax rate of 15% due to its high-tech enterprise status[16] - Income tax expenses decreased from approximately RMB 6.4 million in the first half of 2023 to a negative RMB 8.4 million in the first half of 2024, mainly due to the recognition of deferred tax benefits[39] Shareholder and Dividend Information - The company has not declared any dividends for the six months ended June 30, 2024, consistent with the previous year[24] - The company does not recommend declaring any interim dividend for the six months ended June 30, 2024, compared to zero dividend for the same period in 2023[57] Other Information - The group did not apply any new accounting standards or interpretations that would have a significant impact on the financial performance for the current period[11] - There were no significant events after June 30, 2024, that would materially affect the group's operations and financial performance[58]

Internal Control Improvements - The company has identified multiple deficiencies in its internal controls, including the lack of a related party transaction identification record and guidelines[3] - The company has committed to improving its internal control systems, including the establishment of a review committee composed of three independent non-executive directors[5] - The company has engaged an external consultant to conduct an internal control review and provide recommendations for strengthening related party transaction monitoring[10] - The company has taken remedial actions following the identification of non-compliance records in 2019 and 2020, enhancing its internal control systems[6] - The board has reviewed the internal control system and strengthened procedures to improve risk management and internal controls[14] - After implementing remedial measures, the company maintains appropriate and effective risk management and internal control systems[14] Related Party Transactions Management - The company has implemented measures to ensure compliance with listing rules regarding related party transactions, including regular updates of the related party list[11] - The company has revised its related party transaction management policy to ensure adherence to listing rules, including annual confirmations of related party information[12] - The company has established a financial department responsible for reviewing all transactions to determine if they require disclosure under listing rules[13] - The company has arranged training courses for directors and relevant staff to improve understanding of related party transactions and disclosure requirements[10] - The company has committed to more frequent reviews of related party transaction ledgers and monthly confirmations from related parties[12] - The company has implemented a system to ensure that all transactions are reviewed by the financial department and reported to the board if they require disclosure[13] Financial Oversight - The company has prepared an annual investment budget and will regularly review it[14] - The finance department and financial supervisor will continue to monitor compliance with listing rules and regulations[14]

Governance and Management - The board consists of eight directors, including three independent non-executive directors, promoting strict review and monitoring processes[5] - The company has established a risk management and internal control policy, with an annual review of the effectiveness of the internal control system conducted by the board[12] - The independent non-executive directors believe that the risk management and internal control systems are sufficient and effective, with adequate resources allocated for accounting, internal audit, and financial reporting functions[13] - The company has adopted a governance code that includes recommendations on the remuneration of individual executive directors and senior management[1] - The company has a diverse board in terms of gender, age, educational background, professional experience, skills, knowledge, and tenure[5] - The company has implemented strict measures to prevent unauthorized use of confidential or insider information, ensuring compliance with governance standards[42] Stakeholder Engagement - The company encourages shareholders to actively participate in the annual general meeting and other shareholder meetings, ensuring they have sufficient time to consider the resolutions presented[16] - The company has confirmed its main stakeholders, including employees, consumers, suppliers, distributors, shareholders, investors, government, and the broader community, and has established multiple communication channels for them[28] Environmental Management - The company has implemented a three-tier environmental management network to ensure environmental management decisions and systems are fully implemented at all levels[31] - The company is committed to addressing ESG issues, evaluating their importance from both business impact and stakeholder perspectives[25] - The company achieved ISO 14000 environmental management system certification in 2022 and was recognized as a national "Green Factory" in 2023, with a total of 1,491 companies receiving this honor nationwide[33] - The company is actively pursuing various environmental management certifications to enhance its core competitiveness in energy-saving and low-carbon operations[33] - The total wastewater discharge in 2023 was 195,285.9 tons, a decrease from 251,062.1 tons in 2022, representing a reduction of approximately 22.2%[89] - The company reported a total greenhouse gas emissions of 6,948.888 tons of CO₂ in 2023, an increase from 4,572.734 tons in 2022, reflecting a rise of approximately 52%[78] - The average water consumption intensity in 2023 was 3.74 tons per ten thousand yuan of output, down from 5.68 tons in 2022, indicating a reduction of approximately 34.2%[74] - The company has established a specialized energy management team to oversee energy consumption, with a focus on reducing energy usage and improving efficiency[70] - The total solid waste generated includes various categories, with general solid waste primarily sent to landfills, while some are utilized for agricultural fertilizer[67] - The company has implemented advanced wastewater treatment technologies, including an IC reactor, to ensure compliance with environmental standards[60] - The nitrogen oxide emissions in 2023 were recorded at 1.063 tons, a decrease from 1.792 tons in 2022, showing a reduction of approximately 40.6%[65] - The company aims to achieve carbon neutrality by transitioning from coal-fired boilers to natural gas boilers and investing in renewable energy sources[81] - The total energy consumption data for the past three years indicates a structured approach to energy management, with specific targets set for reduction[72] Financial Performance - The company's total revenue for the year ended December 31, 2023, was RMB 565.6 million, representing a 15.0% increase from RMB 491.8 million in the previous year[37] - The sales of the main product, Shuanghuanglian Oral Liquid, accounted for 48.9% of total revenue, with sales reaching RMB 275.8 million, up 16.7% from RMB 236.4 million[37] - The gross profit margin remained stable, with sales costs for the year ending December 31, 2023, approximately RMB 266.1 million, compared to RMB 266.7 million in the previous year[39] - The sales of Shuanghuanglian Injection increased by 32.7%, reaching RMB 98.0 million, contributing 17.3% to total revenue[37] - The company reported a significant increase of 104.9% in sales of Qingre Jiedu Oral Liquid, which generated RMB 48.6 million, accounting for 8.6% of total revenue[37] - Third-party product sales decreased by 34.3%, totaling RMB 15.0 million, which represented 2.6% of total revenue[37] - The company's revenue for 2023 was RMB 565.6 million, representing a 15% increase compared to RMB 491.8 million in 2022[112][121] - Gross profit for 2023 was RMB 299.5 million, up 33.1% from RMB 225.0 million in 2022, with a gross margin increase from 45.8% to 53.0%[112][119] - The net loss for 2023 was approximately RMB 36.3 million, an increase of about 4.6% compared to a net loss of RMB 34.7 million in 2022[118] Research and Development - Research and development expenses for 2023 were approximately RMB 65.2 million, significantly up from RMB 15.2 million in 2022, marking an increase of about RMB 50 million[119] - The company is currently working on 50 R&D projects, including 31 drug formulation projects and 12 chemical raw material projects, with plans to submit around ten product registration applications in 2024[119][120] - The company reported a significant increase in R&D expenditure, amounting to approximately RMB 65.2 million in 2023, up from RMB 15.2 million in 2022, representing an increase of about RMB 50 million[136] - Currently, the company has a total of 50 ongoing R&D projects, including 31 generic drug projects, 12 active pharmaceutical ingredient projects, and 7 traditional Chinese medicine projects[136] - The company anticipates submitting around 10 new drug applications in 2024, with 4 projects currently under review[136] Employee Management and Training - The company employs 1,148 staff members, with a balanced gender ratio and a significant portion (91%) of employees from the local area, supporting local employment[85] - The company has established a collective agreement with the labor union, covering aspects such as labor remuneration, working hours, and employee benefits[124] - The company emphasizes equal employment practices, adhering strictly to national labor laws and policies, ensuring no discrimination based on ethnicity, gender, or religion[123] - The company has implemented a comprehensive safety management system, including regular safety training and inspections to mitigate potential risks in production[138] - The company is committed to a diverse talent development strategy, utilizing various methods for talent acquisition and collaboration[133] - The company has established a safety production leadership team to oversee safety affairs and ensure compliance with safety regulations[139] - In 2023, the company invested RMB 643,300 in safety production and RMB 4,777,400 in employee occupational health and safety, achieving a 100% employee health check rate[172] - The company maintained a safety training rate of 100% in 2023, with 440 employees participating in safety training[179] - The company has not experienced any major occupational health incidents or work-related injuries in 2023, consistent with the previous two years[172] - The company emphasizes fair and transparent talent management, ensuring equal opportunities for all employees regardless of background[157] - The company implemented a comprehensive training plan for 2023, focusing on enhancing employees' professional skills and operational capabilities[196] - The company has established a three-tier safety education training system, ensuring all new employees undergo safety training before starting work[179] - The company allocated resources to psychological care training and labor protection training for female employees in 2023[174] - The company’s employee training participation has been categorized by gender and job level, reflecting a commitment to diversity in development[177][178] - The company’s safety management system is aligned with national laws and regulations, enhancing overall workplace safety awareness[160] - The company has a mechanism for continuous training and development, aimed at improving employee capabilities and contributing to corporate growth[196] - In 2023, the number of male employees receiving training increased to 576, up from 269 in 2022, representing a growth of 114%[198] - The number of female employees receiving training slightly decreased to 572 in 2023 from 590 in 2022, a decline of 3%[198] - Senior management training participation rose to 27 in 2023, compared to 26 in 2022, an increase of 3.8%[198] - The number of middle management employees receiving training decreased to 90 in 2023 from 103 in 2022, a decline of 12.6%[198] - Training hours for both male and female employees remained consistent at 48 hours in 2023[198] - Senior management maintained a consistent training duration of 60 hours across the years 2021 to 2023[198] - The company emphasizes ongoing safety production education to enhance employee awareness and compliance with regulations[199] - The company has established a comprehensive safety production management system that includes safety goals in production plans and requirements in work assignments[200]

Financial Performance - The company reported a net loss of approximately RMB 36.3 million for the year ended December 31, 2023, an increase of about 4.6% compared to the same period in 2022[14]. - The group's operating revenue for 2023 was approximately RMB 565.6 million, representing a 15.0% increase compared to the same period in 2022, marking the highest revenue year since the company's listing[15]. - Gross profit for 2023 was approximately RMB 299.5 million, an increase of 33.1% from RMB 225.0 million in 2022, with a gross margin rising from 45.8% in 2022 to 53.0% in 2023[23]. - The loss attributable to equity holders of the company for the fiscal year ending December 31, 2023, was approximately RMB 36.3 million, compared to a loss of approximately RMB 34.6 million for the fiscal year ending December 31, 2022[90]. - The company reported a pre-tax loss of RMB 29.4 million for the fiscal year ending December 31, 2023, compared to a pre-tax loss of RMB 31.0 million for the fiscal year ending December 31, 2022[87]. Research and Development - Research and development expenses for 2023 amounted to approximately RMB 65.2 million, up from RMB 15.2 million in 2022, reflecting an increase of approximately RMB 50.0 million[32]. - The company is currently conducting a total of 50 R&D projects, including 31 drug formulation projects, 12 API projects, and 7 traditional Chinese medicine projects, with plans to submit about ten product registration applications in 2024[17]. - Operating profit decreased compared to 2022 due to increased investment in research and development, aimed at enriching the company's product pipeline[14]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to RMB 34,849 thousand from RMB 128,106 thousand, indicating a need for improved cash management[98]. - The group has sufficient funds to meet its operational funding obligations, expected capital expenditures, and debt responsibilities through December 31, 2024[106]. - The group has successfully renewed bank loans during the reporting period, contributing to its liquidity position[106]. Shareholder Information - The company did not declare any dividends for the current year, consistent with 2022[3]. - The company does not recommend declaring a final dividend for the year ending December 31, 2023, compared to no dividend in 2022[51]. - The board intends to declare a dividend of no less than 10% of distributable profits for any financial year, subject to board approval[50]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 776,943 thousand, up from RMB 736,212 thousand in 2022, showing a growth of about 5.5%[98]. - Current liabilities were RMB 664,520 thousand, compared to RMB 722,082 thousand in the previous year, indicating a reduction of approximately 8%[98]. - The group's total equity attributable to shareholders was approximately RMB 563.5 million as of December 31, 2023, compared to RMB 614.2 million in 2022, while total liabilities amounted to approximately RMB 342.3 million, up from RMB 225.8 million in 2022[38]. Operational Efficiency - The company is enhancing production capacity and efficiency with the ongoing commissioning of new factories and production lines[14]. - The company has implemented photovoltaic renovations in its factories to utilize solar energy, reducing electricity costs and carbon emissions[14]. - The company has optimized its sales team and is actively utilizing new media for brand promotion and content marketing[14]. Joint Ventures and Impairments - The company has recognized impairment losses in accordance with accounting standards due to operational losses from its joint ventures[14]. - Share of losses from a joint venture decreased from a profit of approximately RMB 11.8 million in 2022 to a loss of approximately RMB 11.2 million in 2023, mainly due to a centralized procurement policy affecting sales of key products[34]. - Share of losses from another joint venture decreased slightly from approximately RMB 9.2 million in 2022 to approximately RMB 9.1 million in 2023[35]. Taxation - Income tax expenses increased from approximately RMB 3.7 million in 2022 to approximately RMB 6.8 million in 2023, with an effective tax rate of 23.3% in 2023 compared to 11.8% in 2022[36]. - The effective corporate income tax rate for the group's Chinese subsidiaries was 25%, consistent with the previous year[78]. - The group’s subsidiary in Henan received a preferential income tax rate of 15% for being recognized as a high-tech enterprise, valid until October 27, 2024[78]. Employee Costs - Total employee costs, including directors' remuneration and other benefits, were approximately RMB 103.9 million for the year ended December 31, 2023, compared to RMB 91.8 million in 2022[43]. - Employee costs rose to RMB 103,881,000, up from RMB 91,829,000, indicating an increase of about 13%[71]. Compliance and Governance - The company has adopted corporate governance standards and has complied with all applicable rules, except for a specific provision regarding the company secretary[52]. - The company’s board has fully complied with the standards for securities trading as of December 31, 2023[53]. - The financial statements have been prepared in accordance with International Financial Reporting Standards and comply with the disclosure requirements of the Hong Kong Companies Ordinance[105].

Joint Ventures Performance - The joint venture Weihai Life's operating situation significantly improved in the first half of 2023, with operating losses decreasing year-on-year, and it is expected to achieve profitability in 2023[20] - Jiangxi Yongfeng Kande Pharmaceutical Co., a joint venture, experienced operating losses in the first half of 2023, primarily due to the impact of national centralized procurement policies, leading to a substantial decline in both revenue and profit[20] - The company reported a significant reduction in losses from its joint venture, decreasing from RMB 3.10 million in the first half of 2022 to RMB 0.86 million in the first half of 2023[33] Product Development and Pipeline - The company is advancing multiple new products, including 21 new drug applications scheduled for submission between 2024 and 2027, targeting various medical conditions such as chronic kidney disease and hypertension[22] - The company plans to submit applications for 8 new products by 2024, including treatments for hypertension and epilepsy, indicating a strong pipeline for future growth[22] - The company is focusing on developing treatments for neurological conditions, with several products in the pipeline aimed at conditions like epilepsy and depression, expected to be submitted by 2025[22] - The company is prioritizing research and development in cardiovascular health, with new products targeting hypertension and heart failure expected to be submitted in the coming years[22] - The company is committed to addressing the needs of pediatric patients, with specific products aimed at treating chronic constipation in children scheduled for submission by 2025[22] - The company is actively pursuing market expansion strategies, with several products aimed at addressing urgent medical needs, such as acute pain management and chronic disease treatments[22] - The company is enhancing its portfolio with new formulations and delivery methods, including injectable and oral medications, to improve patient outcomes[22] - The company has set a timeline for the submission of new products, with key submissions planned for 2024 and 2025, reflecting a commitment to innovation and addressing unmet medical needs[22] Financial Performance - The company's revenue increased by approximately 103.1% from RMB 165.6 million in the first half of 2022 to RMB 336.4 million in the first half of 2023, driven by improved market demand and expanded sales networks[28] - Gross profit for the first half of 2023 was RMB 179.1 million, representing a 124.7% increase compared to the same period in 2022[41] - Revenue for the first half of 2023 reached approximately RMB 336.4 million, a 103.1% increase from RMB 165.6 million in the same period of 2022[49] - Sales of the product "Shuanghuanglian Oral Liquid" increased by 153.8% to approximately RMB 165.9 million, driven by increased market demand as COVID-19 conditions improved[52] - Gross profit rose to approximately RMB 179.1 million, a 124.7% increase from RMB 79.7 million in the first half of 2022, with a gross margin improvement of 5.1 percentage points to about 53.2%[52] - Operating profit increased to RMB 38,801 thousand from RMB 7,178 thousand, indicating a strong operational performance[186] - The net profit for the period was RMB 16,447 thousand, compared to a loss of RMB 7,077 thousand in the previous year, marking a turnaround in financial results[186] - The total comprehensive income for the period was RMB 16,360 thousand, compared to a loss of RMB 5,215 thousand in the same period last year[188] - Basic and diluted earnings per share for the period were both RMB 2, compared to a loss of RMB 1 per share in the previous year[188] Expenses and Liabilities - Research and development expenses increased by approximately RMB 14.0 million, contributing to a total of RMB 59.8 million in general and administrative expenses for the first half of 2023[31] - Sales and distribution expenses increased to approximately RMB 79.1 million in the first half of 2023, accounting for 23.5% of total revenue, compared to 26.9% in the same period of 2022[53] - The company’s tax expenses increased from approximately RMB 0.2 million in the first half of 2022 to RMB 6.4 million in the first half of 2023, primarily due to increased operating profits[34] - The company’s current liabilities amounted to approximately RMB 162.6 million as of June 30, 2023, compared to RMB 108.0 million at the end of 2022[36] - The total liabilities decreased to approximately RMB 691.4 million from RMB 737.4 million as of December 31, 2022, indicating a reduction of about 6.2%[85] - The debt-to-equity ratio increased from 36.8% as of December 31, 2022, to 46.8% as of June 30, 2023, primarily due to an increase in bank loans[87] - Total employee costs for the first half of 2023 amounted to approximately RMB 57.6 million, compared to RMB 38.3 million for the same period in 2022, reflecting a significant increase of 50.5%[88] Capital Structure and Shareholder Returns - The company confirmed that it has sufficient financial resources to meet its financial obligations in the foreseeable future[86] - The company is committed to maintaining an appropriate capital structure to maximize returns to shareholders[85] - The total equity attributable to shareholders was approximately RMB 622.2 million, an increase from RMB 614.2 million as of December 31, 2022, representing a growth of 1.3%[85] - The company has 16,000,000 unexercised stock options, representing approximately 2.11% of the issued share capital[121] - The maximum number of restricted share units (RSUs) that can be granted under the RSU plan is capped at 10% of the issued share capital, which amounts to 76,993,400 shares[125] - The number of stock options available for grant under the stock option plan remained constant at 64,000,000 as of January 1, 2023, and June 30, 2023, equivalent to about 8.44% of the total issued share capital[121] - The total number of restricted share units available for grant under the plan as of June 30, 2023, was 71,993,400, representing approximately 9.49% of the total issued shares of the company[107] - The board does not recommend any dividend for the six months ended June 30, 2023, consistent with the previous year's decision[181] Corporate Governance and Compliance - The audit committee has reviewed the interim financial report for the six months ended June 30, 2023, which was not audited but reviewed by KPMG[177] - The company has complied with all applicable code provisions of the corporate governance code during the reporting period[155] - Management believes that no further impairment or reversal of impairment is necessary for the six months ended June 30, 2023, as the mid-term performance of the subsidiary met expectations[82] - There were no significant events affecting the group's operations and financial performance after June 30, 2023, up to the report date[182] Employee and Operational Metrics - The company had 1,121 employees as of June 30, 2023, a slight decrease from 1,159 employees at the end of 2022, while maintaining competitive compensation packages[60] - The company repurchased a total of 8,230,000 shares at a total cost of approximately HKD 11.0 million during the six months ended June 30, 2023[199]

Revenue and Profitability - Revenue increased by approximately 103.1% from RMB 165.6 million in the first half of 2022 to approximately RMB 336.4 million in the first half of 2023[1] - Gross profit rose by approximately 124.7% from RMB 79.7 million in the first half of 2022 to approximately RMB 179.1 million in the first half of 2023[1] - The profit attributable to equity holders was approximately RMB 16.5 million in the first half of 2023, compared to a loss of approximately RMB 7.0 million in the first half of 2022[1] - Operating profit for the period was RMB 38.8 million, significantly up from RMB 7.2 million in the same period last year[16] - The total comprehensive income for the period amounted to RMB 16.36 million, compared to a loss of RMB 5.215 million in the previous year[3] - The company’s basic earnings per share for the period was RMB 2, compared to a loss per share of RMB 1 in the same period last year[3] - The basic earnings per share for the six months ended June 30, 2023, was RMB 16,456,000, compared to a loss of RMB 7,037,000 in the same period of 2022[34] Financial Position - The net asset value of the company was RMB 620.955 million as of June 30, 2023, compared to RMB 612.893 million at the end of 2022[4] - The company’s total liabilities decreased slightly from RMB 15.293 million to RMB 15.023 million[4] - As of June 30, 2023, the total equity attributable to shareholders was approximately RMB 622.2 million, an increase from RMB 614.2 million as of December 31, 2022[87] - The total liabilities amounted to approximately RMB 691.4 million as of June 30, 2023, down from RMB 737.4 million as of December 31, 2022[87] - The net current liabilities were approximately RMB 162.6 million as of June 30, 2023, compared to RMB 108.0 million as of December 31, 2022[102] - The asset-to-liability ratio increased from 36.8% as of December 31, 2022, to 46.8% as of June 30, 2023, primarily due to an increase in bank loans[103] Cash Flow and Financing - The company reported a net financing cost of RMB 2.241 million, down from RMB 9.931 million in the previous year[16] - The group reported a net current liability of RMB 162,593,000 as of June 30, 2023, with an operating cash outflow of RMB 46,348,000 for the six-month period[25] - The company’s cash and cash equivalents as of June 30, 2023, were RMB 116,430 thousand, down from RMB 177,802 thousand as of December 31, 2022, reflecting a decrease of 34.5%[50] - The group has the capability to raise funds through loans and equity financing to meet its operational and capital expenditure needs for at least the next 12 months[25] - The group has increased its bank borrowings, with collateral valued at approximately RMB 114.4 million as of June 30, 2023[107] Sales and Market Performance - The revenue from the main product, Shuanghuanglian oral liquid, was RMB 165,916,000, up from RMB 65,381,000 in 2022, indicating a growth of 153.5%[28] - Two customers accounted for over 10% of the group's revenue, with sales to these customers amounting to RMB 49,317,000 and RMB 39,925,000 respectively[44] - The company’s revenue from third-party products increased by 115.5% to RMB 17,630 thousand in the first half of 2023, compared to RMB 8,180 thousand in the same period of 2022[61] - Revenue increased by approximately 103.1% from approximately RMB 165.6 million in the first half of 2022 to approximately RMB 336.4 million in the first half of 2023, attributed to improved market demand and expanded sales networks[77] Research and Development - The group is currently conducting 32 research and development projects, with a total contract amount of RMB 160 million[43] - The company plans to submit a registration application for one additional product in the second half of 2023, following the approval of two products in the first half of 2023[74] - The company is actively planning a raw material drug construction project to ensure a stable and cost-effective supply of active pharmaceutical ingredients[74] - The group has made significant investments in research and development, reflecting its commitment to innovation and market expansion[43] Expenses and Cost Management - General and administrative expenses increased from approximately RMB 27.9 million in the first half of 2022 to approximately RMB 59.8 million in the first half of 2023, with R&D investment rising by approximately RMB 14.0 million[65] - Sales and distribution expenses increased from approximately RMB 44.6 million in the first half of 2022 to approximately RMB 79.1 million in the first half of 2023, accounting for approximately 26.9% and 23.5% of revenue respectively[80] - Employee costs totaled approximately RMB 57.6 million for the first half of 2023, compared to RMB 38.3 million for the same period in 2022[91] Taxation and Compliance - The group has maintained a corporate income tax rate of 25% for its subsidiaries in China for both 2023 and 2022[32] - The company’s deferred tax expense for the six months ended June 30, 2023, was RMB (2,347) thousand, compared to RMB (692) thousand in the same period of 2022[47] - Income tax expenses increased from approximately negative RMB 0.2 million in the first half of 2022 to approximately RMB 6.4 million in the first half of 2023, driven by operating profits in 2023[67] - The company’s subsidiary, Henan Fusen Pharmaceutical Co., Ltd., continues to benefit from a preferential income tax rate of 15% as a high-tech enterprise, applicable until October 27, 2024[47] Shareholder Returns - The company does not recommend declaring any interim dividend for the six months ended June 30, 2023, compared to zero dividend for the same period in 2022[116] - As of June 30, 2023, the company repurchased a total of 8,230,000 shares at a total cost of approximately HKD 11.0 million[114]