Revenue and Profit Growth - Revenue for the first half of 2024 increased by 13.6% to RMB458.4 million compared to the same period in 2023, driven by higher sales of disposable products[6] - Net profit attributable to owners of the parent rose by 11.9% to RMB285.8 million in 2024, up from RMB255.5 million in 2023, primarily due to increased revenue and other income[7] - Non-HKFRS adjusted net profit attributable to owners of the parent grew by 15.9% to RMB274.9 million in 2024, compared to RMB237.2 million in 2023[7] - The Group achieved a total revenue of RMB458.4 million for the six months ended June 30, 2024, representing a 13.6% increase from the corresponding period of the previous year[17] - The Group's net profit attributable to owners of the parent increased by 11.9% from RMB255.5 million in 2023 to RMB285.8 million in 2024[17] - The Group's adjusted net profit attributable to owners of the parent increased by 15.9% from RMB237.2 million in 2023 to RMB274.9 million in 2024[17] - Revenue for the six months ended June 30, 2024, increased to RMB 458.413 million, up from RMB 403.589 million in the same period in 2023[97] - Gross profit rose to RMB 363.123 million in H1 2024, compared to RMB 321.755 million in H1 2023[97] - Profit before tax for the period reached RMB 327.733 million, up from RMB 271.282 million in the previous year[97] - Net profit attributable to owners of the parent increased to RMB 285.847 million, compared to RMB 255.461 million in H1 2023[97] - Basic earnings per share for H1 2024 stood at RMB 24.39 cents, up from RMB 21.83 cents in H1 2023[99] - Total comprehensive income for the period increased to RMB 277.540 million, compared to RMB 226.240 million in H1 2023[99] - Profit for the period was RMB 285,847,000[106] - Total comprehensive income for the period was RMB 287,701,000[106] - Profit before tax for the six months ended 30 June 2024 was RMB 327.73 million, up from RMB 271.28 million in the same period in 2023[112] - Profit attributable to ordinary equity holders of the parent for the six months ended 30 June 2024 was RMB285.8 million, compared to RMB255.5 million in 2023[145] Product and Market Performance - Domestic revenue growth was driven by increased sales of disposable products such as trocars, ligation clips, and electrocoagulation forceps, as well as strong sales of new products like ultrasonic scalpels and staplers[12] - The Group achieved export sales of RMB40.2 million for the six months ended June 30, 2024, representing a 2.7% growth from the corresponding period of the previous year[15] - The Group added 11 new overseas product registrations during the Reporting Period, mainly in Central and South America as well as Southeast Asia[16] - The Group added 12 new product registrations in China during the Reporting Period, bringing the total to 104 domestic NMPA product registrations as of June 30, 2024[19] - The Group's product portfolio expanded with the approval of an absorbable knotless suture and multi-fire ligation clips, both Class III medical devices[21] - The company added 12 new product registrations in China during the reporting period, bringing the total to 104 registered products with NMPA, including 14 Class III, 55 Class II, and 35 Class I medical devices[23] - The company launched a new absorbable knotless suture (Class III medical device) and a continuous ligation clip (Class III medical device), both aimed at improving surgical efficiency[23] - Disposable products revenue reached RMB409.1 million, a 19.6% increase from RMB342.0 million in 2023, accounting for 89.3% of total revenue[35] - Disposable trocars revenue was RMB191.7 million, up 12.9% from RMB169.9 million in 2023, representing 41.8% of total revenue[36] - Ligation clips revenue increased by 4.5% to RMB103.8 million, accounting for 22.7% of total revenue[37] - Disposable electrocoagulation forceps revenue surged 90.2% to RMB23.7 million[31] - Ultrasonic scalpels revenue skyrocketed 1,115.7% to RMB3.7 million[31] - Other disposable products revenue grew 125.7% to RMB19.1 million[31] - Reusable products revenue decreased by 20.0% to RMB49.3 million[31] - Sales of disposable trocars in VBP regions, including Shandong, Fujian, Hunan, Hebei, and Guangdong, showed strong growth in the first half of 2024[36] - Disposable electrocoagulation forceps revenue reached RMB 67.0 million, accounting for 14.6% of total revenue, with a sales growth of 30.2%[39] - Ultrasonic scalpels sales increased by 90.2% to RMB 23.7 million compared to RMB 12.5 million in the same period last year[39] - Reusable products revenue decreased by 20.0% to RMB 49.3 million from RMB 61.6 million in the previous year[39] - Domestic market revenue increased by 14.7%, driven by distributor and non-distributor models[39] - Overseas market revenue grew by 2.7% to RMB 40.2 million, accounting for 8.8% of total revenue[39] - Sales of medical instruments in the Chinese Mainland accounted for RMB 418,213 thousand, contributing 91.2% of total revenue, while other countries/regions contributed RMB 40,200 thousand[129] R&D and Innovation - The company increased its equity interest in Weijing Medical from 35% to 37%, leveraging its platform for laparoscopic surgical robots[11] - The Group obtained 20 new patents in China during the Reporting Period, while Weijing Medical obtained 50 new patents on a standalone basis[19] - The company obtained 20 new patents in China, while Weijing Medical independently secured 50 new patents during the same period[23] - Weijing Medical's 4-arm surgical robotic system completed multi-specialty human clinical trials as of March 2024, with regulatory approval expected by the end of 2024[24] - Weijing Medical's single-port surgical robotic system finalized product design and is undergoing testing, with human clinical trials targeted to begin by the end of 2024[24] - The company's new R&D building in Hangzhou became operational in June 2024, enhancing research capabilities and attracting top talent[23] - The Group's new R&D building at its Hangzhou headquarters became operational in June 2024, enhancing innovation and product development capabilities[22] - The Group's new animal testing center is expected to accelerate product development efficiency and improve R&D quality[22] - Research and development expenses decreased by 27.8% to RMB43.4 million for the six months ended June 30, 2024, compared to RMB60.1 million in the same period in 2023, primarily due to reduced R&D expenses from Weijing Medical following its deconsolidation[55] - Research and development costs decreased to RMB 43.354 million in H1 2024, down from RMB 60.076 million in H1 2023[97] - The new R&D building at the Hangzhou headquarters became operational in June 2024, delaying the need for additional R&D centers in other cities[83] - The company extended the expected timeframe for utilizing unutilized IPO proceeds for R&D center establishment by two years, now set for four to six years from the IPO date[83] - RMB 433.5 million is allocated for R&D activities, including establishing R&D centers, with RMB 12.8 million utilized and RMB 77.3 million remaining unutilized as of June 30, 2024[85] Financial Performance and Expenses - Cost of sales increased by 16.4% to RMB 95.3 million, in line with revenue growth[42] - Gross profit increased by 12.9% to RMB 363.1 million, with a stable gross profit margin of 79.2%[45] - Disposable products contributed RMB 335.2 million to gross profit, with a gross profit margin of 81.9%[48] - Other income and gains increased to RMB 115.4 million, driven by a RMB 20.0 million increase in interest income and a RMB 27.3 million gain from deconsolidation[49] - Selling and distribution expenses rose by 19.9% to RMB 39.1 million due to increased staff costs and marketing-related expenses[50] - Administrative expenses increased by 12.0% to RMB50.9 million for the six months ended June 30, 2024, compared to RMB45.4 million in the same period in 2023, primarily due to higher staff costs and environmental landscaping expenses[51][54] - Other income and gains rose to RMB115.4 million for the six months ended June 30, 2024, up from RMB93.8 million in the same period in 2023, driven by a RMB20.0 million increase in interest income and a RMB27.3 million gain from the deconsolidation of Weijing Medical[52] - Sales and distribution expenses increased by 19.9% to RMB39.1 million for the six months ended June 30, 2024, compared to RMB32.6 million in the same period in 2023, mainly due to higher sales personnel costs and increased marketing-related expenses[53] - The Group recorded a gain of RMB27.3 million from the deconsolidation of Weijing Medical, calculated based on the difference between the fair value of the Group's retained interest and the carrying value of Weijing Medical's assets and liabilities[55] - Income tax expenses increased by 24.0% to RMB52.0 million for the six months ended June 30, 2024, compared to RMB42.0 million in the same period in 2023, primarily due to higher taxable income and accrued withholding tax on dividend repatriation[56] - Adjusted net profit for the reporting period attributable to owners of the parent was RMB 274.873 million, compared to RMB 237.185 million in the previous year[60] - Basic non-HKFRS adjusted earnings per share increased to RMB 23.46 cents from RMB 20.27 cents year-over-year[60] - Diluted non-HKFRS adjusted earnings per share rose to RMB 23.46 cents from RMB 20.18 cents compared to the previous year[60] - Fair value gain on financial assets decreased to RMB -46 thousand from RMB -2.269 million year-over-year[60] - Foreign exchange difference improved significantly to RMB 10.984 million from RMB -23.227 million in the previous year[60] - Share-based payment expenses decreased to RMB 6.183 million from RMB 7.273 million year-over-year[60] - Investment income on short-term financial products declined to RMB -842 thousand from RMB -53 thousand compared to the previous year[60] - Gain on deconsolidation of Weijing Medical was RMB -27.253 million, which was not present in the previous year[60] - The company uses non-HKFRS measures to eliminate impacts of non-operational or one-off expenses, including fair value gains, foreign exchange differences, and share-based payments[58][59] - Non-HKFRS measures have limitations and should not be considered superior to HKFRS measures, as they may not be comparable to similar measures used by other companies[61] - Selling and distribution expenses increased to RMB 39.062 million in H1 2024, compared to RMB 32.553 million in the same period last year[97] - Administrative expenses rose to RMB 50.854 million in H1 2024, up from RMB 45.416 million in H1 2023[97] - The company did not recommend the payment of any interim dividend for the six months ended June 30, 2024[94] - Total assets less current liabilities decreased to RMB 2,381,818,000 from RMB 4,072,994,000 compared to the previous period[102][104] - Net current assets decreased to RMB 1,571,350,000 from RMB 3,189,865,000[102] - Total equity decreased to RMB 2,362,728,000 from RMB 3,943,846,000[104] - Dividend declared amounted to RMB 1,007,140,000[106] - Share capital decreased to RMB 85,000 from RMB 86,000[104] - Reserves decreased to RMB 2,362,643,000 from RMB 3,649,676,000[104] - Non-controlling interests decreased to RMB 0 from RMB 294,084,000[104] - Cash and cash equivalents increased to RMB 2,717,713,000 from RMB 2,676,588,000[102] - Net cash flows from operating activities increased to RMB 221.72 million in 2024, up from RMB 169.55 million in 2023[112] - Net cash flows from/(used in) investing activities showed a significant increase to RMB 1,213.36 million in 2024, compared to a negative RMB 1,249.90 million in 2023[114] - Depreciation of property, plant, and equipment amounted to RMB 9.94 million in 2024, slightly down from RMB 10.66 million in 2023[112] - Share-based payment expense decreased to RMB 6.18 million in 2024 from RMB 7.27 million in 2023[112] - Purchases of items of property, plant, and equipment increased to RMB 35.30 million in 2024, up from RMB 23.62 million in 2023[114] - Proceeds from sales of financial assets at fair value through profit or loss were RMB 573.10 million in 2024, compared to RMB 9.18 million in 2023[114] - Disposal of a subsidiary resulted in a cash inflow of RMB 1,253.10 million in 2024[114] - Shares repurchased amounted to RMB 30.81 million in 2024, up from RMB 13.71 million in 2023[114] - Total equity as of 30 June 2023 (unaudited) was RMB 3,722.27 million, with retained profits of RMB 872.52 million[109] - Net increase in cash and cash equivalents for 2024 was RMB 1,399,394 thousand, compared to a decrease of RMB 1,099,951 thousand in 2023[116] - Cash and cash equivalents at the end of the period for 2024 were RMB 2,915,728 thousand, up from RMB 663,744 thousand in 2023[116] - Time deposits with original maturity of over three months when acquired increased to RMB 291,193 thousand in 2024, compared to none in 2023[116] - The Group adopted new and revised Hong Kong Financial Reporting Standards (HKFRSs) for the first time in the current period, including amendments to HKFRS 16, HKAS 1, and HKAS 7[119][120] - The amendments to HKFRS 16 did not impact the Group's financial position or performance as there were no sale and leaseback transactions with variable lease payments[120] - The 2020 and 2022 amendments to HKAS 1 clarified the classification of liabilities as current or non-current, with no impact on the Group's financial position[125] - Amendments to HKAS 7 and HKFRS 7 required additional disclosures for supplier finance arrangements, but the Group had no such arrangements, resulting in no impact[125] - The Group operates as a single reportable operating segment, with management monitoring overall performance for resource allocation and assessment[126] - Revenue from contracts with customers increased to RMB 458,413 thousand in the first half of 2024, up from RMB 403,589 thousand in the same period of 2023, representing a growth of 13.6%[128] - Bank interest income rose to RMB 62,630 thousand in 2024, compared to RMB 42,636 thousand in 2023, marking a 46.9% increase[131] - The company recorded a gain of RMB 27,253 thousand from the deconsolidation of a subsidiary in 2024, which was not present in 2023[131] - Government grants decreased slightly to RMB 24,120 thousand in 2024 from RMB 25,200 thousand in 2023[131] - The cost of inventories sold increased to RMB 90,510 thousand in 2024, up from RMB 80,372 thousand in 2023[135] - The company incurred a share-based payment expense of RMB 6,183 thousand in 2024, down from RMB 7,273 thousand in 2023[135] - Current income tax in the Chinese Mainland increased to RMB 61,832 thousand in 2024, compared to RMB 36,301 thousand in 2023[141] - The total income tax expense for the period was RMB 52,047 thousand in 2024, up from RMB 41,985 thousand in 2023[141] - Final dividend of RMB0.41 per share and special dividend of RMB0.99 per share, totaling approximately RMB1.7 billion, were approved and paid in 2024[143] - Weighted average number of ordinary shares in issue for the six months ended 30 June 2024 was 1,171,810,382, slightly increased from 1,170,059,826 in 2023[147] - Carrying amount of property, plant, and equipment increased to RMB229.5 million as of 30 June 2024, up from RMB220.9 million at the end of 2023[149] - Investment in an associate, Hangzhou Weijing Medical Robot Co., Ltd., amounted to RMB351.5 million as of 30 June 2024, with the company holding a 37% ownership interest[150][152] - Trade receivables stood at RMB217.4 million as of 30 June 2024, with an impairment of RMB3.3 million, compared to RMB225.5 million and RMB4.1 million impairment
康基医疗(09997) - 2024 - 中期财报