Company Recognition and Awards - In the first half of 2024, the Group was recognized as an Excellent Pharmaceutical Logistics and Distribution Enterprise for four consecutive years[1] - The Group has received multiple awards, including the Best Pharmaceutical Cold Chain Logistics Centre for six consecutive years[1] - The Company has been awarded the China Logistics Industry "Golden Ant" Innovation Award for seven consecutive years[1] Market Position and Revenue - The Company ranked 35th among the top 100 wholesalers in China based on revenue generated from its principal business in 2023[1] - The Company ranked 6th among pharmaceutical distribution enterprises in Guangdong Province[1] - Operating revenue for the six months ended June 30, 2024, was RMB 2,347,185, representing a year-on-year increase of 3.44% compared to RMB 2,269,074 in 2023[25] - Revenue from principal business reached RMB 2,325,460, up from RMB 2,241,971 in the previous year, indicating a growth of 3.7%[57] - Revenue from distributors was RMB 1,093,126, slightly up from RMB 1,076,993, while revenue from retail pharmacy stores increased to RMB 1,151,208 from RMB 1,085,417[57] Financial Performance - Total profit for the same period was RMB 38,928, reflecting a year-on-year growth of 10.72% from RMB 35,157 in 2023[25] - Net profit attributable to the shareholders of the parent company was RMB 26,747, a slight increase of 1.50% from RMB 26,353 in 2023[25] - Basic and diluted earnings per share for the six months ended June 30, 2024, were RMB 0.2477, up 1.50% from RMB 0.2440 in 2023[25] - The Group's gross profit increased by 18.85% from RMB 142.35 million for the six months ended June 30, 2023, to RMB 169.18 million for the same period in 2024[61] - The gross profit margin rose from 6.27% to 7.21% due to a 58.49% year-on-year increase in third-party logistics revenue and adjustments in product mix[61] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 3,270,652, showing a 0.71% increase from RMB 3,247,656 as of December 31, 2023[26] - Total liabilities increased by 1.08% to RMB 2,678,497 as of June 30, 2024, compared to RMB 2,649,849 at the end of 2023[26] - Shareholders' equity decreased by 0.95% to RMB 592,154 as of June 30, 2024, down from RMB 597,807 at the end of 2023[26] Distribution Network and Product Range - As of June 30, 2024, the distribution network covered 12,794 customers, an increase of 532 compared to the same period last year, including 611 distributors and 8,516 retail pharmacy stores[36] - The company distributed 11,596 types of products, representing an increase of 838 products compared to the same period last year, with a total of 1,052 suppliers[36] - The total number of products increased to 11,596 for the six months ended June 30, 2024, compared to 10,758 in the same period of 2023, representing a growth of approximately 7.8%[37] Industry Trends and Market Outlook - The pharmaceutical distribution market in China is projected to exceed RMB 4 trillion by 2028, with a compound growth rate of 7%[27] - The out-of-hospital market is expected to reach RMB 1.6 trillion by 2029, potentially matching or exceeding the in-hospital market[29] - The pharmaceutical distribution industry is moving towards high-quality development, with increasing industry concentration and deepening professional services[29] - The ongoing healthcare reforms in China are expected to significantly impact the pharmaceutical industry, shifting the focus from treating diseases to prioritizing people's health[48] Digital Transformation and Technology Integration - The integration of emerging technologies such as AI, big data, and cloud computing is accelerating the digitalisation of the pharmaceutical distribution industry[30] - The Group aims to leverage digital technologies to improve efficiency and quality across the entire pharmaceutical supply chain, including R&D, production, distribution, and service[48] - The focus on digital transformation in the pharmaceutical industry will enhance brand promotion and marketing capabilities[49] Strategic Initiatives and Future Plans - The Company adheres to a development strategy of "Intensive Engagement in Guangdong Province and Extensive Coverage across Surrounding Areas"[1] - The company plans to deepen strategic cooperation with brand manufacturers to capture growth opportunities in non-tendering market products[51] - The company aims to enhance its logistics capabilities and expand third-party logistics business to improve operational efficiency[51] - The Group plans to strengthen risk management and improve operational quality to ensure continuous competitiveness[49] Governance and Compliance - The Company complied with the Corporate Governance Code during the reporting period, with ongoing reviews to enhance governance standards[87] - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2024, ensuring compliance with applicable accounting standards[103] - The Group's financial statements are prepared according to the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance[131] Cash Flow and Financial Management - Cash flow from operating activities showed a net outflow of RMB 174,686,709.65, an improvement compared to the outflow of RMB 228,779,953.32 in the prior period[116] - Cash received from sales of goods and services amounted to RMB 2,016,748,960.28, up from RMB 1,819,538,031.52, marking an increase of about 10.9%[116] - The Group continues to assess its customers' credit and financial positions to minimize credit risks and maintain a sound liquidity position[72] Shareholder Information - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the interim dividend of 2023, which was also nil[86] - As of June 30, 2024, Mr. Yao Chuanglong held 34,530,000 H Shares, representing approximately 31.97% of the total issued share capital of 108,000,000 H Shares[92][94] - Ms. You Zeyan holds a beneficial interest in 29,050,000 H Shares, representing approximately 26.90% of the total issued share capital[99] Accounting Policies and Financial Reporting - The Group's accounting policies are aligned with the Accounting Standards for Business Enterprises, ensuring accurate financial reporting[3] - The Group recognizes income when the customer gains control over goods or services, typically three days after shipment[185] - The Group recognizes deferred income tax assets for all unutilized deductible losses within the limit of sufficient taxable income[190]
创美药业(02289) - 2024 - 中期财报