Financial Performance - Revenue of the Group in 2022 was RMB3,744.95 million, representing an increase of 309.83% compared to 2021[5] - Profit and total comprehensive income attributable to equity shareholders of the Company was RMB76.60 million, an increase of RMB664.25 million compared to a loss of RMB587.65 million in 2021[5] - Basic and diluted earnings per share for 2022 was RMB0.09[5] - Gross profit margin for 2022 was 76.00%, compared to 52.93% in 2021[7] - Net profit margin for 2022 was 8.57%, compared to a negative margin of 64.32% in 2021[7] - Total assets increased to RMB11,889.80 million in 2022 from RMB10,541.58 million in 2021[7] - Total equity attributable to equity shareholders of the Company increased to RMB5,884.88 million in 2022 from RMB5,808.28 million in 2021[7] - Net cash generated from operating activities was RMB1,699.91 million in 2022, compared to a net cash used in operating activities of RMB662.51 million in 2021[7] - Cost of sales increased by 109.00% to RMB 898.88 million in 2022, primarily due to higher sales volume of Kewei[63][65] - Gross profit rose by 488.40% to RMB 2,846.07 million in 2022, driven by increased sales of Kewei[64][66] - Other net losses amounted to RMB 844.33 million in 2022, a significant decrease from RMB 85.96 million in net income in 2021, due to fair value changes and impairment losses[68] - Total expenses increased by 58.67% to RMB 1,962.31 million in 2022, with distribution costs rising by 133.21% to RMB 1,216.59 million[69][70][71] - Research and development costs grew by 18.18% to RMB 129.61 million in 2022[71] - Finance costs increased by 15.52% to RMB 281.65 million in 2022[71] - Administrative expenses decreased by 5.57% to RMB 338.45 million in 2022[71] - Total revenue for 2022 was RMB 3,744.95 million, a 309.83% increase compared to 2021[62] - Distribution costs increased due to higher marketing and travel expenses, driven by the normalization of pandemic prevention measures and increased academic promotion activities[73] - R&D investment for 2022 was RMB 199.24 million, accounting for 5.32% of revenue, a decrease of 19.08% compared to the previous year[75] - Profit before taxation for 2022 was RMB 39.42 million, a significant increase from a loss of RMB 667.18 million in 2021, primarily due to higher sales of the core product Kewei[77] - Net profit for 2022 was RMB 49.24 million, a 108.38% increase from a net loss of RMB 587.72 million in 2021, driven by increased sales of Kewei[82] - Total assets as of December 31, 2022, were RMB 11,889.80 million, with total liabilities of RMB 5,819.80 million and shareholders' equity of RMB 6,070.00 million[86] - Current assets as of December 31, 2022, totaled RMB 5,014.02 million, with inventories at RMB 315.03 million and trade receivables at RMB 1,036.92 million[89] - Current liabilities as of December 31, 2022, were RMB 4,940.78 million, including trade payables of RMB 1,718.22 million and bank loans of RMB 223.34 million[89] - Net current assets as of December 31, 2022, were RMB 6,949.02 million, compared to RMB 9,303.52 million in 2021[89] - Total current assets increased to RMB5,014.02 million in 2022, up from RMB2,057.38 million in 2021, driven by increased sales and reclassification of equity interest in Sunshine Lake Pharma[90] - Intangible assets decreased to RMB2,920.65 million in 2022, down by RMB351.34 million from RMB3,271.99 million in 2021, mainly due to amortization and impairment losses[91][93] - Gearing ratio increased to 62.96% in 2022 from 53.04% in 2021, while the quick ratio decreased to 0.95 times from 1.44 times[92] - Bank loans and other borrowings increased to RMB776.93 million in 2022, up by RMB321.49 million from RMB593.38 million in 2021[95][96] - The company recorded a net foreign exchange loss of RMB212.9 million in 2022, compared to a net gain of RMB49.2 million in 2021, primarily due to USD-denominated borrowings[97] - Capital expenditure for 2022 totaled RMB853.06 million, including construction of plants, purchase of equipment, and acquisition of pharmaceutical product approvals[98][101] - The company transferred a 9.9134% equity interest in Sunshine Lake Pharma for RMB2,312,319,650 in December 2022[99][102] - Land use rights, fixed assets, and construction in progress totaling RMB1,499.17 million were pledged for bank loans and other borrowings as of 31 December 2022[105] - Total number of employees for the year ended 31 December 2022 was 4,167, with staff costs (including Directors' emoluments but excluding pension contributions) amounting to approximately RMB 612.18 million[108][109] - Age distribution of employees: 21.53% aged 30 or below, 75.59% aged 31-50, and 2.88% aged above 50[110] - Education level of employees: 2.11% with a Master's degree or above, 32.30% with a Bachelor's degree, 35.04% with an Associate degree, and 30.55% with Vocational or below qualifications[111] - Gender distribution of employees: 54.16% male and 45.84% female[119] - The company plans to increase the proportion of female employees, particularly in senior management roles, and will provide career development support and professional training for female employees[120] - The company has no immediate plans for significant investments or acquisitions of major capital assets as of 31 December 2022[106] - The company strictly complies with PRC labor laws and provides various social insurance premiums, housing provident funds, and additional benefits such as Corporate Annuity Plan, Housing Welfare, and Children's Welfare[113][115] - The company adheres to an Equal Employment system and ensures fair opportunities for both male and female employees in recruitment, promotion, and senior management elections[117][118] - The company's remuneration policy aims to motivate and retain talented employees, with regular reviews conducted by management[112][114] Product Portfolio and Market Performance - The Company has manufactured, promoted, and sold a total of 39 pharmaceutical products in China as of 31 December 2022[9] - Oseltamivir Phosphate, a core product, was included in the National Drug List for Basic Medical Insurance, Work-Related Injury Insurance, and Maternity Insurance (2022 Version)[9] - The company has a total of 39 pharmaceutical products in production, promotion, and sales in China as of December 31, 2022, supported by a nationwide distribution network and 1,726 professional sales personnel[10] - The core product, Kewei (Oseltamivir Phosphate), is a leading anti-flu drug in China, included in the National Essential Drug List (2018 edition) and the Influenza Diagnosis and Treatment Guidelines (2020 edition)[10] - The company launched several new products, including Insulin Aspart Injection, Insulin Glargine Injection, and Recombinant Human Insulin Injection[15][16][17] - Oseltamivir Phosphate Capsules became the first drug to pass the Consistency Evaluation in 2019[18] - The company's Kewei granule product became the only manufacturer of Oseltamivir Phosphate Granule in China in 2008[22] - Kewei product dominated the largest market share of Oseltamivir Phosphate products in China in 2013[22] - The company's Metoprolol Succinate Sustained-release Tablets and Azithromycin Tablets were approved for launch in 2022[29] - The company's self-developed Insulin Aspart Injection and Insulin Aspart 30 Injection were approved for launch in 2022[29] - Recombinant Human Insulin Injection and Insulin Glargine Injection were approved by the NMPA in 2022[29] - Rongliflozin L-Pyroglutamic Acid, a national Class 1 innovative new drug, is under Phase III clinical stage[29] - Biosimilar Liraglutide is under the pending submission stage of new drug application[29] - Isophane Protamine Recombinant Human Insulin Injection (Pre-mixed 30R) is under the approval stage of production registration in China[29] - 29 out of 33 generic drugs acquired from Sunshine Lake Pharma have been approved to launch by the NMPA, covering more diverse therapeutic areas[31] - Metoprolol Succinate Sustained-Release Tablets, Azithromycin Tablets, Insulin Aspart Injection, and Insulin Aspart 30 Injection have been approved to launch[37][38] - The 2022 National Reimbursement Drug List added 111 types of drugs, which will expand the market size of innovative drugs in China[40] - The company aims to enhance its product portfolio and market competitiveness through continuous innovation and new product launches[34] - The pharmaceutical industry in China is expected to stabilize, with a positive cycle and thriving development opportunities due to favorable policies[39] - The company focuses on developing drugs with independent intellectual property rights to reduce reliance on foreign drugs and improve therapeutic effects[41] - The demand for effective drugs from domestic pharmaceutical companies is expected to surge due to rising national income and drug quality expectations[42] - Sales of the core product Kewei amounted to RMB3,092.71 million, a 457.66% increase compared to the previous year, driven by normalized social activities and recovery in medical institutions[43][45] - 29 generic drugs acquired from Sunshine Lake Pharma were approved for launch by the NMPA, enriching the Group's product portfolio[44][45] - R&D investment in Rongliflozin L-Pyroglutamic Acid amounted to RMB39,887.19 thousand, accounting for 1.07% of revenue and 4.44% of operating costs[53] - R&D investment in Liraglutide amounted to RMB17,679.37 thousand, accounting for 0.47% of revenue and 1.97% of operating costs[53] - Revenue from Kewei (Oseltamivir Phosphate) Granules was RMB2,585.15 million, accounting for 69.03% of total revenue[53] - Revenue from Kewei (Oseltamivir Phosphate) Capsules was RMB507.55 million, accounting for 13.55% of total revenue[53] - Revenue from Ertongshu (Benzbromarone Tablets) was RMB98.42 million, accounting for 2.63% of total revenue[53] - Revenue from Oumeining (Telmisartan Tablets) was RMB62.92 million, accounting for 1.68% of total revenue[53] - Revenue of Olmesartan Tablets amounted to RMB44.26 million, accounting for 1.18% of total revenue[55] - Revenue of Clarithromycin Tablets amounted to RMB33.60 million, accounting for 0.90% of total revenue[55] - Total revenue of the six core products accounted for 88.97% of the total revenue during the Reporting Period[55] - The Group recorded a revenue of RMB3,744.95 million for the year ended 31 December 2022, representing a 309.83% increase compared to 2021[59] - Revenue from Kewei amounted to RMB3,092.70 million, representing a 457.66% increase compared to the corresponding period last year[59] - Anti-viral drugs revenue increased by 456.47% to RMB 3,116.06 million in 2022, driven by strong sales of Kewei (Oseltamivir Phosphate) Granules and Capsules[62] - Kewei (Oseltamivir Phosphate) Granules revenue surged by 450.64% to RMB 2,585.15 million, accounting for 69.03% of total revenue[62] - The Group has a total of 1,726 staff in its sales teams as of 31 December 2022[55] - The Group has started to expand its online pharmacy channel and cooperated with well-known online channel operators[55] - Kewei is included in the National Drug List for Basic Medical Insurance, Work-Related Injury Insurance, and Maternity Insurance (2022 Version)[55] - The Group adjusted the division of labor of the sales teams to focus on core products in graded hospitals, chain pharmacies, and centralized procurement markets[55] - The Group's sales teams are structured into self-operated, new retail, and centralized procurement teams to enhance market coverage[55] - The company acquired 33 generic drugs from Sunshine Lake Pharma, all approved for domestic declaration, with core products Kewei capsules and Benzbromarone tablets being the first to pass the Consistency Evaluation[164] - The company's core product Kewei faces less market competition, and the cost of distribution is under control, with the ability to achieve self-sufficiency in API production, reducing costs[164] - The national Medical Reimbursement Drug List added 111 types of drugs, with the market size of China's innovative drugs expected to steadily expand[164] - The company will increase R&D investment and accelerate the transformation of drug R&D into clinical applications in therapeutic areas such as anti-infective, endocrine, and metabolic diseases[166] - The company aims to strengthen product R&D and innovation capabilities, introduce new products, and enrich the existing product portfolio to enhance market competitiveness[166] - The company will optimize its scientific and sustainable marketing strategy, strengthen academic promotion, and further promote core products in graded hospitals and primary medical markets[166] - The company plans to create a highly recognized business image and reputation in the domestic market to lay a solid foundation for future product launches[166] - The company will focus on consolidating and expanding strategic target markets by grasping market demand and trends in the pharmaceutical industry[166] Strategic Partnerships and Collaborations - The company established a joint venture with TaiGen Biopharmaceuticals for clinical trials of Emitasvir Phosphate and Furaprevir combination therapy[11][12] - A strategic partnership with Jointown Pharmaceutical grants exclusive OTC channel distribution rights for Kewei products in mainland China for three years[11][12] - The company signed a cooperation agreement with Wuhan Institute of Virology and Sunshine Lake Pharma to establish a national antiviral drug center and emergency prevention drug platform[11][12] - The company entered into a leasing and services agreement with Shenzhen HEC Industrial, with proposed annual caps of RMB 12,383,300, RMB 12,999,500, and RMB 13,003,300 for the years ending 31 December 2025[148] - The company agreed to sell APIs to Shenzhen HEC Industrial with proposed annual caps of RMB 18,000,000, RMB 20,000,000, and RMB 22,000,000 for the years ending 31 December 2025[148] - The company agreed to purchase energy from Shenzhen HEC Industrial with proposed annual caps of RMB 50,400,000, RMB 56,750,000, and RMB 56,750,000 for the years ending 31 December 2025[149] - The company agreed to purchase APIs from Shenzhen HEC Industrial with proposed annual caps of RMB 38,946,300, RMB 53,786,800, and RMB 75,442,100 for the years ending 31 December 2025[149] - The company entered into an Energy Purchase Framework Agreement with Shenzhen HEC Industrial, with proposed annual caps of RMB50.4 million, RMB56.75 million, and RMB56.75 million for the years ending December 31, 2023, 2024, and 2025, respectively[150] - The company signed an APIs Purchase Agreement with Shenzhen HEC Industrial, with proposed annual caps of RMB38.9463 million, RMB53.7868 million, and RMB75.4421 million for the years ending December 31, 2023, 2024, and 2025, respectively[150] - The company established a Packaging and Production Materials Purchase Framework Agreement with Shenzhen HEC Industrial, with proposed annual caps of RMB40.6 million for each of the three years ending December 31, 2025[151] - The company entered into an Equipment Purchase and Civil Construction Framework Agreement with Shenzhen HEC Industrial, with proposed annual caps of RMB27.05 million, RMB7.9 million, and RMB7.9 million for the years ending December 31, 2023, 2024, and 2025, respectively[151] - The company signed an Entrusted Processing Framework Agreement with Shenzhen HEC Industrial, with proposed annual caps of RMB94.8055 million, RMB108.832 million, and RMB139.4682 million for the years ending December 31, 2023, 2024, and 2025, respectively[152] - The company entered into an Equipment Sales Framework Agreement with Shenzhen HEC Industrial, with a proposed annual cap of RMB30.4965 million for the year ending December 31, 2023[152] - The company established an Entrusted Production and Inspection Services Framework Agreement with Shenzhen HEC Industrial, with proposed annual caps of RMB105.23 million, RMB68.992 million, and RMB49.25 million for the years ending December 31, 2023, 2024, and 2025, respectively[153] - The above agreements and transactions are subject to approval by independent shareholders at an extraordinary general meeting[154] Corporate Governance and Leadership - Mr. Jiang Juncai, aged 41, has been the executive Director and general manager of the Company since May 2015, and is a member of the Remuneration and Evaluation Committee[175] - Mr. Wang Danjin, aged 53, has been the executive Director and deputy general manager of the Company since February 2006, and served as a supervisor of HEC Pharm from December 201
东阳光长江药业(01558) - 2022 - 年度财报