Financial Performance - The company's revenue for the six months ended June 30, 2023, reached RMB 2,398,680,000, representing a 32.1% increase compared to the same period last year[5]. - Net profit for the period was RMB 491,465,000, reflecting a 48.4% increase year-on-year[5]. - Earnings per share rose to RMB 0.65, an increase of 47.7% compared to the same period last year[5]. - Gross profit margin improved to 75.2%, up from 73.0% in the previous year[5]. - The group achieved a revenue increase of 32.1% in the first six months of 2023, with total revenue reaching RMB 2,398,680,000[17]. - Injection products generated revenue of RMB 957,253,000, up 37.3%, accounting for 39.9% of total revenue[17]. - The net profit for the first six months of 2023 was RMB 491,465,000, an increase of 48.4% compared to the same period last year[23]. Sales and Product Performance - Prescription drugs accounted for approximately 85.7% of total sales, while over-the-counter (OTC) drugs made up 14.3%[6]. - Oral product sales grew by 28.9% year-on-year, with significant contributions from soft capsules (19.0% increase), granules (28.5% increase), and traditional Chinese medicine granules (34.0% increase)[10]. - Sales of essential medicines listed in the national essential drug list increased by 57.0% to RMB 928,912,000, accounting for 38.7% of total sales, with 77.0% being prescription drugs[9]. - Prescription drug sales rose by 27.2% to RMB 2,056,849,000, while OTC drug sales surged by 72.6% to RMB 341,831,000[10]. - The company ranks among the top five in the national market for traditional Chinese medicine granules, with sales accounting for 26.2% of total sales and a 34.0% increase[11]. - The company’s injection products recorded a growth of 37.3%, driven by respiratory and cardiovascular prescription drugs[10]. Research and Development - The company is focusing on enhancing research and development, particularly in digital and intelligent supply chain projects[7]. - The group plans to enhance evidence-based medical research for exclusive oral prescription products and increase marketing efforts to boost sales[13]. - The company has continued to focus on the research and development of traditional Chinese medicine products, which is its primary operational segment[46]. Dividends and Shareholder Information - The board declared an interim dividend of RMB 0.11 per share for the fiscal year 2023[7]. - The company declared an interim dividend of RMB 0.31 per share for 2023, totaling RMB 234,174,000, compared to RMB 0.21 per share totaling RMB 158,634,000 for 2022, representing a 47.5% increase in dividend payout[53]. - As of June 30, 2023, the major shareholder, 富威, holds 546,802,990 shares, representing 66.12% of the company's equity[30]. Financial Position and Assets - Total assets as of June 30, 2023, amounted to RMB 7,441,052,000, an increase from RMB 6,782,399,000 as of December 31, 2022[40]. - Cash and bank balances amounted to approximately RMB 5,364,576,000 as of June 30, 2023, compared to RMB 4,831,946,000 on December 31, 2022[23]. - Inventory increased by 21.5% compared to December 31, 2022, with raw materials, work-in-progress, and finished goods accounting for 26.2%, 39.7%, and 34.1% of inventory, respectively[23]. Costs and Expenses - The sales cost for the first half of 2023 was RMB 594,723,000, representing 24.8% of total revenue[18]. - Sales and distribution costs increased by 24.3%, accounting for 42.7% of the group's revenue, compared to 45.4% in the same period last year[22]. - Administrative expenses rose by approximately 8.1%, representing 5.8% of the group's revenue, up from 7.0% in the same period last year[22]. - Research and development costs accounted for 2.0% of the group's revenue, compared to 1.6% in the same period last year[22]. Taxation and Compliance - The effective tax rate increased from 19.5% to 26.8%, primarily due to withholding tax from dividends distributed by domestic subsidiaries[22]. - The company recognized income tax expenses of RMB 179,823,000 for the first half of 2023, up from RMB 80,285,000 in the same period of 2022, reflecting a significant increase of 124.4%[51]. - The company’s subsidiaries in western China benefited from a reduced corporate income tax rate of 15% due to local tax incentives, compared to the standard rate of 25%[50]. Employee and Corporate Governance - The number of employees decreased to 3,533 as of June 30, 2023, from 4,131 as of December 31, 2022, reflecting a reduction of approximately 14.5%[24]. - The company has complied with the corporate governance code during the six months ending June 30, 2023, with all directors confirming adherence to the securities trading regulations[33]. - There have been no changes in director information that require disclosure under the listing rules for the six months ending June 30, 2023[34].
神威药业(02877) - 2023 - 中期财报