Revenue and Profit Growth - Revenue for the year ended December 31, 2023, was RMB 2,590,115,000, an increase of approximately 10.7% compared to the previous year[2] - Profit attributable to equity shareholders of the company for the year ended December 31, 2023, was RMB 784,534,000, an increase of approximately 14.9% compared to the previous year[2] - Basic and diluted earnings per share for the year ended December 31, 2023, were RMB 0.99 and RMB 0.98, respectively, representing increases of approximately 15.1% and 14.0% compared to the previous year[2] - Revenue from customer contracts in 2023 was RMB 2,590,115 thousand, a 10.7% increase from RMB 2,339,650 thousand in 2022[12] - The company achieved sales revenue of approximately RMB 2.59 billion in 2023, a year-on-year increase of 10.7%, with net profit attributable to equity shareholders of approximately RMB 780 million, up 14.9% year-on-year[66] - The company's revenue for 2023 was RMB 2,590,115,000, a 10.7% increase compared to RMB 2,339,650,000 in 2022[76] - The net profit attributable to shareholders for 2023 was RMB 784,534,000, a 14.9% increase from RMB 682,907,000 in 2022, with basic earnings per share of RMB 0.99, up 15.1% from RMB 0.86 in 2022[79] Segment Performance - Revenue from the nephrology drug segment in 2023 was RMB 1,741,298 thousand, up 11% from RMB 1,569,418 thousand in 2022[12] - Revenue from the gynecology and pediatric drug segment in 2023 was RMB 293,706 thousand, a 22.7% increase from RMB 239,393 thousand in 2022[12] - The Kangchen Pharmaceutical segment generated revenue of RMB 2,195,051 thousand in 2023, up 10.8% from RMB 1,981,051 thousand in 2022[16] - The Yulin Pharmaceutical segment generated revenue of RMB 395,064 thousand in 2023, up 10.2% from RMB 358,599 thousand in 2022[16] - The renal drug segment generated sales revenue of approximately RMB 1.74 billion in 2023, a year-on-year increase of 11.0%, with the flagship product Niaoduqing Granules contributing approximately RMB 1.65 billion, up 10.2% year-on-year[66] - The medical imaging contrast agent segment recorded sales revenue of approximately RMB 1.56 billion in 2023, a slight decrease of 4.6% year-on-year, with Iopamidol Injection passing consistency evaluation in December 2023[67] - The women and children's drug segment achieved sales revenue of approximately RMB 290 million in 2023, a year-on-year increase of 22.7%, driven by the success of Yuanlikang® Dextran Iron Oral Solution[67] - Yulin Pharmaceutical Division reported sales revenue of approximately RMB 400 million in 2023, a year-on-year increase of 10.2%, with profit of approximately RMB 40 million, marking the third consecutive year of recovery[67] Gross Profit and Operating Profit - Gross profit for the year ended December 31, 2023, was RMB 1,921,678,000, compared to RMB 1,762,912,000 in the previous year[4] - Operating profit for the year ended December 31, 2023, was RMB 884,967,000, compared to RMB 757,326,000 in the previous year[4] - Gross profit for the Kangchen Pharmaceutical segment in 2023 was RMB 1,721,408 thousand, a 9.3% increase from RMB 1,574,367 thousand in 2022[16] - Gross profit for the Yulin Pharmaceutical segment in 2023 was RMB 200,270 thousand, up 6.2% from RMB 188,545 thousand in 2022[16] - The gross profit for 2023 was RMB 1,921,678,000, a 9.0% increase from RMB 1,762,912,000 in 2022, with a gross margin of 74.2%, down 1.1 percentage points from 75.3% in 2022[77] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 4,278,080,000, compared to RMB 3,622,671,000 in the previous year[6] - Net current assets as of December 31, 2023, were RMB 2,783,084,000, compared to RMB 2,272,183,000 in the previous year[6] - Total equity attributable to equity shareholders of the company as of December 31, 2023, was RMB 3,626,503,000, compared to RMB 3,145,139,000 in the previous year[7] - Total assets for the reportable segments in 2023 were RMB 5,488,737 thousand, a 13.1% increase from RMB 4,853,413 thousand in 2022[16] - Total liabilities for the reportable segments in 2023 were RMB 1,482,510 thousand, up 10.1% from RMB 1,346,440 thousand in 2022[16] - The company's inventory balance as of December 31, 2023, was RMB 367,087,000, a 33.0% increase from RMB 276,080,000 at the end of 2022[80] - The company's trade receivables and notes balance as of December 31, 2023, was RMB 255,838,000, a 1.4% decrease from RMB 259,562,000 at the end of 2022[79] - The company's trade payables balance as of December 31, 2023, was RMB 83,098,000, a 38.7% increase from RMB 59,891,000 at the end of 2022[81] - Cash and cash equivalents stood at RMB 2,748,262 thousand in 2023, up from RMB 2,450,173 thousand in 2022[56] - Trade payables increased to RMB 83,098 thousand in 2023 from RMB 59,891 thousand in 2022[57] - Contract liabilities decreased to RMB 16,008 thousand in 2023 from RMB 37,714 thousand in 2022[58] - Bank loans due within one year or on demand amounted to RMB 503,418 thousand in 2023, up from RMB 450,521 thousand in 2022[60] - Deferred income at the end of 2023 was RMB 20,730 thousand, slightly down from RMB 21,190 thousand in 2022[62] - Lease liabilities due within one year or on demand were RMB 4,218 thousand in 2023, compared to RMB 3,708 thousand in 2022[64] - Cash and bank balances increased by 12.2% to RMB 2,748,262,000 as of December 31, 2023, compared to RMB 2,450,173,000 in 2022[83] - Total loans and borrowings increased by 11.7% to RMB 503,418,000 as of December 31, 2023, compared to RMB 450,521,000 in 2022[83] - Capital-to-debt ratio decreased to 13.9% as of December 31, 2023, from 14.3% in 2022, driven by increased operating profits[85] - Capital commitments amounted to RMB 532,903,000 as of December 31, 2023, up from RMB 450,758,000 in 2022[88] Dividends and Shareholder Returns - The company proposed a final dividend of HK0.45 per share[2] - Total dividends paid to equity shareholders in 2023 were RMB 330,190 thousand, including an interim dividend of RMB 109,068 thousand and a proposed final dividend of RMB 221,122 thousand[34] - The company proposed a final dividend of HKD 0.3 per share for 2023, bringing the total dividend for the year to HKD 0.45 per share, representing approximately 42% of the annual profit[73] - The company proposed a final dividend of HK3.28 to HK3,843,000 (approximately RMB 3,495,000)[104] - The weighted average closing price of the company's shares immediately before the exercise date of the share options was approximately HK$5.01[104] Property, Plant, and Equipment - Investment properties had a net book value of RMB 14,634 thousand as of December 31, 2023, down from RMB 15,127 thousand in 2022[36] - Future undiscounted lease payments for investment properties as of December 31, 2023, totaled RMB 1,219 thousand, with RMB 222 thousand due within one year[37] - Property, plant, and equipment had a net book value of RMB 739,056 thousand as of December 31, 2023, slightly down from RMB 746,213 thousand in 2022[38] - The total cost of right-of-use assets increased to RMB 161,617 thousand in 2023, up from RMB 159,246 thousand in 2022, with additions of RMB 2,371 thousand in 2023 compared to RMB 846 thousand in 2022[39][40] - The company added RMB 1,000 thousand to its intangible assets in 2023, bringing the total cost to RMB 510,516 thousand[43][44] - Accumulated amortization of intangible assets increased to RMB 221,887 thousand in 2023 from RMB 192,123 thousand in 2022[44][45] - The net book value of intangible assets decreased to RMB 283,140 thousand in 2023 from RMB 311,904 thousand in 2022[47] - The company's prepayments for property, plant, and equipment rose to RMB 41,358 thousand in 2023 from RMB 24,747 thousand in 2022[49] Trade Receivables and Payables - Trade receivables, net of impairment, increased to RMB 195,068 thousand in 2023 from RMB 163,237 thousand in 2022[53] - Trade receivables and bills receivable totaled RMB 255,838 thousand in 2023, a slight decrease from RMB 259,562 thousand in 2022[54] - Other receivables of RMB 3,253 thousand were fully impaired as of December 31, 2023, compared to RMB 524 thousand in 2022[54] - Prepayments for raw materials and other items increased to RMB 17,823 thousand in 2023 from RMB 11,583 thousand in 2022[55] Risk Management and Sustainability - The company faces currency risk due to transactions primarily denominated in RMB and HKD, with no hedging against foreign exchange risk[86] - The company maintains a prudent treasury policy, focusing on liquidity management and credit risk reduction[84] - The company adheres to environmental sustainability practices, encouraging resource conservation and recycling[91] Regulatory and Market Environment - The National Medical Insurance Bureau issued the "National Basic Medical Insurance, Work Injury Insurance, and Maternity Insurance Drug List (2023)" on December 13, 2023, which will be officially implemented from January 1, 2024[95] - The National Medical Insurance Bureau issued a notice at the end of 2023 to promote fair, transparent, and balanced inter-provincial pricing for drugs with the same generic name, dosage form, specification, and manufacturer[96] Corporate Governance and Audits - The company's Audit Committee reviewed the financial controls, risk management, and internal control systems, ensuring effective systems and sufficient resources for financial reporting and internal audit functions[101] - The company's external auditor, KPMG, confirmed that the financial data disclosed in the announcement matched the audited consolidated financial statements for the year ended December 31, 2023[102] Shareholder Meetings and Reporting - The Annual General Meeting (AGM) will be held on May 31, 2024 (Friday)[105] - The company will suspend share transfer registration from May 28, 2024, to May 31, 2024, for the AGM[107] - The annual report for the year ended December 31, 2023, will be published on the company's website and the HKEX website[108] Production Capacity and Brand Value - The company's production capacity continued to improve, with the Xinjiang Horgos Base Phase II production line project commencing
康臣药业(01681) - 2023 - 年度业绩