Financial Overview - The Group's consolidated financial statements are presented in Renminbi (RMB), which is both the functional and presentation currency[1]. - As of December 31, 2023, the carrying amount of trade payables was RMB 70,582,000 and other payables and accruals amounted to RMB 552,833,000[7]. - The total contractual undiscounted cash flow for trade payables and other payables as of December 31, 2023, was RMB 70,582,000 and RMB 552,833,000 respectively[7]. - The Group's bank borrowings amounted to RMB 80,000,000 with an effective interest rate of 2.5%[10]. - As of December 31, 2023, the total carrying amount of financial liabilities was RMB 739,204,000[7]. - The Group's liquidity management includes monitoring cash reserves to meet short and long-term liquidity requirements[5]. - The Group's policy includes regular monitoring of liquidity requirements and compliance with lending covenants[5]. - The Group's total financial liabilities measured at amortised cost were RMB 739,204,000 in 2023, compared to RMB 631,433,000 in 2022, indicating an increase in financial obligations[42]. - The Group's profit before income tax for 2023 was RMB 198,314,000, slightly up from RMB 197,345,000 in 2022[78]. - Cash generated from operations increased to RMB 376,934,000 in 2023, compared to RMB 241,755,000 in 2022, indicating improved operational efficiency[78]. - Net cash generated from operating activities rose to RMB 315,947,000 in 2023, up from RMB 203,992,000 in 2022[78]. - The Group's revenue for the year ended December 31, 2023, was RMB 841,545,000, a slight decrease of 0.05% compared to RMB 841,586,000 in 2022[36]. Cash Flow and Investments - Net cash generated from investing activities was RMB 109,043,000 in 2023, a significant improvement from a net cash used of RMB (117,971,000) in 2022[16]. - Cash and cash equivalents at the end of the year increased to RMB 352,137,000 in 2023, compared to RMB 113,601,000 in 2022[16]. - The company purchased financial assets at fair value through profit or loss amounting to RMB (170,000,000) in 2023, down from RMB (300,000,000) in 2022[16]. - The company reported a cash flow from the disposal of property, plant, and equipment amounting to RMB (31,841,000) in 2023, up from RMB (11,317,000) in 2022[16]. - The Group's financial assets at fair value through profit or loss (FVTPL) decreased to RMB 90,608,000 in 2023 from RMB 263,074,000 in 2022, representing a decline of approximately 65.5%[40]. - The opening balance of financial assets at FVTPL was RMB 263,074,000 at the beginning of 2023, with a closing balance of RMB 90,608,000, indicating a net decrease of RMB 172,466,000 during the year[71]. Revenue and Profitability - The Group's revenue is recognized when control of goods or services is transferred to the customer, primarily upon acceptance of the products[28]. - Revenue from the sale of goods is recognized at the point control of the inventory has passed to the customers[30]. - The Group's revenue recognition from contracts with customers occurs at a point in time, with contracts typically having an expected duration of one year or less[36]. - The profit for the year attributable to owners of the Company decreased to RMB 148,207,000 from RMB 193,565,000, a decrease of approximately 23.4%[181]. - Basic earnings per share decreased to RMB 26.45 cents from RMB 34.55 cents, reflecting a decline of about 23.5%[181]. - The profit attributable to owners of the company for the year ended December 31, 2023, was RMB 44,987,000, a significant decrease from RMB 196,054,000 in 2022, reflecting a decline of approximately 77%[125]. Government Subsidies and Other Income - The company received government subsidies totaling RMB 17,216,000 in 2023, while dividends paid amounted to RMB (283,670,000)[16]. - The Group recognized government subsidies totaling RMB 17,216,000 in 2023, compared to RMB 504,000 in 2022, indicating increased support for business and technology development[83]. - Total other income for the Group increased to RMB 63,484,000 in 2023 from RMB 56,662,000 in 2022, marking an increase of approximately 12.9%[62]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 1,201,141,000, a decrease from RMB 1,767,477,000 in 2022, reflecting a decline of approximately 32.1%[103]. - The company has unsecured bank borrowings of RMB 80,000,000, with RMB 8,000,000 due within one year and RMB 72,000,000 due in the second year[95]. - The current portion of other payables rose to RMB 549,963,000 in 2023 from RMB 526,414,000 in 2022, representing an increase of approximately 4.5%[113]. - The total equity attributable to owners of the company as of December 31, 2023, was RMB 1,480,380,000, down from RMB 1,612,298,000 in 2022, indicating a decrease of about 8.2%[110]. Risk Management - The Group does not have significant exposure to foreign currency exchange rate risks as most transactions are settled in Renminbi[13]. - The Group's interest rate risk primarily arises from borrowings from banks and the Huinan County Finance Bureau[10]. - A 100 basis point increase or decrease in interest rates would result in a post-tax profit change of RMB 683,000 for the Group[11]. - The Group is not exposed to any equity price risk or commodity price risk[38]. Corporate Governance and Compliance - The company has confirmed that the information in the annual report is accurate and complete in all material respects[134]. - The company operates in a market that may experience higher volatility due to its focus on small and mid-sized companies[132]. - The company is listed on the GEM of the Stock Exchange of Hong Kong, which is designed for companies with higher investment risks[131]. Research and Development - The Company is strengthening new drug research and development, collaborating with domestic universities and research institutions, and has reported 22 consistency evaluation varieties[172]. - The Company has partnered with Mirable Pharmaceutical Technology to improve quality management and training for employees, aiming for high-quality product manufacturing[169]. - The R&D department completed the development of Hai Kun Shen Xi Jiao Nang in 2003, which has become the largest contributor to revenue[189]. - The Company is focusing on healthcare industrial projects to support sustainable development, leveraging unique geographical resources[170]. Employee Compensation - The total remuneration for executive directors in 2023 amounted to RMB 2,475,000, which includes salaries, allowances, and discretionary bonuses[147]. - The discretionary bonuses for executive directors were determined based on the Group's operating results and individual performance[148]. - Senior executives' remuneration for the year ended December 31, 2023, totaled RMB 313,000, with individual payments below RMB 1,000,000[197].
吉林长龙药业(08049) - 2023 - 年度财报