Financial Performance - The company's revenue for the year ended March 31, 2024, was HKD 59,098,000, a decrease of 18.6% compared to HKD 72,577,000 in 2023[3] - Gross profit for the same period was HKD 28,779,000, down 7.5% from HKD 31,143,000 in the previous year[3] - The net loss for the year was HKD 161,640,000, compared to a profit of HKD 129,773,000 in 2023, indicating a significant decline in performance[3] - The company's total comprehensive loss for the year was HKD 164,071,000, compared to a comprehensive income of HKD 116,646,000 in the prior year[5] - Basic and diluted loss per share for the year was HKD 6.82, compared to earnings per share of HKD 5.41 in the previous year[5] - The company reported a net loss of HKD 161,640 thousand for the year 2024, compared to a profit of HKD 129,773 thousand in 2023[21] - The group reported an operating loss before tax of approximately HKD 159.5 million, a significant decline from a profit of HKD 130.9 million in the previous year[46] Assets and Liabilities - Non-current assets decreased to HKD 1,109,747,000 from HKD 1,266,211,000, reflecting a reduction of approximately 12.4%[7] - Current assets slightly decreased to HKD 177,442,000 from HKD 178,663,000, showing a marginal decline of 0.7%[7] - The company's total liabilities decreased from HKD 106,290,000 in 2023 to HKD 123,206,000 in 2024, indicating an increase in non-current liabilities[8] - The total assets of the company as of 2024 amounted to HKD 1,287,189 thousand, a decrease from HKD 1,444,874 thousand in 2023[24] - The total liabilities increased to HKD 174,578 thousand in 2024 from HKD 163,304 thousand in 2023, representing a rise of 6.5%[24] Inventory and Receivables - The company reported a significant increase in inventory, rising to HKD 7,265,000 from HKD 3,018,000, which is an increase of 141.5%[7] - Trade receivables decreased to HKD 43,189,000 in 2024 from HKD 45,701,000 in 2023, with a provision for impairment of HKD 39,422,000[37] - Trade receivables aging analysis showed that HKD 1,794,000 was within 90 days, down from HKD 2,987,000 in 2023, indicating a decline in short-term receivables[38] Income and Expenses - Total other income increased to HKD 6,203,000 in 2024 from HKD 3,707,000 in 2023, driven by higher bank interest income[27] - The company experienced a significant fair value loss on financial assets, with a loss of HKD 132,966,000 from convertible bond investments in 2024, compared to a gain of HKD 158,623,000 in 2023[29] - Research and development costs decreased to HKD 194,000 in 2024 from HKD 881,000 in 2023, indicating a reduction in investment in new technologies[30] - The company’s total depreciation and amortization expenses were HKD 9,045,000 in 2024, compared to HKD 8,797,000 in 2023[30] - The company’s income tax expense increased to HKD 2,131,000 in 2024 from HKD 1,128,000 in 2023, reflecting higher taxable profits in China[31] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, with some deviations noted, including the rotation of directors every three years[80] - The roles of the chairman and CEO are held by the same individual, which the company believes maintains a balance of power due to consultation with the board[82] - An audit committee has been established to review financial reporting and risk management, consisting of three independent non-executive directors[86] Strategic Developments - The company has implemented new Hong Kong Financial Reporting Standards, which may impact future financial reporting and disclosures[11] - The company expects that the application of all new Hong Kong Financial Reporting Standards will not have a significant impact on its consolidated financial statements in the foreseeable future[17] - The company has changed its accounting policy regarding the offsetting arrangement for long service payments, which will take effect from May 1, 2025[14] - The group remains cautiously optimistic about future developments, focusing on enhancing production capacity and efficiency to meet unmet medical needs[68] Employee and Operational Metrics - The group employed 159 staff as of March 31, 2024, down from 181 in 2023, with total employee costs for the year being approximately HKD 19,700,000, a decrease from HKD 21,100,000 in 2023[77] - Administrative, sales, and distribution expenses decreased to approximately HKD 35.3 million, down by about HKD 7.1 million or 16.7% compared to the previous year[44] - Sales and distribution expenses decreased to approximately HKD 13,200,000, a reduction of about HKD 3,500,000 or 21.0% compared to HKD 16,700,000 in 2023, primarily due to management's efforts in budget control[65] - Administrative expenses amounted to approximately HKD 22,200,000, down by about HKD 3,600,000 or 13.9% from HKD 25,700,000 in 2023, mainly due to a decrease in operational costs[66] Future Outlook - The commercialization timeline for the oral insulin product has been reassessed, now expected around Q1 2026[58] - The estimated future economic benefits from the ongoing R&D are based on a ten-year period post-commercialization[61] - Key parameters for cash flow forecasts include a discount rate of 26.8%, a growth rate of 2.2%, and a gross margin of 56.0%[61]
精优药业(00858) - 2024 - 年度业绩