Business Operations - The Group operates 251 retail pharmacies primarily located in Northeast China, with approximately 1,656 active distributors and 2,555 full-time staff[9]. - The Group has established five large-scale logistics storage centers in Shijiazhuang, Shenyang, Changchun, Harbin, and Jiamusi, enhancing its distribution system across the country[9]. - The main product categories include prescribed drugs, non-prescribed drugs, traditional Chinese medicine, medical equipment, and health care products, among others[10]. - The Group aims to expand its product mix by introducing more health care products and exploring upstream ecological chains, including the construction of Chinese herbal medicine bases[14]. - The Group is actively exploring online pharmacies, cross-border e-commerce, and influencer marketing as part of its "Internet+" strategy[15]. - The Group emphasizes the concept of "Specialization+" and the development concept of "Platform+" to enhance its market position[15]. - The Group's focus on the universal health industry positions it as a leading practitioner in the "Internet + Universal Health" strategy[8]. - The Group's retail business recorded sales revenue of RMB 365.3 million for the Year, representing a year-on-year decrease of 15.8% compared to RMB 433.7 million in 2022[67]. - The Group's distribution business achieved sales revenue of RMB 931.7 million, reflecting a year-on-year increase of 10.9% from RMB 839.9 million in 2022[71]. Financial Performance - For the year ended June 30, 2023, the revenue was RMB 1,297.0 million, representing a 1.8% increase from RMB 1,273.6 million in 2022[25]. - Gross profit for the same period was RMB 213.8 million, up 4.7% from RMB 204.2 million in 2022[25]. - The operating loss improved significantly to RMB (98.4) million, a reduction of RMB 90.3 million compared to RMB (188.7) million in 2022[25]. - The net loss for the year was RMB (106.1) million, which is an improvement of RMB 81.9 million from RMB (188.0) million in 2022[25]. - Adjusted EBITDA improved to RMB (71.8) million, a positive change of RMB 68.9 million from RMB (140.7) million in 2022[25]. - Basic loss per share improved to RMB (18.07) cents, a positive change of RMB 24.59 cents from RMB (42.66) cents in 2022[25]. - The gross margin increased to 16.5%, up 0.5 percentage points from 16.0% in 2022[25]. - The current ratio decreased to 0.9 times, down from 1.1 times in 2022[25]. - Loss attributable to owners of the Company decreased to RMB105.4 million from RMB187.6 million in the previous year, representing a reduction of about 43.8%[88]. - Loss per share improved to RMB18.07 cents, down from RMB42.66 cents in 2022, indicating a significant enhancement in financial performance[88]. Market Trends and Strategy - The market size of China's pharmaceutical industry was RMB 1,658.6 billion in 2022 and is expected to reach RMB 1,797.7 billion by the end of 2023[34]. - The company observed three major trends in China's new healthcare retail: diversified healthcare service channels, integration of online and offline services, and more diversified healthcare consumption[42]. - The company plans to improve the operation quality of its retail chain stores and increase the categories of pharmaceutical products[42]. - The company aims to develop value-added services in stores to meet diverse consumer needs[42]. - The Chinese pharmaceutical industry continues to face fierce market competition and pressure on drug prices despite maintaining good development momentum[51]. Corporate Governance and Compliance - The Group's corporate governance includes a structured board with various committees to oversee operations and compliance[18]. - The Group has established management policies to ensure compliance with local employment laws, including provisions for labor wages and benefits[183]. - The Group prohibits the employment of child labor and has strict recruitment processes to avoid such practices[185]. Environmental and Social Responsibility - The Group is committed to reducing environmental impact through policies that streamline operations and minimize resource consumption[153]. - The Group's corporate social responsibility efforts focus on sustainable development in environmental, operational, and community aspects[146]. - The Group's environmental, social, and governance (ESG) vision includes ambitious measures to address climate impact and enhance sustainability practices[145]. - The Group actively engages in community participation and public welfare initiatives, reinforcing its commitment to social responsibility[151]. - The Group promotes environmental protection education among stakeholders, ensuring manufacturers comply with national environmental regulations and use eco-friendly materials[160]. Employee Management and Welfare - As of June 30, 2023, the Group had 2,555 employees, with 99.7% located in mainland China[182]. - The total number of employees decreased from 3,396 in June 2022 to 2,555 in June 2023, indicating a reduction of approximately 24.8%[190]. - The employee turnover rate for general staff aged 18-29 was 46.4% for the year ended June 30, 2023, compared to 79.0% for the previous year[193]. - The Group provides social insurance for employees, including employment injury insurance[196]. - The Group emphasizes the importance of occupational health and safety, implementing policies and procedures to create an ideal and safe working environment for employees[197].
大健康国际(02211) - 2023 - 年度财报