Company History and Commitment to Quality - Beijing Tong Ren Tang has a long history of providing quality Chinese medicine, having served the royal family for 188 years since 1723[7] - The company emphasizes a commitment to quality, stating "Never cut corners on labour and quality" despite the complexity and cost of materials[7] - The annual report highlights a dedication to meticulous manufacturing processes and the use of superior raw materials[7] - The company has maintained its reputation as a national brand, overcoming various challenges throughout its 349-year history[7] - Beijing Tong Ren Tang's products are recognized for their unique formulas and significant therapeutic effects, contributing to its esteemed reputation both domestically and internationally[7] - The company continues to focus on innovation and development in its product offerings to meet evolving market demands[7] - The company aims to leverage its historical credibility to strengthen its position in the competitive Chinese medicine market[7] - Beijing Tong Ren Tang is committed to upholding traditional practices while integrating modern techniques in its operations[7] Financial Performance - Revenue for 2018 reached HK$1,513,873,000, a 19.6% increase from HK$1,265,994,000 in 2017[22] - Gross profit for 2018 was HK$1,078,421,000, representing a gross profit margin of 71.2%[23] - Profit attributable to owners of the Company for 2018 was HK$580,720,000, up from HK$489,967,000 in 2017, marking a 18.5% increase[22] - Earnings per share for 2018 increased to HK$0.69 from HK$0.59 in 2017[23] - The Group's revenue increased by 19.6% to HK$1,513.9 million in the year, up from HK$1,266.0 million in 2017[41] - Net profit rose by 19.0% to HK$601.3 million, compared to HK$505.5 million in the previous year[41] - Profit attributable to owners of the Company increased by 18.5% to HK$580.7 million, up from HK$490.0 million in 2017[41] - The Group's earnings per share increased to HK$0.69, up from HK$0.59 in 2017[41] Market Expansion and Internationalization - Future strategies include expanding distribution networks to enhance market reach and accessibility[7] - The Company was included in the Hang Seng Family of Indexes in August 2018, enhancing its market visibility[20] - The Company became eligible for trading through Shenzhen-Hong Kong Connect in September 2018, expanding its trading options[20] - The company implemented a new business model in Italy focused on product admission, enhancing its overseas business development[29] - The company held the "2nd International Chinese Medicine Cultural Festival" to promote TCM culture, showcasing values such as "harmony between heaven and man" to audiences in Europe and the US[31] - The company participated in the "15th World Congress of Chinese Medicine" in Italy, promoting TCM globally and engaging with local politicians and citizens[32] - The internationalization of Traditional Chinese Medicine (TCM) is gaining momentum, with TCM now recognized in over 100 WHO member countries[52] - The company aims to strengthen its overseas influence through cultural promotion and charity activities, focusing on high-quality and innovative development[34] Product Development and Innovation - The company is committed to enhancing its scientific technologies and healthcare capabilities to facilitate the scientification of Traditional Chinese Medicine (TCM)[27] - The product line includes innovative formulations such as collagen capsules combined with Milk Mineral Salt and Cervus Elaphus Linnaeus, utilizing advanced manufacturing technology[95] - The report indicates that the company has expanded its product offerings to include new herbal formulations and health supplements[98] - The company emphasizes the health benefits of Antrodia camphorata, which aids in liver protection and immune regulation[92] - The company reported a significant focus on Korean Red Ginseng products, which are known to enhance immune function, improve blood circulation, and combat fatigue[93] Sustainability and Environmental Commitment - The 2018 Environmental, Social, and Governance Report highlights the company's commitment to sustainable practices across its operations in Asia, Oceania, the Americas, Europe, and Africa[100] - The Group is focused on minimizing environmental impacts during production, particularly concerning biodiversity[101] - The Group aims to optimize stakeholder communication and establish a long-term communication program for sustainability expectations[101] - The Group emphasizes compliance with environment-related laws and regulations as part of its sustainability efforts[117] - The Group's carbon emissions assessment was conducted based on international standards, including the Greenhouse Gas Protocol and ISO14064-1[181] - The Group aims to enhance its environmental performance through standardized emission management and resource conservation measures[180] Human Resources and Employee Development - The Group aims to recruit, retain, and cultivate talent to ensure sufficient human resources for future development[103] - The Group collaborates with local and overseas schools to attract and cultivate local talents[103] - The Group's total carbon emissions for the Year were 2,565.2 tonnes, with approximately 88% coming from purchased electricity (Scope 2) and about 4% from fossil fuel combustion in stationary sources (Scope 1)[184] - The total number of employees worldwide is 900, with a gender distribution of 31% male and 69% female[163] - The Group aims to create a friendly, equal, and safe working environment to enhance employee development[165] - The Group provides annual training plans, including monthly training sessions on various safety themes[157] - The Group emphasizes employee development through tailored training programs based on job requirements, covering corporate culture, conduct, and job skills[175] Quality Control and Risk Management - The Group has established a risk management and internal control system, continuously monitored by the Board for effectiveness[102] - The Group adheres to Good Manufacturing Practice (GMP) and international standards such as ISO22000 and HACCP to ensure product quality management[102] - The Group emphasizes the importance of product quality management to prevent the distribution of defective products in the market[102] - The quality department conducts product testing for samples in case of returns, ensuring quality control measures are in place[141] - The Group has regulated its production technique to ensure product production quality[154]
同仁堂国药(03613) - 2018 - 年度财报