Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately RMB 1,088.4 million, a decrease of 0.5% compared to RMB 1,094.3 million for the same period in 2023[1]. - Gross profit for the same period was approximately RMB 627.0 million, down 7.1% from RMB 675.0 million, with a gross margin decrease of 4.1 percentage points to about 57.6%[1]. - Profit attributable to equity holders of the parent was approximately RMB 83.4 million, representing a decrease of about 38.2% compared to RMB 134.9 million for the same period in 2023[1]. - Basic earnings per share for the six months ended June 30, 2024, were approximately RMB 0.099, down 37.7% from RMB 0.159 for the same period in 2023[1]. - The total comprehensive income for the period was RMB 84.0 million, down from RMB 136.3 million in the previous year[5]. - The group's operating profit before tax for the six months ended June 30, 2024, was RMB 105,019, compared to RMB 105,019 in the previous year, indicating stability in profitability[19]. - The group reported total other income of RMB 18,074 for the six months ended June 30, 2024, down from RMB 25,152 in 2023, representing a decrease of approximately 28%[21]. - The total income tax expense for the six months ended June 30, 2024, was RMB 20,767,000, a decrease of 34.5% compared to RMB 31,667,000 for the same period in 2023[24]. - The current income tax for mainland China was RMB 21,396,000 for the six months ended June 30, 2024, down from RMB 40,983,000 in the previous year, representing a decline of 47.8%[24]. - Profit attributable to equity holders of the parent company decreased by 38.2% to RMB 83.4 million for the six months ended June 30, 2024, compared to RMB 134.9 million for the same period in 2023, with a net profit margin of 7.7%[70]. Dividends - The board of directors recommended not to declare any interim dividend for the six months ended June 30, 2024, compared to an interim dividend of HKD 0.06 per share for the same period in 2023[1]. - The company did not declare an interim dividend after June 30, 2024, compared to RMB 51,816,000 for the six months ended June 30, 2023[25]. - The company declared a final dividend of HKD 0.06 per ordinary share and a special dividend of HKD 0.03 per ordinary share for the previous financial year, totaling approximately RMB 69,503,000 after adjustments[25]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled RMB 984.8 million, an increase from RMB 918.5 million as of December 31, 2023[7]. - Current assets increased to RMB 976.9 million from RMB 874.1 million as of December 31, 2023, with inventories rising to RMB 344.4 million[7]. - Current liabilities rose to RMB 700.2 million from RMB 608.6 million as of December 31, 2023[7]. - Total equity as of June 30, 2024, was RMB 1,111.6 million, compared to RMB 1,053.3 million as of December 31, 2023[9]. - The carrying amount of properties, plant, and equipment as of June 30, 2024, was RMB 578,389,000, an increase from RMB 498,367,000 as of December 31, 2023[29]. - The company's cash and cash equivalents totaled RMB 162,908,000 as of June 30, 2024, slightly down from RMB 164,368,000 on December 31, 2023, showing a decrease of about 0.9%[37]. - Trade payables as of June 30, 2024, were RMB 148,825,000, an increase from RMB 140,766,000 as of December 31, 2023, representing a growth of approximately 5.0%[39]. - The company's net trade receivables amounted to RMB 294,512,000, a significant increase from RMB 192,033,000 as of December 31, 2023, representing a growth of approximately 53.4%[34]. - The company's inventory value as of June 30, 2024, was RMB 344,374,000, compared to RMB 330,017,000 on December 31, 2023, indicating a rise of about 4.4%[33]. Segment Performance - The pharmaceutical segment generated revenue of RMB 778.7 million for the six months ended June 30, 2024, an increase of 0.8% compared to RMB 772.6 million for the same period in 2023, accounting for 71.5% of total revenue[60]. - The retail pharmacy segment reported a revenue decrease of 3.7% to RMB 309.7 million for the six months ended June 30, 2024, down from RMB 321.7 million in the same period in 2023, representing 28.5% of total revenue[60]. Expenses - The cost of goods sold for the six months ended June 30, 2024, was RMB 461,380, an increase from RMB 419,365 in 2023, reflecting a rise of approximately 10%[22]. - Research and development expenses for the six months ended June 30, 2024, amounted to RMB 22,886, up from RMB 20,551 in 2023, marking an increase of about 11.3%[22]. - The total administrative expenses for the six months ended June 30, 2024, were RMB 52,645, compared to RMB 52,645 in the previous year, showing no change[19]. - Selling and distribution expenses increased by approximately 0.8% to RMB 448.5 million for the six months ended June 30, 2024, compared to RMB 445.0 million for the same period in 2023, representing 41.2% of revenue[67]. - The group’s total employee benefits expenses, including director remuneration, were RMB 164,280 for the six months ended June 30, 2024, compared to RMB 141,411 in 2023, representing an increase of approximately 16%[22]. Governance and Compliance - The company confirms adherence to corporate governance standards and has established a written terms of reference for its audit committee[84]. - The financial data for the six months ending June 30, 2024, has been prepared in accordance with the Hong Kong Stock Exchange's listing rules and International Accounting Standards[12]. - The company has adopted accounting policies consistent with those used for the annual consolidated financial statements for the year ending December 31, 2023[13]. Future Outlook - The company anticipates that the pharmaceutical industry will experience healthy development driven by the increasing healthcare needs of the population, despite short-term pressures from rising prices of certain Chinese medicinal materials[56]. - The company is focused on implementing a health-first development strategy to meet the growing medical and healthcare demands of the public[56]. - The company is accelerating the development of new products in the wall-breaking herbal tea category and entering new sales channels[57]. - The company has established an international standard for wall-breaking traditional Chinese medicine products, which supports the standardization and innovation of these products in the international market[57].
中智药业(03737) - 2024 - 中期业绩