Financial Performance - Total 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 in the same period of 2023[7]. - Profit attributable to equity holders for the period was approximately RMB 83.4 million, down about 38.2% from RMB 134.9 million in the same period of 2023[7]. - Basic earnings per share were RMB 0.099, a decrease of approximately 37.7% from RMB 0.159 in the same period of 2023[7]. - Gross profit for the group was RMB 627.0 million, a decrease of RMB 47.9 million or 7.1% from RMB 675.0 million for the same period in 2023[12]. - The group reported a profit before tax of RMB 105,019,000 for the six months ended June 30, 2024, compared to RMB 167,819,000 in the same period of 2023[51][58]. - Net profit for the period was RMB 84,252 thousand, down 38.2% from RMB 136,152 thousand in the prior year[34]. - The company reported a total comprehensive income of RMB 84,037 thousand for the period, down 38.4% from RMB 136,332 thousand in the same period last year[35]. Revenue Breakdown - Pharmaceutical segment revenue increased by approximately 0.8% to RMB 778.7 million, accounting for 71.5% of total revenue[9]. - Retail pharmacy segment revenue decreased by 3.7% to RMB 309.7 million, accounting for 28.5% of total revenue[8]. - The pharmaceutical segment generated revenue of RMB 778,700,000, while the retail pharmacy segment contributed RMB 309,726,000[50]. Expenses and Costs - Selling and distribution expenses increased by approximately 0.8% to RMB 448.5 million, representing 41.2% of revenue, up from 40.7% in the previous year, mainly due to increased advertising expenditures[16]. - The gross profit margin for the pharmaceutical segment decreased to 65.3% from 70.1%, primarily due to changes in product sales structure and rising prices of certain Chinese medicinal materials[13]. - The gross profit for the chain pharmacy segment fell by 11.2% to RMB 118.2 million, with a gross profit margin of 38.2%, down from 41.4% in the previous year, mainly due to increased promotional efforts[14]. - Other income and gains decreased to approximately RMB 18.1 million, down RMB 7.0 million from RMB 25.1 million in the same period last year, attributed to declines in raw material sales, investment income, and interest income[15]. Assets and Liabilities - The net current assets of the group as of June 30, 2024, were approximately RMB 276.7 million, compared to RMB 265.5 million as of December 31, 2023[19]. - Total liabilities increased to RMB 700,203 thousand, a rise of 15.1% from RMB 608,608 thousand at the end of 2023[36]. - Total equity as of June 30, 2024, was RMB 1,111,626 thousand, an increase of 5.5% from RMB 1,053,333 thousand at the end of 2023[38]. - Trade receivables increased to RMB 301,770,000 as of June 30, 2024, compared to RMB 195,894,000 as of December 31, 2023[71]. Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, were approximately RMB 97.1 million, up from RMB 71.0 million for the same period in 2023, primarily related to the purchase of property, plant, and equipment[24]. - The construction of the new modern Chinese medicine production base has been completed, and equipment installation and compliance checks are underway[4]. - The company is committed to enhancing its production capacity for traditional Chinese medicine to capture increasing market demand, driven by rising public health awareness post-COVID-19[27]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as outlined in the listing rules, ensuring high standards of transparency and accountability[30]. - The audit committee has reviewed the interim financial information for the six months ended June 30, 2024, ensuring compliance with accounting principles and policies[33]. - The financial data for the first half of 2024 was prepared in accordance with the applicable disclosure requirements of the Hong Kong Stock Exchange[46]. Shareholder Information - The major shareholder, Xian Zhi, holds 506,922,000 shares, representing approximately 58.70% of the issued share capital[93]. - The second-largest shareholder, Zhi Li, owns 42,240,000 shares, accounting for about 4.89% of the issued share capital[93]. - The company declared dividends amounting to RMB (69,503,000) during the reporting period, consistent with the previous year[40]. Future Outlook - The company anticipates a challenging year ahead, with both difficulties and opportunities[6]. - The company is adapting to new consumer habits and expanding its focus from treatment services to preventive healthcare services[5].
中智药业(03737) - 2024 - 中期财报