Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was RMB 7,259.644 million, an increase of 7.18% from RMB 6,773.463 million in the previous year[4] - The net profit for the same period was RMB 886.933 million, a decrease of 10.62% compared to RMB 992.313 million in the previous year[4] - Earnings attributable to the company's owners were RMB 521.795 million, down 11.59% from RMB 590.188 million in the previous year[4] - The basic and diluted earnings per share were RMB 0.41, compared to RMB 0.46 in the previous year[4] - The total comprehensive income for the year was RMB 953.635 million, compared to RMB 1,041.687 million in the previous year[13] - Financial income for 2024 was RMB 76,874, down 19.4% from RMB 95,351 in 2023[34] - The net financial income decreased significantly to RMB 8,577 in 2024 from RMB 46,049 in 2023[34] - The total income tax expense for 2024 is RMB 174,278,000, compared to RMB 170,142,000 in 2023, reflecting an increase of approximately 0.8%[41] - The effective tax rate for 2024 is 21.2%, up from 20.0% in 2023, indicating a rise in the tax burden on pre-tax profits[43] - Basic earnings per share for 2024 is RMB 0.41, down from RMB 0.46 in 2023, representing a decrease of approximately 10.9%[51] - The profit attributable to the owners of the company for 2024 is RMB 521,795,000, compared to RMB 590,188,000 in 2023, showing a decline of about 11.6%[51] Assets and Liabilities - Total assets increased to RMB 14,408,591 thousand in 2024, up from RMB 13,507,742 thousand in 2023, representing a growth of 6.6%[15] - Current assets rose to RMB 10,833,476 thousand in 2024, compared to RMB 10,058,898 thousand in 2023, marking an increase of 7.7%[15] - Total equity rose to RMB 10,165,079 thousand in 2024, up from RMB 9,651,885 thousand in 2023, which is an increase of 5.3%[16] - Non-current liabilities decreased to RMB 1,402,041 thousand in 2024 from RMB 1,616,972 thousand in 2023, a decline of 13.2%[16] - Current liabilities increased to RMB 2,841,471 thousand in 2024, compared to RMB 2,238,885 thousand in 2023, representing an increase of 27%[16] - The company's reserves increased to RMB 5,925,413 thousand in 2024, up from RMB 5,608,633 thousand in 2023, reflecting a growth of 5.6%[16] - The total assets of the company as of December 31, 2024, amount to RMB 14,408,591,000, while total liabilities are RMB 4,243,512,000[55] Inventory and Receivables - Inventory increased significantly to RMB 5,165,995 thousand in 2024, up from RMB 4,744,433 thousand in 2023, reflecting a growth of 8.9%[15] - The company reported a significant increase in accounts receivable to RMB 1,103,565 thousand in 2024, compared to RMB 888,333 thousand in 2023, which is an increase of 24.2%[15] - Accounts receivable increased to RMB 887,968,000 in 2024 from RMB 721,230,000 in 2023, with third-party receivables rising to RMB 612,158,000[63] - The net value of accounts receivable and notes was RMB 1,103,565,000 in 2024, compared to RMB 888,333,000 in 2023[63] Strategic Initiatives - The company plans to enhance its marketing strategies and optimize its strategic management system to improve market influence and share[8] - The company is focusing on technological innovation and industry upgrades to drive modernization in the traditional Chinese medicine sector[8] - The company aims to strengthen its product offerings and expand sales channels to enhance competitiveness in a challenging market environment[6] - The company is focusing on the development of classic formulas, including Linggui Zhugan Decoction and Shaoyao Gancao Decoction[89] - The company is conducting clinical research on existing products to enhance their market competitiveness and clinical acceptance[89] Research and Development - Research and development expenses for 2024 were RMB 84,823, a decrease of 27.8% from RMB 117,556 in 2023[37] - Research and development expenditure (excluding employee benefits, depreciation, and amortization) was RMB 84.8 million, accounting for 1.17% of revenue[104] Market Performance - In 2024, the sales revenue of traditional Chinese medicine products reached RMB 5,897,495, an increase of 7.3% from RMB 5,495,458 in 2023[28] - The sales of the Liuwei Dihuang Wan series increased by 10.71%, while the Shengmai Drink series saw a growth of 14.85% year-on-year[89] - Tong Ren Tang Guo Yao achieved a sales revenue of RMB 1,473.4 million in 2024, representing a year-on-year growth of 7.04%[91] - The six subsidiaries focused on traditional Chinese medicine raw materials achieved a combined sales revenue of RMB 482.9 million, with a year-on-year growth of 13.76%[92] Corporate Governance - The group is committed to adhering to corporate governance standards as per the Hong Kong Stock Exchange listing rules, ensuring a robust governance framework[117] - Ernst & Young has been appointed as the auditor for the fiscal year ending December 31, 2024, and their work aligns with the group's financial performance announcements[123] Challenges and Outlook - The company faced significant challenges due to rising raw material costs, impacting production costs and supply chain management[86] - The group aims to optimize production processes and enhance production efficiency while controlling costs and inventory levels, focusing on "maintaining output value, controlling costs, adjusting structure, and reducing inventory"[114] - The group anticipates a prosperous and internationally influential traditional Chinese medicine industry, supported by national health strategies and policies[114]
同仁堂科技(01666) - 2024 - 年度业绩