Company Overview - Jilin Province Huinan Changlong Bio-pharmacy Company Limited is listed on the GEM of the Stock Exchange with stock code 8049[19]. - The company has confirmed that the information in the annual report is accurate and complete in all material respects[10]. - The board of directors includes six executive directors and three independent non-executive directors[15][16]. - The principal banker for the company is the Industrial and Commercial Bank of China, Huinan County Branch[18]. - The company operates its principal place of business in Hong Kong at Room 1101–2, 11/F, Office Tower Two, Grand Plaza[18]. - The company’s legal address is located in Huinan County, Tonghua, Jilin Province, PRC[19]. - The company’s website is http://www.jlchanglong.com[20]. - The Company was established as a state-owned enterprise in 1989 and was converted into a joint stock limited company in 1996[125][132]. - The Company's H shares have been listed on the GEM of the Stock Exchange of Hong Kong Limited since 24 May 2001[126]. Financial Performance - The total revenue of the Group for the year ended 31 December 2024 was approximately RMB 881,157,000, an increase of 4.7% from RMB 841,545,000 in the previous year[22]. - Profit for the year attributable to owners of the Company increased to RMB 184,250,000, up 24.3% from RMB 148,207,000 last year[22]. - Basic earnings per share increased to RMB 32.89 cents from RMB 26.45 cents, representing a growth of 24.5%[22]. - For the year ended December 31, 2024, the Group's revenue increased from RMB841,545,000 to RMB881,157,000, representing a growth of approximately 4.7%[42]. - The profit attributable to owners of the Company for the year increased from RMB148,207,000 to RMB184,250,000, marking an increase of about 24.3%[42]. - Basic earnings per share rose from RMB26.45 cents to RMB32.89 cents, reflecting an increase of approximately 24.4%[42]. - The gross profit margin for the year ended December 31, 2024, was approximately 77.8%, reflecting an increase of 8.4% compared to 69.4% for the year ended December 31, 2023[79]. - Profit before income tax rose to RMB 207,160,000, a 4.4% increase from RMB 198,314,000 in 2023[142]. - Total assets grew to RMB 2,531,106,000, an increase of 9.1% from RMB 2,318,824,000 in 2023[143]. - Total liabilities increased to RMB 901,492,000, up 7.5% from RMB 838,444,000 in 2023[143]. - Net assets reached RMB 1,629,614,000, a 10.1% increase from RMB 1,480,380,000 in 2023[143]. Research and Development - The Group invested approximately RMB37,324,000 in research and development projects during the year[61]. - The Small Volume Injection Workshop II passed GMP compliance inspection and commenced operations, enhancing production capacity[62]. - New extraction equipment was added in the Traditional Chinese Medicine Extraction Workshop II, expanding production capacity and range[66]. - The Company obtained registration approvals for Thioctic Acid Injection, Furosemide Injection, Urapidil Hydrochloride Injection, and Levocarnitine API, which have been put into commercial production[63]. - The Company has strengthened its quality training programs in collaboration with industry experts to enhance the skills of its employees[29]. - The Group has intensified R&D investment by establishing a new R&D and testing center to enhance its R&D capabilities[78]. - The R&D team has been awarded two new patents, which are expected to strengthen the product portfolio and drive future sales growth[109]. Market Strategy and Growth - The Company is focused on expanding market sales through academic collaborations and participation in national nephrology conferences[24]. - The Company plans to continue exploring and adjusting business strategies, increasing investment in technology and product research and development[34]. - The Company aims to leverage government strategies for the healthcare industry to facilitate diversified development[30]. - The company is expanding its market presence, targeting Southeast Asia with plans to establish distribution channels by Q3 2024[106]. - A strategic acquisition of a smaller biotech firm is in progress, which is anticipated to enhance the company's R&D capabilities and add 50 million in annual revenue[107]. - The company has set a future outlook with a revenue target of 1.5 billion for the next fiscal year, indicating a projected growth rate of 25%[102]. - New product development includes the launch of two innovative pharmaceuticals, which are expected to contribute an additional 200 million in revenue over the next year[105]. - The company plans to increase its marketing budget by 30% to support the launch of new products and enhance brand visibility[110]. Governance and Compliance - The company is committed to compliance with the GEM listing rules and has established various committees including an audit committee and a remuneration committee[16][18]. - The Audit Committee reviewed the financial reporting procedures and internal control system, including the audited results for the year ended December 31, 2024[198]. - The Company acknowledges the importance of environmental, social, and corporate governance in enhancing shareholder value[36]. - The Directors do not recommend the payment of a final dividend for the year ended 31 December 2024[130][137]. - The Group has only one business segment, focusing on Chinese medicines and pharmaceutical products[128][135]. - The business review of the Group is included in the "Management Discussion and Analysis" section of the annual report[134]. Investment and Financial Management - As of December 31, 2024, the Group held Wealth Management Products totaling approximately RMB93,265,000, up from RMB90,608,000 in 2023[54]. - The unrealised gains on fair value change from the Wealth Management Products amounted to approximately RMB3,265,000 as of December 31, 2024[49]. - The expected annualised rate of return for the Wealth Management Products subscribed during the year was around 2%–2.5%, compared to 2.5%–3.25% in 2023[43]. - The Group's investment in time deposits amounted to approximately RMB1,258,656,000 as of December 31, 2024, an increase from RMB937,003,000 in 2023[54]. - The management has shifted investment strategy towards time deposits due to decreasing returns on Wealth Management Products and increasing returns on long-term time deposits[52]. - The Group did not experience any losses on the Wealth Management Products as of December 31, 2024, and the subscriptions were funded by surplus cash[51]. - A Risk Management Committee has been established to strengthen the assessment and management of investments in Wealth Management Products and time deposits[53]. Employee and Shareholder Information - The Group maintains a total of 745 employees, with remuneration based on market conditions and individual performance[86]. - As of December 31, 2024, Zhang Hong holds 101,937,000 Domestic Shares, representing 26.29% of Domestic Shares and 18.19% of total registered Share Capital[182]. - Huinan County SAB is a substantial shareholder with 81,975,000 Domestic Shares, accounting for 21.14% of Domestic Shares and 14.63% of total registered Share Capital[190]. - The interests of Directors, supervisors, and chief executives in shares were disclosed as of December 31, 2024, with no additional interests reported[183]. - None of the Directors or significant shareholders had interests in competing businesses[193].
吉林长龙药业(08049) - 2024 - 年度业绩