Financial Performance - In 2024, the company achieved a total sales revenue of approximately RMB 5.266 billion, a year-on-year decrease of 9.6%[7] - The net profit for 2024 was approximately HKD 1.061 billion, representing a year-on-year decline of 19.5%[7] - The gross profit margin for the year was 50.4%, down by 5.6 percentage points compared to the previous year[7] - For the fiscal year ending December 31, 2024, the company's total revenue decreased by 10.7% to HKD 5,773,251,000, down from HKD 6,463,009,000 in 2023[35] - The revenue from intravenous infusion products was HKD 3,734,689,000, a decrease of 7.6% compared to HKD 4,040,743,000 in the previous year, despite a 6.7% increase in overall sales volume[37] - The revenue from non-PVC soft bag infusion products was HKD 1,751,834,000, accounting for 46.9% of intravenous infusion revenue, reflecting a decline of 16.4%[37] - The revenue from active pharmaceutical ingredients was HKD 784,583,000, down 11.7% from HKD 888,867,000 in 2023, attributed to market prices not fully recovering from last year's decline[38] - The revenue from oral formulations increased by 4.9% to HKD 501,695,000, driven by growth in new products such as cefdinir capsules and rosuvastatin calcium tablets[38] - The gross profit for the year was HKD 2,908,262,000, down from HKD 3,619,639,000 in 2023, resulting in a gross margin decline of 5.6 percentage points to 50.4%[41] - Operating profit decreased by 18.0% to HKD 1,343,500,000, with an operating margin of 23.3%, down from 25.4% in the previous year[46] - Net profit attributable to equity holders fell by 19.5% to HKD 1,061,150,000, with a net profit margin of 18.4%, down from 20.4%[49] Sales and Market Activity - The company completed 44 generic names and 56 specifications for market access, with 13 generic names and 14 specifications approved in over 30 provinces[9] - The total sales volume of large-volume parenterals reached 2.036 billion bottles (bags), an increase of 6.7% year-on-year[10] - Sales revenue from oral formulations reached approximately HKD 502 million, reflecting a year-on-year growth of about 4.9%[11] - The sales of caffeine increased by approximately 44% year-on-year, with a total sales volume of 5,478 tons[11] - The company actively participated in over a thousand bidding activities, particularly excelling in provincial alliance procurement[9] - The export sales of infusion products amounted to approximately HKD 178 million in 2024, reflecting a year-on-year growth of about 9%[14] - The export volume of infusion products reached approximately 118 million bottles (bags) in 2024, a year-on-year increase of about 11%[14] Research and Development - The group obtained 112 production approvals and 7 clinical approvals during the year, maintaining a leading position in the industry[15] - A total of 131 product applications were submitted, including 76 new varieties of liquid and solid preparations[16] - The group has successfully passed consistency evaluations for 117 varieties and 156 specifications, enhancing product accessibility[18] - The group applied for 88 patents and was granted 51 patents in 2024, with a total of 552 patent applications filed to date[19] - The group is advancing the development of complex formulations, including liposomal injections and sustained-release microspheres, enhancing its technical influence in the field[17] - The company is committed to integrating "raw materials + formulations" for innovative drug development and enhancing research and development efficiency through technology[25] Corporate Governance - The board of directors consists of five executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2024[69] - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange's listing rules for the year ending December 31, 2024, with one exception regarding the separation of roles between the chairman and CEO[68] - The chairman, Mr. Qu Jiguang, also serves as the CEO, which the board believes is in the best interest of the company for efficient strategy execution[68] - The board is responsible for overseeing the company's business, strategic direction, and performance, ensuring compliance with legal and regulatory requirements[69] - The company emphasizes the importance of good corporate governance practices for growth and shareholder value creation[67] Employee and Compensation - Total employee compensation costs for the year ended December 31, 2024, were approximately HKD 774,835,000, an increase of 8.1% from HKD 717,031,000 in 2023, mainly due to an increase in employee numbers[54] - The number of employees increased to approximately 6,100 as of December 31, 2024, compared to about 5,600 on December 31, 2023[53] - Employee turnover rate decreased to 14.6% in 2024 from 16.5% in 2023, indicating improved employee retention[145] - The company provided a total of 3,106 workdays lost due to occupational injuries in 2024, up from 1,404 in 2023[148] - The company has maintained a zero fatality rate due to work-related incidents for three consecutive years[148] - Employee compensation is regularly reviewed and adjusted based on social development, price increases, and company performance[143] - The company promotes equal pay for equal work, ensuring that male and female employees receive the same starting salaries[143] Environmental, Social, and Governance (ESG) - The company has established a comprehensive ESG governance framework in accordance with the Hong Kong Stock Exchange's guidelines[109] - The report covers the company's environmental and social performance in China for the reporting period from January 1, 2024, to December 31, 2024[111] - The company recognizes its responsibility to operate in a more responsible and sustainable manner, integrating ESG considerations into daily operations[109] - The company has established three efficient wastewater treatment plants, utilizing advanced biochemical and physical-chemical combined treatment processes to enhance wastewater treatment efficiency and ensure discharge quality meets local government standards[125] - The company has implemented a strict waste classification management system, ensuring safe handling of hazardous waste throughout its lifecycle[126] - The company has not reported any violations of emission laws and regulations in 2024[125] - The company has engaged stakeholders through various channels, including regular meetings and community activities, to align business strategies with stakeholder expectations[118] Dividend and Shareholder Information - The company plans to distribute a final dividend of HKD 0.095 per share, totaling an annual dividend of HKD 0.175 per share, a year-on-year increase of 2.9%[7] - The total dividend for the year ending December 31, 2024, is proposed to be HKD 0.175 per share, an increase from HKD 0.17 per share in 2023[172] - The company's distributable reserves as of December 31, 2024, are approximately HKD 433,318,000, up from HKD 320,247,000 in 2023[177] - The company repurchased a total of 11,830,000 shares at a total cost of approximately HKD 44,563,000 during the year ending December 31, 2024[179] Compliance and Risk Management - The company emphasizes the importance of compliance and risk management, particularly in response to government policies affecting the pharmaceutical industry[27] - The company aims to enhance compliance standards and ensure operations adhere to principles of fairness and integrity[30] - The company has established policies for handling insider information to ensure timely and accurate public disclosure[97] - The company strictly prohibits any form of bribery or corruption and has implemented effective systems to prevent such activities[98] - The board reviewed the effectiveness of the risk management and internal control systems, concluding they are effective and sufficient for the fiscal year ending December 31, 2024[96]
石四药集团(02005) - 2024 - 年度财报