Financial Performance - For the fiscal year ending December 31, 2024, the group recorded revenue of approximately HKD 93.9 million, an increase of about 87.1% compared to HKD 50.2 million in the previous year[7]. - The gross profit for the fiscal year was approximately HKD 11.5 million, a decrease of about 10.9% from HKD 12.9 million in the previous year[7]. - The net loss attributable to the company's owners was approximately HKD 31.0 million, an increase of about 39.6% from a loss of HKD 22.2 million in the previous year[7]. - The board of directors did not recommend the payment of a final dividend for the fiscal year ending December 31, 2024, consistent with the previous year[7]. - Revenue from the distribution and trade of pharmaceuticals and related products increased by approximately 106.8% to HKD 88.7 million, compared to HKD 42.9 million in the previous fiscal year[17]. - Revenue from marketing and promotional services decreased by approximately 28.8% to HKD 5.2 million, down from HKD 7.3 million in the previous fiscal year[18]. - Total revenue for the year was approximately HKD 93.9 million, an increase of about 87.1% compared to approximately HKD 50.2 million in the fiscal year 2023[31]. - Sales cost for the year was approximately HKD 82.5 million, representing an increase of about 121.8% from approximately HKD 37.2 million in the fiscal year 2023[32]. - Other income for the year was approximately HKD 2.1 million, a significant improvement from a loss of approximately HKD 1.3 million in the previous year[34]. - The company reported a net loss of approximately HKD 31.0 million for the year, an increase of about 39.6% compared to the net loss of approximately HKD 22.2 million in the fiscal year 2023[41]. Asset and Investment Overview - The group’s total assets as of December 31, 2024, were approximately HKD 505.2 million, compared to HKD 491.6 million in the previous year[6]. - The fair value loss on investments in Town Health International Medical Group Limited was approximately HKD 9.4 million, with a fair value of HKD 28.8 million as of December 31, 2024[43]. - The company holds 117,602,000 shares of Town Health, representing about 1.74% of its total issued share capital[44]. - The fair value of the company's securities investment in Jiangxi Yimai Sunshine Group Co., Ltd. reached approximately HKD 60.6 million, with an acquisition cost of about HKD 12.0 million[45]. - The investment in Jiangxi Yimai Sunshine Group contributed a fair value gain of approximately HKD 44.9 million during the year[45]. - The fair value of the investment in Jiangxi Yimai Sunshine Group accounted for about 11.3% of the company's total assets[45]. - The company has acquired a 16% stake in China Nüwa Pharmaceutical Group for approximately HKD 17.3 million, with a fair value of HKD 12.9 million as of December 31, 2024[48]. - The investment in Nüwa Pharmaceutical represents about 2.6% of the group's total assets, with a fair value loss of approximately HKD 4.4 million recognized during the year[48]. - Jiangxi Yimai Sunshine Group's investment in Shengzhou New Rui Wanma is valued at approximately HKD 29.9 million, accounting for about 5.9% of total assets[49]. Operational Strategies and Market Conditions - The group has been actively enhancing cooperation with suppliers and end customers to improve sales and marketing capabilities amid market challenges[9]. - The group launched pharmaceutical chemical reagent products in China during 2024, contributing to revenue growth despite initial lower gross margins[9]. - The demand for the group’s second-generation cephalosporin product decreased due to stricter antibiotic management policies in various regions of mainland China[9]. - The group plans to seek new distribution rights for products to enhance its product portfolio and improve long-term sustainable development[21]. - The group aims to enhance its local distribution network and sales and marketing capabilities to strengthen its competitive advantage in China[22]. - The group will focus on reallocating resources to core business development in the distribution and trade of pharmaceuticals and related products in China[23]. - The group anticipates ongoing pressure on drug prices due to national volume-based procurement policies, which may impact future profitability[20]. - The group will continue to monitor national policy guidelines and adapt to market changes to maximize shareholder returns[10]. Governance and Management - The company has a strong management team with over 19 years of experience in the pharmaceutical distribution industry, led by CEO Wang Qiukin[85]. - The board consists of six members, including three executive directors and three independent non-executive directors[146]. - The company has complied with the corporate governance code, except for a deviation regarding the roles of the Chairman and CEO being held by the same person[142]. - The company has established a dividend policy that considers various factors, including cash levels and expected financial performance, without a predetermined dividend payout ratio[138]. - The company has implemented anti-corruption and reporting policies to enhance internal fairness awareness[144]. - The company has established a compensation policy to attract and retain executives, considering market salary levels, individual performance, and work experience[157]. - The nomination committee is responsible for reviewing the board's structure, size, and composition, and for recommending candidates for election at the annual general meeting[159]. - The board is responsible for formulating business strategies and overall policies while monitoring management performance[146]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the company's performance in environmental, social, and governance (ESG) aspects for the year ending December 31, 2024[183]. - The company's carbon footprint for the reporting year was 89.3 tons of CO2 equivalent, an increase of approximately 22.3% compared to 73.0 tons in 2023[194]. - The company has implemented an internal environmental policy to manage and reduce its operational impact on the environment[191]. - The company encourages stakeholder feedback on its environmental, social, and governance policies and performance[189]. - The company has no significant harmful waste due to its operations not involving manufacturing processes[196]. - The company emphasizes efficient use of natural resources, focusing on energy-saving policies related to electricity, water, gasoline, and harmless waste[199]. - The company adopts a prudent approach to resource protection, implementing policies to minimize environmental impact during operations[200].
新锐医药(06108) - 2024 - 年度财报