Financial Performance - Revenue for 2024 reached RMB 5,538.8 million, a 57.2% increase from RMB 3,524.1 million in 2023[6] - Gross profit for 2024 was RMB 4,546.9 million, reflecting a 54.3% growth compared to RMB 2,947.1 million in 2023[6] - Net profit attributable to shareholders for 2024 was RMB 2,062.3 million, up 42.1% from RMB 1,451.8 million in 2023[6] - The company achieved a total revenue of RMB 55.39 billion, representing a year-on-year growth of 57.2%[11] - Adjusted net profit reached RMB 21.52 billion, with a year-on-year increase of 46.5%[11] - Total revenue for the year ended December 31, 2024, reached RMB 5,538.8 million, a 57.2% increase from RMB 3,524.1 million for the year ended December 31, 2023[31] - Direct sales revenue grew over 70% year-on-year in 2024, becoming a major driver of business growth[10] - Direct sales and distribution channels generated revenues of RMB 4,134.2 million and RMB 1,404.6 million, accounting for 74.6% and 25.4% of total revenue, respectively[26] - Professional skin care products accounted for 77.7% of total revenue in 2024, with RMB 4,302.3 million in sales, up from 75.1% and RMB 2,647.3 million in 2023[32] - Total sales cost for 2024 was RMB 991.9 million, a 71.9% increase from 2023, primarily due to increased sales volume and material costs[43] - Gross profit for 2024 was RMB 4,546.9 million, a 54.3% increase from 2023, with a gross margin of 82.1%, down from 83.6% in 2023[44] Research and Development - Research and development investment increased by 42% in 2024, with 74 new patents and applications filed[9] - Research and development expenditure amounted to RMB 106.5 million, a 42.1% increase year-on-year, accounting for 1.9% of total revenue[13] - The company has 188 ongoing research projects and holds 167 patents, with 74 new patents granted during the reporting period[13] - The company plans to increase R&D investment and prepare for the commercialization of three categories of medical devices by 2025[30] Market Expansion and Product Development - The company established a multi-brand development matrix, launching innovative products that gained consumer favor[10] - The company is actively expanding its international market presence, aiming to bring its products to global consumers[11] - The company is focusing on the development of innovative and competitive products to meet diverse consumer needs[11] - The "可復美" brand has developed a comprehensive product matrix, including a major medical device series and four skincare series, enhancing its market presence[16] - The company launched the new "Kefumei Focus Series" targeting skin conditions such as dullness and acute fatigue, with the "Kefumei Focus Cream" achieving top rankings in sales during the 2024 Double Eleven shopping festival[19] - The company expanded its product offerings with the "Kefumei Order Series" and "Kefumei Ton Ton Series," addressing various consumer needs and enhancing brand reach[20] Sales and Distribution Channels - Online channel GMV growth during the 2024 618 promotion exceeded 60% for Kefu Mei and 100% for Keli Jin, and during the 2024 Double Eleven promotion, growth exceeded 80% and 150%, respectively[25] - Direct sales through DTC online stores generated revenue of RMB 3,587.2 million, a 66.5% increase from 2023, accounting for 64.8% of total revenue in 2024[34] - Revenue from online direct sales on e-commerce platforms reached RMB 377.1 million, up 112.5% year-over-year, representing 6.8% of total revenue in 2024[35] - Offline direct sales revenue was RMB 169.9 million, a 92.0% increase from 2023, making up 3.0% of total revenue in 2024[36] - Sales to distributors amounted to RMB 1,404.6 million, reflecting a 27.3% increase year-over-year, contributing 25.4% to total revenue in 2024[37] Corporate Governance and Management - The company has adopted the corporate governance code as per the Listing Rules Appendix C1 and has complied with all applicable code provisions during the reporting period, except for deviation from code provision C.2.1[150] - The board of directors consists of 4 executive directors and 3 independent non-executive directors, ensuring compliance with the requirement of having at least one independent non-executive director with appropriate professional qualifications or accounting expertise[151] - The company has established four board committees, including the audit committee, nomination committee, remuneration committee, and corporate governance committee[165] - The company has implemented a training program for directors and senior management regarding compliance with Chinese laws and regulations, with a specific training session held in July 2024[188] - The company has established an ESG governance committee to regularly report on ESG-related matters to the board[66] Employee and Shareholder Engagement - The company employed 1,758 full-time staff, with 37.0% in production, 10.6% in R&D, 32.2% in sales and marketing, and 20.2% in general and administrative roles[105] - The company emphasizes effective communication with shareholders through financial reports, annual general meetings, and timely disclosures on its website[196] - The company encourages shareholder participation in meetings and ensures proper notice is given at least 21 days before annual meetings[197] - The company provides communications in both English and Chinese to facilitate shareholder understanding[198] - The company has a dedicated website (www.xajuzi.com) for regular updates and communication with shareholders and investors[199] Social Responsibility and Community Engagement - The company engaged in social responsibility initiatives, donating products valued at over RMB 14 million during various charitable activities[28] - The "Kefumei" brand introduced a bottle recycling program and engaged in various community outreach activities to promote scientific skincare[23] Risk Management - The company faces various operational risks, including changes in the regulatory environment in China, the ability to provide quality products, and competition from other market participants[185] - The company has implemented a risk management and internal control system to address identified risks, which includes policies and procedures deemed suitable for its operations[185] - Financial risks faced by the company include foreign exchange risk, credit risk, and liquidity risk, with the main financial instruments being cash and cash equivalents[187] - The company conducts annual risk factor identification and assessment, reviewing the effectiveness of risk assessment and control measures[186] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.6021 per share and a special dividend of RMB 0.5921 per share[6] - The company's undistributed profits available for distribution to shareholders amounted to RMB 4,057 million as of the reporting period end[75]
巨子生物(02367) - 2024 - 年度财报