Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue and net profit were approximately RMB 214.1 million and RMB 9.7 million, representing a decrease of 37.8% and 80.0% respectively compared to the fiscal year ending December 31, 2023[7]. - The company's sales revenue in Northeast China for the fiscal year 2024 was approximately RMB 114.9 million, a decrease of about 38.9%, accounting for over 53.7% of total revenue[8]. - The group recorded revenue of approximately RMB 214.1 million for the fiscal year 2024, a decrease of about RMB 130 million or 37.8% compared to 2023, primarily due to temporary production stoppage for maintenance work[18]. - The overall gross margin decreased from approximately 30.3% in 2023 to about 25.8% in 2024, mainly due to rising raw material costs and fixed cost absorption during the production stoppage[20]. - Selling and distribution expenses decreased by approximately 8.6% to about RMB 22.3 million in 2024 from RMB 24.4 million in 2023, primarily due to reduced transportation costs[21]. - Cash generated from operating activities significantly increased to approximately RMB 59.0 million in 2024 from RMB 8.5 million in 2023, mainly due to a substantial increase in cash inflow from working capital[25]. - Capital expenditures for 2024 were approximately RMB 116.7 million, significantly higher than RMB 13.4 million in 2023, primarily related to the purchase of properties, plants, and machinery[32]. Market and Product Development - The company currently has around 60 types of traditional Chinese medicine products, with major products including various herbal capsules and pills aimed at treating conditions related to energy, cardiovascular health, digestive issues, and gynecological symptoms[8]. - The Chinese traditional medicine market is expected to continue growing in 2025, driven by increasing consumer demand and government support for traditional medicine policies[9]. - The company plans to enhance its product portfolio through ongoing innovation and research and development, aiming to create more value for shareholders[11]. - The introduction of new technologies and equipment in the production process is expected to improve product quality and production efficiency[9]. - The government is increasingly emphasizing the importance of traditional Chinese medicine, which is expected to enhance the competitiveness of traditional Chinese medicine products in the international market[9]. Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices[57]. - The board held two regular meetings in 2024, discussing and making decisions on all significant matters related to the group's business activities and operations[57]. - The company is committed to reviewing and monitoring its corporate governance practices to ensure compliance with the Corporate Governance Code[59]. - The board is responsible for the development direction and control of the company's business, formulating policies, strategies, and plans to create value for shareholders[61]. - The company emphasizes the importance of good corporate governance for its sustainable development[57]. Shareholder Communication and Investor Relations - The company emphasizes effective communication with shareholders to enhance investor relations and ensure transparency in business performance and strategies[107]. - The company has established a shareholder communication policy to promote effective engagement and empower shareholders to exercise their rights[108]. - The company has maintained regular communication with institutional investors and analysts to keep them informed of its developments[107]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the company's performance in environmental, social, and governance aspects for the reporting period from January 1, 2024, to December 31, 2024[118]. - The company is committed to sustainable development and has conducted stakeholder engagement to identify key concerns in ESG matters[119]. - The company has established an environmental management system to identify, monitor, and reduce environmental risks[125]. - The company complies with pollution discharge regulations in Hebei Province, China, and has not encountered any significant violations of environmental laws during the reporting period[125]. - The company has obtained pollution discharge permits for all production facilities and has implemented pollution control systems to monitor emission levels[127]. Employee and Workplace Safety - The company has established a health and safety environment, with no recorded work-related fatalities or lost workdays due to injuries in the past three years[156]. - The company emphasizes mental health, providing counseling services and promoting work-life balance through various activities[156]. - The company has a zero-tolerance policy for harassment and discrimination, ensuring a safe and inclusive work environment[162]. - The company has developed emergency plans and conducts regular reviews to maintain workplace safety and effectiveness[155]. Supply Chain Management - The company has a total of 29 approved suppliers across various regions in China, ensuring a stable supply of raw materials[168]. - The company conducts regular reviews of suppliers' production sites to ensure compliance with quality and environmental regulations[168]. - The company has established a quality management system that adheres to GMP standards, managing all stages of the production process[173]. - The company has implemented a supplier classification system to allocate resources effectively, focusing on quality, environmental impact, and compliance[166]. Community Engagement and Corporate Social Responsibility - The group promotes a culture of giving back to the community, encouraging employee participation in charitable activities[182]. - The company is committed to community investment, focusing on areas such as education and health[191]. - The group aims to enhance efforts in various corporate social responsibility areas, including greenhouse gas reduction and employee development and training opportunities[199].
现代中药集团(01643) - 2024 - 年度财报