Financial Performance - The company's revenue for 2024 was RMB 326.03 million, a significant decrease from RMB 565.61 million in 2023, representing a decline of approximately 42.3%[6]. - The gross profit for 2024 was RMB 162.64 million, down from RMB 299.51 million in 2023, indicating a decrease of about 45.5%[6]. - The company reported a net loss of RMB 188.80 million for 2024, compared to a loss of RMB 36.30 million in 2023, marking a significant increase in losses[6]. - Revenue decreased by approximately RMB 239.6 million or 42.4% to about RMB 326.0 million for the year ended December 31, 2024, down from approximately RMB 565.6 million in 2023[15]. - The company's gross profit for 2024 was approximately RMB 162.6 million, with a gross margin of about 49.9%, down from a gross profit of approximately RMB 299.5 million and a gross margin of 53.0% in 2023[17]. - The company reported a net loss of approximately RMB 188.8 million for the year ended December 31, 2024, representing a significant increase in loss of about 420.2% compared to the previous year[12]. Expenses and Liabilities - Research and development expenses reached RMB 106.26 million in 2024, which contributed to the overall loss for the year[9]. - The total liabilities increased to RMB 869.80 million in 2024, up from RMB 781.52 million in 2023, reflecting an increase of about 11.3%[7]. - Selling and distribution expenses decreased by approximately RMB 58.5 million or 42.0% to about RMB 81.0 million in 2024, compared to RMB 139.5 million in 2023[19]. - The company achieved a significant reduction in general and administrative expenses, which fell by approximately RMB 14.6 million or 19.5% to about RMB 60.3 million in 2024[20]. - Financing costs net increased to approximately RMB 18.8 million in 2024 from RMB 8.8 million in 2023, mainly due to increased interest on loans and foreign exchange losses[22]. Market and Future Outlook - Future market uncertainties remain the biggest challenge, but management aims to achieve profitability through refined management and quick adjustments[10]. - The company plans to enhance its product pipeline with new products pending approval, which could contribute to future revenue growth[9]. - The company expects to participate in national centralized procurement, with flagship products successfully winning bids, which is anticipated to drive significant sales growth in 2025[14]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with some exceptions noted[68]. - The board of directors is responsible for overseeing the company's overall strategy and performance, including risk management and internal controls[71]. - The company has provided liability insurance for its directors and senior management to cover potential legal liabilities incurred during the performance of their duties[72]. - The independent non-executive directors have confirmed compliance with the non-competition agreement provided by the controlling shareholders[70]. - The company has established a comprehensive internal control system to monitor financial performance and risk management[72]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development and has implemented measures to reduce environmental impact, including energy-saving and emission-reduction initiatives[125]. - The company aims to create a green pharmaceutical enterprise, actively promoting clean production and pollution reduction to support national carbon neutrality goals[137]. - The company is focused on enhancing its ESG governance framework and internal controls to ensure scientific and rational decision-making[125]. - The company has established a comprehensive ESG governance structure, with the Audit Committee responsible for overseeing ESG reporting processes and risk management[135]. - The company is committed to enhancing product quality and safety, accelerating the development of innovative products, and strengthening quality control measures[145]. Climate Change and Risk Management - The company is facing physical risks from extreme weather affecting supply chains and production facilities, and is implementing strategies such as diversified procurement and facility reinforcement[150]. - The company is investing in new technologies and processes to adapt to extreme weather, including the development of resilient medicinal materials[148]. - The company has established a climate risk management process, identifying and analyzing climate-related risks annually within its governance structure[162]. - The company aims to reduce carbon emissions by 20% by 2025 compared to 2020 levels, with a target to decrease unit product energy consumption by 5% and increase green electricity procurement rate to 10%[165]. Employee and Stakeholder Engagement - The company emphasizes the importance of employee development and training, focusing on innovative drug research and optimizing the traditional Chinese medicine industry chain[140]. - The company has identified key stakeholders, including employees, consumers, suppliers, and investors, and has established multiple communication channels to address their concerns[142]. - The workforce composition is 50.91% female and 49.09% male, reflecting the company's commitment to gender diversity[97].
福森药业(01652) - 2024 - 年度财报