Financial Performance - Revenue for the year ended December 31, 2021, was US$54,180, a decrease of 0.4% compared to US$54,386 in 2020[8] - Gross profit for 2021 was US$34,409, down 2.2% from US$35,179 in 2020[8] - Profit before income tax significantly decreased by 97.4% to US$2,404 from US$91,402 in 2020[8] - Profit for the year attributable to owners of the company dropped by 99.0% to US$903 from US$88,205 in 2020[8] - Total assets decreased by 31.8% to US$172,312 from US$252,778 in 2020[8] - Equity attributable to owners of the company fell by 40.9% to US$116,601 from US$197,282 in 2020[8] - Cash and bank balances decreased by 50.3% to US$48,489 from US$97,553 in 2020[8] - Current ratio declined to 2.1 from 3.7 in the previous year[8] - Net profit margin for 2021 was 1.7%, a decrease of 160.5% from 162.2% in 2020[15] - Basic earnings per share for 2021 was US$0.23, down from US$22.21 in 2020[8] Revenue Breakdown - Revenue from the pharmaceutical segment amounted to approximately US$51.4 million, a decrease of 0.3% from 2020, and a decrease of 6.7% when excluding RMB appreciation[32] - Revenue from the cosmetic products segment increased by 90.9% to approximately US$0.2 million, with a gross profit of approximately US$0.1 million[32] - Revenue from the healthcare business, excluding Natural Dailyhealth, was approximately US$2.6 million, a decrease of 6.6% from 2020, while gross profit increased by 301.5% to approximately US$0.5 million[32] Operational Challenges - The Group recorded total revenue of approximately US$54.2 million for the financial year ended December 31, 2021, representing a decrease of 0.4% year-on-year, and a 7% decrease after excluding the effect of RMB appreciation against USD[18] - Operating profit for 2021 was approximately US$5.6 million, a decline of 36.7% from the previous year, primarily due to the decrease in revenue[18] - Net profit for 2021 was approximately US$0.9 million, reflecting a significant decrease of about 99.0% year-on-year, mainly due to lower operating profit and a loss of approximately US$1.1 million related to shares of Zhejiang Starry Pharmaceutical Co., Ltd.[18] - The plant extract business of the associate, Natural Dailyhealth, faced challenges, resulting in continual pressure on gross profit and delays in developing new customers[21] Strategic Adjustments - The Group has adjusted its sales strategy in response to declining sales volumes of core products, including Pafulin and Sicorten Plus, and is implementing targeted adjustments[18] - The Group plans to reduce investment in the cosmetic business due to ineffective sales from pilot operations and will focus on selling skin care products through agency outlets[21] - The Group is integrating its sales and marketing resources to enhance coverage in lower-tier cities and improve sales channels[18] - The Group plans to focus on the development of its pharmaceutical business in 2022, particularly through the promotion of Pafulin and Sicorten Plus in dermatology[23] Sustainability and ESG Initiatives - The Group is gradually integrating sustainable development strategies into its overall development strategy as it expands[63] - The Group emphasizes standardized ESG management to ensure health and sustainable development[64] - The Group has identified 28 ESG issues related to its operations, with 14 topics prioritized as highly material[72] - The Group plans to establish a dedicated ESG working group in 2022 to enhance sustainability governance[1] - Stakeholder engagement is considered integral to the development of the Group's sustainability strategy[69] Energy and Environmental Performance - Total electricity consumption in 2021 was 6,197,932 kWh, a decrease of 5.7% compared to 2020's 5,865,569 kWh[93] - Total natural gas consumption increased by 26.0% from 123,241 Nm3 in 2020 to 155,268 Nm3 in 2021[93] - Total GHG emissions for 2021 were 10,819 tonnes CO2 equivalent, a decrease of 21.7% from 2020[112] - GHG emissions per revenue decreased by 25% from 0.20 tonnes CO2 equivalent in 2020 to 0.16 tonnes in 2021[112] Employee and Labor Practices - Employee costs for the Group were approximately US$17.1 million for the year ended December 31, 2021, with over 591 employees[55] - The employee turnover rate is 32.4% for males and 19.8% for females, indicating a significant gender disparity in retention[151] - The company emphasizes a diverse workforce, hiring employees of various genders, ages, skills, and backgrounds to achieve an optimal structure[147] - The Group has implemented safety measures in production environments, including dust and noise cancellation equipment, and conducts annual fire drills to enhance employee safety awareness[153] Supply Chain Management - The Group has established an effective Supply Chain Management System to enhance product quality and operational efficiency, focusing on procurement, storage, logistics, sales, and dispatching processes[161] - The Group conducts annual quality reviews of all products and suppliers to ensure compliance with national regulatory quality requirements[163] - The Group prioritizes suppliers that adopt sustainable products and services during the selection process, which is a crucial criterion in annual supplier assessments[163] - The Group has passed supplier and product qualification assessments for all suppliers, ensuring compliance with quality management standards[169]
朗生医药(00503) - 2021 - 年度财报