Financial Performance - Revenue for 2022 increased by 21.0% to US$65.558 million from US$54.180 million in 2021[12] - Gross profit rose by 28.7% to US$44.295 million, resulting in a gross profit margin of 67.6%[12] - Profit for the year surged by 852.0% to US$8.597 million, with a net profit margin increasing to 13.1%[30] - Profit before income tax increased by 312.4% to US$9.915 million compared to US$2.404 million in 2021[12] - Operating profit saw a substantial increase of 154.7% to US$14.158 million[12] - The basic earnings per share rose to 2.12 US cents from 0.23 US cents, marking a significant increase[12] - Revenue for the year ended December 31, 2022, increased to $65,558,000, up from $54,180,000 in 2021, representing a growth of approximately 21.9%[104] - Gross profit for the year was $44,295,000, compared to $34,409,000 in the previous year, indicating a year-over-year increase of about 28.7%[104] - Profit from operations rose significantly to $14,158,000, compared to $5,558,000 in 2021, reflecting an increase of approximately 154.5%[104] - Profit for the year reached $8,597,000, a substantial increase from $903,000 in 2021, marking a growth of around 855.5%[104] Assets and Cash Flow - Total assets increased by 6.8% to US$183.958 million, while net assets rose by 4.6% to US$121.950 million[20] - Cash and bank balances improved significantly by 57.4% to US$76.305 million[13] - Net cash generated from operating activities rose to $18,112,000 in 2022, compared to $9,017,000 in 2021, marking an increase of 101%[106] - Cash generated from operations was $20,972,000 in 2022, up from $13,461,000 in 2021, reflecting a growth of 56%[106] - Cash flows from investing activities generated a net amount of $3,821,000 in 2022, a significant decrease from $30,155,000 in 2021[106] Expenses - Research and development costs were $2,132,000, a decrease from $2,686,000 in the previous year, showing a reduction of about 20.6%[104] - Selling and distribution expenses increased to $19,458,000 from $17,366,000, which is an increase of approximately 12.0%[104] - Administrative expenses remained relatively stable at $9,630,000 compared to $9,538,000 in 2021, showing a slight increase of about 1.0%[104] - Other income for the year was reported at $1,193,000, up from $722,000 in 2021, representing an increase of approximately 65.4%[104] Corporate Governance - The Company has maintained the prescribed public float as required under Rule 8.08 of the Listing Rules [52] - The Company has complied with the Corporate Governance Code, except for a deviation from paragraph B.3.1 from January 1, 2022, to March 23, 2022[57] - The Board is comprised of a majority of non-executive Directors, ensuring a balance of power and authority[71] - The Company Secretary plays a crucial role in ensuring good information flow within the Board and compliance with board policies and procedures[171] - The Board conducted an annual review of the effectiveness of the Group's risk management and internal control systems, finding them satisfactory[188] Committees and Meetings - The Company has established an Audit Committee, Compensation Committee, Nomination Committee, and Executive Committee to provide recommendations to the Board[147] - The Audit Committee conducted three meetings during the year ended December 31, 2022, discussing significant judgments affecting the Group's consolidated financial statements[152] - The Remuneration Committee held one meeting during the year ended December 31, 2022, with all members in attendance[175] - The Nomination Committee determined the policy for the nomination of Directors and discussed the implementation of the Board diversity policy during the year ended 31 December 2022[180] Shareholder Information - A resolution will be proposed at the forthcoming AGM to re-appoint BDO Limited as auditor of the Company [54] - All resolutions presented at the 2022 Annual General Meeting were passed, with the results announced and published on the company's website[191] - The Company Secretary must receive written enquiries from shareholders regarding proposals for AGMs or EGMs[193] Audit and Compliance - The Audit Committee reviewed the effectiveness of the financial reporting, risk management, and internal control systems of the Group[171] - The Audit Committee reviewed the remuneration and terms of engagement of the external auditor and recommended the Board on the appointment of the external auditor[174] - The company’s independent auditor is expected to meet regularly at least three times per year[148] Transactions and Fees - The actual transaction amount for Jilin Haizi Guarantee for the year ended 31 December 2022 was RMB 130,000,000 (approximately US$18.7 million) [42] - The maximum commission fee payable by Lansen (BVI) was RMB 130,000,000 (approximately US$18.7 million) for the year ended 31 December 2022 [42] - The commission fee payable by Ningbo Liwah was RMB 650,000 (approximately US$96,000) [42] - The commission fee payable by Jilin Haizi was RMB 650,000 (approximately US$96,000) [42] - The company’s guarantee commission for the cross guarantee agreement is set at 0.5%, referencing the current market rate of approximately 2%[124] Director Information - As of December 31, 2022, the Board consisted of one executive managing Director, two non-executive Directors, and four independent non-executive Directors[62] - The independent non-executive Directors confirmed that the continuing connected transactions were entered into on normal commercial terms and in the interests of shareholders [44] - The Company has received annual confirmations of independence from all independent non-executive Directors, affirming their compliance with the independence guidelines[71] - Mr. Chan has served as an independent non-executive Director for more than nine years and was re-elected by shareholders on 23 June 2022[71] Intangible Assets and Impairment - The Group's intangible assets with indefinite useful lives amounted to US$21,213,000 and goodwill was US$6,824,000 as of December 31, 2022[196] - Management performed an impairment review in accordance with International Accounting Standards 36, focusing on cash-generating units' recoverable amounts based on value in use calculations[196] - The impairment assessment of intangible assets and goodwill was identified as a key audit matter due to its significance and the degree of judgment involved in estimating future cash flows and discount rates[196]
朗生医药(00503) - 2022 - 年度财报