Financial Performance - For the year ended December 31, 2022, CK Life Sciences reported a profit attributable to shareholders of HKD 132 million, a decrease of 19% compared to 2021[5]. - If calculated using 2021's interest rates and exchange rates, the profit for 2022 would have increased by approximately 41% compared to 2021[5]. - The company's revenue for the year ended December 31, 2022, was HKD 5,275.6 million, a slight decrease from HKD 5,402.3 million in 2021[53]. - The profit attributable to shareholders for 2022 was HKD 131.96 million, down from HKD 162.8 million in 2021, representing a decline of approximately 19%[53]. - Total revenue for the year ended December 31, 2022, was HKD 5,275,590 thousand, a decrease of 2.4% from HKD 5,402,312 thousand in 2021[115]. - The net profit for the year was HKD 131,952 thousand, down 19.0% from HKD 162,801 thousand in the previous year[115]. - Basic earnings per share decreased to 1.37 cents from 1.69 cents, reflecting a decline of 18.9%[115]. - Total comprehensive income for the year was a loss of HKD 249,283 thousand, compared to a loss of HKD 121,504 thousand in 2021[116]. Dividends - The board proposed a final dividend of HKD 0.008 per share for the year ended December 31, 2022, down from HKD 0.01 per share in 2021[5]. - The proposed final dividend for the year ended December 31, 2022, is HKD 0.008 per share, down from HKD 0.01 per share in 2021, totaling HKD 76,889,000 compared to HKD 96,111,000 in 2021[185]. Research and Development - The company's research focuses on two main areas: cancer vaccines and molecular diagnostics, with an emphasis on early cancer detection[6]. - The proprietary multi-valent cancer vaccine, seviprotimut-L, is being developed for melanoma patients and has made progress in the third phase of clinical trials[6]. - CK Life Sciences has initiated multiple cancer vaccine research projects and plans to advance them to clinical trial stages in the coming years[6]. - A strategic research collaboration was established with Crystal Technology, focusing on developing an AI-driven cancer vaccine research platform[6]. - The company is developing a liquid biopsy molecular diagnostic test for early cancer detection, aiming for innovative, cost-effective solutions[8]. - Research and development expenses for 2022 amounted to HKD 158.5 million, reflecting the company's commitment to innovation in cancer diagnostics[56]. Business Segments Performance - Vitaquest's health product business contributed a profit of HKD 262.3 million, an increase of 11% compared to 2021, with a 14% increase when adjusted for foreign exchange rates[8]. - The agricultural business recorded a profit of HKD 336 million, maintaining performance despite challenges from supply chain disruptions and inflation[9]. - The salt business faced profit pressure due to weather-related incidents and labor shortages, but demand for salt products remained steady[9]. - The health product business's performance was bolstered by new product launches and innovative marketing strategies[8]. - The company has invested in Pharus, a subsidiary of Quark Biosciences, to enhance its capabilities in cancer diagnostics[8]. Operational Challenges and Outlook - Future operational performance is expected to improve as market conditions stabilize post-COVID-19, despite ongoing inflation and geopolitical uncertainties[11]. - The company aims to address significant unmet medical needs in pain management with innovative pain relief solutions[7]. - The company is actively seeking investment opportunities globally to enhance its revenue stability and growth potential[52]. Sustainability and Corporate Governance - The company is aligning its sustainability reporting with the TCFD framework to enhance climate-related disclosures[10]. - The company plans to release a sustainability report later this year to disclose its initiatives and progress in sustainable development[10]. - The company has a strong focus on sustainable development, with senior executives like Ye Dequan leading initiatives in this area since December 2020[61]. - The company emphasizes its commitment to corporate governance, with multiple committees in place, including the remuneration and audit committees, to ensure transparency and accountability[63]. Shareholder Information - As of December 31, 2022, the total shareholding of the company's director Li Zeju is 2,838,009,715 shares, representing 29.52% of the total shares[80]. - The major shareholder Gold Rainbow Int'l Limited holds 4,355,634,570 shares, accounting for 45.31% of the total shares[83]. - Trueway International Limited, another significant shareholder, possesses 2,119,318,286 shares, which is 22.05% of the total shares[83]. Financial Position - As of December 31, 2022, total assets were approximately HKD 11,266.8 million, with net assets amounting to HKD 4,155.5 million, equivalent to HKD 0.43 per share[55]. - The company maintained a net debt to total equity ratio of approximately 53.28% as of December 31, 2022, indicating a balanced financial structure[55]. - The total number of full-time employees as of December 31, 2022, was 1,856, with total employee costs, including director remuneration, amounting to HKD 1,035.6 million, a decrease of 3.2% from the previous year[58]. - The company has no significant contingent liabilities as of December 31, 2022, maintaining a stable financial position[59]. Investment and Acquisitions - The company is focused on expanding its market presence in Australia and New Zealand through strategic management of vineyard assets[69]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[69]. - The company completed a subscription agreement on July 25, 2022, where Joris Investments Limited and Cosmic Classic Limited each subscribed for 5,500,000 shares of A2 series preferred stock, resulting in a combined ownership of approximately 18.33% of Pharus, Inc.[98]. Compliance and Audit - The independent auditor, Deloitte, confirmed that the financial statements accurately reflect the company's financial position as of December 31, 2022[105]. - The company adheres to regulatory requirements from agencies such as the FDA, TGA, and Health Canada[73]. - The group is responsible for preparing financial statements that are free from material misstatement due to fraud or error, and for maintaining effective internal controls[111].
长江生命科技(00775) - 2022 - 年度财报