Shareholding Structure - Xie Yi holds 900,000,000 shares, representing approximately 37.66% of interests, through controlled corporations[6] - Cheng Yong directly owns 830,000 shares (0.04%) and through controlled corporations holds 140,760,000 shares (5.89%), with an additional 5,090,000 shares (0.21%) held by spouse, totaling 146,680,000 shares (6.14%)[6] Share Buyback and Consolidation - On March 31, 2023, Changchun Extrawell Pharmaceutical Co., Ltd. entered into a share buyback agreement to repurchase 9.14% of its total issued share capital for RMB4,400,000 (approximately HK$4,972,000)[14] - Following the share buyback, the Group's shareholding in Changchun Extrawell will increase from 73.11% to 80.46%[14] - The financial results of Changchun Extrawell will continue to be consolidated into the Group's financial statements[14] Financial Reporting and Audit - The Group's financial statements have been prepared in accordance with HKFRSs and the disclosure requirements of the Hong Kong Companies Ordinance[19] - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the Group's financial position as of March 31, 2023[19] - The consolidated financial statements for the year ended March 31, 2023, reflect the company's financial performance and position[35] - The company has not early adopted new Hong Kong Financial Reporting Standards that have been issued but are not yet effective[49] - The fair value measurement for financial instruments is based on market participant considerations at the measurement date[34] - The directors are responsible for ensuring the consolidated financial statements are prepared in accordance with relevant accounting standards and regulations[43] - The auditor evaluates the appropriateness of accounting policies and the reasonableness of estimates made by the directors[45] - The audit includes assessing whether there are material uncertainties that may cast significant doubt on the company's ability to continue as a going concern[45] - The company communicates significant audit findings and deficiencies in internal control to those charged with governance[46] - The overall presentation and structure of the consolidated financial statements are evaluated to ensure fair representation of transactions[45] - The company is responsible for obtaining sufficient appropriate audit evidence regarding financial information within the group[45] Financial Performance - Profit before income tax for the year ended 31 March 2023 was HK$130,901,000, a slight decrease from HK$132,330,000 in 2022, representing a decline of approximately 1%[60] - Total comprehensive income for the year ended 31 March 2023 was HK$1,281,570,000, reflecting a decrease from HK$1,164,924,000 in 2022[57] - Profit for the year attributable to owners of the Company decreased to HK$129,265,000 from HK$130,588,000, a decline of approximately 1%[78] - Total comprehensive income for the year attributable to owners of the Company decreased to HK$116,069,000 from HK$135,148,000, a decline of approximately 14%[79] - Basic earnings per share for profit attributable to owners of the Company increased to HK$0.14 from HK$0.0541, an increase of approximately 158%[80] Cash Flow and Assets - Net cash generated from operating activities for the year was HK$1,180,000, compared to a net cash used of HK$1,766,000 in the previous year[63] - Cash and cash equivalents at the end of the year were HK$102,401,000, down from HK$111,881,000 at the beginning of the year, indicating a decrease of approximately 8%[63] - Non-current assets totaled HK$1,266,211,000, an increase from HK$1,122,719,000, representing a growth of approximately 13%[84] - Current assets decreased to HK$178,663,000 from HK$194,382,000, a decline of approximately 8%[84] - Financial assets at fair value through profit or loss increased to HK$793,530,000 from HK$634,907,000, an increase of approximately 25%[84] Challenges and Market Conditions - The Group faced challenges due to COVID-19 outbreaks in China, leading to temporary production halts in April and May 2022[109] - The temporary factory closures resulted in lower production volumes and increased material costs, which squeezed gross profit margins[109] - The Group acknowledges the challenges posed by the lingering effects of the COVID-19 pandemic on supply chains and market dynamics[124] - The global economic environment remains challenging due to geopolitical pressures and weakening global demand, impacting overall market conditions[123] Strategic Initiatives and Future Outlook - The Group plans to continue allocating internal resources to develop quality products in line with the trends of the pharmaceutical industry as outlined in China's Fourteenth Five-Year Plan (2021–2025)[116] - The Group anticipates continued growth in its pharmaceutical manufacturing business, driven by the industry's potential and vitality[123] - The Group expects the pharmaceutical manufacturing sector in China to continue to prosper following the lifting of pandemic control measures, facilitating future business growth[164] Corporate Governance - The company has not established a dividend policy, considering it more appropriate to determine dividend payments based on financial performance and market conditions[181] - The company will continue to review and monitor its corporate governance practices as circumstances demand[181] - The Board currently consists of four executive directors and three independent non-executive directors, with diverse professional qualifications and relevant experience[195] - The Nomination Committee is responsible for implementing and supervising the Board Diversity Policy, which considers various diversity perspectives including gender, age, and professional experience[195]
精优药业(00858) - 2023 - 年度财报