Product Portfolio and Development - Lee's Pharmaceutical currently markets over 25 proprietary, generic, and licensed-in pharmaceutical products across Mainland China, Hong Kong, Macau, and Taiwan[8] - The Group has more than 40 products in various stages of development, focusing on key disease areas such as cardiovascular, women's health, pediatrics, rare diseases, oncology, dermatology, and obstetrics[8] - The company has a diverse product portfolio including proprietary and licensed-in products for various medical applications[10] - The Group's product portfolio has expanded from standard drugs to specialty drugs, with recent launches including Treprostinil Injection and Sodium Phenylbutyrate Granules, aiming for further growth opportunities[118] - Five products received ANDA and IDL approvals from the National Medical Products Administration during the Reporting Year, enhancing the Company's product range[35] - The Group is expecting IDL approvals for Riluzole Oral Suspension and Procarbazine Hydrochloride Capsule soon, further expanding its product offerings[35] - Sodium Phenylbutyrate Granules, the first generic version in China, received drug registration certification from NMPA, addressing unmet medical needs in the country[70] - Zingo® (Lidocaine Hydrochloride Powder Intradermal Injection System) received drug registration certification from NMPA, providing local analgesia in children and adults[73] - INOmax® (nitric oxide gas for inhalation) obtained drug registration certification from NMPA for treating hypoxic respiratory failure associated with pulmonary hypertension in infants[73] - High Concentration Treprostinil Injection (20ml:50mg) developed by Zhaoke Pharmaceutical (Hefei) received drug registration certification from NMPA[77] Financial Performance - For the year ended December 31, 2021, revenue increased by 4.1% to HK$1,266,157,000 compared to HK$1,216,716,000 in 2020[15] - Gross profit rose by 3.2% to HK$806,284,000 from HK$781,066,000 in the previous year[15] - Profit attributable to the owners of the Company surged by 1,436.7% to HK$1,987,176,000, up from HK$129,316,000 in 2020[15] - Equity attributable to the owners of the Company increased by 14.6% to HK$2,464,578,000 from HK$2,149,795,000 in 2020[15] - Basic earnings per share jumped by 1,435.2% to HK$337.58, compared to HK$21.99 in the prior year[15] - Total dividend per share increased by 5.2% to HK$6.1 from HK$5.8 in 2020[15] - The dividend payout ratio decreased significantly to 1.8% from 26.4% in the previous year[15] - The Group recorded a net profit attributable to owners of HK$1,987,176,000, an increase of approximately 14.4 times compared to the previous year, aided by a one-time gain of approximately HK$2.3 billion from the derecognition of investment in Zhaoke Ophthalmology Limited[58] - The Group's revenue increased by HK$49,441,000 or 4.1%, from HK$1,216,716,000 in 2020 to HK$1,266,157,000 in 2021[84] - Sales of licensed-in products amounted to HK$749,135,000, accounting for 59.2% of the Group's revenue, while proprietary and generic products contributed HK$517,022,000, or 40.8%[44] Research and Development - The Group focuses on both internal research and development as well as licensing development, commercialization, and manufacturing rights from various international companies[8] - R&D expenses totaled HK$463,147,000, representing 36.6% of the corresponding yearly revenue, with HK$243,835,000 recognized as expenses and HK$219,312,000 capitalized as intangible assets[52] - Research and development expenses increased to HK$463,147,000, representing 36.6% of the corresponding year's revenue, up from 32.0% in the previous year[55] - The Group has over 40 projects in its pipeline, with several applications for drug licenses under review by the Centre for Drug Evaluation[64] - The Group will continue to monitor its investment portfolio and explore monetization opportunities as appropriate[99] Strategic Partnerships and Market Expansion - The Group has established extensive partnerships with over 20 international companies to enhance its product offerings and market reach[8] - The company is focused on expanding its market presence in China, Hong Kong, Macau, and Taiwan[10] - New product development and strategic partnerships are key components of the company's growth strategy[10] - The Group will implement a sales business unit responsibility scheme and expand its product portfolio towards specialty drugs to create growth opportunities[39] Management and Governance - The Group has a strong management team with diverse expertise in finance, marketing, and life sciences[141] - The Group's Chief Financial Officer, Chow Yiu Ming, has over 25 years of experience in accounting and corporate finance, indicating strong leadership in financial management[144] - The Group established a Risk Control Centre in 2020, enhancing its strategic planning and compliance capabilities[146] - The Group's commitment to compliance and audit functions is reinforced by the establishment of the Risk Control Centre, which is crucial for maintaining operational integrity[146] - The Group's financial governance is strong, supporting its strategy to return to a growth trajectory and create long-term shareholder value[120] Operational Challenges and Future Outlook - The Volume-Based Procurement program has continued to roll out across the country, leading to reduced prices for public hospitals[32] - The Group anticipates that the Value-Based Pricing (VBP) program in China will continue, potentially covering over 300 drugs by the end of 2022, which may impact sales dynamics[113] - The Group expects to benefit from new laws and regulations in the long run, while implementing measures to navigate current challenges[113] - The Group's management will continue to monitor foreign currency exposure and consider hedging when necessary to mitigate risks[111] Employee and Community Engagement - The Group employed 1,319 individuals as of December 31, 2021, an increase from 1,302 employees in the previous year[113] - Charitable donations made by the Group during the year amounted to HK$7,462,000, an increase from HK$2,588,000 in 2020[185]
李氏大药厂(00950) - 2021 - 年度财报