Company Overview - The company has over 25 years of experience in the pharmaceutical industry in China, focusing on research-driven and market-oriented biopharmaceutical development[12]. - The group markets over 25 proprietary, generic, and licensed-in pharmaceutical products across Mainland China, Hong Kong, Macau, and Taiwan[13]. - The company has more than 40 products in various development stages, stemming from both internal R&D and licensing agreements with companies from the US, Europe, and Japan[14]. - The company has established extensive partnerships with over 20 international companies to enhance its product offerings[13]. - The group focuses on key disease areas such as cardiovascular, women's health, pediatrics, rare diseases, oncology, dermatology, and obstetrics[14]. Manufacturing and Operations - The manufacturing plant in Hefei, Anhui Province, operates four GMP-compliant workshops for producing topical gel, lyophilised powder for injection, small volume parenteral solutions, and eye gel[15]. - The Guangzhou manufacturing site includes a complete range of solid dosage production lines for tablets and capsules[15]. - The Group's Hefei site has completed production capacity expansion for Yallaferon® and upgrades for new prefilled syringe injection products[72]. - The Group's manufacturing operations are overseen by Victor Tsui, ensuring high standards in production management and quality control[189]. Financial Performance - Revenue for 2022 was HK$1,233,148,000, a decrease of 2.6% from HK$1,266,157,000 in 2021[25]. - Gross profit declined by 4.4% to HK$770,755,000 from HK$806,284,000 in the previous year[25]. - Profit attributable to the owners of the company plummeted by 97.4% to HK$51,284,000 compared to HK$1,987,176,000 in 2021[25]. - Equity attributable to the owners of the company decreased by 21.9% to HK$1,925,052,000 from HK$2,464,578,000 in 2021[25]. - Basic earnings per share fell by 97.4% to 8.71 HK cents from 337.58 HK cents in 2021[25]. - Total dividend per share was reduced by 67.2% to 2.0 HK cents from 6.1 HK cents in the previous year[25]. - The dividend payout ratio increased significantly to 23.0% from 1.8% in 2021[25]. - The Group's net current assets were HK$1,530,000, a significant decline from HK$40,740,000 in 2021[40]. - The Group's investment portfolio decreased to approximately HK$554,751,000 from HK$1,043,464,000 in 2021[135]. - The effective tax rate increased significantly by 32.1 percentage points to 32.6% for the Reporting Year[129]. Research and Development - The company has a diverse product portfolio including proprietary and licensed-in products across various markets[21][22]. - New product developments and market expansions are ongoing, focusing on therapeutic areas such as oncology and infectious diseases[21][22]. - Research and development efforts resulted in 7 ANDA and IDL approvals from NMPA, which are expected to drive future sales growth[45]. - The NDA for Adasuve® and ANDA applications for Epinastine Hydrochloride tablet and Apremilast tablet are currently under review by the CDE[73]. - The Group obtained 7 ANDA and IDL approvals from the NMPA during the reporting year[81]. Market Strategy and Expansion - The mission is to become a successful biopharmaceutical group in Asia, providing innovative products to improve health and quality of life[16]. - The company aims to expand its market presence and product portfolio through strategic partnerships and R&D initiatives[14]. - The Group is actively pursuing strategies for market expansion and potential acquisitions to enhance its product offerings[21][22]. - The Group's rare disease drugs, including Treprostinil Injection and Teglutik®, have been included in the updated NRDL, expanding patient access to these treatments[162]. - The Group's Fondaparinux Sodium was selected in the seventh-round VBP program, broadening its patient reach[104]. Cost Management and Efficiency - The Group remains committed to improving financial position through cost-saving measures while maintaining quality[52]. - The Group plans to implement cost control measures and enhance efficiency in sales and R&D to improve profitability and sustainability[163]. - The Group's administrative expenses were HK$198,413,000, a decrease of 33.3% compared to the previous year, reflecting efficient operations and cost-saving measures[67]. Leadership and Management - The Group's Chief Financial Officer, Chow Yiu Ming, has over 25 years of experience in accounting, auditing, financial management, and corporate finance[184]. - Dr. Li Xiaoyi, the founder of the Group, was responsible for daily operations and R&D from 1994 until April 2021, now serving as a non-executive director and senior adviser[172]. - The independent non-executive director, Dr. Chan Yau Ching, has extensive experience in corporate development and financial management of high-growth companies[177]. - The Group's management team includes professionals with advanced degrees, such as PhDs in relevant fields, enhancing the company's expertise in pharmaceuticals[172][183]. - The Group has been expanding its board with experienced individuals from various sectors, including private equity and healthcare management[173][175]. Employee and Organizational Changes - The Group had 1,102 employees as of December 31, 2022, a decrease from 1,321 employees in the previous year[151]. - The Group adopts a conservative treasury policy to manage liquidity and credit risks effectively[147]. - The Group believes it has adequate financial resources to meet future operational and development needs[145]. Product Development and Approval - Three new commercialized products, Treprostinil Injection, Teglutik®, and Trittico®, were added to the updated NRDL in January 2023, expected to enhance demand and sales[51]. - The expiration of the licensing agreement for Carnitene® significantly impacted the Group's revenue during the Reporting Year[57]. - The Group successfully included three newly commercialized products in the latest medical insurance drug list, expected to enhance demand and sales[54].
李氏大药厂(00950) - 2022 - 年度财报