Financial Performance - For the six months ended June 30, 2023, the company reported a net cash generated from operating activities of HK$39,063,000, a decrease from HK$252,218,000 in the same period of 2022[32]. - The company reported a profit/(loss) for the period of HK$28,460,000, a significant change from the previous year's loss of HK$290,005,000[31]. - The Group's net profit attributable to shareholders for the first half of 2023 was HK$16,117,000, a decrease of 43.4% compared to the same period last year[146]. - The Group's revenue for the first half of 2023 was HK$512,308,000, a decrease of 21.1% compared to HK$649,166,000 in the same period of 2022[157]. - The Group's gross profit for the first half of 2023 was HK$284,463,000, a decrease of 32.2% compared to HK$419,478,000 in the same period last year, with a gross profit margin of 55.5%, down 9.1 percentage points from 64.6% in the first half of 2022[141][160]. Cash and Liquidity - As of June 30, 2023, the company's cash and bank balances were HK$161,519,000, down from HK$368,047,000 as of June 30, 2022, indicating a decline of approximately 56.2%[34]. - The net decrease in cash and cash equivalents for the six months ended 30 June 2023 was HK$ (28,782) thousand, down from an increase of HK$ 85,194 thousand in the same period last year[46]. - Cash and cash equivalents at 30 June 2023 amounted to HK$ 161,519 thousand, a decrease from HK$ 368,047 thousand at the end of the previous period[46]. - The Group's principal sources of working capital include cash flow from operating and financing activities[194]. Investments and Dividends - The company incurred a net cash used in investing activities of HK$1,929,000 for the six months ended June 30, 2023, compared to HK$19,450,000 in the same period of 2022[32]. - The company paid dividends amounting to HK$88,587,000 during the reporting period, compared to HK$116,475,000 in the previous year[32]. Assets and Liabilities - The total liabilities of the Group reached HK$1,001,133,000 as of June 30, 2023[114]. - Total assets increased to HK$2,897,746,000 as of June 30, 2023, compared to HK$2,782,028,000 in 2022, reflecting a growth of approximately 4.1%[114]. - Segment liabilities rose to HK$596,649,000 as of June 30, 2023, up from HK$574,762,000 in 2022, indicating an increase of about 3.0%[114]. Research and Development - Research and development expenses for the same period amounted to (116,590), compared to (48,798) in the prior period, indicating increased investment in innovation[95]. - R&D expenses totaled HK$113,634,000, a 45.0% decrease from HK$206,517,000 in the first half of 2022, accounting for 22.2% of revenue[159]. - The Group is currently developing over 40 projects in its pipeline, including late-stage programs for various therapeutic areas such as cardiovascular and rare diseases[198][199]. - The NDA for Cetraxal® Plus was successfully submitted and accepted by the CDE in January 2023, following the completion of its Phase III clinical trial in 2022[199]. Market and Competition - More than 90% of the Group's revenue was derived from activities conducted in the People's Republic of China during the six months ended June 30, 2023[115]. - The Group is facing challenges from increased competition and elevated operating costs due to inflation in the second half of 2023[177]. - The Group is facing challenges from increased competition and profit reductions from products included in national procurement plans, necessitating strategic management[179]. Operational Efficiency and Strategy - The Group is focusing on enhancing production yield and pursuing cost-saving measures to adapt to the evolving market environment[148]. - The Group's operational efficiency has improved, allowing it to navigate the risks and opportunities presented by national reimbursement schemes[155]. - The Group's strategy includes optimizing resource allocation for priority R&D projects to continuously reduce costs[143]. - The Group aims to expand market reach and increase sales through participation in national reimbursement schemes and volume-based procurement programs[139]. Financial Reporting and Compliance - The company’s financial statements were prepared in accordance with Hong Kong Accounting Standards, ensuring compliance and accuracy[2]. - The unaudited condensed consolidated financial statements have been prepared in accordance with HKAS 34 and the applicable disclosure requirements of the Listing Rules[48]. - The application of amendments to HKFRS has had no material effect on the reported amounts in the unaudited condensed consolidated financial statements[54].
李氏大药厂(00950) - 2023 - 中期财报