Financial Performance - The company's revenue for the year ended December 31, 2022, was approximately RMB 399.7 million, representing a growth of 10.8% compared to the previous year[7]. - The net profit for the same period was approximately RMB 87.8 million, reflecting an increase of 7.4% year-on-year[7]. - The group recorded a total revenue of approximately RMB 399.7 million for the fiscal year 2022, an increase of about RMB 39.0 million or 10.8% compared to the fiscal year 2021[19]. - The overall gross profit margin slightly decreased to approximately 42.7% in 2022 from about 43.9% in 2021, primarily due to increased production costs and lower margins on key products[24]. - The group achieved a pre-tax profit of approximately RMB 124.3 million in 2022, an increase of about 8.8% from RMB 114.2 million in 2021, driven by higher sales of key products[27]. Regional Sales Performance - The company's sales revenue in the Northeast region for 2022 was approximately RMB 219.9 million, which is a growth of about 14.0% and accounts for over 55.0% of total revenue[9]. - The Northeast region contributed approximately RMB 219.9 million to total revenue in 2022, accounting for 55.0% of total revenue, up from 53.5% in 2021[24]. Product Development and R&D - The company has developed a diverse product portfolio with around 60 traditional Chinese medicine products targeting various health issues[9]. - The company is collaborating with Heilongjiang University of Chinese Medicine to develop a new product aimed at alleviating symptoms related to stroke[12]. - The company is also working with Chengde Medical College to improve the production process and quality standards of its existing products[12]. - The company aims to enhance its R&D efforts and expand its product portfolio, with a target to utilize the allocated funds by Q3 2023[42]. - The company is investing in R&D, allocating 10% of its revenue towards developing new technologies[52]. Marketing and Distribution - The number of distributors increased to 83, covering approximately 40 cities in China by the end of 2022[9]. - The company plans to enhance its product marketing strategies both online and offline to create more value for shareholders[13]. - The company plans to expand its distribution network in South and East China, with an expected completion by Q2 2023[42]. Cash Flow and Capital Management - The net cash generated from operating activities for the year 2022 was approximately RMB 125.8 million, a significant increase from RMB 57.6 million in 2021[31]. - The net cash used in investing activities for 2022 was approximately RMB 11.0 million, a decrease from RMB 70.0 million in 2021, primarily due to reduced payments for property, plant, and equipment[31]. - The net cash used in financing activities for 2022 was approximately RMB 8.7 million, compared to a net cash inflow of RMB 115.8 million in 2021, mainly due to the payment of dividends in 2022[31]. - The total capital expenditure for 2022 was approximately RMB 11.7 million, significantly lower than RMB 62.4 million in 2021[39]. Governance and Board Structure - The board of directors proposed not to declare a final dividend for the year ended December 31, 2022, compared to a dividend of HKD 0.0167 per share in 2021[40]. - The company has established a mechanism for assessing board independence, which aims to enhance board effectiveness and identify areas for improvement[84]. - The company provides appropriate insurance coverage for directors against legal liabilities arising from business activities, with annual reviews of the coverage[79]. - The board consists of 2 female and 4 male directors, with a gender ratio of 33% female and 67% male[113]. - The company has adopted a diversity policy that considers various measurable targets, including gender, age, and professional experience[113]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report highlights the company's commitment to sustainable development in environmental, social, and governance aspects, covering the period from January 1 to December 31, 2022[142]. - The company has established an environmental management system to identify, monitor, and reduce environmental risks[153]. - The company is committed to aligning environmental goals with international standards and contributing to global initiatives addressing environmental issues[153]. - The company has implemented measures to reduce greenhouse gas emissions and is committed to its reduction promises[154]. - The company has developed emergency measures to address acute physical risks related to climate change, such as storms and floods[178]. Employee Welfare and Training - The average training hours per employee increased to approximately 33 hours in 2022, up from 31 hours in 2021, with a 100% participation rate in training programs[189]. - The company provides medical insurance for all employees to address work-related injuries[185]. - The company has established a counseling service for employees in need, emphasizing mental health alongside physical safety[186]. - The company strictly adheres to labor laws and prohibits any form of harassment or discrimination, with no incidents reported during the reporting period[192]. Supply Chain Management - The supply chain management system is a key driver for the company, focusing on quality, environmental impact, reliability, and compliance, with a total of 27 approved suppliers across various regions in China[198][199]. - The company has implemented a transparent and fair supplier review process, regularly assessing suppliers' production sites to ensure compliance with quality and environmental regulations[194]. - No product recalls or quality complaints were reported during the reporting period, indicating a commitment to maintaining high product standards[199].
现代中药集团(01643) - 2022 - 年度财报