Business Operations - The Group operates 395 retail pharmacies primarily located in Northeast China, with approximately 1,750 active distributors and 3,396 full-time staff[9]. - The Group has established five large-scale logistics storage centers in Shijiazhuang, Shenyang, Changchun, Harbin, and Jiamusi, creating a high-quality distribution system across the country[9]. - The Group is positioned as a leading pharmaceutical retailer and distributor in Northeast China, aiming to become an international brand operator in the universal health industry[8]. - The Group's direct-supply model improved sales efficiency and profitability, covering all provinces in China[77]. - The Group's retail business recorded sales revenue of RMB 433.7 million for the Year, a year-on-year decrease of 16.6% from RMB 519.8 million in 2021[71]. - The distribution business achieved sales revenue of RMB 839.9 million, representing a year-on-year increase of 26.2% from RMB 665.4 million in 2021[76]. - The Group closed 450 loss-making retail pharmacies, reducing the total from 845 in 2021 to 395 in 2022[100]. - The nationwide distribution network covered approximately 1,750 active customers, a decrease from 2,270 in the previous year, including 1,050 pharmaceutical retailers, hospitals, and clinics[102]. Financial Performance - Revenue for the year ended 30 June 2022 was RMB 1,273.6 million, representing a 7.5% increase from RMB 1,185.2 million in 2021[24]. - Gross profit increased by 30.1% to RMB 204.2 million, up from RMB 156.9 million in the previous year[24]. - Operating loss improved significantly to RMB (188.7) million from RMB (663.4) million, a reduction of RMB 474.7 million[24]. - Loss for the year decreased to RMB (188.0) million, compared to RMB (676.0) million in 2021, an improvement of RMB 488.0 million[24]. - Basic loss per share improved to RMB (42.66) cents from RMB (174.83) cents, an increase of 132.17 RMB cents[24]. - Gross margin increased to 16.0%, up 2.8 percentage points from 13.2% in the previous year[24]. - The current ratio decreased to 1.1 times from 1.3 times in 2021[24]. - Trade receivables turnover days improved to 26.3 days from 30.3 days[24]. - Loss attributable to owners of the Company decreased to RMB 187.6 million, down from RMB 675.4 million in the previous year, resulting in a loss per share of RMB 42.66 cents compared to RMB 174.83 cents[93]. - Retail revenue decreased by 16.6% to RMB 433.7 million, while distribution revenue increased by 26.2% to RMB 839.9 million, reflecting a shift in business performance[99]. Strategic Initiatives - The Group aims to expand its product mix by introducing more health care products and exploring upstream ecological chains, including the construction of Chinese herbal medicine bases[14]. - The Group is actively exploring online pharmacies, cross-border e-commerce, and influencer marketing as part of its "Internet+" strategy[15]. - The Group emphasizes the concept of "Specialization+" and the development concept of "Platform+" to enhance its market position[15]. - The Group is committed to upgrading and digital transformation to adapt to the "New Norm" in the real economy[15]. - The Group's strategy includes leveraging core advantages of branded products and providing value-added services to employees, customers, and consumers[14]. - The Group is focusing on upgrading to new channels and enhancing its market presence amid evolving industry policies[29][35]. - The Group is leveraging an O2O platform to create an interactive online and offline operation system[71]. - The management plans to adopt a "Specialization+" strategy to enhance service professionalism and improve operational quality in the pharmaceutical industry[143]. - The "Platform+" strategy will expand value-added services in stores to meet increasing consumer health demands, particularly in response to the pandemic[144]. - The "Internet+" strategy aims to strengthen the integration of online and offline services, utilizing mobile internet technologies and new marketing ecosystems[147]. Market Trends - The market size of China's pharmaceutical industry is expected to reach RMB 2,231.1 billion by the end of 2022, up from RMB 1,922.0 billion in 2021[33]. - New pharmaceutical retail is rapidly growing due to new medical policies and emerging industry forces[59]. - The pharmaceutical retail business helped mitigate significant declines during the epidemic[40]. - The average price reduction of drugs included in bulk purchases has reached over 50%[57]. - It is expected that 70% of the pharmaceutical market will be covered by bulk purchases within three years[57]. Employee and Corporate Governance - The total employee benefit expenses for the year amounted to RMB 245.5 million, a decrease from RMB 316.5 million in 2021, with full-time employees reduced to 3,396 from 5,586[137]. - The Group conducted 13 online internal training sessions during the Year to enhance employee skills and adapt to business transformation due to the pandemic[88]. - Approximately 1.5 million offline members received follow-up services and promotional benefits, enhancing member loyalty and the Company's positive image[86]. - The Group has implemented a share option scheme to incentivize employee performance and maintain competitiveness[196]. - The company has established and implemented a human resources management policy to provide an ideal working environment for employees[197]. - The compensation structure links part of employee pay to individual and overall company performance to incentivize good performance[197]. - Regular meetings with management are held to review the presence of forced labor within the company[197]. - The company adheres to strict hiring practices to prevent child labor and forced labor, ensuring compliance with relevant laws and regulations[197]. Environmental Sustainability - The Group aims to reduce greenhouse gas emissions by minimizing business trips and promoting teleconferencing as an alternative to in-person meetings[169]. - The Group emphasizes environmental protection by engaging manufacturers to comply with national environmental regulations and use eco-friendly packaging materials[171]. - The Group's commitment to corporate social responsibility includes initiatives in environmental sustainability, workplace safety, operational management, and community engagement[158]. - The Group actively promotes a "green office" initiative, encouraging energy-saving practices among employees[175]. - The Company supports the transition to a low-carbon economy by implementing energy and water conservation policies[184]. - The Group's overall strategy aligns with sustainable development goals, focusing on enhancing transparency and accountability in its operations[162].
大健康国际(02211) - 2022 - 年度财报