Financial Performance - The Group recorded revenue of approximately RMB623,478,000 for the six months ended 30 June 2022, representing an increase of 2.4% compared to RMB608,589,000 in the same period of 2021[41]. - Profit attributable to owners of the parent was approximately RMB171,661,000, an increase of approximately 3.0% compared to RMB166,646,000 in the same period of 2021[41]. - The Group's overall sales increased by 2.4% in the first half of 2022 compared to the same period last year[68]. - For the six months ended June 30, 2022, the Group recorded a turnover of approximately RMB623,478,000, representing an increase of 2.4% compared to RMB608,589,000 during the corresponding period of last year[86]. - Gross profit was approximately RMB392,278,000, which increased by RMB19,187,000 or 5.1% compared to the corresponding period of last year[86]. - The gross profit margin improved to 62.9%, an increase of 1.6 percentage points from 61.3% in the previous year[86]. - Profit before tax increased to RMB 225,591,000, compared to RMB 211,082,000 in the prior year, representing a growth of 6.9%[177]. - The profit for the period attributable to owners of the parent was RMB 171,661,000, an increase from RMB 166,646,000, marking a growth of 3.0%[177]. - Total comprehensive income for the period, net of tax, rose to RMB 177,186,000, compared to RMB 167,377,000, reflecting an increase of 5.14%[180]. Sales and Market Performance - The overall sales of finished medicines increased by 7.0% compared to the same period last year, despite a 0.5% decrease in sales of the "An" series medicines due to centralized procurement impacts[47]. - Sales volume of Fujian Dawnrays series medicines, primarily for treating hyperlipidemia, rose by 26.5%, with sales revenue increasing by 19.4% year-on-year[68]. - The sales volume of cephalosporin intermediates and bulk medicines decreased by 46.0%, with sales revenue declining by 29.1% compared to the same period in 2021[68]. - The sales of anti-hypertensive drugs in the "An" series decreased by 1.0% in volume and 0.5% in revenue year-on-year[68]. Research and Development - The Advanced Technology Research Institute was established in June 2022 to integrate R&D resources and promote innovation within the Group[53]. - Clinical trials for Class I new drug registration of monoclonal antibody agents AK102 and AK109 are underway, with a production capacity of 8,000L established in May 2022[54]. - The Group aims to transform into an innovative drug enterprise by gradually expanding its high-end R&D system based on the generic drug R&D system[53]. - Research and development expenses increased to RMB 29,960,000, up by RMB 1,815,000 compared to the same period last year[89]. - The Group obtained a total of 11 approvals for 9 varieties during the period, including 2 approvals for supplementary applications[82]. Operational Efficiency - The Group's gross profit increased by 5.1% over the same period last year, indicating improved operational efficiency[49]. - The Group reorganized its structure in July 2022 to enhance operational efficiency and corporate governance, facilitating future bidding opportunities in national centralized procurement[60]. - The Group's marketing department focused on expanding product coverage and maintaining high supply volumes for key products despite external challenges[47]. - The Group's focus on high-quality specialty drug products and robust financial management has enabled it to maintain stable business growth despite intense market competition[57]. Financial Position and Investments - The Group held cash and bank balances of approximately RMB601,576,000 as of June 30, 2022, an increase from RMB577,744,000 as of December 31, 2021[104]. - Net cash flows from operating activities during the period were approximately RMB269,303,000, up from RMB153,202,000 in 2021[104]. - The registered capital of Lanzhou Dawnrays Pharmaceutical Co., Ltd. was increased from USD50,000,000 to USD80,000,000 in May 2022, with the Group holding a 96.875% share interest[106]. - The Group plans to invest RMB430,000,000 in the Lanzhou project, which is expected to be completed and put into production in the second half of 2022[106]. - The company reported a share of losses from an associate amounting to RMB 20,493,000, compared to RMB 17,122,000 in 2021, indicating increased challenges in associated investments[196]. Corporate Governance and Management - The company complied with the Corporate Governance Code during the six months ended June 30, 2022, with one deviation regarding non-executive directors' attendance at the AGM[159]. - Mr. Chen Shaojun resigned as executive director and CEO effective February 16, 2022, to focus on other business[160]. - Mr. Wu Weixian was appointed as the new CEO effective February 16, 2022[160]. - The Audit Committee reviewed the interim financial statements before board approval, ensuring compliance with financial reporting standards[170]. Shareholder Information - As of June 30, 2022, Ms. Li Kei Ling holds 107,372,000 shares directly beneficially owned and has a total interest of 702,100,000 shares, representing 46.85% of the company's issued share capital[139]. - Mr. Hung Yung Lai directly beneficially owns 1,880,000 shares and has a total interest of 596,608,000 shares, accounting for 39.81% of the company's issued share capital[139]. - Fortune United Group Limited, a holding company, holds 594,728,000 shares of the company, with Ms. Li Kei Ling and Mr. Hung Yung Lai each beneficially interested in 50% of its share capital[144].
东瑞制药(02348) - 2022 - 中期财报