Financial Performance - The Group recorded revenue of RMB2,271.5 million for the Reporting Period, an increase of RMB247.4 million or 12.2% compared to RMB2,024.1 million in 2021[157]. - Revenue from human albumin solution was RMB2,257.2 million, representing an increase of approximately 14.4% or RMB283.9 million compared to 2021[158]. - The Group's net profit decreased by 48.6% to RMB69.5 million for the Reporting Period (2021: RMB135.1 million), primarily due to a decrease in gross profit from sales[118][121]. - Gross profit decreased to RMB305.9 million, down RMB59.1 million from RMB365.0 million in 2021, with a gross profit margin declining from 18.0% to 13.5%[161]. - Total assets increased to RMB1,424.3 million in 2022 from RMB1,232.8 million in 2021[127]. - Total equity attributable to owners of the Company rose to RMB603.8 million in 2022 from RMB374.9 million in 2021[127]. - Other income and gains amounted to RMB25.2 million, an increase of RMB14.3 million compared to 2021, mainly due to an increase in exchange gains[162]. Share Option Scheme - The total number of shares available for issue under the Share Option Scheme is capped at 160,000,000, which constitutes 7.87% of the issued shares of the company as of the report date[9]. - The company has adopted a Share Option Scheme to incentivize eligible participants for their contributions, effective since March 10, 2016[4]. - The maximum entitlement of each participant under the Share Option Scheme is limited to 1% of the total shares in issue within any 12-month period[5]. - The nominal consideration for accepting the grant of an option is HK$1.00[12]. - The options granted under the Share Option Scheme must be held for a minimum of one year before they can be exercised[13]. - As of December 31, 2022, there were 1,150,000 options granted to employees that remained unexercised, with all options having lapsed[20]. - The remaining life of the Share Option Scheme as of December 31, 2022, is approximately 3 years and 2 months, expiring in early 2026[8]. Corporate Governance - The company considers all independent non-executive directors to be independent according to the Listing Rules[25]. - All independent non-executive directors confirmed their independence as per the listing rules[31]. - No significant transactions or contracts involving directors were reported during the reporting period[36]. - The directors proposed for re-election at the forthcoming AGM do not have service contracts that are not determinable within one year without compensation[35]. - No equity-linked agreements were entered into by the Company during the reporting period[29]. Business Operations - The Group's principal activity involves investment holding and providing comprehensive marketing, promotion, and channel management services for imported pharmaceutical products and medical devices in China[97]. - The Group aims to expand its market presence in China through strategic marketing and promotion of imported pharmaceutical products[97]. - The Group's overall business development, operation, and management are overseen by Mr. Jin Min, who was appointed as CEO in March 2023[86]. - The Group has over 19 years of experience in the pharmaceutical industry, with key management personnel having extensive backgrounds in marketing and product management[86][88][91]. - The Group's R&D efforts are led by Mr. Wu Qingjiang, who has over 40 years of experience in pharmaceutical production and quality control[93]. Cash Flow and Financial Management - Net cash from operating activities was RMB 75.1 million, a decrease from RMB 305.7 million in 2021, mainly due to increased cash from sales and a decrease in prepayments[191]. - Net cash used in investing activities was RMB 119.3 million, compared to RMB 22.7 million in 2021, primarily due to purchases of property, plant, and equipment and acquisitions of subsidiaries[192]. - Net cash inflow from financing activities was RMB 35.0 million, a turnaround from a net outflow of RMB 97.1 million in 2021, mainly due to cash inflow from the issuance of new shares amounting to RMB 159.5 million[193]. - The Group's cash and cash equivalents at the end of the reporting period amounted to RMB 436,996,000, an increase from RMB 381,067,000 in the previous year, representing a growth of approximately 14.6%[196]. - The Group has adopted a prudent financial management approach towards its treasury policies, emphasizing strict control over outstanding receivables[200]. Market and Sales Performance - The Group's largest supplier accounted for 99.47% of total products purchased during the Reporting Period, up from 96.8% in 2021[107]. - The marketing network has expanded to cover key hospitals in major cities and further penetrated into prefectures and second-tier and third-tier cities, leading to significant growth in sales at terminal hospitals[139][142]. - The company plans to continue focusing on the terminal hospital market while supplementing with retail pharmacies to enhance market coverage and sales channel share in 2023[139][142]. - The pharmaceutical distribution business is expected to encounter new opportunities in 2023 following the easing of supply chain pressures due to the pandemic[132][134]. Dividend and Shareholder Information - The final dividend declared for the year ended December 31, 2022, is HK$0.98 cents per ordinary share, totaling HK$20,000,000, compared to HK$0 for the previous year[99][101]. - The final dividend is subject to approval by shareholders at the upcoming AGM[99][101]. - The annual general meeting (AGM) is scheduled for May 29, 2023, with a notice to be published in accordance with the Listing Rules[100].
兴科蓉医药(06833) - 2022 - 年度财报