Financial Performance - For the six months ended June 30, 2023, the company's revenue reached RMB 1,605.7 million, representing a 63.0% increase compared to RMB 984.9 million in the same period of 2022[9]. - Gross profit for the same period was RMB 1,351.0 million, up 61.2% from RMB 838.3 million year-on-year[9]. - The company's profit before tax was RMB 775.6 million, reflecting a 51.2% increase from RMB 513.1 million in the previous year[9]. - Net profit for the six months ended June 30, 2023, was RMB 666.0 million, a 52.3% increase from RMB 437.2 million in the same period of 2022[47]. - Basic earnings per share increased by 48.9% to RMB 0.67, while diluted earnings per share rose by 61.0% to RMB 0.66[48]. Revenue Breakdown - Revenue from professional skincare products was RMB 1,197.0 million, accounting for 74.5% of total revenue, up from 62.4% in the previous year[27]. - Revenue from the Kefu Mei brand reached RMB 1.228 billion, representing a growth of 101.0% compared to the same period in 2022[18]. - The Keli Jin brand achieved revenue of RMB 321 million, reflecting a growth of 6.4% compared to the same period in 2022[19]. - Revenue from health food and other products was RMB 10.9 million, a decrease from RMB 24.1 million in the previous year[27]. - Revenue from sales to distributors was RMB 522.6 million, a 10.2% increase year-on-year, accounting for 32.5% of total revenue[32]. Research and Development - Research and development expenses amounted to RMB 34.0 million, an increase of 80.8% year-on-year, with R&D spending accounting for 2.1% of revenue, up 0.2 percentage points[12]. - The company has authorized and applied for a total of 86 patents, with 6 new patents added during the reporting period[13]. - The company launched several self-developed raw materials for new products, including a rare ginsenoside CK monomer with significant anti-inflammatory effects[14]. - The company is leading the establishment of industry standards for recombinant collagen protein materials in the cosmetics sector, marking a milestone in the standardization of this industry[13]. Assets and Equity - The total assets of the company as of June 30, 2023, were RMB 3,878.0 million, a 23.6% increase from RMB 3,138.2 million at the end of 2022[10]. - The total equity increased to RMB 3,517.5 million, up 24.0% from RMB 2,837.0 million at the end of 2022[10]. - As of June 30, 2023, the company's current assets amounted to RMB 1,557.5 million, a 17.0% increase from RMB 1,331.0 million at the end of 2022[58]. Sales and Marketing - The direct sales channel generated revenue of RMB 1.083 billion, accounting for 67.5% of total revenue, while the distribution channel contributed RMB 523 million, making up 32.5%[22]. - During the 618 promotional event, the Kefu Mei collagen stick sold over 35 million units, with GMV increasing by over 700% year-on-year[17]. - The Kefu Mei brand's collagen dressing was ranked TOP1 in the Tmall wound dressing category during the 618 event[16]. - The company expanded its sales network to approximately 1,400 public hospitals and 2,200 private hospitals and clinics across China[22]. Operational Efficiency - The company continues to expand its production capacity to strengthen its end-to-end manufacturing capabilities[11]. - The company added 2 new collagen production lines, 2 cosmetic production lines, and 1 medical device production line during the reporting period[23]. - The company aims to improve operational efficiency and user engagement through refined channel operations and content marketing strategies[25]. Cash Flow and Investments - Net cash from operating activities for the six months ended June 30, 2023, was RMB 692,895 thousand, significantly up from RMB 311,408 thousand in the same period of 2022, indicating an increase of about 122%[105]. - Cash flow from investment activities for the six months ended June 30, 2023, was a net outflow of RMB 472,404 thousand, compared to a net outflow of RMB 175,761 thousand in 2022[106]. - The company incurred RMB 186,961 thousand in capital expenditures for property, plant, and equipment during the six months ended June 30, 2023, compared to RMB 42,605 thousand in 2022[106]. Corporate Governance - The board of directors has adopted corporate governance practices in compliance with applicable codes, although it has not separated the roles of chairman and CEO[69]. - The company has adopted a restricted share unit plan allowing for a maximum of 19,000,000 shares to be granted, representing approximately 1.91% of the total issued share capital[66]. - The company aims to align employee incentives with shareholder interests through the restricted share unit plan[82]. Employee and Management - The company has a total of 1,023 full-time employees as of June 30, 2023, with 36.7% in production, 13.0% in R&D, 33.0% in sales and marketing, and 17.3% in general and administrative roles[64]. - The total remuneration for key management personnel was RMB 9,185 thousand for the six months ended June 30, 2023, compared to RMB 7,591 thousand for the same period in 2022, reflecting a 21.0% increase[133].
巨子生物(02367) - 2023 - 中期财报