Financial Performance - Revenue for the year ended December 31, 2023, was HKD 1,524,945, a decrease of 11.9% compared to HKD 1,731,095 in 2022[2] - Gross profit for the same period was HKD 1,047,243, down 8.9% from HKD 1,150,140 in the previous year[2] - Annual profit decreased by 14.6% to HKD 590,587 from HKD 691,293 in 2022[2] - Profit attributable to the company's owners was HKD 540,393, a decline of 16.3% from HKD 645,875 in the prior year[2] - Basic and diluted earnings per share were HKD 0.65, down from HKD 0.77 in 2022[2] - The operating profit for the year was HKD 624,149, with a net profit of HKD 590,587 after tax expenses of HKD 97,203[16] - The group’s annual profit decreased by 14.6% to HKD 590.6 million, with a net profit margin of 38.7%[65] - Basic earnings per share for 2023 is HKD 0.65, down from HKD 0.77 in 2022, indicating a decline of about 15.6%[35] Revenue Breakdown - Total revenue for the year ended December 31, 2023, was HKD 1,882,301, with external customer revenue contributing HKD 1,524,945[16] - The Hong Kong segment generated revenue of HKD 1,171,231, while the Mainland China segment contributed HKD 228,634, and the Overseas segment accounted for HKD 482,436[16] - Revenue from major customer A was 273,456 thousand HKD in 2023, down from 411,160 thousand HKD in 2022, a decrease of 33.5%[23] - Revenue from Hong Kong increased to 915,323 thousand HKD in 2023, up 10.8% from 826,032 thousand HKD in 2022[26] - Revenue from overseas markets was HKD 480.3 million, reflecting a growth of 1.8% from HKD 471.6 million in 2022[47] - Revenue from the mainland China market plummeted by 70.2% to HKD 129.3 million in 2023, down from HKD 433.5 million in 2022[47] Assets and Liabilities - Cash and bank balances increased by 6.0% to HKD 2,378,693 from HKD 2,243,963 in the previous year[2] - Total assets rose by 5.0% to HKD 4,434,445 compared to HKD 4,225,279 in 2022[2] - Total liabilities for the company were reported at 413,755 thousand HKD, reflecting a significant increase from previous periods[20] - Trade receivables decreased significantly to HKD 395,244,000 in 2023 from HKD 923,230,000 in 2022, a reduction of about 57%[38] - The total inventory as of December 31, 2023, is HKD 1,011,649,000, compared to HKD 469,784,000 in 2022, indicating an increase of approximately 115%[37] Expenses and Costs - Employee costs increased by 12.1% to HKD 245.7 million, reflecting the company's efforts to attract and retain talent[56] - Distribution and selling expenses rose by 23.6% to HKD 231.3 million, accounting for 15.2% of revenue, up from 10.8% the previous year[60] - General and administrative expenses increased by 15.9% to HKD 179.0 million, representing 11.7% of revenue, up from 8.9%[61] - The cost of inventory recognized as cost of sales for 2023 is HKD 392,093,000, down from HKD 505,359,000 in 2022, representing a decrease of approximately 22.3%[39] Dividends and Shareholder Information - Total dividends paid in 2023 amount to HKD 276,243,000, with a dividend per share of HKD 0.33, compared to HKD 443,663,000 and HKD 0.53 per share in 2022[36] - The proposed final dividend for the year ending December 31, 2023, is HKD 0.33 per ordinary share, consistent with the previous year[74] - The final dividend will be presented for shareholder approval at the annual general meeting on May 31, 2024, and if approved, will be paid on June 11, 2024[74] Corporate Governance and Compliance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[9] - The financial statements for the years ended December 31, 2022, and December 31, 2023, have been audited without any reservations by independent auditors[9] - The company has adhered to the corporate governance code as stipulated in the listing rules as of December 31, 2023[79] - The audit committee, composed of three independent non-executive directors, has reviewed the company's accounting policies and financial reporting procedures for the year ending December 31, 2023[77] Strategic Initiatives and Future Outlook - The company plans to expand its market presence through retail and wholesale of traditional Chinese medicine products and health supplements in both domestic and international markets[16] - The company is actively evaluating new product development and technology advancements to strengthen its market position and drive future growth[16] - The company aims to enhance product quality management and technological innovation to optimize production efficiency and resource reserves[48] - The group aims to become a leader in the global traditional Chinese medicine health sector, leveraging government support and increasing health awareness among consumers[55]
同仁堂国药(03613) - 2023 - 年度业绩