Financial Performance - The company achieved a revenue of RMB 786.4 million for the year ended December 31, 2022, representing a growth of 13.9% compared to RMB 690.3 million in 2021[2]. - The net profit attributable to the owners of the parent company increased by 4.8% to RMB 478.7 million in 2022 from RMB 456.8 million in 2021[2]. - Adjusted net profit attributable to the owners of the parent company rose by 21.0% to RMB 498.7 million in 2022, up from RMB 412.1 million in 2021[2]. - Basic and diluted earnings per share increased to RMB 39.63 in 2022 from RMB 37.31 in 2021, reflecting a growth of 6.2% and 6.9% respectively[2]. - The company's gross profit for the year was RMB 635.2 million, up from RMB 562.9 million in 2021, marking a growth of 12.8%[2]. - Total comprehensive income for the year amounted to RMB 543.9 million, compared to RMB 411.9 million in 2021, showing a substantial increase[6]. - The total revenue from customer contracts for 2022 was RMB 786,367 thousand, an increase from RMB 690,263 thousand in 2021, representing a growth of approximately 13.9%[23]. - Revenue from the medical device sales in mainland China was RMB 715,097 thousand in 2022, compared to RMB 641,753 thousand in 2021, indicating a growth of about 11.4%[23]. - The group's pre-tax profit for 2022 was RMB 563,144,000, compared to RMB 534,497,000 in 2021, reflecting a growth of about 5.4%[32]. - Other income rose to RMB 123,776,000 in 2022, up from RMB 89,181,000 in 2021, marking an increase of approximately 38.7%[26]. Expenses and Investments - Research and development expenses increased significantly to RMB 66.0 million in 2022 from RMB 36.0 million in 2021, indicating a focus on innovation[4]. - The total tax expense for the year was RMB 101,970,000, compared to RMB 77,708,000 in the previous year, representing a rise of about 31.1%[31]. - The total sales cost for the year was RMB 1,511 million, an 18.7% increase from RMB 1,273 million in 2021, primarily due to increased sales revenue[65]. - Administrative expenses rose by 14.8% to RMB 713 million, mainly due to administrative costs from the consolidation of Weijing Medical's financials[71]. - The company recorded other expenses of RMB 273 million, primarily due to foreign exchange losses and investment losses[73]. Cash Flow and Assets - Operating cash flow before tax profit for 2022 was RMB 563,144 thousand, an increase from RMB 534,497 thousand in 2021, representing a growth of approximately 5.4%[11]. - Net cash flow from operating activities decreased to RMB 319,313 thousand in 2022 from RMB 435,749 thousand in 2021, a decline of about 26.8%[11]. - Cash and cash equivalents at the end of 2022 were RMB 1,738,963 thousand, down from RMB 2,177,833 thousand at the end of 2021, reflecting a decrease of approximately 20.2%[12]. - The company reported a net cash outflow from investing activities of RMB 369,983 thousand in 2022, compared to RMB 160,093 thousand in 2021, indicating a significant increase in investment expenditures[12]. - The company incurred financing cash outflows of RMB 472,792 thousand in 2022, compared to RMB 97,610 thousand in 2021, showing a substantial rise in financing activities[12]. - The total assets less current liabilities reached RMB 3,831.2 million as of December 31, 2022, compared to RMB 3,273.8 million in 2021[8]. - Non-current assets increased significantly to RMB 861.2 million in 2022 from RMB 222.0 million in 2021, reflecting growth in long-term investments[7]. Shareholder Information - The company proposed a final dividend of RMB 0.1845 per share for the year ended December 31, 2022[2]. - The proposed final dividend per share for 2022 is RMB 18.45, an increase from RMB 17.23 in 2021, reflecting a growth of approximately 7.1%[34]. - The final dividend will be paid in cash in either RMB or HKD, with the exchange rate to be announced on May 25, 2023[95]. - Shareholders will have the option to receive the final dividend entirely in RMB[95]. - All transfer documents must be submitted by May 31, 2023, to qualify for the proposed final dividend[96]. Strategic Initiatives - The company plans to start construction of a new R&D center in Hangzhou in the second half of 2023, with an investment of RMB 28.5 million[54]. - The company expects the implementation of centralized procurement to enhance market penetration and increase local market concentration[52]. - The company continues to see growth opportunities in non-centralized procurement products, indicating a diversified sales portfolio[52]. - The company plans to increase its overseas sales, allocating 5.0% of the proceeds for this purpose, with a planned allocation of HKD 139.6 million (RMB 127.5 million) and actual usage of RMB 1.2 million as of December 31, 2022[90]. - The company aims to expand its international sales and marketing team to achieve sustained rapid growth in overseas sales[57]. Acquisitions and Market Expansion - The company acquired a 32.75% stake in Wei Jing Medical for a total consideration of RMB 340 million, completing the acquisition on February 14, 2022[48]. - The company completed the acquisition of a 35% stake in Weijing Medical on February 14, 2022, which contributed a loss of approximately RMB 27.0 million to consolidated profits for the year ended December 31, 2022[56]. - The company registered 11 new products in mainland China and 13 new product registrations in overseas markets during the reporting period[54]. - Overseas market revenue reached RMB 713 million, an increase of 46.9% compared to 2021, accounting for 9.1% of total revenue[63]. - Domestic revenue from distributors was RMB 651 million, up 11.8% year-over-year, while revenue from hospitals and other customers increased by 8.2% to RMB 64 million[64]. Employee and Governance - As of December 31, 2022, the company had 885 employees, an increase from 725 employees as of December 31, 2021[88]. - Total employee compensation for the year ended December 31, 2022, was RMB 127.8 million, compared to RMB 93.3 million for the year ended December 31, 2021[88]. - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[92]. - The audit committee has reviewed the annual performance for the year ended December 31, 2022, and recommended approval to the board[97].
康基医疗(09997) - 2022 - 年度业绩