Lushang Freda Pharmaceutical (SH:600223)2024-03-21 16:00Financial Performance - The company achieved a net profit attributable to shareholders of 303,387,173.94 CNY for the year 2023, with the parent company reporting a net profit of 645,012,010.81 CNY[3]. - Revenue decreased by 64.65% compared to the previous year, and net cash flow from operating activities dropped by 52.49%[26]. - The company's operating revenue for 2023 was approximately CNY 4.58 billion, a decrease of 64.65% compared to CNY 12.95 billion in 2022[56]. - Net profit attributable to shareholders for 2023 was CNY 303.39 million, an increase of 567.44% from CNY 45.46 million in 2022[56]. - The net profit after deducting non-recurring gains and losses was CNY 138.88 million, up 137.40% from CNY 58.50 million in the previous year[58]. - The company achieved a basic earnings per share of CNY 0.30, a significant increase of 650.00% compared to CNY 0.04 in 2022[57]. - The weighted average return on net assets rose to 7.56%, an increase of 6.55 percentage points from 1.01% in 2022[57]. - The total profit reached CNY 413 million, an increase of 58.19% compared to the previous year[80]. - The net profit attributable to the parent company was CNY 303 million, showing a significant year-on-year growth of 567.44%[80]. Asset Management - Total assets decreased by 86.63% compared to the beginning of the year, influenced by the divestiture of the real estate business[26]. - As of December 31, 2023, total assets amounted to CNY 7.818 billion, a decrease of 86.63% from the beginning of the year[80]. - The net assets attributable to the parent company increased by 8.02% to CNY 4.015 billion[80]. - The decline in operating revenue was primarily due to the divestiture of the real estate business, which also led to a corresponding decrease in operating costs[81]. Research and Development - The company is actively involved in R&D collaborations with institutions like Shandong University and Zhejiang University, focusing on innovative product development[41]. - R&D expenses increased due to higher investment in research and development during the reporting period[82]. - The company increased its R&D investment to CNY 166 million in 2023, representing a year-on-year growth of 10.11%[163]. - The company launched 1 new drug (Tadalafil tablets) and completed the acceptance of 1 drug application (Lidocaine cream) during the reporting period[163]. - A total of 152 new cosmetic products were launched, including Yilian soft film powder and Aier Doctor series[163]. - The company obtained 68 new patents, including 26 invention patents, and achieved international advanced and leading levels in 6 projects[163]. - The company established 2 new R&D centers and 1 key laboratory in Shandong Province, enhancing its technological capabilities[163]. Market Trends and Strategy - The retail sales of cosmetics in China reached 414.2 billion CNY in 2023, growing by 5.1% year-on-year, indicating a positive trend in the cosmetics sector[35]. - The company plans to enhance its digital marketing system and integrate pharmaceutical production and sales, aiming for a more efficient operational model[33]. - The company is adapting to regulatory changes in the cosmetics industry, ensuring compliance with new safety and labeling regulations[35]. - The company's strategic focus has shifted to cosmetics, pharmaceuticals, and additives, following the divestiture of real estate assets[106]. - The company launched the "KeyC" medical beauty brand and upgraded its brand development strategy from "4+N" to "5+N" in the cosmetics sector[151]. - The company is focusing on key fields such as dermatology, orthopedics, ophthalmology, and pediatrics to accelerate project research and development[145]. Production and Capacity - The company has an annual production capacity of 420 tons for hyaluronic acid, ranking among the top in the industry[42]. - The company has established seven industrial production bases across four locations, enhancing its operational capacity in the health industry[47]. - The company has established a bio-pharmaceutical industrial park with GMP workshops, enhancing its production capabilities and quality control measures[95]. - The company has completed the infrastructure construction for an intelligent production base for recombinant human collagen medical devices[189]. Sales and Distribution - The company has established a comprehensive sales network, both domestically and internationally, covering various channels including hospitals and online platforms[79]. - The company has implemented a multi-channel sales strategy, combining online and offline approaches to enhance market reach[180]. - Online sales of cosmetics accounted for approximately ¥2.11 billion in revenue, with a gross margin of 63.32%, showing a year-over-year revenue increase of 20.35% and a gross margin increase of 2.12 percentage points[108]. - The company completed the transfer of all real estate development businesses in 2023, successfully transitioning to a focus on cosmetics and pharmaceuticals[145]. Environmental and Compliance Efforts - The company is committed to green manufacturing practices, having received multiple certifications for its environmentally friendly production facilities[95]. - The company is focusing on risk management and compliance, implementing various internal control measures to improve management standards[33].