Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 344,075,000, a decrease of 13.9% compared to RMB 399,656,000 in 2022[4] - Gross profit for the year was RMB 104,175,000, down 38.9% from RMB 170,786,000 in the previous year[4] - Profit before tax decreased to RMB 68,306,000, a decline of 45.5% from RMB 124,324,000 in 2022[4] - Net profit for the year was RMB 48,795,000, representing a decrease of 44.4% compared to RMB 87,829,000 in 2022[4] - Basic and diluted earnings per share were RMB 8.13, down from RMB 14.64 in the previous year[4] - The total income tax expense for the year ended December 31, 2023, was RMB 19,511,000, a decrease of 46.5% from RMB 36,495,000 in 2022[36] - The overall gross profit margin fell from approximately 42.7% in 2022 to about 30.3% in 2023, primarily due to rising procurement costs[66] - The operating profit before tax decreased by approximately 45.1% to RMB 68.3 million in 2023 from RMB 124.3 million in 2022[70] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 479,644,000, an increase from RMB 428,180,000 in 2022[5] - Current assets increased to RMB 436,513,000 from RMB 402,490,000 in the previous year[5] - The company reported a net asset value of RMB 472,889,000, up from RMB 422,934,000 in 2022[5] - The company’s total liabilities decreased to RMB 48,802,000 in 2023 from RMB 64,617,000 in 2022, reflecting improved financial management[46] - Total liabilities decreased to approximately RMB 55.6 million in 2023 from RMB 78.6 million in 2022, mainly due to the repayment of interest-bearing loans[71] Revenue Sources and Market - The company did not have any single external customer contributing 10% or more to total revenue for the years ended December 31, 2023, and 2022[30] - The company operates only one reportable segment, which is the production of traditional Chinese medicine in China[29] - The pharmaceutical industry in China is projected to achieve an average annual revenue growth rate of 9.3% and a profit growth rate of 11.3% in 2023[53] - The Northeast region contributed 54.7% to total revenue in 2023, maintaining its position as the largest contributor[65] - The top three best-selling products in 2023 contributed approximately 29.5%, 15.3%, and 10.1% to the total revenue, respectively[62] Operational Changes and Future Plans - The company plans to expand its distribution network in South and East China by the end of 2024, with an initial budget of approximately HKD 19.7 million allocated for this purpose[60][61] - The company aims to enhance production capacity and improve product quality through a renovation project expected to be completed by June 2024[58] - The company has allocated approximately HKD 23.4 million for increasing R&D efforts and quality management equipment, with a current utilization of HKD 9.4 million[60] - The company is focused on upgrading its IT systems, with an allocation of HKD 4.0 million, and is currently in the process of hardware construction[60][61] Employee and Operational Costs - Employee costs, including director remuneration, decreased to RMB 17,062,000 in 2023 from RMB 18,464,000 in 2022[35] - The total employee cost for 2023 was approximately RMB 17.1 million, a decrease from RMB 18.5 million in 2022[76] - Research and development expenses were RMB 1,500,000 in 2023, down from RMB 3,000,000 in 2022, indicating a 50% reduction[35] Dividends and Shareholder Information - The company did not declare a final dividend for the years ended December 31, 2023, and 2022, compared to a dividend of RMB 8,322,000 in 2022[40] - The company did not propose any final dividend for the year 2023, consistent with 2022[81] Compliance and Governance - The financial statements are prepared based on historical cost measurement[23] - The company has adopted new and revised Hong Kong Financial Reporting Standards, which do not have a significant impact on the financial statements[15][20][21] - The audit committee, consisting of three independent non-executive directors, has reviewed the group's financial performance for the fiscal year 2023[90] - The financial statements for the fiscal year 2023 have been verified by Zhongshunzhonghuan (Hong Kong) CPA Limited, ensuring consistency with the reported figures[92] - The annual results announcement has been published on both the Hong Kong Stock Exchange and the company's website[93] Other Financial Information - Interest income increased to RMB 906,000 in 2023 from RMB 675,000 in 2022[34] - The net foreign exchange loss improved to RMB (1,234,000) in 2023 compared to RMB (5,913,000) in 2022[34] - Trade receivables from third parties increased to RMB 103,603,000 in 2023, up 32.1% from RMB 78,479,000 in 2022, after accounting for a loss provision[42] - Trade payables to third parties decreased to RMB 31,278,000 in 2023, down 20.3% from RMB 39,261,000 in 2022[46] - The company has a capital expenditure commitment of approximately RMB 120,638,000 related to a construction agreement for a pharmaceutical building expansion project in Chengde, Hebei Province[52] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during 2023[77] - The board of directors has completed the inheritance of all issued shares of Modern Biotechnology by Ms. Sun, the widow of Mr. Xie, on July 4, 2023[87] - The company has amended its articles of association to comply with the latest legal and regulatory requirements as of April 13, 2023[88] - The company has not incurred taxable profits in Hong Kong for the years ended December 31, 2023, and 2022, thus no provision for Hong Kong profits tax was made[36] - The company’s deferred tax items showed a significant increase to RMB 6,107,000 in 2023 from RMB 1,705,000 in 2022, indicating changes in temporary differences[36]
现代中药集团(01643) - 2023 - 年度业绩