Financial Performance - The company's revenue for the six months ended June 30, 2023, was approximately RMB 1,094.3 million, representing a growth of 29.3% compared to RMB 846.4 million for the same period in 2022[4]. - Gross profit for the same period was approximately RMB 675.0 million, with a gross margin of about 61.7%, an increase of 2 percentage points from the previous year[4]. - Profit attributable to equity holders of the parent company was approximately RMB 134.9 million, reflecting a significant increase of 75.1% compared to RMB 77.0 million in the prior year[4]. - Basic earnings per share for the period were approximately RMB 0.159, up 75.1% from RMB 0.091 in the same period last year[6]. - The company reported a pre-tax profit of RMB 167.8 million for the period, compared to RMB 95.4 million in the previous year[7]. - The company reported a net profit before tax of RMB 167,819,000 for the six months ended June 30, 2023, compared to RMB 95,414,000 for the same period in 2022, indicating an increase of approximately 75.6%[32]. - The company recognized government grants related to income of RMB 3,938,000 for the six months ended June 30, 2023, compared to RMB 4,213,000 for the same period in 2022[34]. - The total tax expense for the six months ended June 30, 2023, was RMB 31,667,000, compared to RMB 17,875,000 for the same period in 2022, reflecting an increase of approximately 76.9%[45]. - Other income and gains amounted to approximately RMB 25.1 million for the six months ended June 30, 2023, up from RMB 12.5 million in the same period last year, primarily due to increased interest income[143]. Dividends and Shareholder Returns - The board proposed an interim dividend of HKD 0.06 per share for the six months ended June 30, 2023, compared to no interim dividend in the previous year[4]. - The board proposed an interim dividend of HKD 0.06 per share, totaling approximately HKD 51,816,000, pending shareholder approval on November 2, 2023[46]. - The group proposed an interim dividend of HKD 0.06 per share, totaling approximately HKD 51.8 million, subject to approval at the special general meeting on October 13, 2023[152]. Assets and Liabilities - The total assets as of June 30, 2023, amounted to RMB 1,195.4 million, an increase from RMB 1,144.0 million as of December 31, 2022[10]. - Current assets totaled RMB 939.5 million, down from RMB 1,090.9 million at the end of the previous year[10]. - Current liabilities were RMB 589.5 million, a decrease from RMB 731.3 million as of December 31, 2022[10]. - The company’s total equity as of June 30, 2023, was RMB 279,949 thousand, down from RMB 409,093 thousand as of December 31, 2022, representing a decline of 31.5%[79]. - The group reported total liabilities of RMB 167,710 thousand as of June 30, 2023, down from RMB 189,779 thousand at the end of 2022, reflecting a reduction of 11.6%[79]. - The group’s total trade receivables and notes receivable reached RMB 328,984,000, compared to RMB 311,561,000 in the previous year[54]. - The fair value of investment properties as of June 30, 2023, was estimated at RMB 53,624,000[51]. - The carrying value of investment properties increased to RMB 46,482,000 as of June 30, 2023, from RMB 44,884,000 as of December 31, 2022, representing a growth of approximately 3.6%[59]. Operational Segments - The company is primarily engaged in the manufacturing and sales of pharmaceutical products and operates chain pharmacies in China[20]. - The company has two reportable operating segments: pharmaceutical and retail pharmacy[28]. - The pharmaceutical segment generated revenue of RMB 772,597,000, while the retail pharmacy segment contributed RMB 321,731,000 for the six months ended June 30, 2023[32]. - Revenue from the chain pharmacy segment increased by 3.9% to RMB 321.7 million for the six months ended June 30, 2023, compared to RMB 309.6 million for the same period in 2022, accounting for 29.4% of total revenue[122]. - The pharmaceutical segment's revenue grew by 43.9% to RMB 772.6 million for the six months ended June 30, 2023, compared to RMB 536.8 million for the same period in 2022, representing 70.6% of total revenue[130]. Expenses and Costs - Sales and distribution expenses amounted to approximately RMB 445.0 million for the six months ended June 30, 2023, a 27.1% increase from RMB 350.0 million for the same period in 2022[134]. - Research and development expenses for the six months ended June 30, 2023, were RMB 20,551,000, up from RMB 17,981,000 in 2022, indicating an increase of about 8.7%[187]. - Advertising, marketing, and promotional expenses reached RMB 295,960,000 for the six months ended June 30, 2023, compared to RMB 212,329,000 in the previous year, reflecting a significant rise of approximately 39.2%[187]. - The cost of goods sold amounted to RMB 419,365,000, an increase from RMB 341,214,000 in the same period of 2022, representing a growth of approximately 22.9%[187]. - The depreciation of property, plant, and equipment, as well as investment properties, was RMB 25,971,000 for the six months ended June 30, 2023, compared to RMB 22,705,000 in 2022, marking an increase of approximately 14.9%[187]. - Employee benefits expenses, including director remuneration, totaled RMB 141,411,000 for the six months ended June 30, 2023, compared to RMB 134,396,000 in 2022, showing an increase of approximately 5.5%[187]. Market and Growth Strategy - The company aims to maintain its competitive edge through ongoing investments in new product development and market expansion strategies[32]. - The group plans to build a new production facility to meet the capacity expansion needs of its subsidiary, with construction having commenced in April 2023[127]. - The group anticipates a significant market opportunity for traditional Chinese medicine following the end of pandemic control measures, despite short-term challenges related to raw material price increases[126]. - The company plans to expand its market presence and invest in new product development as part of its growth strategy[84]. - The company plans to expand its production capacity for traditional Chinese medicine in response to the steady growth in demand, particularly with the construction of the Hengsheng factory[156]. Governance and Compliance - The financial data for the six months ended June 30, 2023, was prepared in accordance with the Hong Kong Stock Exchange Listing Rules and International Accounting Standards[22]. - The accounting policies adopted for the interim financial data are consistent with those followed for the annual consolidated financial statements for the year ended December 31, 2022[23]. - The company has implemented new and revised International Financial Reporting Standards effective from January 1, 2023, which are expected to impact the annual consolidated financial statements[25]. - The interim financial data does not include all the information and disclosures required for annual financial statements[22]. - The company has adhered to corporate governance practices and standards throughout the reporting period[176]. Employee and Talent Management - The total number of employees as of June 30, 2023, was 2,834, with total remuneration amounting to RMB 141.4 million[155]. - The share incentive plan has been increased from 1% to 2.5% of the issued share capital to attract and retain talent[85]. - The company’s management compensation for the six months ended June 30, 2023, was RMB 5,445 thousand, reflecting a slight increase from RMB 5,347 thousand in the previous year[93]. Other Information - The company has not identified any significant changes in its main business during the year[20]. - The company has no contingent liabilities as of June 30, 2023, consistent with the previous year[159]. - There were no significant acquisitions or disposals of subsidiaries, joint ventures, or associates during the reporting period[158]. - There were no significant events after the reporting period up to the date of this announcement[168].
中智药业(03737) - 2023 - 中期业绩