Financial Performance - Revenue for the year ended December 31, 2023, was RMB 1,151,145 thousand, a decrease of 9.9% compared to RMB 1,277,682 thousand in 2022[1]. - Gross profit decreased by 17.1% to RMB 641,519 thousand, with a gross margin of 55.7%, down from 60.5% in the previous year[1]. - Profit attributable to equity holders of the parent was RMB 326,000 thousand, representing a decline of 9.0% from RMB 358,057 thousand in 2022[1]. - Basic earnings per share decreased by 9.0% to RMB 0.2174, down from RMB 0.2389 in the prior year[1]. - The proposed final dividend per share is HKD 0.065, a decrease of 11.0% from HKD 0.073 in 2022[1]. - The adjusted profit before tax for the year 2023 was RMB 414,057,000, a decrease from RMB 438,408,000 in 2022, representing a decline of approximately 5.3%[31]. - The company's profit for the year ended December 31, 2023, was RMB 322,667,000, a decrease of 9.3% compared to RMB 355,851,000 in 2022[86]. - Total comprehensive income for the year, after tax, was RMB 326,292,000, down from RMB 364,256,000 in the previous year, reflecting a decline of 10.4%[86]. - The company's equity attributable to owners of the parent increased to RMB 2,854,656,000 in 2023 from RMB 2,641,956,000 in 2022, representing a growth of 8.0%[88]. - The company's total equity as of December 31, 2023, was RMB 2,859,234,000, compared to RMB 2,649,867,000 in 2022, indicating an increase of 7.9%[88]. Assets and Liabilities - Non-current assets totaled RMB 1,902,463 thousand, slightly down from RMB 1,928,648 thousand in the previous year[5]. - Current assets decreased to RMB 1,720,196 thousand from RMB 1,743,995 thousand, with cash and bank deposits increasing to RMB 905,826 thousand from RMB 811,682 thousand[5]. - Total liabilities decreased to RMB 94,485 thousand from RMB 90,719 thousand, reflecting improved financial stability[5]. - The total assets as of December 31, 2023, amounted to RMB 3,622,659 thousand, a decrease from RMB 3,672,643 thousand in 2022[97]. - The total liabilities as of December 31, 2023, were RMB 763,425 thousand, down from RMB 1,022,776 thousand in 2022, indicating a significant reduction of 25.4%[97]. Research and Development - Research and development costs rose to RMB 90,808 thousand, compared to RMB 79,478 thousand in 2022, indicating increased investment in innovation[3]. - Research and development costs for the year totaled RMB 84,611,000, compared to RMB 74,799,000 in 2022, marking an increase of approximately 13%[39]. - The company established the Suzhou Dongrui Advanced Technology Research Institute in April 2023 to optimize R&D resources, with 59% of current R&D projects being self-developed[65]. - The company is focusing on developing generic drugs and improved innovative drugs, with a strategy to prepare for the next round of bidding[65]. - The company plans to increase R&D investment and upgrade production facilities to accelerate the launch of new products[68]. Sales and Market Performance - The company experienced a decline in sales volume for certain products due to competitive bidding, with sales for the "An" series products decreasing by 22.8% compared to the same period in 2022[64]. - Sales of antihypertensive products amounted to RMB 424,186,000 in 2023, down from RMB 549,229,000 in 2022, accounting for 36.8% of total sales[130]. - Antihyperlipidemic products generated sales of RMB 292,331,000 in 2023, compared to RMB 310,502,000 in 2022, representing 25.4% of total sales[131]. - Antiviral products achieved sales of RMB 124,828,000 in 2023, a slight decrease from RMB 133,005,000 in 2022, making up 10.8% of total sales[132]. - The sales volume of the hypertension treatment product series decreased by 28.1%, with sales revenue down by 22.8% compared to 2022[186]. - The sales volume of the anti-allergy drugs "Xikewei" and "Xikexin" decreased by 16.1%, with sales revenue down by 22.6% compared to the previous year[186]. - The sales volume of the antiviral drug Entecavir dispersible tablets increased by 3.2%, but sales revenue decreased by 6.2% compared to the previous year[186]. Dividends and Shareholder Returns - The mid-term dividend per ordinary share for 2023 was HKD 0.015, consistent with 2022, while the proposed final dividend decreased to HKD 0.065 from HKD 0.073 in 2022[43]. - The group proposed a final dividend of HKD 0.065 per share, bringing the total dividend for the year to HKD 0.08 per share, with a payout ratio of approximately 34.0%, an increase of 1.6 percentage points year-on-year[53]. - The board proposed a final dividend of HKD 0.065 per share for the year ending December 31, 2023, totaling approximately HKD 97,516,000, down from HKD 109,412,000 in 2022[62]. - The company remains optimistic about its business development and aims to create reasonable investment returns for shareholders[68]. Operational Changes and Strategies - The group has completed the trial production phase at its new facilities, which is expected to enhance the production and supply of intermediates and active pharmaceutical ingredients[54]. - The group is actively expanding its export business and international presence, with ongoing customer registration and overseas registration efforts[54]. - The company is adapting to the national pharmaceutical development plan, aiming for high-quality development and integration in the pharmaceutical industry[63]. - The company is actively exploring new business models such as pharmaceutical e-commerce to enhance profitability[188]. - The company plans to expand new product market development and strengthen cooperation with chain pharmacies to drive sales growth in 2024[188]. Financial Management and Risks - The company has implemented a rigorous credit monitoring system to manage credit risk, with no significant concentration of credit risk among its diverse customer base[48]. - The expected credit loss rate increased to 2.30% in 2023 from 1.37% in 2022, with total carrying amount of RMB 155,967,000[57]. - The company reported a foreign exchange loss of RMB 2,679,000 from overseas operations, an improvement from a loss of RMB 10,414,000 in the previous year[86]. - The group recorded a foreign exchange loss of RMB 5,526,000 for the year, compared to a gain of RMB 4,537,000 in 2022[167]. - The company has no income tax obligations due to tax exemptions in the Cayman Islands, effective for 20 years from October 8, 2002, and renewed for another 20 years from September 19, 2023[124]. Capital Expenditure and Investments - Capital expenditure for the year was RMB 231,269,000, compared to RMB 92,483,000 in the previous year[114]. - The group invested RMB 20,000,000 to hold a 1.48% stake in China-U.S. Huashitong Biomedical Technology Co., Ltd.[161]. - The group received RMB 175,595,000 in compensation for the relocation of its Suzhou facility, with a total planned investment of RMB 519,799,000 for the new site[163]. - Employee costs increased to approximately RMB 211,780,000 from RMB 183,630,000, reflecting an increase in headcount and salary adjustments[168].
东瑞制药(02348) - 2023 - 年度业绩