Financial Performance - For the year ended December 31, 2023, the company recorded revenue of approximately RMB 13,229,453,000, a decrease of 3.8% compared to RMB 13,747,473,000 in 2022[3]. - The net profit attributable to the company's owners for the year was approximately RMB 2,001,906,000, down 27.6% from RMB 2,764,093,000 in the previous year[3]. - Excluding special items, the net profit attributable to the company's owners was approximately RMB 1,982,432,000, a decrease of 28.8% compared to RMB 2,783,452,000 in 2022[3]. - The company's gross profit for the year was RMB 6,643,033,000, down from RMB 7,305,732,000 in 2022, reflecting a decline in gross margin[4]. - The total segment profit for the year was RMB 2,166,194,000, down from RMB 3,259,130,000 in the previous year, indicating a decrease of about 33.6%[16][18]. - The company reported a decrease in pre-tax profit to RMB 2,369,187,000 from RMB 3,385,739,000 in the previous year, a decline of approximately 30%[16][18]. - The gross profit margin declined from 53.1% in the previous year to 50.2% in 2023, primarily due to price reductions and changes in product structure[56]. - The company recorded a foreign exchange loss of approximately RMB 16,602,000 for the year ended December 31, 2023, compared to a foreign exchange gain of RMB 138,325,000 in the previous year[77]. Revenue Breakdown - The medical device segment generated revenue of RMB 7,007,204,000, accounting for 53% of total revenue, while the orthopedic products segment contributed RMB 1,271,203,000, representing 9.6%[16]. - The intervention products segment reported revenue of RMB 1,931,040,000, which is an increase from RMB 1,726,167,000 in the previous year, reflecting a growth of approximately 11.9%[16][18]. - The blood management products segment generated revenue of RMB 1,041,994,000, slightly down from RMB 1,097,960,000 in the previous year, representing a decline of about 5.1%[16][18]. - Revenue from medical device products reached RMB 6,727,859 thousand in 2023, compared to RMB 6,567,676 thousand in 2022, marking a growth of 2.4%[26]. - The orthopedic product segment saw a decline in revenue to RMB 1,271,203 thousand in 2023 from RMB 2,038,168 thousand in 2022, a decrease of 37.7%[26]. - The interventional business achieved revenue of approximately RMB 2,164,588,000, an increase of 11.7% year-on-year, with steady growth in the Chinese market[59]. Expenses and Investments - Research and development expenses increased to RMB 592,850,000 from RMB 556,442,000 in the previous year, indicating a focus on innovation despite overall profit decline[4]. - The company plans to invest RMB 770,000,000 in the Songyuan Health Medical Industry Fund, focusing on medical devices and biomedicine[79]. - The company has committed capital expenditures of approximately RMB 1,151,986,000 for property and equipment acquisitions as of December 31, 2023[81]. - The company plans to invest approximately RMB 200,000,000 in a new pre-filled syringe production line, expected to commence production in 2025[83]. Assets and Liabilities - Total assets decreased to RMB 26,088,190,000 from RMB 27,397,085,000 in the previous year, indicating a contraction in the asset base[8]. - The company’s total liabilities increased to RMB 7,582,041,000 from RMB 6,005,157,000, reflecting a rise in financial obligations[8]. - The company’s equity attributable to owners increased to RMB 22,449,121,000 from RMB 21,766,866,000, showing a slight improvement in shareholder equity[8]. - Total liabilities decreased slightly to RMB 9,677,526 thousand in 2023 from RMB 9,819,957 thousand in 2022, a reduction of 1.4%[21]. - The capital debt ratio decreased to 18.6% at the end of 2023, down from 20.6% in 2022[75]. Cash Flow and Dividends - The company proposed a final dividend of RMB 0.0943 per share, up from RMB 0.079 per share in 2022, pending shareholder approval[3]. - The total dividends declared for the year ended December 31, 2023, amounted to RMB 696,565,000, slightly up from RMB 690,165,000 in 2022, with a mid-year dividend of RMB 0.0734 per share compared to RMB 0.086 in 2022[41]. - The company maintained a strong cash position with cash and bank balances of approximately RMB 6,988,731,000 as of December 31, 2023[74]. - The cash and cash equivalents as of December 31, 2023, were RMB 4,797,461,000, down from RMB 5,521,051,000 in 2022, representing a decrease of about 13.1%[51]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code throughout the year, ensuring transparency and effective protection of shareholder interests[108]. - The audit committee reviewed the audited consolidated financial statements for the year and confirmed they were prepared in accordance with applicable accounting standards and regulations[104]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence under the listing rules[105]. - The internal audit department will regularly monitor and report on key issues to ensure appropriate remedial actions are implemented[101]. Strategic Initiatives and Market Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[13]. - The company aims to explore potential mergers and acquisitions to strengthen its market position and expand its product portfolio[13]. - The management remains confident in the long-term sustainable growth despite macroeconomic uncertainties, supported by a strong product portfolio and strategic market positioning[94]. - The group emphasizes corporate social responsibility and sustainable development, receiving recognition from the International Finance Corporation (IFC) for its green bond initiatives[92]. - The group is actively pursuing digital clinical nursing products, which have received positive feedback from hospitals and healthcare personnel, indicating a promising market outlook[88].
威高股份(01066) - 2023 - 年度业绩