Financial Performance - The group's revenue decreased by approximately RMB 30.6 million or 3.1% to approximately RMB 961.4 million for the year ended December 31, 2023[2]. - Gross profit fell by about RMB 23.2 million or 3.2% to approximately RMB 697.7 million compared to the previous year[2]. - EBITDA decreased by approximately RMB 14.1 million or 3.3% to approximately RMB 410.8 million for the year ended December 31, 2023[2]. - Profit attributable to equity holders of the company decreased by approximately RMB 31.0 million or 11.0% to approximately RMB 250.2 million[2]. - Total revenue for 2023 was RMB 961,377 thousand, a decrease from RMB 992,014 thousand in 2022, representing a decline of approximately 3.1%[18]. - The company recognized revenue from contracts with customers of RMB 961,377 thousand in 2023, down from RMB 991,866 thousand in 2022, a decrease of about 3.1%[18]. - Revenue from the sales of the flagship product, Jinsongzi throat lozenges (OTC), was approximately RMB 864.9 million for the year ended December 31, 2023, down RMB 39.7 million or 4.4% from RMB 904.6 million in the previous year[45]. - Revenue from the sales of the Jinsongzi throat treasure series products increased by approximately RMB 10.2 million or 12.5%, reaching RMB 91.6 million for the year ended December 31, 2023, due to expanded sales channels[45]. - Net profit for the year ended December 31, 2023, was approximately RMB 250.2 million, a decrease of about RMB 31.0 million or 11.0% compared to RMB 281.2 million for the year ended December 31, 2022[56]. Assets and Liabilities - Total current assets increased to RMB 1,817.6 million from RMB 1,794.7 million year-on-year[7]. - Current liabilities decreased to RMB 706.9 million from RMB 734.6 million year-on-year[7]. - Net current assets increased to RMB 1,110.7 million from RMB 1,060.1 million year-on-year[7]. - Total assets less current liabilities increased to RMB 1,592.1 million from RMB 1,564.7 million year-on-year[9]. - Total equity attributable to equity holders of the parent increased to RMB 1,550.7 million from RMB 1,539.1 million year-on-year[10]. - Trade receivables and notes receivable amounted to RMB 422,344,000 in 2023, a decrease from RMB 620,338,000 in 2022, showing a decline of 31.9%[25]. - The net book value of trade receivables was RMB 419,662,000 in 2023, down from RMB 618,698,000 in 2022, indicating a decrease of 32.2%[25]. - Trade payables totaled RMB 17,527,000 in 2023, down from RMB 25,313,000 in 2022, reflecting a decrease of 30.8%[27]. - The total interest-bearing bank and other borrowings amounted to RMB 412,340,000 in 2023, compared to RMB 272,586,000 in 2022, indicating an increase of 51.4%[28]. Expenses and Income - The cost of sales for 2023 was RMB 263,658 thousand, compared to RMB 271,094 thousand in 2022, indicating a reduction of approximately 2.7%[20]. - Research and development expenses rose significantly to RMB 17,073 thousand in 2023 from RMB 6,420 thousand in 2022, marking an increase of 165.5%[20]. - Other income and gains totaled RMB 39,291 thousand in 2023, up from RMB 24,687 thousand in 2022, representing a growth of 59.3%[19]. - The total tax expense for the year was RMB 110,859,000, up from RMB 94,775,000 in 2022, indicating a year-over-year increase of 16.9%[23]. - Selling and distribution expenses decreased to approximately RMB 266.4 million for the year ended December 31, 2023, down from approximately RMB 279.0 million for the year ended December 31, 2022, a decrease of about RMB 12.6 million or 4.5%[51]. - Administrative expenses increased to approximately RMB 94.6 million for the year ended December 31, 2023, up from approximately RMB 78.6 million for the year ended December 31, 2022, an increase of about RMB 16.0 million or 20.4%[52]. Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.6 per share, subject to approval at the upcoming annual general meeting[2]. - The proposed final dividend per ordinary share increased to HKD 0.60 in 2023 from HKD 0.36 in 2022, reflecting a growth of 66.7%[23]. - The group has not made any significant investments or acquisitions of subsidiaries, associates, or joint ventures as of December 31, 2023[60]. - The board of directors includes non-executive director Ms. Jiang Peizhen and executive directors Mr. Zeng Yong, Mr. Huang Jianping, Mr. Zeng Kexiong, and Mr. He Jinqiang[72]. - Independent non-executive directors include Mr. Li Hua, Mr. Zhu Xiarong, and Mr. Cheng Yiqun[72]. Market Position and Product Development - The flagship product, Jin Sangzi throat lozenges, received multiple awards in 2023, enhancing the brand's market position[31]. - The company has developed into a modern conglomerate primarily engaged in the production and sale of throat lozenges, other pharmaceuticals, and biotechnology foods[31]. - The sales revenue of the company's main product, Jin Sang Zi Throat Lozenges (OTC), accounted for approximately 90.0% of total revenue for the year ended December 31, 2023[33]. - The sales revenue of the Jin Sang Zi Throat Treasure series products accounted for about 9.5% of total revenue for the year ended December 31, 2023[33]. - Other products, including Ginkgo Biloba tablets and the new product Jin Sang Zi Intestinal Treasure, accounted for approximately 0.5% of total revenue for the year ended December 31, 2023[34]. - The new product Jin Sang Zi Intestinal Treasure has passed relevant testing and has entered the Hong Kong market as of March 2024[34]. - The company has successfully developed 32 new products since 1994, including 8 pharmaceuticals and 22 food products, with production licenses obtained for these products[36]. - The company is collaborating with Beijing Agricultural University to develop a new probiotic lozenge using proprietary strains, which has obtained six patents and employs advanced technologies[41]. - The company plans to enhance its production capacity by constructing a new pharmaceutical production and R&D base in Liuzhou, Guangxi, covering an area of approximately 60,000 square meters[44]. - The second phase of the new base is expected to cover about 50,000 square meters and will focus on developing health-related products, including gene drugs and traditional Chinese medicine[44]. - The company aims to strengthen its brand recognition and market presence by increasing advertising through broader internet media coverage[43]. - The company is committed to continuous innovation in product development, particularly in the probiotic market, which is gaining acceptance among consumers[41]. - The company has noted a significant increase in consumer spending on health-related products, driven by heightened health awareness post-pandemic[41]. - The company is focusing on a "single brand, multiple categories, and multi-channel" development strategy to enhance its operational capabilities and market competitiveness[43]. Employment and Costs - As of December 31, 2023, the group employed a total of 869 full-time employees, an increase from 853 full-time employees as of December 31, 2022[59]. - Employee costs for the year ended December 31, 2023, were approximately RMB 82.5 million, compared to RMB 80.4 million for the same period in 2022, reflecting a year-on-year increase of 2.6%[59]. Future Plans and Investments - The group plans to invest approximately RMB 94.3 million in the second phase of a new pharmaceutical production and R&D base in Liuzhou, Guangxi Zhuang Autonomous Region[61]. - The group aims to strengthen its leading position in the throat lozenge market and expand its market share in China's pharmaceutical and food sectors in 2024[63]. - The group is committed to enhancing production capacity, expanding its product portfolio, and improving R&D capabilities to promote synergy among different product segments[63]. - The group has begun underground construction for the food production plant and R&D center project as of December 31, 2023[65]. - The unutilized proceeds from the initial public offering are expected to be fully utilized by 2028[66]. - The group has utilized approximately HKD 683.62 million of the net proceeds from its initial public offering, accounting for about 75.16% of the total proceeds[64].
金嗓子(06896) - 2023 - 年度业绩