Financial Performance - The company reported a basic and diluted earnings per share of HKD 35,340,000 for the year ended December 31, 2023, compared to HKD 36,479,000 for the previous year, reflecting a decrease of approximately 3.1%[23] - For the fiscal year ending December 31, 2023, the company's revenue reached approximately HKD 484.7 million, representing a year-on-year growth of 10.1%[33] - The profit for the year amounted to approximately HKD 70.9 million, showing a significant year-on-year increase of 84.04%, marking an important milestone for the research-based biopharmaceutical company[33] - The company achieved a record revenue of approximately HKD 484.7 million for the year ended December 31, 2023, representing a year-on-year growth of 10.1%[49] - Net profit for the year reached approximately HKD 70.9 million, a significant year-on-year increase of 84.04%, attributed to strict cost control measures[49] - Gross profit amounted to approximately HKD 392.8 million, an increase of 17.3% compared to approximately HKD 334.9 million in the previous year, with a gross margin improvement of 4.9 percentage points to 81.0%[125] - Basic earnings per share for 2023 was HKD 1.11, up from HKD 0.61 in 2022, indicating a growth of 81.0%[185] Expenses and Cost Management - The company recognized a total of HKD 1,755,000 in expenses related to auditor remuneration for the year, compared to HKD 1,816,000 in the previous year, indicating a slight decrease of about 3.4%[3] - Research and development expenses capitalized amounted to HKD 51,950,000, down from HKD 53,940,000 in the previous year, a decrease of approximately 3.7%[3] - General and administrative expenses as a percentage of revenue decreased from 10.7% to 9.8%, attributed to the company's ongoing internal control and cost-cutting measures[36] - Research and development expenses as a percentage of revenue decreased to 7.3% in 2023 from 8.1% in 2022[55] - Research and development expenses for the year were HKD 35,576,000, slightly down from HKD 35,781,000 in 2022[185] Revenue Sources and Growth - The total revenue from service income primarily related to entrusted processing business was not specified but is a key focus area for the company[2] - Sales of Pipanpu® and Jinyin Peptide® performed exceptionally well, growing by 15.0% and 9.54% year-on-year, respectively[33] - The flagship product, Jindan Peptide®, generated revenue of approximately HKD 186.0 million, reflecting a year-on-year increase of 9.8%[118] - The revenue from the chemical pharmaceuticals segment was approximately HKD 257.9 million, reflecting a year-on-year increase of 10.9%[124] - The patented biopharmaceuticals segment recorded sales of approximately HKD 226.9 million, a growth of about 9.2% year-on-year, accounting for 46.8% of total sales[123] Assets and Liabilities - The total assets of the group as of December 31, 2023, are approximately HKD 409.99 million, with current assets at about HKD 238.1 million[145] - The group's current liabilities as of December 31, 2023, amount to HKD 114.79 million, resulting in a current liabilities to total assets ratio of 28.0%[145] - Non-current liabilities increased significantly to HKD 38,028 thousand from HKD 7,470 thousand year-over-year[199] - Bank borrowings rose sharply to HKD 30,612 thousand compared to HKD 985 thousand in the previous year[199] - Total equity increased to HKD 257,174 thousand from HKD 194,746 thousand, reflecting a growth of approximately 32%[199] Corporate Governance and Compliance - The company has not declared or proposed any dividends for the year 2023, consistent with the previous year[21] - The board does not recommend the payment of a final dividend for the year ending December 31, 2023, consistent with the previous year[162] - The audit committee consists of three independent non-executive directors and has reviewed the consolidated financial statements for the year ending December 31, 2023[163] - The company has maintained compliance with the corporate governance code applicable as of December 31, 2023[164] Research and Development Initiatives - A new research and development center for green peptide innovative drugs and advanced technologies was established in Beijing, integrating the latest advancements in biological informatics, genetic engineering, and oral formulation technology[36] - The development of oral Uni-GLP-1 has shown superior bioavailability compared to the positive control oral semaglutide, with ongoing preparations for formal animal studies[68] - UB101, a dual-target nanobody, is being developed to treat wet age-related macular degeneration, aiming to overcome the limitations of intravitreal injections[69] - The company is focusing on innovative and patented products in endocrinology, ophthalmology, and dermatology, with multiple leading patented biopharmaceuticals in different stages of development[84] - The group is at the forefront of developing a new temperature-sensitive hydrogel formulation for EGF products, which enhances drug delivery and accelerates wound healing[152] Market Opportunities and Strategic Developments - The company is actively exploring commercialization opportunities for Skbrella™ FN to unlock its full market potential[61] - The market for osteoporosis-related medical expenses is projected to soar to RMB 132 billion by 2035 and RMB 163 billion by 2050, indicating substantial growth potential for Bogu Tai®[134] - The dry eye medication market is anticipated to exceed RMB 42 billion by 2030, with a remarkable CAGR of 28.4%, presenting a significant growth opportunity for the company[137] - The Chinese functional skincare market is projected to reach RMB 122.4 billion by 2028, with a compound annual growth rate of 17.5% from 2023 to 2028[150] Share Repurchase and Investments - The company repurchased 86,000,000 shares at a total cost of HKD 5.167 million, with the highest price per share being HKD 0.069 and the lowest HKD 0.052[29] - A total of 86,000,000 shares were repurchased during the year ending December 31, 2023, with an additional 115,180,000 shares repurchased in January 2024[174] - The company provided a loan of RMB 7.15 million to Guangzhou Taili Biological Pharmaceutical Technology Co., Ltd. for a term of 24 months starting September 19, 2023[179] Legal and Regulatory Matters - The company has not been involved in any significant legal proceedings or arbitration as of December 31, 2023[12] - The sodium diquafosol eye drops application was officially accepted by the drug regulatory authority in January 2024, with expectations for market approval in Q1 2025[95] - The completion of the sale of shares in Huashengyuan is subject to additional time due to new government regulations[181]
联康生物科技集团(00690) - 2023 - 年度业绩