2023-03-31 08:31Financial Performance - Revenue for the year ended December 31, 2022, was RMB 28.78 billion, an increase of 7.1% from RMB 26.86 billion in 2021[2] - Gross profit for the same period was RMB 22.98 billion, reflecting a growth of 6.8% compared to RMB 21.53 billion in the previous year[2] - Profit attributable to owners of the parent company significantly decreased by 82.6% to RMB 2.54 billion from RMB 14.61 billion in 2021[2] - Adjusted net profit attributable to owners of the parent company increased by 16.4% to RMB 2.99 billion from RMB 2.56 billion in the prior year[2] - The company recorded revenue of approximately RMB 2,878,041,000, representing a year-on-year growth of about 7.1%[17] - Net profit attributable to shareholders decreased by approximately 82.6% to RMB 254,357,000, with earnings per share dropping by about 82.4% to RMB 0.1366[17] - Adjusted net profit, after accounting for various financial adjustments, increased by approximately 16.4% to RMB 298,633,000[17] - The company's annual profit for the year ended December 31, 2022, was RMB 5,002,618, a significant decrease from RMB 16,614,793 in 2021, representing a decline of approximately 69.9%[42] - Total comprehensive income for the year, after tax, was RMB 4,289,080, down from RMB 16,815,754 in the previous year, indicating a decrease of about 74.5%[43] Revenue Breakdown - Revenue from new products reached RMB 12.51 billion, representing a 19.8% increase from RMB 10.45 billion in 2021, accounting for 43.5% of total revenue[2] - Revenue from anti-tumor drugs was RMB 9.19 billion, up 14.3% from RMB 8.04 billion, making up 31.9% of total revenue[2] - Revenue from innovative drugs increased by 20.0% to RMB 6.75 billion from RMB 5.63 billion, representing 23.5% of total revenue[2] - Surgical and analgesic drug revenue for the year ended December 31, 2022, was approximately RMB 4,881.77 million, accounting for 17% of total revenue, an increase of about 2.8% year-over-year[20] - Cardiovascular drug revenue for the year ended December 31, 2022, was approximately RMB 2,697.50 million, representing about 9.4% of total revenue, with a year-over-year growth of approximately 7.8%[20] - Other revenue for the year ended December 31, 2022, was approximately RMB 5,249.14 million, accounting for about 18.2% of total revenue, an increase of approximately 2.5% year-over-year[21] Research and Development - The company emphasizes R&D and innovation, maintaining industry-leading R&D investment and product innovation capabilities[4] - Research and development (R&D) expenses totaled approximately RMB 4,454.18 million, accounting for about 15.5% of the group's revenue, with a year-on-year increase of approximately 19% in innovative and biological drug R&D investment[27] - The group has 103 products under development, including 53 oncology drugs, 12 liver disease drugs, 26 respiratory drugs, and 12 surgical/pain relief drugs, with 58 being innovative products[27] - The company has 40 innovative drug candidates in the oncology field at various clinical stages, with 8 innovative drugs expected to be approved between 2023 and 2025[10] - The company has 8 innovative drug candidates in the liver disease field, with 4 biosimilars or generics expected to be approved between 2023 and 2025[12] - The company has 10 innovative drug candidates in the respiratory system field at clinical application stage or above, including 1 in the market application stage and 5 in Phase II clinical trials[14] Market and Industry Context - In 2022, China's GDP reached RMB 121 trillion, growing by 3% year-on-year[8] - The revenue of China's pharmaceutical manufacturing industry decreased by 1.6% year-on-year to RMB 291.114 billion in 2022[8] - The total profit of the pharmaceutical manufacturing industry fell by 31.8% year-on-year to RMB 42.887 billion in 2022[8] - The average price drop for 327 selected products in the seventh batch of national drug procurement was 48%[9] - China National Pharmaceutical Group won bids for 9 out of 11 products in the procurement, primarily for newly launched products[9] Corporate Governance and Shareholder Engagement - The company actively engages with investors through various channels, including investor briefings and participation in investment summits, to enhance corporate governance and transparency[28] - The company has implemented a share repurchase plan with a budget of up to HKD 1 billion, of which HKD 916.64 million has been utilized for share repurchases and incentive share purchases[34] - The audit committee consists of four independent non-executive directors, ensuring compliance with listing rules regarding financial management expertise[72] - The company has adhered to the Corporate Governance Code, with minor deviations noted regarding attendance at the annual general meeting[71] - The company is committed to maintaining adequate independent director representation as per listing regulations[72] Financial Position and Assets - The total assets of the group were approximately RMB 64,064.28 million, with total liabilities of approximately RMB 26,120.74 million, resulting in a debt-to-asset ratio of approximately 40.8%[32] - As of December 31, 2022, the group's cash and bank balances were approximately RMB 12,066.22 million, an increase from RMB 10,568.81 million as of December 31, 2021[29] - The company held non-current equity investments valued at approximately RMB 1,574.81 million as of December 31, 2022, down from RMB 1,988.24 million the previous year[25] - The total amount of wealth management products held by the company was approximately RMB 4,543.24 million, accounting for about 7.1% of total assets as of December 31, 2022[26] - The company's net assets stood at RMB 37,943,548 as of December 31, 2022, slightly up from RMB 37,729,023 in 2021, indicating a growth of about 0.6%[45] Future Outlook - The company plans to launch over ten innovative drug products in the next three years, with more than forty innovative drugs expected to be launched by 2030[39] - The company aims to achieve a revenue target of HKD 100 billion by 2030, positioning itself as a world-class innovative pharmaceutical group[39] - The company has completed carbon inventory work for key member enterprises as part of its carbon neutrality planning project, with a roadmap expected to be published by mid-2023[37] - The company continues to focus on four strategic areas: organizational integration, comprehensive innovation, internationalization, and digitalization to enhance operational efficiency[39]