2024-03-28 08:31Financial Performance - Revenue for the year ended December 31, 2023, was RMB 26.20 billion, a slight increase of 0.7% compared to RMB 26.03 billion in 2022[2] - The profit attributable to equity holders of the parent decreased by 8.3% to RMB 2.33 billion from RMB 2.54 billion in the previous year[2] - Adjusted net profit attributable to the parent under non-HKFRS increased by 1.5% to RMB 2.59 billion from RMB 2.55 billion[2] - The company recorded revenue of approximately RMB 2,619,941,000, representing a year-on-year growth of about 0.7%[23] - Profit attributable to equity holders decreased to approximately RMB 233,194,000, a decline of about 8.3% compared to the previous year[23] - The net profit attributable to the company's shareholders for the year was RMB 5,097,398 thousand, up from RMB 5,002,618 thousand in 2022, reflecting an increase of approximately 1.89%[52] - The company reported a total comprehensive income for the year of RMB 5,187,385 thousand, compared to RMB 4,289,080 thousand in 2022, representing an increase of approximately 20.93%[53] Research and Development - Research and development expenses as a percentage of revenue rose to 16.8%, up by 0.8 percentage points from 16.0%[2] - Research and development (R&D) expenses totaled approximately RMB 4,704.27 million, accounting for about 18.0% of the group's revenue, with a year-on-year increase of approximately 10% in innovative and biological drug R&D investment[36] - The group submitted 841 patent applications and received 264 patent grants during the reporting period, totaling 4,311 effective patents and patent applications as of the end of the reporting period[36] - The company continues to focus on R&D in four major therapeutic areas: oncology, liver disease, respiratory, and surgical/pain management[138] Product Development and Pipeline - Innovative product revenue reached RMB 9.89 billion, representing a significant growth of 13.3% from RMB 8.73 billion[2] - The proportion of innovative product revenue to total revenue increased to 37.8% from 33.5%[2] - The company has 145 products under development, including 60 oncology drugs, 9 liver disease drugs, 31 respiratory drugs, and 15 surgical/pain relief drugs, with 67 classified as innovative products[35] - The company has a strong product pipeline in oncology, liver disease, respiratory, and surgical/pain management sectors[4] - The company has 43 innovative drug candidates in oncology at clinical stages, with 7 innovative drugs and 9 biosimilars expected to be approved between 2024 and 2026[11] - The company has 6 innovative drug candidates in the liver disease field, with 2 biosimilars expected to be approved between 2024 and 2026[14] - The company has 8 innovative drug candidates in the respiratory field at clinical stages, with 1 product in the listing application stage and 4 in Phase II clinical trials, expecting 1 innovative drug and 11 biosimilars or generics to be approved in the next three years (2024-2026)[16] Market and Economic Context - In 2023, China's GDP reached RMB 126 trillion, growing by 5.2% year-on-year[8] - The pharmaceutical manufacturing industry's revenue in Q1 2023 was RMB 674.09 billion, a decrease of 3.3% year-on-year, with total profits down by 19.9% to RMB 89.22 billion[8] - In 2023, 126 new drugs were added to the national medical insurance catalog, bringing the total to 3,088[9] - The average price reduction for the eighth and ninth batches of centralized procurement was 56% and 58%, respectively[9] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.03 per share, totaling an annual dividend of HKD 0.05 per share[2] - The board proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2023, down from HKD 0.06 in 2022[88] Financial Position and Assets - The company had cash and bank balances of approximately RMB 945,188,000 and total financial reserves of approximately RMB 2,112,999,000 as of December 31, 2023[23] - The total assets of the group were approximately RMB 63,604.82 million, with total liabilities of approximately RMB 25,434.87 million, resulting in a debt-to-asset ratio of about 40.0%[42] - The group had short-term loans of approximately RMB 11,135.94 million and long-term loans of approximately RMB 1,057.94 million as of December 31, 2023, compared to RMB 6,217.15 million and RMB 3,933.86 million, respectively, on December 31, 2022[40] Corporate Governance and ESG - The company achieved a total of 651 ESG indicators managed through its digital platform, covering all key member enterprises' ESG performance management[45] - The company has not experienced any major quality safety incidents or recalls during the year, ensuring effective operation of its quality safety management system[46] - The company has been recognized with an MSCI ESG rating upgrade to A and ranked in the top 9% of the global pharmaceutical industry by S&P CSA for the second consecutive year[46] - The company has implemented a responsible supply chain management system, achieving a 100% dissemination rate of key supplier behavior guidelines and over 90% signing rate[45] Strategic Focus and Future Plans - The company is focused on innovation and aims to become a leading global pharmaceutical enterprise[5] - The company plans to launch over ten innovative products in the next three years, with more than thirty additional innovative products expected to be launched by 2030[47] - The company aims to accelerate growth in 2024 through enhanced R&D efficiency and quality in its key therapeutic areas[48] - The company is actively pursuing a dual-path internationalization strategy to bring global pharmaceutical innovations to China and expand into new markets[151]