Financial Performance - The company achieved a record revenue of $153.9 million for the fiscal year 2023, representing a growth rate of 12.5% year-over-year, and a 15.4% increase when excluding currency fluctuations[26]. - Gross profit increased by 15.2% to approximately $106.5 million, while core operating profit rose to $34.4 million, marking a growth of 34.4%[26]. - Global sales volume reached approximately 1.4 million units, reflecting a growth of about 19.6%[26]. - Earnings per share for 2023 were 5.45 cents, compared to 3.17 cents in 2022[26]. - The company reported a revenue of $153.865 million for the year ending December 31, 2023, representing a 12.5% increase from $136.824 million in 2022[29]. - Gross profit increased to $106.498 million, up 15.2% from $92.458 million in the previous year, resulting in a gross margin of 69.2%[29][32]. - The profit attributable to the company's owners surged by 143.8% to $45.073 million, compared to $18.491 million in 2022[29][31]. - The adjusted profit for the year, a non-Hong Kong Financial Reporting Standards measure, was $46.153 million, reflecting a 73.1% increase from $26.666 million in the prior year[29][31]. - The net profit attributable to shareholders was $45.1 million, a significant increase of 143.8% compared to $18.5 million in 2022, resulting in a net profit margin of 29.3%, up 15.8 percentage points year-over-year[36]. - Revenue from the US market reached $21.3 million, reflecting a substantial growth of 27.9%, driven by increased sales of peripheral balloons and semi-compliant balloons[41]. - Revenue from Japan increased by 17.2% to $38.0 million, although the growth was partially offset by the depreciation of the Japanese yen against the US dollar[37]. - The company’s adjusted net profit (non-Hong Kong Financial Reporting Standards) grew by 73.1% to approximately $46.2 million[36]. - The company’s gross profit increased by 15.2% to approximately $106.5 million, driven by higher average selling prices in the Japanese and US markets[36]. - The company recorded a net foreign exchange loss of $0.4 million for the year ended December 31, 2023, down from a loss of $1.0 million in the previous year[64]. Strategic Acquisitions and Partnerships - The company successfully renewed the CE mark for its existing Sapphire PTCA series under the new MDR regulations and obtained CE marks for new products including Scoreflex TRIO and EZ Guide[26]. - In September 2023, the company extended its exclusive distribution agreement in the U.S. with Abbott Laboratories' subsidiary, Cardiovascular Systems, Inc., to enhance product penetration in a rapidly growing market[26]. - The company acquired German medical device engineering firm eucatech AG, enhancing its product offerings and market influence with multiple CE-marked products[27]. - The company acquired 84% of Indonesian distributor PT Revass Utama Medika in November 2023 to enhance its market penetration in Indonesia[28]. - A strategic acquisition of South Korean distributor SJ Medicare Co., Ltd. was completed to improve product offerings and physician education in the Korean market[28]. - The company completed the acquisition of eucatech AG in December 2023, which specializes in the development, manufacturing, and distribution of minimally invasive cardiovascular and endovascular products[111]. Research and Development - Clinical trials for Scoreflex TRIO commenced in China in 2023, following its success in Japan, aiming to benefit a broader patient population[27]. - The company is expanding its production capacity by establishing its largest R&D and production base in Fuyang District, Hangzhou, with construction starting in December 2023[28]. - The company plans to submit the registration application for Scoreflex TRIO in China in the second half of 2024 after completing clinical trials in early 2024[44]. - The company plans to invest approximately RMB 430 million to build the largest R&D and production base in Fuyang, Hangzhou, covering an area of about 20,000 square meters, with an expected annual production capacity increase of 2.4 million units upon completion in 2027[45]. - The company has reallocated approximately HKD 4.6 million saved from land acquisition costs and HKD 77.1 million from unused proceeds for the development and commercialization of drug-eluting balloon products and new generation COMBO dual therapy stent products to the construction and renovation of a new R&D and production base in Hangzhou[111]. Financial Management and Capital Allocation - The company is focused on maintaining a strong financial foundation amid economic challenges, emphasizing prudent capital allocation[27]. - The company holds approximately $255.8 million in cash and bank balances as of December 31, 2023, to support future growth and acquisition opportunities[48]. - The company plans to utilize the net proceeds from the global offering for significant investments, including a new R&D and production base in Fuyang, Hangzhou[66]. - The company has confirmed that the proposed changes in the use of proceeds will not adversely affect its existing business and operations[111]. - The company has adopted a dividend policy effective from March 8, 2023, considering various financial performance factors before declaring dividends[144]. - The board proposed a final dividend of HKD 0.10 per ordinary share for the year ended December 31, 2023, compared to no dividend in 2022[146]. Corporate Governance - The company has a strong management team with extensive experience in finance, healthcare, and business management, enhancing its strategic direction[75][77][78]. - The company has maintained a focus on independent board oversight, with independent non-executive directors providing critical judgment and governance[75][77]. - The company’s independent directors bring diverse expertise from various sectors, contributing to robust corporate governance[75][77]. - The board composition includes three executive directors, three non-executive directors, and three independent non-executive directors, ensuring strong independence[162]. - The company has established a Director Nomination Policy to ensure the board possesses the necessary skills, experience, and diversity to meet business needs[181]. - The company has adhered to all applicable corporate governance code provisions during the reporting period, except for the separation of roles between the Chairman and CEO[160]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements, as well as the company's governance practices[172]. Risk Management - The group faces various financial risks, including credit risk, liquidity and interest rate risk, and foreign exchange risk, with details provided in the financial risk management section[93]. - The company has implemented a comprehensive risk management policy to identify, assess, and monitor key risks related to its strategic objectives[187]. - The audit committee oversees the implementation of risk management policies and ensures alignment with corporate objectives[188]. - The company has established a Risk Management Committee to oversee risk management and internal control systems, including sanctions risk exposure[190]. - The company has implemented enhanced sanctions policies and control systems tailored to the specific nature, scale, and risk of its operations[190]. Employee and Shareholder Relations - As of December 31, 2023, the company employed 1,249 employees, with 732 in China and 193 in Indonesia[97]. - Employee benefit expenses for the year ended December 31, 2023, were approximately $53.3 million, up from $50.6 million in 2022, reflecting a year-over-year increase of about 3.4%[97]. - The company has adopted various stock option plans, including pre-IPO and post-IPO stock option plans, to incentivize employees[97]. - The company has confirmed the independence of all independent non-executive directors as per listing rules[87]. - The company actively considers sustainability and has implemented ESG management policies, with an ESG working group established to promote and develop ESG initiatives[154]. Legal and Compliance - The company believes it has substantial defenses against potential legal actions that may arise, although outcomes are unpredictable[95]. - The company has not established an internal audit function but will review the need for one periodically based on the scale and complexity of its operations[191]. - The company has provided anti-corruption compliance training to senior management and employees to enhance awareness of applicable laws and regulations[191]. - The company has adopted a whistleblowing policy and established reporting channels to encourage employees and directors to report any suspected violations[193]. - The Chief Compliance Officer has been designated as the OFAC Compliance Officer to manage sanctions risk and ensure compliance[190].
业聚医疗(06929) - 2023 - 年度财报