CONBA(SH:600572)2024-04-19 09:39Financial Performance - The company's total revenue for the cardiovascular system segment was CNY 55,490.04 million, with a gross margin of 70.24%, reflecting a decrease of 1.91% compared to the previous year[5]. - The reproductive and urinary system segment generated CNY 64,429.66 million in revenue, with a gross margin of 76.98%, down by 4.09% year-on-year[5]. - The respiratory system segment reported revenue of CNY 113,341.43 million, achieving a gross margin of 68.33%, an increase of 8.48% compared to the previous year[5]. - The digestive and metabolic system segment's revenue was CNY 158,619.84 million, with a gross margin of 81.89%, up by 10.42% year-on-year[5]. - The company reported a total revenue of 181,163.33 million RMB and a net profit of 22,706.14 million RMB from its subsidiary, Kang En Bei Traditional Chinese Medicine[48]. - The company achieved a main business revenue of 6.733 billion yuan, an increase of 12.2% year-on-year[105]. - The net profit attributable to shareholders reached 592 million yuan, growing by 65.19% compared to the previous year[105]. - The non-recurring net profit attributable to shareholders was 554 million yuan, reflecting a 14.6% increase[105]. - The company reported a weighted average return on equity of 8.45%, an increase of 3.42 percentage points from the previous year[183]. - The company’s basic earnings per share rose to RMB 0.23, a 64.29% increase from RMB 0.14 in the previous year[183]. Research and Development - The company is committed to increasing R&D investment and building a high-quality R&D team to drive innovation and development in new drugs and specialty generic drugs[34]. - The annual compound growth rate of R&D investment is 26%, with 116 drug approvals obtained and over 350 valid patents awarded[134]. - Research and development expenses for 2023 amounted to RMB 312 million, an increase of 52.31% from RMB 196 million in 2022[183]. - In 2023, the company's R&D investment reached 312 million CNY, a year-on-year increase of 18.80%, accounting for 5.29% of total industrial revenue[195]. - The company initiated 57 new R&D projects to strengthen its product pipeline and received multiple drug registration approvals, including 20 items in the specialty chemical drug sector[195]. Corporate Governance - The company aims to deepen reforms and improve its corporate governance structure to enhance operational management efficiency[26]. - The company has improved its corporate governance structure in compliance with relevant laws and regulations, ensuring no discrepancies with the standards set for listed companies[66]. - The company has maintained independent operations and decision-making capabilities, with significant decisions made by the board and shareholders' meetings[66]. - The company has established a transparent communication channel with shareholders, allowing them to express opinions and participate in decision-making[66]. - The company has a robust internal control system in place to prevent conflicts of interest with major shareholders[63]. - The company announced a delay in the election of the new board of directors and supervisory board due to the ongoing nomination process, ensuring continuity and stability in governance[71]. - The company is actively working on the nomination of candidates for the new board and supervisory board, reflecting ongoing governance improvements[71]. - The company is focused on maintaining effective governance during the transition period, which is crucial for investor confidence[71]. Market Strategy and Expansion - The company plans to actively seek acquisition opportunities in the health consumer goods sector to enhance its core business value creation capabilities[30]. - The company aims to achieve a sales scale of 1 billion RMB for the Kang En Bei Chang Yan Ning series and targets 2 product series to reach sales of 500-1,000 million RMB each[53]. - The company plans to enhance its product matrix by renewing old brands and innovating new brands, focusing on health prevention rather than just disease treatment[53]. - The company is investing 5 million USD in R&D for new technologies to improve production efficiency and product quality[89]. - Future outlook includes a strategic plan to enter two new international markets by Q3 2024, aiming for a 10% market share within the first year[91]. - The company has set a performance guidance of 12% revenue growth for the upcoming fiscal year, driven by new product launches and market strategies[88]. Operational Efficiency - The total marketing expenses amounted to CNY 117,699.54 million, accounting for 51.48% of total sales expenses[17]. - The company is committed to optimizing its asset structure and improving production efficiency to enhance overall company value[56]. - The company is focusing on the development of a green factory and promoting the use of clean energy in its subsidiaries[56]. - The company has launched a quality improvement initiative, with its quality management system undergoing 48 official inspections without serious defects[172]. - The company implemented a digital transformation strategy, launching ERP systems across subsidiaries to enhance operational efficiency[200]. Shareholder Engagement - The company held two shareholder meetings during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders[66]. - The company has implemented measures to respect the rights of various stakeholders, including banks, creditors, employees, and customers[65]. - The company has proposed a profit distribution plan for the 2023 fiscal year, subject to shareholder approval[142]. - The company plans to distribute a cash dividend of 2.00 yuan per 10 shares, totaling approximately 504.44 million yuan based on the adjusted share capital[118]. Challenges and Risks - The company is facing risks related to raw material price fluctuations and increased production costs due to labor and material price hikes[60]. - The company emphasizes the importance of compliance management and risk prevention to avoid systemic operational risks[56]. - The company confirmed a fair value loss of RMB 75.01 million from its investment in Jiahe Biotech, impacting net profit for the year[184].