Company Milestones and Events - In 2023, Beijing Tong Ren Tang Chinese Medicine Company Limited celebrated its 30th anniversary of international development and the 10th anniversary of its listing[13]. - The company opened a new retail outlet in Tseung Kwan O, Hong Kong, in April 2023[14]. - In June 2023, the company participated in a cultural event showcasing its royal medicine heritage and was awarded the "Quam IR Awards 2022 – Sustainable Development Category – Gold"[15]. - The company showcased its history and products during the "Tong Ren Tang's King of Medicine Festival" in August 2023, raising brand awareness[16]. - In November 2023, the company participated in the "6th China International Import Expo" as an exporter, highlighting its star products and first Chinese anti-aging product[19]. Financial Performance - Financial highlights for 2023 will be detailed in the annual report, with specific figures to be disclosed[20]. - Revenue for 2023 was HK$1,524,945,000, a decrease of 12% compared to HK$1,731,095,000 in 2022[23]. - Gross profit margin improved to 68.7% in 2023 from 66.4% in 2022[23]. - Profit for the year was HK$590,587,000, down from HK$691,293,000 in the previous year, representing a decline of 14.6%[23]. - Earnings per share decreased to HK$0.65 in 2023 from HK$0.77 in 2022, a drop of 15.6%[23]. - Non-current assets increased to HK$590,123,000 in 2023 from HK$542,208,000 in 2022, reflecting a growth of 8.8%[23]. - Current assets rose to HK$3,844,322,000 in 2023, up from HK$3,683,071,000 in 2022, an increase of 4.4%[23]. - Total assets reached HK$4,434,445,000 in 2023, compared to HK$4,225,279,000 in 2022, marking a growth of 4.9%[23]. - The current ratio improved to 11.7 in 2023 from 8.8 in 2022, indicating better liquidity[23]. - The dividend payout ratio increased to 51.1% in 2023 from 42.8% in 2022, indicating a higher return to shareholders[23]. Market and Product Development - The Group is focusing on market opportunities in Southeast Asia and enhancing product lines through increased R&D investment[35]. - The Group plans to actively adjust its business model and implement a dual-driven strategy, including establishing new retail outlets in Hong Kong and expanding international sales channels[40]. - The Group aims to pursue external growth through strategic investments, mergers, acquisitions, and partnerships with high-quality collaborators[40]. - The Group's focus on innovation and product upgrades aims to enhance its product line and improve its ability to respond to economic risks[46]. - The Group's strategic initiatives are designed to position it as a global leader in the field of Chinese medicine and macro-health[40]. Research and Development - The Group continues to explore technological innovation and R&D in traditional Chinese medicine[19]. - The Group has 61 authorized patents as of December 31, 2023, with 6 PCT international applications submitted[59]. - The Group has developed a range of products incorporating modern technology, such as collagen peptides from marine sources, enhancing digestibility and absorption[98]. - The Group has invested significantly in research and development, focusing on new product development to meet diverse market demands, particularly in disease prevention and body condition nourishment[190]. Marketing and Brand Recognition - The Group's marketing activities included outdoor advertisements and community exhibitions, significantly increasing brand awareness and consumer engagement[63][64]. - The Group received multiple awards, including the "Excellence Award of the TCM Brand" in Hong Kong and the "Most Influential Brand Award in Asia" in Singapore, highlighting its strong brand recognition[67]. - The Group's marketing strategies adapted to changing market conditions, including themed campaigns for health awareness and community engagement post-pandemic[65][66]. Employee and Corporate Governance - Staff costs for the year amounted to HK$245.7 million, reflecting a 12.1% increase from HK$219.1 million in 2022, with a total of 798 employees as of December 31, 2023[68]. - The Group emphasizes a people-oriented approach, ensuring a friendly and inclusive working environment to enhance employee retention and corporate competitiveness[196]. - The Group provides comprehensive medical check-ups and basic medical, dental, and accident insurance for employees, along with free Chinese medicine consultation services for their direct relatives[198]. - The Group adheres to a principle of equal pay for equal work, providing equal development opportunities regardless of race, gender, age, or religion[199]. Environmental, Social, and Governance (ESG) Initiatives - The Group's 2023 Environmental, Social and Governance Report outlines its policies and performance related to corporate social responsibility and sustainable development[116]. - The Group is actively implementing environmental management measures to reduce the operational burden on the environment and is identifying climate-related risks and opportunities[113][114]. - The Group has established a clear and effective governance system to foster stable and sustainable corporate development, focusing on environmental, social, and governance (ESG) aspects[122]. - The Group emphasizes the importance of supply chain stability for business development, with established "Procurement Management Rules" and "Suppliers Management Rules" to guide supplier assessment[175]. Quality Control and Compliance - The Group implements quality management practices, including Good Manufacturing Practice (GMP) and Hazard Analysis and Critical Control Points (HACCP), to maintain product safety and quality[137]. - The Group has established a comprehensive quality management system to ensure product testing accuracy and compliance with relevant laws[131]. - The Group has implemented a comprehensive quality control strategy, including guidelines for material processing, production, and product inspection, to maintain product safety and quality[168]. - The Group conducts comprehensive internal quality inspections on each batch of finished products to ensure compliance with safety and quality standards in Hong Kong[166]. Risk Management - The Group implements a risk management framework consisting of five major components and the "Three Lines of Defense" model to identify, evaluate, and manage significant risks[124]. - Major risks related to ESG include regulatory risks in the Chinese medicine industry and food and health products, which the Group mitigates by enhancing compliance awareness and improving management systems[128]. - The Group has established management procedures for quality risk reporting and product recall to safeguard the quality of marketed products[131]. Customer Engagement and Feedback - Customer feedback is collected through various channels, including retail staff, customer service hotlines, and social media, with mechanisms in place to handle complaints appropriately[138]. - The Group has established measures for additional paid holidays, including marriage leave and compassionate leave, to ensure employees have adequate rest[199].
同仁堂国药(03613) - 2023 - 年度财报