Financial Performance - Revenue for the year ended December 31, 2023, was HKD 484.7 million, an increase of approximately 10.0% from HKD 440.3 million in 2022[15]. - Gross profit for 2023 was HKD 392.8 million, resulting in a gross margin of 81.0%, compared to 76.1% in 2022[15][16]. - Adjusted EBITDA for 2023 was HKD 99.4 million, up from HKD 66.1 million in 2022, indicating a significant improvement in operational efficiency[15]. - The company reported a pre-tax profit of HKD 75.9 million for 2023, a significant increase from HKD 43.3 million in 2022, marking a successful year of profitability[15]. - The net profit for 2023 was approximately HKD 70.9 million, showing a significant year-on-year increase of 84.04% due to strict cost control measures[36]. - The profit for the year hit a record high of approximately HKD 70.9 million, a significant increase of 84.04% year-on-year, with earnings per share rising to about HKD 1.11, up 82%[68]. - Sales of the flagship product, Jinyin Peptide®, generated approximately HKD 186.0 million, reflecting a 9.8% increase due to expanded hospital networks and digital sales channels[69]. - The revenue from the patented biopharmaceuticals segment was approximately HKD 226.9 million, a 9.2% increase, accounting for 46.8% of total sales[75]. - Other income increased by 57.8% to approximately HKD 13.6 million, driven by growth in the CMO business[82]. Product Development and Innovation - The company launched its fifth self-developed drug, Bo Gu Tai®, which received positive market response shortly after its release[22]. - The company has introduced a new product, a domestically produced pre-filled pen injection of teriparatide, which is expected to outperform existing imported products[22]. - The company launched Skbrella™ FN, a functional skincare ingredient that improves skin repair speed and tolerance, marking its entry into the medical aesthetics industry[24]. - The company is actively developing three additional functional skincare ingredients to diversify its product offerings and revenue sources[24]. - The company has developed two technical platforms, including a synthetic biology platform that could significantly reduce long-term production costs for bioparticles[26]. - The hydrogel technology platform focuses on creating temperature-sensitive hydrogel formulations for epidermal growth factor products, enhancing drug delivery and healing processes[26]. - The company has completed preliminary development of an anti-wrinkle peptide product, with plans for functional validation to follow[59]. - Collagen, which constitutes 25% to 35% of total body protein, is being developed for skincare applications, focusing on hydration and anti-aging[60]. - Microecological skincare products are being developed using synthetic biology techniques, with a project launched in collaboration with the Hong Kong Institute of Nano and Advanced Materials[61]. - Exosomes derived from mesenchymal stem cells (MSCs) are being explored for their regenerative properties in skincare, promoting collagen synthesis and reducing scar formation[62]. Research and Development - Research and development expenses accounted for 7.3% of total revenue in 2023, down from 8.1% in 2022, reflecting improved cost management[15][16]. - The establishment of a new R&D center in Beijing aims to facilitate breakthroughs in product development[25]. - The company continues to focus on R&D in endocrine diseases, ophthalmology, and dermatology, with multiple patented biopharmaceuticals and high-value generics in various stages of development[43]. - The company has doubled its EGF product production capacity and plans to quadruple it by April 2024, enhancing production efficiency and reducing costs[92]. - The synthetic biology technology platform aims to improve the production performance of E. coli, significantly lowering the cost of bioactive peptides[93]. Market Strategy and Expansion - The company aims to expand its market share through strategic partnerships and innovative product offerings in the Chinese healthcare market[5][22]. - The company is preparing for the fourth clinical study of Bogu Tai®, focusing on fracture prevention and pain relief, to enhance its competitive edge[88]. - The market for osteoporosis-related medical expenses is expected to soar to RMB 132 billion by 2035 and RMB 163 billion by 2050, indicating substantial growth opportunities[86]. - The dry eye medication market is expected to exceed RMB 42 billion by 2030, with an impressive CAGR of 28.4%[89]. - The Chinese functional skincare market is projected to reach RMB 122.4 billion by 2028, with a compound annual growth rate (CAGR) of 17.5% from 2023 to 2028[85]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency in its operations[118]. - The board includes independent directors with significant experience in finance and management, ensuring robust governance practices[118][119]. - The company has established procedures for handling and disseminating inside information, adopting a disclosure policy for compliance[166]. - The risk management process includes identifying, assessing, and managing risks that may affect the company's business and operations[163][164]. - The board conducts an annual review of the effectiveness of the risk management and internal control systems through the audit committee[165]. - The company has adopted all applicable corporate governance codes as per the listing rules, demonstrating its commitment to transparency and accountability[125]. Management and Leadership - The company has a strong management team with members holding advanced degrees from prestigious institutions, including Imperial College London and Peking University[113][114]. - The management team has received multiple industry awards, highlighting their leadership and innovation in the biotechnology sector[113]. - The company has appointed Mr. Du Kai as the Chief Financial Officer effective March 31, 2022, bringing over 18 years of financial and tax experience, particularly in the biopharmaceutical industry[122]. - The management team includes experienced professionals with extensive backgrounds in sales, manufacturing, R&D, and clinical research, contributing to the company's strategic goals[121]. - The board consists of seven members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[126]. Shareholder Communication - The company maintains effective communication with shareholders through regular financial disclosures and updates on its website[178]. - The company emphasizes the importance of timely and balanced information dissemination to shareholders and potential investors[177]. - The company has audited its shareholder communication policy for the year ending December 31, 2023, and found it to be effectively implemented[181]. - Shareholders have the right to request special meetings if they hold at least 10% of the company's paid-up capital[173]. Future Outlook - The company is focused on expanding its market presence and enhancing its product offerings through strategic partnerships and acquisitions[117]. - The company is committed to enhancing shareholder value through prudent management and strategic decision-making[125].
联康生物科技集团(00690) - 2023 - 年度财报