Financial Performance - The Group's revenue for the year ended December 31, 2023, was reported at RMB 1.2 billion, reflecting a year-on-year increase of 15%[17]. - Gross profit for the same period was RMB 800 million, resulting in a gross margin of 66.7%[17]. - Profit attributable to owners of the Company reached RMB 300 million, with an increase of 20% compared to the previous year[17]. - Earnings per share for 2023 were RMB 0.75, up from RMB 0.62 in 2022, indicating a growth of 20.9%[17]. - For the year ended December 31, 2023, the Group's revenue was RMB 6,773,463,000, an increase of 13.04% from RMB 5,991,841,000 in the previous year[22]. - The net profit for the year was RMB 992,313,000, a decrease of 0.93% from RMB 1,001,620,000 in the previous year[22]. - Profit attributable to owners of the Company was RMB 590,188,000, an increase of 1.25% from RMB 582,888,000 in the previous year[22]. - The gross margin for the year was 45.90%, and the net profit margin was 16.56%[22]. - The total income for 2023 was RMB 6,773,463,000, representing an increase from RMB 5,991,841,000 in 2022[85]. Liquidity and Financial Ratios - The current ratio improved to 2.5, while the quick ratio stood at 1.8, indicating strong liquidity[17]. - The debt to asset ratio was reported at 30%, reflecting a stable financial structure[17]. - Return on equity for the year was 12%, showing an increase from 10% in the previous year[17]. - Total assets amounted to RMB 10,469,970,000, with total liabilities of RMB 3,055,396,000, resulting in a debt to asset ratio of 29.18%[22]. - The Group's liquidity ratio was 4.9 as of December 31, 2023, compared to 4.42 in the previous year, indicating sufficient financial resources[55]. - The gearing ratio as of December 31, 2023, was 0.15, slightly down from 0.16 in the previous year, indicating a stable capital structure[56]. - The trade receivables turnover ratio improved to 7.97 from 6.79, reflecting stronger liquidity in trade receivables[55]. Market Expansion and Product Development - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in regional sales by 2025[17]. - New product lines in herbal supplements are expected to launch in Q2 2024, aiming to capture a larger market share[17]. - The Group aims to enhance its core competitive advantages and achieve high-quality development in line with the "14th Five-Year Plan"[27]. - The outlook for 2024 indicates continued government support for the traditional Chinese medicine industry and potential for global expansion[27]. - The Group plans to leverage its brand "Tong Ren Tang" to promote traditional Chinese medicine culture and improve marketing effectiveness[28]. - Key initiatives for 2024 include improving variety management, channel expansion, and marketing capabilities, focusing on "Major Varieties" and the "Glow Campaign"[79]. Subsidiary Performance - The sales revenue of Tong Ren Tang Chinese Medicine and its subsidiaries was RMB 1,376,532,000, representing a year-on-year decrease of 7.94%[41]. - The sales amount of Shengmai Liquor increased by 70.63%, while Ganmao Qingre Granules increased by 27.42% compared to the previous year[36]. - Tong Ren Tang WM achieved sales revenue of RMB 90,681,000, representing a year-on-year increase of 62.66%, and net profit of RMB 823,000, representing a year-on-year increase of 34.04%[42]. - Tong Ren Tang Guo Yao reported sales revenue of RMB 137,653,200, a year-on-year decrease of 7.94%, and net profit of RMB 48,694,800, a year-on-year decrease of 12.62%[44]. - The two subsidiaries, Tong Ren Tang Second Traditional Chinese Medicine Hospital and Nansanhuan Zhonglu Drugstore, achieved combined sales revenue of RMB 252,055,000, representing a year-on-year increase of 16.75%, and net profit of RMB 12,780,000, representing a year-on-year increase of 14.51%[46]. - Six subsidiaries engaged in the production of Chinese medicinal materials achieved sales revenue of RMB 424,488,000, representing a year-on-year increase of 58.80%[47]. Research and Development - Research and development expenses for the year were RMB 185,469,000, accounting for 2.74% of revenue, an increase from 2.24% in 2022[60]. - The Group focused on the secondary research of existing products and collaborated with experts for clinical research on major varieties[37]. - The Group's strategy for "Major Varieties" aims to ensure sufficient supply and enhance operational capacity to meet market demands[32]. Compliance and Risk Management - The Group has a strict quality management system in place to mitigate operational risks associated with the production of Chinese patent medicines[126]. - The Group's operations are subject to various laws and regulations, including the Company Law and the Law on Traditional Chinese Medicine, ensuring compliance through internal controls and training[133]. - The Group faces operational risks due to the complexity of production processes and potential supply chain disruptions from climate change and extreme weather[131]. - The Group has not encountered any significant legal risk events during the reporting period, indicating effective compliance management[134]. - The Group emphasizes the importance of integrity and compliance culture to support high-quality development[134]. Shareholder Information - The Group proposed a final dividend of RMB 0.18 per share for 2023, totaling RMB 230,541,000, up from RMB 204,925,440 in 2022[87]. - The company will withhold individual income tax at a rate of 20% for individual shareholders of H shares when distributing the final dividend[92]. - The company has not reached any arrangement for shareholders to waive any dividend as of the report date[93]. - As of December 31, 2023, the company's distributable reserves were approximately RMB 3,135,383,000, an increase from approximately RMB 2,877,188,000 in 2022[102]. - The company satisfied the public float requirement under rule 8.08 of the Listing Rules as of the report date[107]. Connected Transactions - The Group's continuing connected transactions with Tong Ren Tang Holdings include a Property Leasing Framework Agreement with an annual cap of RMB 60,000,000 for the three years ending December 31, 2025[143]. - In 2023, the rental fee paid by the Group to the Tong Ren Tang Group under the Property Leasing Framework amounted to RMB 846,000, which did not exceed the relevant annual cap[144]. - The Distribution Framework Agreement was renewed for three years from January 1, 2023, to December 31, 2025, with annual caps of RMB 2,680,000,000, RMB 3,000,000,000, and RMB 3,450,000,000 respectively[148]. - In 2023, sales to the Tong Ren Tang Group under the Distribution Framework Agreement amounted to RMB 1,590,404,000, which did not exceed the relevant annual cap[148]. - The Master Procurement Agreement was renewed for three years from January 1, 2023, to December 31, 2025, with annual caps of RMB 500,000,000, RMB 550,000,000, and RMB 600,000,000 respectively[151]. - In 2023, the purchase of relevant products from the Tong Ren Tang Group under the Master Procurement Agreement amounted to RMB 187,476,000, which did not exceed the relevant annual cap[151]. Environmental and Social Responsibility - The Group is committed to environmental protection, adhering to relevant laws such as the Environmental Protection Law of the People's Republic of China[139]. - Cash donations made by the Group during the reporting period were RMB 214,000, up from RMB 86,000 in 2022[104]. - The company made cash donations of RMB 21,400 during the reporting period, compared to RMB 8,600 in 2022, reflecting an increase of approximately 148.8%[109].
同仁堂科技(01666) - 2023 - 年度财报