Financial Performance - Revenue for 2023 was RMB 5,430,974, a decrease of 24.1% compared to RMB 7,151,039 in 2022[23]. - Profit before tax for 2023 was a loss of RMB 928,334, compared to a profit of RMB 829,851 in 2022[23]. - Basic earnings per share for 2023 was a loss of RMB 0.53, down from a profit of RMB 0.50 in 2022[23]. - Operating income for 2023 was RMB 5,431.0 million, a decrease from RMB 7,151.0 million in 2022, reflecting the impact of the post-epidemic era[29]. - Overall gross profit margin decreased by 14.7 percentage points to 17.3% in 2023, down from 32.0% in 2022[29]. - Loss attributable to shareholders on a consolidated basis was RMB 783.3 million in 2023, compared to a profit of RMB 727.4 million in 2022[29]. - Net operating cash inflow was RMB 398.2 million in 2023, a significant recovery from a net outflow of RMB 756.7 million in 2022[29]. - Gross profit for 2023 decreased by RMB 1,349.3 million to RMB 940.9 million, compared to RMB 2,290.2 million in 2022, with a gross profit margin decline of 14.7 percentage points to 17.3%[79]. - Adjusted gross profit for 2023 was approximately RMB 1,796.3 million, with an adjusted gross profit margin of approximately 33.1%, an increase from 32.5% in 2022[80]. - The loss attributable to equity holders was RMB 783.3 million, while the adjusted profit attributable to equity holders was RMB 387.0 million, down from RMB 841.9 million in 2022[51]. Market and Sales Performance - The Group's enoxaparin finished dose pharmaceutical products maintained stable global sales volumes, holding the second-largest market share in Europe[32]. - In the U.S. market, the Group's enoxaparin products received FDA approval and launched in June 2023, actively increasing market share[32]. - The Group secured first place in China's 8th national volume-based procurement, obtaining contracts from five provinces as primary suppliers[32]. - The Group's marketing strategies in Europe led to steady revenue growth in finished dose pharmaceutical products despite global destocking trends[32]. - The Group expanded its market presence in new regions such as Australia and Ecuador, maintaining a solid second position in international non-European and American markets[32]. - The heparin industrial chain business achieved sales revenue of RMB4,286.3 million, a decrease from RMB5,884.3 million in 2022[54]. - Finished dose pharmaceutical products sales revenue was RMB2,979.0 million, accounting for 54.9% of total revenue, with a gross profit of RMB1,284.6 million, reflecting a 13.4% increase year-on-year[54]. - The heparin API business reported sales revenue of approximately RMB1,307.3 million, down from RMB2,673.8 million in 2022, accounting for 24.1% of total revenue[57]. - The CDMO business generated sales revenue of approximately RMB967.0 million, a decline from RMB1,084.1 million in 2022, with a gross profit margin decreasing to 22.0%[59]. Challenges and Risks - The CDMO business faced challenges with a revenue decline due to the end of key enzyme orders for mRNA COVID-19 vaccines, but recovery efforts in Q4 helped offset losses[33]. - The external environment remains complex and uncertain, with rising interest rates and tightening credit posing challenges to growth[39]. - The Company experienced a fraudulent incident involving approximately EUR 11.74 million, with about EUR 9.74 million (RMB 74.5 million) fraudulently transferred in 2023[44]. - The significant increase in the cost of sales was attributed to the accounting treatment of including impairment losses on inventory in the cost of sales of APIs[79]. - The company faces risks related to market acceptance of its products, which could adversely impact operations and profitability[194]. - The company’s CDMO business is dependent on customer demand for outsourced biologics, and a reduction in spending could materially affect its financial condition[196]. Strategic Initiatives - The Group plans to enhance its heparin business and increase sales volume and market share in various heparin markets while adjusting marketing strategies based on market dynamics[36]. - The Group will focus on improving internal management systems and risk management, collaborating with external experts to optimize internal control management planning in 2024[36]. - The Group aims to leverage its competitive advantages and capitalize on market opportunities to promote long-term sustainable development and maximize shareholder returns[38]. - The Group plans to optimize resource allocation to improve production capacity and meet future business needs more flexibly[74]. - Hepalink aims to explore new business growth points by collaborating with multinational pharmaceutical companies in Europe and the United States[52]. - The Group plans to actively expand the market size and diversify sales distribution in the API business to achieve market share expansion and solidify its leadership position in the API industry[73]. - Hepalink will increase efforts on market expansion of enoxaparin API and promote sales of high-tech, high-quality, and high-value-added enoxaparin API products for steady revenue growth[73]. Governance and Management - The Group has a strong management team with extensive experience across various pharmaceutical sectors, enhancing its strategic capabilities[97]. - The focus on human resources management is crucial for supporting the Group's operational needs and growth[97]. - The Group's strategic committee includes key members who participate in formulating and implementing business strategies[97]. - The Company is committed to maintaining a comprehensive risk management framework to strengthen internal monitoring and risk management capabilities[74]. - The Group has established a framework to safeguard shareholder interests and enhance corporate value through good governance practices[200]. Shareholder Information - The Group's distributable reserves as of December 31, 2023, were RMB 913 million[118]. - The Board has resolved not to declare a final dividend for the year ended December 31, 2023, compared to RMB 1.0 per ten ordinary shares in 2022[111][113]. - The total beneficial ownership of shares by substantial shareholders indicates a concentration of ownership, with the top three shareholders holding over 100 million shares each[170]. - The report highlights compliance with the Securities and Futures Ordinance regarding the disclosure of interests and short positions in shares[168]. - The company has a significant shareholding structure, with major shareholders including Leren Technology and Jintiantu, which together control over 70% of the shares[170]. Future Outlook - The Chairman expressed a cautiously optimistic outlook for business recovery and financial turnaround, emphasizing the importance of cost control for robust financial performance[37]. - The Company is optimistic about future prospects and will continue to implement its existing strategy while observing market trends[74]. - The Group plans to fully utilize the remaining Net Proceeds on or before November 30, 2025[122].
海普瑞(09989) - 2023 - 年度财报