Financial Performance - The company reported a net loss of approximately RMB 36.3 million for the year ended December 31, 2023, an increase of about 4.6% compared to the same period in 2022[14]. - The group's operating revenue for 2023 was approximately RMB 565.6 million, representing a 15.0% increase compared to the same period in 2022, marking the highest revenue year since the company's listing[15]. - Gross profit for 2023 was approximately RMB 299.5 million, an increase of 33.1% from RMB 225.0 million in 2022, with a gross margin rising from 45.8% in 2022 to 53.0% in 2023[23]. - The loss attributable to equity holders of the company for the fiscal year ending December 31, 2023, was approximately RMB 36.3 million, compared to a loss of approximately RMB 34.6 million for the fiscal year ending December 31, 2022[90]. - The company reported a pre-tax loss of RMB 29.4 million for the fiscal year ending December 31, 2023, compared to a pre-tax loss of RMB 31.0 million for the fiscal year ending December 31, 2022[87]. Research and Development - Research and development expenses for 2023 amounted to approximately RMB 65.2 million, up from RMB 15.2 million in 2022, reflecting an increase of approximately RMB 50.0 million[32]. - The company is currently conducting a total of 50 R&D projects, including 31 drug formulation projects, 12 API projects, and 7 traditional Chinese medicine projects, with plans to submit about ten product registration applications in 2024[17]. - Operating profit decreased compared to 2022 due to increased investment in research and development, aimed at enriching the company's product pipeline[14]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to RMB 34,849 thousand from RMB 128,106 thousand, indicating a need for improved cash management[98]. - The group has sufficient funds to meet its operational funding obligations, expected capital expenditures, and debt responsibilities through December 31, 2024[106]. - The group has successfully renewed bank loans during the reporting period, contributing to its liquidity position[106]. Shareholder Information - The company did not declare any dividends for the current year, consistent with 2022[3]. - The company does not recommend declaring a final dividend for the year ending December 31, 2023, compared to no dividend in 2022[51]. - The board intends to declare a dividend of no less than 10% of distributable profits for any financial year, subject to board approval[50]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 776,943 thousand, up from RMB 736,212 thousand in 2022, showing a growth of about 5.5%[98]. - Current liabilities were RMB 664,520 thousand, compared to RMB 722,082 thousand in the previous year, indicating a reduction of approximately 8%[98]. - The group's total equity attributable to shareholders was approximately RMB 563.5 million as of December 31, 2023, compared to RMB 614.2 million in 2022, while total liabilities amounted to approximately RMB 342.3 million, up from RMB 225.8 million in 2022[38]. Operational Efficiency - The company is enhancing production capacity and efficiency with the ongoing commissioning of new factories and production lines[14]. - The company has implemented photovoltaic renovations in its factories to utilize solar energy, reducing electricity costs and carbon emissions[14]. - The company has optimized its sales team and is actively utilizing new media for brand promotion and content marketing[14]. Joint Ventures and Impairments - The company has recognized impairment losses in accordance with accounting standards due to operational losses from its joint ventures[14]. - Share of losses from a joint venture decreased from a profit of approximately RMB 11.8 million in 2022 to a loss of approximately RMB 11.2 million in 2023, mainly due to a centralized procurement policy affecting sales of key products[34]. - Share of losses from another joint venture decreased slightly from approximately RMB 9.2 million in 2022 to approximately RMB 9.1 million in 2023[35]. Taxation - Income tax expenses increased from approximately RMB 3.7 million in 2022 to approximately RMB 6.8 million in 2023, with an effective tax rate of 23.3% in 2023 compared to 11.8% in 2022[36]. - The effective corporate income tax rate for the group's Chinese subsidiaries was 25%, consistent with the previous year[78]. - The group’s subsidiary in Henan received a preferential income tax rate of 15% for being recognized as a high-tech enterprise, valid until October 27, 2024[78]. Employee Costs - Total employee costs, including directors' remuneration and other benefits, were approximately RMB 103.9 million for the year ended December 31, 2023, compared to RMB 91.8 million in 2022[43]. - Employee costs rose to RMB 103,881,000, up from RMB 91,829,000, indicating an increase of about 13%[71]. Compliance and Governance - The company has adopted corporate governance standards and has complied with all applicable rules, except for a specific provision regarding the company secretary[52]. - The company’s board has fully complied with the standards for securities trading as of December 31, 2023[53]. - The financial statements have been prepared in accordance with International Financial Reporting Standards and comply with the disclosure requirements of the Hong Kong Companies Ordinance[105].
福森药业(01652) - 2023 - 年度业绩