Financial Performance - Revenue for the year ended December 31, 2022, was HKD 440.316 million, representing a 24.6% increase from HKD 353.405 million in 2021[13]. - Gross profit for the same period was HKD 334.883 million, with a gross margin of 76.1%, down from 78.4% in the previous year[13][18]. - The company achieved a historical revenue high in 2022, with a year-on-year increase of 24.6% despite challenges from the COVID-19 pandemic[39]. - The company recorded a record revenue of approximately HKD 440.3 million for the year 2022, representing a significant year-on-year growth of 24.6% from HKD 353.4 million in 2021[69]. - The company achieved a net profit of approximately HKD 38.5 million in 2022, a substantial increase of 296.6% compared to a loss of HKD 19.6 million in 2021[70]. - The sales cost increased by 38.0% to approximately HKD 105.4 million in 2022, up from about HKD 76.4 million in 2021, while gross profit rose by 20.9% to approximately HKD 334.9 million[69]. - The gross margin for 2022 was 76.1%, slightly down from 78.4% in 2021[69]. Research and Development - Research and development expenses were HKD 35.781 million, accounting for 8.1% of revenue, a decrease from 14.2% in 2021[13][19]. - The company is focusing on R&D in endocrine diseases, ophthalmology, and dermatology, with multiple patented biopharmaceuticals and high-value generic drugs at various stages of development[44]. - The company is committed to enhancing its R&D capabilities and has partnered with Oran Biomedicine and DotBio to explore new applications for cell-penetrating protein technology[96]. - The company is researching oral delivery innovations for peptide drugs, with the third-generation Uni-PTH product showing promise in enhancing competitiveness in the endocrine field[97]. - The company is developing new products such as sodium diquafosol eye drops, which are expected to provide a new clinical treatment option for dry eye patients in China[91]. Product Development and Market Strategy - The company has two new prescription drugs, Uni-E4 and Uni-PTH, that have completed clinical trials, targeting type 2 diabetes and osteoporosis respectively[10][11]. - The company launched a new product, 博固泰®, expected to receive market approval by September 2023, marking its fifth self-developed drug[26]. - The new drug application for Bogutai® (teriparatide injection) was accepted by the National Medical Products Administration, preparing for entry into the osteoporosis market[41]. - The company is preparing for a national centralized procurement for Pinapu® in April 2023, aiming to secure its position in future procurements[27]. - The product BoguTai® is anticipated to receive market approval by September 2023, aiming to capture a significant share of the projected $81.5 billion osteoporosis market in China by 2031[92]. Market Performance - The company successfully captured nearly 50% market share for its product, Pinapu®, significantly outperforming competitors in sales[27]. - The flagship product, Jin Yin Peptide®, generated revenue of approximately HKD 169.4 million in 2022, a slight decline of 0.6% from HKD 170.5 million in 2021[72]. - The proprietary biological drugs generated sales of approximately HKD 207.8 million, a growth of 0.5% compared to the previous year, accounting for 47.2% of total sales[78]. - The proprietary chemical drugs, including Pinafu® and Boshu Tai®, achieved revenue of approximately HKD 232.5 million, a substantial increase of 58.5% year-on-year[79]. Corporate Governance - The board consists of seven members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[139]. - The company has adopted all applicable corporate governance codes as per the listing rules, demonstrating its commitment to transparency and accountability[138]. - The independent non-executive directors are confirmed to meet independence criteria, ensuring unbiased judgment in strategic decisions[141]. - The company emphasizes maintaining and improving corporate governance quality to enhance investor confidence and ensure stable growth[137]. - The board is responsible for determining the company's corporate governance policies and ensuring compliance with legal and regulatory requirements[170]. Financial Health and Ratios - The cash ratio improved to 1.09 from 0.91, and the current ratio increased to 2.22 from 2.18[15]. - The debt-to-equity ratio decreased to 50.2% from 53.5%[15]. - Total asset turnover improved to 150.6% from 132.1%[15]. - As of December 31, 2022, the company's cash and bank balances were approximately HKD 98.22 million, with total assets of approximately HKD 292.47 million[99]. - The company's current liabilities as of December 31, 2022, were approximately HKD 90.26 million, resulting in a current liabilities to total assets ratio of 30.9%[99]. Management and Leadership - The company has a strong management team with members holding advanced degrees from prestigious institutions, including Peking University and the University of Hartford[126][127]. - The management team has a combined experience of over 100 years in various sectors, including finance, consulting, and corporate governance[128][130]. - The company appointed Mr. Liang Guolong as Executive Director and Chairman of the Board since January 13, 2017, with extensive experience in investment banking and biotechnology[122]. - Mr. Zhao Zhigang has been the CEO since April 8, 2019, and has over 20 years of experience in corporate finance and auditing, previously serving as CFO for several listed companies[124]. - The company has appointed Mr. Du Kai as the Chief Financial Officer, effective March 31, 2022, bringing over 17 years of financial and tax experience, particularly in the biopharmaceutical industry[132]. Employee and Talent Management - The company employed 370 staff members as of December 31, 2022, with a focus on competitive compensation to attract and retain talent[101]. - The company has achieved gender diversity among employees, with a male-to-female ratio improving from 70:100 last year to 100:100[181]. - The board currently consists entirely of male members, but the company aims to appoint female directors to meet diversity requirements by December 31, 2024, targeting a female representation of over 10%[180]. Compliance and Ethics - The company emphasizes high standards of business ethics and integrity, requiring all employees to adhere to a long-established code of conduct[198]. - The group has established business codes for all manufacturers and suppliers, ensuring safe and healthy workplaces and fair recruitment practices[198]. - The company closely monitors compliance with the codes of conduct set by major licensors and customers for its manufacturers and suppliers[198]. Future Outlook - The company anticipates that the pharmaceutical and healthcare industry in China will continue to thrive due to aging population, domestic substitution, and supportive policies[87]. - The company plans to continue focusing on gender diversity among employees to enhance its future competitiveness[181]. - The company is committed to ongoing research and development of new products and technologies to drive future growth[130].
联康生物科技集团(00690) - 2022 - 年度财报