Gelonghui March 22 | Modern Chinese Medicine Group (01643.HK) announced that for the year ended December 31, 2023, the Group recorded revenue of approximately RMB 344.1 million in 2023, a decrease of approximately RMB 55.6 million or 13.9% compared with the fiscal year ending 2022. The decline in revenue was mainly due to changes in government policies, resulting in fewer orders from dealers. Profit before tax decreased by about 45.1% from approximately RMB 124.3 million in 2022 to approximately RMB 68.3 million as of 2023, mainly due to changes in government policies, a decrease in dealer orders, and an increase in procurement costs.
The Group has now established a distribution network with 88 dealers, covering about 40 cities in China, and more than 37 marketing personnel with relevant experience in the traditional Chinese medicine industry to provide services and management. We believe that in the foreseeable future, the Group's distribution network and dealer model will continue to support the further development of business operations. Furthermore, the distribution network not only helps expand business operations from Northeast China and South China to other regions of China, but also allows the Group to penetrate deeply and extensively in Northeast China and South China. Since the Group has established coverage in Northeast China and South China and its regional population is huge, the region has become the Group's strategic target. As of 2023, revenue contributions from Northeast China, North China and South China were approximately RMB 188.2 million, RMB 57.2 million and RMB 56.3 million respectively.