On the evening of March 21st, Freda released its annual report for 2023. In 2023, the company achieved operating revenue of 4.579 billion yuan ($633.6 million), a year-on-year decrease of 64.65%. The total profit reached 413 million yuan ($57.15 million), a year-on-year increase of 58.19%. The net profit attributable to the owners of the parent company was 303 million yuan ($41.93 million), showing a growth of 567.44%. Among these, the net profit attributable to shareholders of the listed company in the cosmetics and pharmaceutical businesses was 231 million yuan ($31.96 million), a 12.93% increase compared to the previous year.
With the successful completion of significant asset sales, the company has focused its main business on cosmetics, pharmaceuticals, raw materials, and additives, all of which have achieved performance growth.
In particular, the cosmetics business showed significant growth in 2023, with operating revenue of 2.416 billion yuan ($334.3 million), a year-on-year increase of 22.71%. Among them, the RELLET achieved operating revenue of 857 million yuan ($118.58 million) for the full year, a 20.35% increase compared to the previous year. Additionally, the Dr. Alva achieved operating revenue of 1.348 billion yuan ($186.5 million) for the full year, a 27.33% increase.
Relying on the company’s core technology in the field of hyaluronic acid, further research and development in the areas of skin microecology, special plant resources, and collagen protein were conducted to strengthen innovation reserves. The infrastructure construction of the intelligent production base for collagen protein medical devices was completed, enabling trial production of recombinant human collagen protein raw materials. The registration of recombinant human collagen protein raw materials was promoted, and the medical beauty brand “Kemi” was launched, upgrading the company from a single beauty business to a dual beauty ecosystem of “lifestyle beauty + medical beauty.”
During the reporting period, the company invested 166 million yuan in research and development for the whole year, a 10.11% increase compared to the previous year. In terms of platforms, two new “One Enterprise, One Technology” research and development centers were established in Shandong Province (Mingren Freda and Freda Biotechnology), along with one Shandong Province technology innovation demonstration enterprise (Focus Freda) and one key laboratory in Jinan City (Mingren Freda Health Products Laboratory).
