In 2022, the impacts of lingering COVID-19 pandemic, continuing geopolitical tensions, and escalating inflationary pressures, posed uncertainties surrounding the global economic outlook. Global headwinds and COVID-linked uncertainties dampened China's economic growth. Resurgence of sporadic spikes in COVID-19 cases in China (or the "PRC"), particularly during March to May 2022, caused widespread lockdowns to its major cities to contain transmission of the COVID-19 variants, hindered China's economic growth which slowed from 4.8% registered in the first quarter of 2022 to 0.4% in the second quarter, the lowest rate since China's economy contracted by 6.8% in the first quarter of 2020. Helped by a raft of stimulus measures from the government after the end of the strict lockdowns, China's economy grew 3.9% and 2.9% in the third quarter and fourth quarter of 2022, bringing full-year growth rate of 3% in 2022, which marks one of the worst performances in decades. Following the containment of the COVID-19 variants and the gradual lifting of related restrictions from December 2022, China's economy grew by a better-than-expected 4.5% in the first quarter of 2023, mainly due to a strong recovery in consumption.
During the year, the impacts of COVID-related restrictions, including the strict lockdowns and movement restrictions, posed significant challenges to the operating environment of pharmaceutical enterprises and lowered the growth pace of the pharmaceutical industry, as manufacturing and distribution activities were affected to varying degrees. Furthermore, the launch of the seventh round of centralised drug procurement, regular updates of national drug reimbursement list, and reforms to better control medical costs through the diagnosis-related groups and big data diagnosis intervention packet payment management models, have been pushed forward and implemented on a continuous basis, while supportive initiatives by the government have been rolled out to encourage research and development of innovative pharmaceuticals to benefit more patients and meet urgent clinical needs. China's pharmaceutical industry is entering a stage of high-quality development with focus on innovation-driven growth. While constantly regulatory changes and reforms continue to reshape the industry landscape, pharmaceutical enterprises are facing intensified competition in the dynamic market which is filled with both challenges and opportunities.
As part of the development strategy of the Group, and in line with the development trends of China's pharmaceutical industry, the Group has been focusing on enhancing its production capability and capacity so as to enhance its core competitiveness and sustain the long-term development of the Group, while the Group continues to monitor the market trends aiming for developing a new line of products in an effort to restore its pharmaceutical trading business and identify business opportunities that may provide an income stream to the Group. During the year, the overall operating results of the Group's business segments remained steady and its financial position remained sound.
The Group's profit for the year attributable to owners of the Company was about HK$129.3 million, representing a decrease of about HK$1.3 million, primarily due to the gain from fair value change of the Group's investments in convertible bonds, which is a non-cash item.
The Group will closely align its development direction with national strategies and policy guidance outlined in China's Fourteenth Five-Year Plan and Healthy China strategy, and will place more emphasis to strengthen its core competitiveness in the long run in the face of ever-changing landscape. The Group also expects that the substantial lifting of the movement restrictions in China since early 2023, will facilitate patient flows and hence the progress of the ongoing clinical trial of the oral insulin product. The diabetic population in China is constantly increasing as the elderly population accelerates and the life expectancy increases, market demand for quality diabetes pharmaceuticals is expected to be enormous. The Group believes that the successful launching of the oral insulin product in the future would justify the Group's investments and bring benefits to the Group.
While the worldwide easing of travel restrictions and social distancing measures facilitate economic recovery, global trade remains under pressure due to geopolitical pressures and weakening global demand. The global economy is still embraced with downward pressure and uncertainties. In the face of strong international headwinds, China has leveraged its dual circulation economic strategy to make its economy more balanced and resilient through improving supply chains inside China and promoting domestic consumption within China's economy. China's uplifting of COVID related restrictions, reopening of the borders together with government's supportive policies to boost consumption, have paved the way for a quick rebound in market activities. The Group believes that China's economic recovery is on track and will usher in a more stable development while its pharmaceutical industry will continue to show tremendous potential and great vitality, in particular, the pharmaceutical manufacturing sector will continue to prosper and facilitate the business growth of the Group's pharmaceutical manufacturing business in future. The Group will endeavor to navigate the businesses diligently amid the challenges ahead and is cautiously optimistic on its long-term development.
On behalf of the Board, I would like to express our appreciation to all staff of the Group for their dedicated efforts and contribution to the Group, and to the shareholders, business partners and other stakeholders for their continuous support.
Dr. Xie YiChairman