Summary of Key Points Core Viewpoint - As of July 3, a total of 120 stocks reached their 52-week highs, indicating a strong market performance with notable leaders in the list [1]. Group 1: Top Performers - The top three stocks with the highest increase rates are: - 富誉控股 (Fuyou Holdings) at 90.76%, closing at 0.435 with a peak of 0.475 [1] - 信义能源 (Xinyi Energy) at 65.00%, closing at 1.200 with a peak of 1.980 [1] - 中国三三传媒 (China San San Media) at 42.86%, closing at 1.710 with a peak of 1.900 [1] Group 2: Additional Notable Stocks - Other notable stocks include: - ITE HOLDINGS at 34.21% increase, closing at 0.047 with a peak of 0.051 [1] - 星凯控股 (Xingkai Holdings) at 30.00%, closing at 0.480 with a peak of 0.650 [1] - 北京北辰实业股份 (Beijing Beichen Industrial) at 26.47%, closing at 0.940 with a peak of 1.290 [1] Group 3: Overall Market Trends - The overall trend shows a significant number of stocks achieving new highs, reflecting positive investor sentiment and market conditions [1].

Company Overview - Tian Da Pharmaceutical Co., Ltd. focuses on the development of traditional Chinese medicine, innovative drugs, and healthcare services, aiming to become a competitive player in the pharmaceutical and healthcare sectors [4] - The company is building a comprehensive traditional Chinese medicine industry chain, establishing quality control standards for Chinese medicinal materials, and creating a new type of Chinese medicine clinic called "Tian Da Clinic" [4] - Tian Da Pharmaceutical utilizes internet technology, big data, and artificial intelligence to integrate online and offline services, providing comprehensive healthcare services [4] Financial Performance - As of December 31, 2024, Tian Da Pharmaceutical reported total revenue of 306 million yuan, a year-on-year decrease of 37.99% [2] - The company recorded a net loss attributable to shareholders of 56.83 million yuan, a significant decline of 154.07% year-on-year [2] - The gross profit margin stood at 46.08%, with a debt-to-asset ratio of 33.9% [2] Market Position and Valuation - Currently, there are no institutional investment ratings for Tian Da Pharmaceutical [3] - The average price-to-earnings (P/E) ratio for the pharmaceutical and biotechnology industry is 5.44 times, with a median of 4.53 times [3] - Tian Da Pharmaceutical has a P/E ratio of -5.26 times, ranking 125th in the industry [3] - Comparatively, other companies in the sector have P/E ratios ranging from 0.72 times to 4.28 times [3] Recent Stock Performance - As of May 9, the Hang Seng Index increased by 0.4%, closing at 22,867.74 points [1] - Tian Da Pharmaceutical's stock price was 0.162 HKD per share, reflecting an increase of 8.0% with a trading volume of 2,000 shares and a turnover of 326 HKD [1] - Over the past month, the stock has experienced a cumulative decline of 10.71%, and a year-to-date decline of 11.24%, underperforming the Hang Seng Index's increase of 13.54% [2]

Regulatory Approvals - Tianda Pharmaceuticals received drug registration approval for "Nicorandil for Injection" from the National Medical Products Administration of China[15]. - Tianda Pharmaceutical Technology (Zhuhai) Co., Ltd. obtained drug registration approval for "Ibuprofen suspension" from the National Medical Products Administration of China[16]. - In 2024, the Group has received drug registration approvals for 4 new varieties, including pediatric drugs and a cardiocerebrovascular drug, which are expected to drive new growth momentum[75]. Corporate Social Responsibility - Tianda Pharmaceuticals was awarded the "Caring Company" logo for the fourth consecutive year by the Hong Kong Council of Social Service[13]. - Tianda Pharmaceuticals was recognized as a "Happy Company" under the "Happiness-at-Work Promotional Scheme" by the Promoting Happiness Index Foundation[12]. - The Group has conducted over 40 charity clinic sessions and organized numerous TCM-themed activities to promote TCM knowledge in the community[68]. Business Operations and Strategy - The company operates multiple TDMall locations, including in Jordan and Causeway Bay, enhancing its market presence[20][21]. - The Group's strategy includes the "Three Developments" focusing on Chinese medicine, innovative drugs, and quality healthcare services, aiming to consolidate core products and expand sales channels[39][42]. - The Group plans to launch three new products in 2025, enhancing its product pipeline and focusing on R&D for innovative drugs and consumer healthcare products[40][43]. - The Group opened its sixth TDMall globally and fifth in the Greater Bay Area in October 2024, aiming to establish it as an oncology treatment center[45]. - The Group aims to promote a collaborative development model of "drugs + medical services" to enhance the quality of the Chinese medicine business[46]. Financial Performance - The Group's total revenue for the Year was HK$329.9 million, a significant decline from HK$532.1 million in the Previous Financial Year, resulting in increased losses attributable to shareholders from HK$24.2 million to HK$61.4 million[52]. - Revenue from the Pharmaceuticals and medical technologies business was HK$283.9 million, down 39.7% from HK$470.7 million in the Previous Financial Year, primarily due to decreased demand for Tuoen® Ibuprofen and competitive pricing strategies affecting Tuoping® Valsartan capsules[82]. - The loss attributable to shareholders increased from HK$24.2 million to HK$61.4 million, reflecting the overall decline in business performance[89]. Governance and Management - The Company emphasizes corporate governance with various committees including Audit, Remuneration, and Risk Management[5]. - The Company has complied with the Corporate Governance Code during the year, except for the separation of the roles of Chairman and CEO[104]. - The Board consists of 6 male Directors and 1 female Director, including 2 Executive Directors and 3 Independent Non-executive Directors[110]. - The Company has established various committees, including the audit, nomination, remuneration, and risk management committees, primarily composed of INEDs[133]. - The Board has developed and reviewed policies related to Board diversity and shareholder communication[126]. Research and Development - The Group's R&D projects include one Class 1 TCM innovative drug, three Class 3 TCM new drugs, and twelve chemical generic drugs, indicating a rich R&D pipeline[74]. - The Group is focusing on the R&D of traditional Chinese medicine, aiming for stronger R&D, larger markets, and enhanced efficacy through technological advancements and resource growth[64]. - The Group is advancing the Phase II clinical trials of a Class 1 TCM innovative drug for chronic heart failure, highlighting its commitment to innovative medicine[76]. Market Challenges and Outlook - In 2024, the pharmaceutical market faced challenges due to economic uncertainty, with a focus on respiratory infection and antihypertensive drugs struggling to grow as inventory clearance continued post-pandemic[39][42]. - The Chinese medicine segment faced a decline in end-user demand due to the economic environment, impacting trading and production of Chinese medicinal materials[41][43]. - Future market demand is expected to improve as the economy recovers and national policies supporting the pharmaceutical industry are enhanced[46]. Human Resources - As of December 31, 2024, the Group employed approximately 701 employees across Hong Kong, the PRC, and Australia[99]. - The board currently consists of 6 male and 1 female directors, with female representation at approximately 48% at the workforce level[155].

Group 1 - Tian Da Pharmaceutical (00455.HK) closed at HKD 0.136 on April 10, down 12.26% from the previous trading day, with an intraday low of HKD 0.135, marking a new low in nearly a year [1] - The capital flow on that day showed a main inflow of HKD 0.000 million and an outflow of HKD 0.297 million, resulting in a net outflow of HKD 0.30 million [1] Group 2 - Tian Da Pharmaceutical focuses on developing traditional Chinese medicine (TCM) and aims to become a competitive player in drug research, medical technology, and health management [2] - The company is building a comprehensive TCM industry chain, establishing quality control standards for Chinese medicinal materials, and creating a new type of TCM clinic called "Tian Da Clinic" [2] - Tian Da Pharmaceutical leverages internet technology, big data, and artificial intelligence to integrate online and offline TCM services, providing convenient health services [2] - The product range includes traditional Chinese medicine, chemical drugs, biological products, health products, and medical devices, covering various therapeutic areas [2] - The company is expanding its market presence both domestically in China and internationally, with marketing centers in Shenzhen and Zhuhai, and subsidiaries in Hong Kong and Australia [2] - Tian Da Pharmaceutical aims to meet the growing healthcare demands by collaborating with quality partners and integrating advanced treatment technologies [2]

Financial Performance - TDMall's overall revenue increased to HK$13.0 million in the current year, up from HK$11.2 million in the previous financial period, reflecting a growth of approximately 16.1%[3] - The Group's overall revenue for the year reached HK$532.1 million, an increase from HK$410.0 million in the previous financial period[123] - Loss attributable to shareholders reduced from HK$41 million to HK$24.2 million, indicating improved profitability driven by business performance[32] - The Group's gross profit increased to HK$255.5 million, with a gross profit margin rising from 46.0% to 48.0%[165] - Revenue from the Pharmaceuticals and medical technologies business was HK$470.7 million, up from HK$344.7 million, driven by strong sales of the pediatric drug Tuoen®Ibuprofen[165] - Revenue from the Chinese medicine business decreased to HK$48.4 million from HK$54.1 million due to a stricter credit policy[165] Cash and Liquidity - The Group's cash and cash equivalents as of December 31, 2023, were HK$162.4 million, a decrease from HK$340.3 million as of December 31, 2022, indicating a decline of about 52.2%[14] - The Group's liquidity remains healthy, with no net debt as total borrowings are less than cash and cash equivalents[14] - The Group has unutilized bank loan facilities of HK$148.3 million, with short-term and medium-term bank borrowings of HK$96.5 million and HK$8.4 million respectively[47] - The Group pledged right-of-use assets and property, plant, and equipment with a carrying value of HK$254 million to secure a bank loan facility[38] Product Development and R&D - The Group has seven new products entering the registration stage, with five expected to launch in 2024, which will drive new growth opportunities[9] - The Group plans to launch five new products in 2024, including pediatric drugs and a diabetes treatment, enhancing its product portfolio[8] - R&D expenses decreased significantly from HK$27.1 million to HK$13.1 million, with some projects entering the registration phase expected to start market sales in 2024[31] - The Group's continued investment in research and development is expected to yield new product launches, creating new profit growth drivers[94] - The new liquid-finished dosages production line at the Zhuhai Jinwan R&D and production base was completed and operational in the first half of 2023 to meet market demand for Tuoen®Ibuprofen[141] Market Expansion and Strategy - The Group is focusing on international market expansion, particularly in ASEAN, Africa, and BRICS countries, while enhancing its marketing network for Chinese medicine and health products[33] - The Group aims to capitalize on TCM policies for high-quality development, focusing on expanding both domestic and international markets[11] - The Group established a nationwide marketing network covering 31 provinces, enhancing market penetration in lower-tier markets[26] - Tianda Pharmaceuticals plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the region by 2025[59] - The Group is actively constructing and developing a series of TCM health products, aiming for stronger R&D, larger markets, and enhanced efficacy in the TCM sector[116] Corporate Governance and Structure - The Board is responsible for corporate governance duties, including reviewing policies and compliance with legal and regulatory requirements[191] - The Company has established a board independence evaluation mechanism to ensure the independence of non-executive directors[189] - The remuneration committee consists of three INEDs and one Executive Director, with Mr. Chiu Sung Hong serving as the Chairman[198] - The committee held three meetings during the year to review remuneration packages for Executive Directors, Non-executive Directors, INEDs, and senior management[199] Awards and Recognition - The company received the "Happy Company" status under the "Happiness-at-Work Promotional Scheme," reflecting its commitment to employee well-being[60] - The Group has been awarded the "Caring Company" logo for three consecutive years, reflecting its commitment to social responsibility[100] - The Group received the "ESG Award" from Television Broadcast Limited, highlighting its commitment to environmental, social, and governance standards[78] - Tuoen®Ibuprofen received the "Most Valuable Product in China's Pharmacy Chains" award, with seven products currently in the R&D registration stage, five of which are expected to launch in 2024[115] Acquisitions and Investments - The acquisition of the remaining 45% interest in Yunnan Meng Sheng Pharmaceutical Co., Ltd. was completed during the year[38] - The acquisition allows Tianda Pharmaceuticals (Yunnan) to become an indirectly wholly-owned subsidiary, enhancing business strategy implementation and expansion plans[179] - Tianda Biotech Limited subscribed to an investment fund for a total amount of HK$10.0 million on April 19, 2023[173] - The total consideration for the acquisition of Tianda Pharmaceuticals (Yunnan) reflects a strategic move to consolidate operations and enhance market presence[176]

Annual Report 2022 (For The Nine Months Ended 31 December 2022) CONTENTS 目錄 2 Corporate Information 公司資料 5 Corporate Structure 企業架構 8 Biographical Details of Directors 董事簡歷 11 Report of the Chairman 董事長報告 13 Management Discussion and Analysis 管理層討論與分析 21 Corporate Governance Report 企業管治報告 44 Report of the Directors 董事會報告 58 Independent Auditor’s Report 獨立核數師報告 65 Consolidated Statement of Profit or Loss and 綜合損益及其它全面收益表 Other Comprehensive Income 67 Consolidated Statement of Financial Position 綜合財務狀況表 69 Co ...

Financial Performance - The Group's overall revenue improved by 5.6% to HK$249.9 million during the Reporting Period[10] - EBITDA increased from a loss of HK$6.9 million in the previous year to a profit of HK$2.3 million[10] - The Group recorded a revenue growth of 5.6%, increasing from HK$236.5 million to HK$249.9 million in the Reporting Period[29] - Gross profit rose from HK$110.9 million to HK$122.2 million, attributed to improved sales efficiency and cost control[29] - Other income and net gains increased significantly from HK$2.1 million to HK$7.0 million, boosted by government subsidies and higher interest income[31] - Loss attributable to owners of the parent decreased from HK$17.9 million to HK$16.3 million, indicating improved operating performance[32] - The overall revenue increased by 5.6% to HKD 249.9 million for the six months ended September 30, 2022[64] - EBITDA turned from a loss of HKD 6.9 million in the previous year to a profit of HKD 2.3 million in the current period[64] - Gross profit for the same period was HK$122.19 million, compared to HK$110.92 million in 2021, indicating an increase of about 10.5%[100] - Loss for the period attributable to owners of the parent was HK$16.35 million, a decrease from HK$17.95 million in the previous year, reflecting a reduction of approximately 8.5%[102] Research and Development - R&D expenses surged by 260% year-on-year to HK$12.0 million, reflecting a significant investment in innovation[10] - The Group has 22 R&D projects underway, including innovative Chinese medicine and healthcare products[21] - R&D expenditure increased by 260% year-on-year to HKD 12 million, reflecting a significant commitment to innovation[64] - R&D expenses surged from HK$3.3 million to HK$12.0 million, reflecting steady progress in innovation[30] - The new R&D and production base in Zhuhai commenced production, enhancing manufacturing quality and efficiency[26] - The company is focusing on developing innovative traditional Chinese medicine products and expanding its herbal medicine trade[79] Product Sales and Market Expansion - Sales of the core product Tuoping® reached HK$92.3 million, a year-on-year increase of approximately 21%[12] - Sales of Tuoen® reached HK$64.0 million, representing a year-on-year growth of approximately 70%[12] - The Chinese medicine segment experienced a 44% decrease in sales due to pandemic-related disruptions, but efforts to expand product offerings continue[14] - The company aims to enhance its market share and brand influence by expanding product sales across the entire market[67] - The company aims to strengthen its core product brands, focusing on cardiovascular and pediatric products, while expanding its CDMO/CMO business to increase revenue[79] - The company is focusing on expanding its market presence in Mainland China, Hong Kong, and Australia, leveraging its diverse product offerings[145] Financial Position and Cash Flow - The financial position remains strong with cash and cash equivalents of HK$232.9 million and no net debt as of September 30, 2022[50] - As of September 30, 2022, the company had cash and cash equivalents totaling HK$232.9 million, a decrease from HK$334 million as of March 31, 2022, with approximately 96.1% denominated in RMB[90] - The company has unused bank loan facilities amounting to HKD 42.8 million as of September 30, 2022[90] - The company reported a net cash outflow from investing activities of HK$36,790,389, which is a significant increase from HK$23,518,171 in the prior year[110] - The company experienced a net decrease in cash and cash equivalents of HK$70,822,070, compared to a decrease of HK$38,574,186 in the same period last year[110] Corporate Strategy - The strategy includes increasing sales network coverage and expanding CDMO/CMO businesses to drive revenue growth[34] - The Group plans to strengthen TDMall's operations and expand through self-construction, franchising, and mergers and acquisitions[36] - The company plans to leverage policies promoting traditional Chinese medicine to enhance its market presence and expand its product offerings[79] - The company aims to leverage the growing pharmaceutical market driven by population growth and increasing health awareness[77] Taxation and Compliance - The Group did not generate any assessable profits in Hong Kong and Australia during the period, resulting in no provision for profits tax in these regions[165] - The applicable corporate income tax rate in Mainland China is 25%, with Tianda Pharmaceuticals (Zhuhai) and Meng Sheng Pharmaceutical benefiting from a preferential tax rate of 15%[165] - The total tax credit for the period amounted to HK$1,073,339, compared to HK$199,181 in the previous period[167] Employee and Operational Information - The company employs approximately 699 staff across Hong Kong, China, and Australia, with compensation determined based on market terms and employee qualifications[96] - The company is committed to enhancing the customer experience through the integration of online and offline services in its operations[80] Asset Management - The net carrying amount of goodwill as of 30 September 2022 was HK$94,645,257, down from HK$106,213,773 at the beginning of the period[179] - The Group acquired property, plant, and equipment worth HK$19,719,477, a decrease from HK$24,697,191 in the previous period[174] - The Group disposed of property, plant, and equipment with a carrying amount of HK$109,618, resulting in a gain on disposal of HK$667,512[174]

Financial Performance - Tianda Pharmaceuticals reported a revenue of HKD 1.2 billion for the fiscal year 2022, representing a year-on-year increase of 15%[4] - The company achieved a net profit of HKD 250 million, which is a 20% increase compared to the previous year[4] - The Group achieved total revenue of HK$510.0 million for the fiscal year 2022, representing an increase of HK$35.7 million or 7.5% year-on-year[62] - Revenue from the Pharmaceuticals and medical technologies segment was HK$396.1 million, an increase of HK$38.4 million or 10.7% year-on-year[63] - For the fiscal year ended 2022, the revenue for the Medical and healthcare services segment was HK$7.4 million, representing a year-over-year increase of HK$2.7 million or 57.4%[69] - Gross profit decreased from HK$259.0 million to HK$241.2 million, primarily due to a decrease in unit price and gross profit of Tuoping® Valsartan capsules[76] - Selling and distribution expenses decreased from HK$211.7 million to HK$198.0 million for the fiscal year ended 2022[76] - Administrative expenses rose from HK$69.8 million to HK$71.5 million, mainly due to increased staff remuneration expenses[77] - Other income and net gains increased from HK$7.5 million to HK$16.8 million, primarily due to a one-off gain of HK$12.1 million from the disposal of a subsidiary[82] - Loss attributable to owners of the parent decreased from HK$27.1 million to HK$19.8 million for the fiscal year ended 2022[83] Future Projections - For the upcoming fiscal year, Tianda Pharmaceuticals projects a revenue growth of 10% to 12%, targeting HKD 1.32 billion to HKD 1.344 billion[4] - The company is investing HKD 100 million in R&D for new product development, focusing on innovative pharmaceutical solutions[4] - Tianda Pharmaceuticals plans to expand its market presence in Southeast Asia, aiming for a 25% increase in market share by 2025[4] Product Development and Innovation - The company has established a strategic partnership with a leading biotech firm to enhance its research capabilities and accelerate product development[4] - Tianda Pharmaceuticals has launched two new products in the Chinese market, contributing to a 5% increase in sales in Q4 2022[4] - The Group aims to enhance its product line and improve the quality and quantity of R&D projects through external introduction, research and development, and acquisitions[62] Awards and Recognition - Tianda Pharmaceuticals was awarded the "Outstanding Brand Awards 2021" for Chinese Medicine Services[19] - The "TDMall on Cloud" App won the Hong Kong Business Technology Excellence Awards 2021 for Mobile Healthcare Technology[19] - Tianda Pharmaceuticals won the "Best Mid and Small Caps Company" award for two consecutive years[19] Corporate Governance - The Company has complied with the Corporate Governance Code during the fiscal year 2022, except for the separation of the roles of Chairman and CEO[100] - The Board consists of 7 Directors, including 2 Executive Directors, 2 Non-executive Directors, and 3 Independent Non-executive Directors[108] - The Company has established a Nomination Committee comprising two INEDs and one Executive Director, with no new director appointed during FYE2022[138] - The Company encourages continuous professional development for all Directors to enhance their knowledge and skills[123] Risk Management and Internal Control - The Company has established an internal audit department to assess risk management and internal control systems, reporting findings to the Audit Committee and senior management regularly[200] - The risk management and internal control systems are designed to manage risks associated with achieving corporate objectives[199] - The Company emphasizes safeguarding shareholders' investments and assets through effective risk management[199] Financial Resources and Capital Structure - As of March 31, 2022, the Group had cash and cash equivalents of approximately HK$334.0 million, up from HK$235.0 million the previous year[84] - The Group has sufficient financial resources to support operational and capital expenditures[85] - The Group has no net debt as the total borrowings are less than cash and cash equivalents[87] Market Strategy - The Group's strategy focuses on the development of Chinese medicine, innovative drugs, and quality medical services, implementing the "3D+1S" initiatives[49] - The Group plans to expand its modern Chinese medical clinic "TDMall" through self-construction, franchising, and mergers and acquisitions, focusing on the Guangdong-Hong Kong-Macao Greater Bay Area[56] - The Group's efforts in the Chinese medicine sector include trading of Chinese medicinal materials and production of TCM decoction pieces, forming a nationwide and global business network[64]

Revenue Performance - Total revenue for the six months ended 30 September 2021 reached HK$236.5 million, an increase of 26.2% compared to HK$187.4 million for the same period in 2020[6]. - Revenue from the Chinese medicine business segment was HK$58.0 million, representing a significant increase of 64.2% compared to HK$35.3 million in the last corresponding period[7]. - Revenue from the Pharmaceuticals and medical technologies segment increased to HK$174.9 million, up 16.6% from HK$150.0 million in the last corresponding period[8]. - Revenue from the medical and healthcare services segment reached HK$3.6 million, marking a 79.5% increase from HK$2.0 million in the last corresponding period[9]. - The revenue for the pharmaceutical and medical technology segment reached HKD 174.9 million, a year-on-year increase of 16.6%[44]. - The revenue for the pediatric medication Topin® Ibuprofen Suspension and Ibuprofen Drops increased from HKD 9.1 million to HKD 37.6 million, benefiting from the recovery of sales post-COVID-19[49]. - The new TCM chain "Tianda Clinic" generated revenue of HKD 3.6 million, a year-on-year growth of 79.5%[45]. - The geographical revenue breakdown shows that Mainland China accounted for the majority of sales, with HK$58,022,812 from external customers[113]. Financial Position - The Group's bank deposits, cash, and bank balances amounted to HK$202.2 million as of 30 September 2021, down from HK$235.0 million as of 31 March 2021[18]. - The Group has unutilized bank loan facilities amounting to HK$77.8 million, indicating strong financial resources to meet operational and capital expenditures[32]. - The Group has pledged assets with a carrying value of HK$466.7 million to secure bank loan facilities as of September 30, 2021[35]. - The company reported a total equity of HK$776.94 million as of September 30, 2021, down from HK$790.49 million as of March 31, 2021[74]. - The Group's cash and cash equivalents totaled HK$202,231,251, contributing to a total financial asset value of HK$347,432,940[190]. - The Group's financial liabilities included in other payables and accruals were HK$49,978,067 as of September 30, 2021[193]. Profitability and Loss - Gross profit decreased to HK$110.9 million from HK$124.3 million in the last corresponding period, primarily due to a decrease in unit price of Tuoping® Valsartan capsules[14]. - The loss attributable to shareholders increased from HKD 15.6 million in the same period last year to HKD 17.9 million in the current reporting period[51]. - The loss for the period was HK$17.99 million, compared to a loss of HK$15.59 million in the previous year, representing an increase in loss of 9.0%[71]. - The total comprehensive loss for the period was HK$7.96 million, a significant decrease from a comprehensive income of HK$18.01 million in the same period last year[71]. - The adjusted loss before tax for the Chinese medicine business was HK$2,082,785, while the pharmaceuticals and medical technologies business reported a loss of HK$4,202,653[95]. - The company reported a loss before tax of HK$199,181 for the six months ended September 30, 2021, compared to a tax credit of HK$2,150,986 in the same period of 2020[131]. Research and Development - R&D expenses decreased to HK$3.3 million from HK$7.3 million in the last corresponding period, with major expenditures scheduled for the second half of the financial year[16]. - The Group has progressed in R&D, including the completion of pharmacological research for "Anti-Epidemic Formula 1" and the development of new Zhikang Plus products[10]. - The group is expanding its CDMO/CMO business alongside its new R&D and pharmaceutical base, set to commence production in January next year[44]. Strategic Initiatives - The Group aims to open 100 TDMalls within three years, utilizing equity investment cooperation, franchising, and mergers and acquisitions for rapid expansion[9]. - The Group is actively evaluating merger and acquisition opportunities to accelerate business growth and scale expansion[20]. - The Group is actively pursuing strategic partnerships and technology opportunities globally to enhance its product pipeline and business development[48]. - The "Three Developments" strategy focuses on enhancing the three business segments and expanding the Chinese medicine business[20]. Employee and Management - The Group employs approximately 714 employees across Hong Kong, the PRC, and Australia as of September 30, 2021[36]. - Total compensation paid to key management personnel for the six months ended September 30, 2021, was HK$1,945,561, a decrease from HK$3,205,180 for the same period in 2020[184]. Compliance and Accounting - The interim financial information has been prepared in accordance with HKAS 34 Interim Financial Reporting, indicating compliance with relevant accounting standards[80]. - The Group's accounting policies for the interim financial information are consistent with those applied in the preparation of the annual consolidated financial statements for the year ended 31 March 2021[84].

Financial Performance - Tianda Pharmaceuticals reported a revenue of HKD 1.2 billion for the fiscal year 2021, representing a year-on-year increase of 15%[15]. - The company achieved a net profit of HKD 300 million, which is a 20% increase compared to the previous year[15]. - The management has provided guidance for the next fiscal year, projecting a revenue growth of 10% to 15%[15]. - The company reported a gross margin of 60%, maintaining a stable margin compared to the previous year[15]. - The Group recorded consolidated revenue of approximately HK$474.30 million for the Current Financial Year, a decrease from approximately HK$491.50 million in FYE 2020[94]. - Gross profit for the Current Financial Year was approximately HK$259.00 million, down from approximately HK$361.00 million in FYE 2020, resulting in a gross profit margin of 54.6% compared to 73.5% in the previous year[94]. - Loss attributable to owners of the parent was approximately HK$27.10 million, contrasting with a profit of approximately HK$3.10 million in FYE 2020[94]. Market Expansion and Product Development - Tianda Pharmaceuticals plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[15]. - The company is investing HKD 200 million in R&D for new product development, focusing on innovative pharmaceutical solutions[15]. - Tianda Pharmaceuticals aims to launch three new products in the next fiscal year, which are expected to contribute an additional HKD 150 million in revenue[15]. - The company is exploring potential acquisitions to diversify its product offerings and expand its operational capabilities[15]. - The major product, Valsartan capsules, secured first place in the nation's Third Round of Centralized Drug Procurement for a term of three years, which is expected to drive sales growth in hospitals and OTC markets[65]. - The Group is actively pursuing the development of innovative drugs for treating tumors, viral infections, diabetes, and cardiovascular diseases[71]. - The Group plans to actively review merger and acquisition opportunities for promising innovative drugs and healthcare projects to accelerate business growth[91]. Research and Development - The Group has increased its investment in R&D, focusing on innovative drugs and medical technologies, while also enhancing product development and introduction[61]. - The new R&D and production base in Jinwan District of Zhuhai is set to be completed and operational within this year, aiming to meet international quality control standards[65]. - R&D expenses increased significantly from approximately HK$1.50 million in FYE 2020 to approximately HK$11.80 million in the Current Financial Year[104]. - The Group's R&D team has made steady progress, including the development of new products and collaboration in response to market demands[86]. - The Group continues to promote the R&D of Classic Ancient Prescription Chinese medicine compound preparations and has initiated the development of new drug formulations[90]. Corporate Governance - The company has established an audit committee, nomination committee, remuneration committee, and risk management committee, with a majority of independent non-executive directors (INEDs) in each[145]. - The Board regularly reviews the financial and operating performance of the Group to ensure effective governance[132]. - The company received annual confirmations of independence from three independent non-executive directors as per listing rules[129]. - The Board has established procedures for directors to seek independent professional advice at the company's expense[132]. - The company’s policies and practices on corporate governance are regularly reviewed and updated by the Board[134]. - The Board has reviewed the effectiveness of the risk management and internal control systems during the fiscal year 2021[197]. - The Company has established an internal audit department to assess its risk management and internal control systems[189]. Community and Sustainability - The company is committed to community services, including healthcare, education, and environmental protection initiatives[33]. - The company has received several awards for its Chinese medicine services and sustainable business practices, including the Outstanding Awards 2021 and the Greater Bay Area Sustainable Business Award[17]. Employee and Management - The Group employed approximately 650 employees as of March 31, 2021, maintaining a stable workforce[114]. - The Board has reviewed the resources, qualifications, experience, training programs, and budget of the Group's accounting and financial reporting functions as adequate[200]. - The company has a board diversity policy aimed at enhancing board effectiveness and corporate governance[160].