Annual Results Announcement [Annual Financial Summary](index=1&type=section&id=Annual%20Financial%20Summary) The company saw a 4.9% revenue decrease from continuing operations but a 77.5% annual profit increase, with profit attributable to owners of the parent turning profitable, and an improved gearing ratio Key Financial Summary for FY2025 | Indicator | FY2025 (Million HKD) | FY2024 (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue from Continuing Operations | 745.3 | 783.9 | (4.9%) | | Gross Profit from Continuing Operations | 376.5 | 394.8 | (4.6%) | | Annual Profit | 7.1 | 4.0 | 77.5% | | Profit/(Loss) Attributable to Owners of the Parent | 7.1 | (15.4) | 146.1% | | Earnings/(Loss) Per Share (HK cents) - Basic and Diluted | 0.63 | (1.30) | 148.5% | | **As of March 31** | | | | | Net Assets | 1,179.6 | 1,385.5 | (14.9%) | | Cash and Cash Equivalents | 132.3 | 155.0 | (14.6%) | | Gearing Ratio | 17.9% | 21.7% | (3.8%) | [Consolidated Results](index=2&type=section&id=Consolidated%20Results) The Group's consolidated results for the year ended March 31, 2025, show a slight decrease in revenue from continuing operations but significant growth in annual profit and profit attributable to owners of the parent, driven by cost control and investment property fair value changes [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The consolidated statement of profit or loss and other comprehensive income shows a year-on-year decrease in revenue from continuing operations, but effective cost management and investment property fair value gains led to a turnaround in profit and significant improvement in profit attributable to owners of the parent Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator (Thousand HKD) | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue from Continuing Operations | 745,298 | 783,881 | | Cost of Sales | (368,845) | (389,068) | | Gross Profit | 376,453 | 394,813 | | Other Income and Gains, Net | 72,052 | 91,588 | | Selling and Distribution Expenses | (299,030) | (246,123) | | Administrative Expenses | (109,273) | (108,855) | | Reversal of Impairment Loss on Financial Assets/(Impairment Loss), Net | (15,021) | 584 | | Other Expenses, Net | 1,434 | (86,310) | | Finance Costs | (28,158) | (40,792) | | Fair Value Loss on Financial Assets at Fair Value Through Profit or Loss, Net | (6,500) | (3,219) | | Fair Value Gain/(Loss) on Investment Properties, Net | 11,073 | (17,852) | | Share of Profits and Losses of Associates | 1,045 | 2,533 | | Profit/(Loss) Before Tax from Continuing Operations | 4,075 | (13,633) | | Income Tax Credit | 3,017 | 6,359 | | Profit/(Loss) for the Year from Continuing Operations | 7,092 | (7,274) | | Profit for the Year from Discontinued Operations | — | 11,319 | | Profit for the Year | 7,092 | 4,045 | | Profit/(Loss) Attributable to Owners of the Parent | 7,100 | (15,356) | | Non-controlling Interests | (8) | 19,401 | | Total Comprehensive Income/(Loss) for the Year | 5,057 | (109,174) | | Total Comprehensive Income/(Loss) Attributable to Owners of the Parent | 5,065 | (78,228) | | Basic and Diluted Earnings/(Loss) Per Share (HK cents) - Continuing Operations | 0.63 | (0.63) | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's consolidated statement of financial position shows decreases in total assets and liabilities, a reduction in net assets, but positive net current assets, reflecting adjustments in asset and liability management Summary of Consolidated Statement of Financial Position (As of March 31) | Indicator (Thousand HKD) | 2025 | 2024 | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 638,547 | 665,458 | | Investment Properties | 129,900 | 152,000 | | Loans and Interest Receivable | 295,000 | 380,000 | | Total Non-current Assets | 1,114,226 | 1,264,882 | | **Current Assets** | | | | Inventories | 238,098 | 308,098 | | Trade Receivables | 67,346 | 81,356 | | Cash and Cash Equivalents | 132,316 | 154,969 | | Total Current Assets | 621,023 | 830,228 | | **Current Liabilities** | | | | Trade and Bills Payables | 18,271 | 30,907 | | Interest-bearing Bank Borrowings | 187,345 | 184,749 | | Total Current Liabilities | 358,933 | 380,872 | | Net Current Assets | 262,090 | 449,356 | | **Non-current Liabilities** | | | | Interest-bearing Bank Borrowings | 155,950 | 276,200 | | Total Non-current Liabilities | 196,746 | 328,782 | | **Net Assets** | 1,179,570 | 1,385,456 | | **Total Equity** | 1,179,570 | 1,385,456 | [Notes to Financial Information](index=7&type=section&id=Notes%20to%20Financial%20Information) The notes to financial information detail the basis of preparation, accounting policy changes, operating segment information, composition of income and expenses, taxation, dividend policy, earnings per share calculation, and trade receivables and payables, providing essential supplementary information for understanding the financial statements [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) This section outlines the basis for preparing the financial information, including the accounting standards and measurement methods followed, as well as the reporting currency and rounding conventions - Financial information is prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Hong Kong Companies Ordinance[9](index=9&type=chunk) - Financial information is prepared on a historical cost basis, except for investment properties, financial assets at fair value through profit or loss, and financial assets at fair value through other comprehensive income, which are measured at fair value[9](index=9&type=chunk) - Financial information is presented in Hong Kong Dollars, with all figures rounded to the nearest thousand[10](index=10&type=chunk) [Changes in Accounting Policies and Disclosures](index=7&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) Two revised Hong Kong Financial Reporting Standards were adopted for the first time this year, but these amendments had no material impact on the Group's financial position or performance due to the absence of relevant transactions or arrangements - This year, the Group first adopted the revised Hong Kong Financial Reporting Standard 16 (Lease Liabilities in a Sale and Leaseback Transaction) and amendments to Hong Kong Accounting Standard 7 and Hong Kong Financial Reporting Standard 7 (Supplier Finance Arrangements)[11](index=11&type=chunk)[12](index=12&type=chunk) - As the Group had no relevant transactions or arrangements, these amendments had no impact on its financial position or performance[12](index=12&type=chunk) [Operating Segment Information](index=8&type=section&id=Operating%20Segment%20Information) The Group's operations are divided into four segments: Chinese medicine, Western medicine, property investment (continuing operations), and property management and sales of agricultural product trading markets (discontinued operations), with management allocating resources and assessing performance based on segment results - The Group has four reportable operating segments: Chinese Medicine, Western Medicine, Property Investment (continuing operations), and Property Management and Sales of Agricultural Product Trading Markets (discontinued operations)[13](index=13&type=chunk)[14](index=14&type=chunk)[17](index=17&type=chunk) - For the year ended March 31, 2024, China Agri-Products Exchange Limited's property management and sales business for agricultural product trading markets was classified as a discontinued operation[14](index=14&type=chunk) Segment Revenue and Results (For the year ended March 31) | Segment (Thousand HKD) | 2025 Revenue | 2024 Revenue | 2025 Results | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Chinese Medicine Segment | 651,705 | 690,603 | (31,752) | 37,549 | | Western Medicine Segment | 91,573 | 90,209 | (2,504) | 14,554 | | Property Investment | 9,172 | 18,787 | 36,113 | (39,798) | | Total Continuing Operations | 752,450 | 799,599 | 1,857 | 12,305 | | Property Management and Sales of Agricultural Product Trading Markets (Discontinued) | — | 553,973 | — | 170,947 | [Revenue and Other Income and Gains, Net](index=10&type=section&id=Revenue%20and%20Other%20Income%20and%20Gains%2C%20Net) This section details the composition of the Group's revenue from continuing operations, primarily comprising revenue from contracts with customers and investment property rental income, along with a breakdown of other income and gains, reflecting diverse income sources Revenue Analysis (Thousand HKD) | Revenue Source | 2025 Continuing Operations | 2024 Continuing Operations | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 741,974 | 779,398 | | Rental Income from Investment Properties under Operating Leases | 3,324 | 4,483 | | **Total Revenue** | **745,298** | **783,881** | Other Income and Gains, Net Analysis (Thousand HKD) | Other Income and Gains | 2025 | 2024 | | :--- | :--- | :--- | | Interest Income from Loans to China Agri-Products | 38,758 | 39,100 | | Interest Income from Loans to Wang On | 4,681 | 384 | | Interest Income from Bank Deposits | 1,439 | 2,182 | | Gain on Disposal of Property, Plant and Equipment, Net | 16,368 | 35,395 | | **Total** | **72,052** | **91,588** | [Other Expenses, Net](index=11&type=section&id=Other%20Expenses%2C%20Net) This section presents the net other expenses from continuing operations, primarily including loss on disposal of investment properties, reversal of impairment loss on property, plant and equipment, and exchange losses, reflecting the impact of non-core operations and asset disposals on profit Other Expenses, Net Analysis (Thousand HKD) | Other Expenses | 2025 | 2024 | | :--- | :--- | :--- | | Loss on Disposal of Subsidiaries | — | 5,898 | | Loss on Disposal of Investment Properties | 1,201 | — | | Impairment Loss/(Reversal of Impairment Loss) on Property, Plant and Equipment, Net | (3,130) | 68,630 | | Exchange Losses, Net | 495 | 2,630 | | **Total** | **(1,434)** | **86,310** | [Profit/(Loss) Before Tax](index=12&type=section&id=Profit%2F%28Loss%29%20Before%20Tax) This section details the components of the Group's profit or loss before tax from continuing operations, including cost of inventories, employee benefit expenses, depreciation, and impairment loss on financial assets, providing a breakdown for understanding profit sources and cost structure Components of Profit/(Loss) Before Tax (Thousand HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of Inventories Recognized as Expense | 340,265 | 358,473 | | Cost of Services Provided | 28,580 | 30,595 | | Research and Development Costs | 1,124 | 1,786 | | Lease Payments Not Included in Lease Liabilities Measurement | 7,553 | 13,573 | | Auditor's Remuneration | 3,800 | 4,580 | | Depreciation of Owned Assets | 33,349 | 36,105 | | Depreciation of Right-of-Use Assets | 57,134 | 53,067 | | Employee Benefit Expenses (Excluding Directors' Emoluments) | 242,567 | 231,393 | | Exchange Differences, Net | 495 | 2,630 | | Impairment Loss/(Reversal of Impairment Loss) on Financial Assets, Net | 15,021 | (584) | | Net Rental Income | (8,086) | (9,096) | [Finance Costs](index=13&type=section&id=Finance%20Costs) This section analyzes finance costs from continuing operations, primarily comprising interest on bank borrowings and lease liabilities, reflecting the company's debt financing costs Finance Costs Analysis (Thousand HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on Bank Borrowings | 22,624 | 36,721 | | Interest on Lease Liabilities | 5,534 | 4,071 | | **Total** | **28,158** | **40,792** | [Income Tax](index=13&type=section&id=Income%20Tax) This section details the Group's income tax credit from continuing operations and tax expense from discontinued operations, reflecting the tax impact across different business segments Income Tax Credit/(Expense) Analysis (Thousand HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total Tax Credit for the Year from Continuing Operations | (3,017) | (6,359) | | Total Tax Expense for the Year from Discontinued Operations | — | 52,001 | | **Total Tax Expense/(Credit)** | **(3,017)** | **45,642** | [Dividends](index=14&type=section&id=Dividends) This section discloses no dividends are recommended for the current year and reviews the previous year's final cash dividend, special cash dividend, and special dividend paid by way of distribution in specie - The Board does not recommend the payment of any dividend for the year ended March 31, 2025 (2024: final cash dividend of **3.0 HK cents** per share and special cash dividend of **14.7 HK cents** per share)[28](index=28&type=chunk) - On March 7, 2024, shareholders approved a special dividend paid by way of distribution in specie, involving shares of Wang On and China Agri-Products, totaling **HKD 869,289,000**[28](index=28&type=chunk) [Earnings/(Loss) Per Share Attributable to Ordinary Equity Holders of the Parent](index=15&type=section&id=Earnings%2F%28Loss%29%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) This section provides the basis for calculating basic and diluted earnings or loss per share attributable to ordinary equity holders of the parent, including the profit/loss amount and weighted average number of ordinary shares used in the calculation Calculation of Basic and Diluted Earnings/(Loss) Per Share | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Equity Holders of the Parent | 7,100 | (15,356) | | - Continuing Operations | 7,100 | (7,426) | | - Discontinued Operations | — | (7,930) | | Weighted Average Number of Ordinary Shares (Shares) | 1,125,837,135 | 1,181,345,893 | [Trade Receivables](index=16&type=section&id=Trade%20Receivables) This section provides the net carrying amount and aging analysis of trade receivables, along with the Group's credit policy and risk management measures Aging Analysis of Trade Receivables (Thousand HKD) | Aging | 2025 | 2024 | | :--- | :--- | :--- | | Within 1 month | 51,515 | 37,767 | | 1 to 3 months | 14,500 | 13,313 | | Over 3 months but within 6 months | 716 | 15,391 | | Over 6 months | 615 | 14,885 | | **Total** | **67,346** | **81,356** | - Trade terms are primarily credit-based, with credit periods ranging from **7 to 120 days**, and close monitoring is maintained over outstanding receivables to mitigate credit risk[31](index=31&type=chunk) [Trade and Bills Payables](index=17&type=section&id=Trade%20and%20Bills%20Payables) This section provides an aging analysis of trade and bills payables, detailing their interest-bearing status and the Group's financial risk management policies Aging Analysis of Trade and Bills Payables (Thousand HKD) | Aging | 2025 | 2024 | | :--- | :--- | :--- | | Within 1 month | 10,982 | 13,817 | | 1 to 3 months | 2,102 | 4,234 | | Over 3 months but within 6 months | 334 | 1,364 | | Over 6 months | 4,853 | 11,492 | | **Total** | **18,271** | **30,907** | - Trade payables are non-interest-bearing, while bills payable are secured by bank balances and property, plant and equipment, bearing interest at an annual rate of **2.45%**[33](index=33&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed review of the year's consolidated results, dividend policy, business segment performance, financial position changes, treasury policy, capital commitments, asset pledges, financial guarantees, investment plans, post-reporting events, stakeholder relations, key risks, uncertainties, future prospects, and ESG practices [Consolidated Results](index=18&type=section&id=Consolidated%20Results) Total revenue decreased this year due to reduced sales of Chinese medicine and health food products, but the company achieved a turnaround in profit attributable to owners of the parent through cost control, investment property fair value gains, and reduced finance costs - Total revenue for the year decreased by approximately **4.9%** to approximately **HKD 745.3 million**, primarily due to reduced sales of Chinese medicine and health food products[34](index=34&type=chunk)[43](index=43&type=chunk) - Profit attributable to owners of the parent was approximately **HKD 7.1 million**, turning profitable (2024: loss of approximately **HKD 15.4 million**), primarily benefiting from reduced impairment loss on property, plant and equipment, a shift from investment property fair value loss to gain, and decreased finance costs, partially offset by increased marketing expenses[34](index=34&type=chunk)[49](index=49&type=chunk) [Dividends](index=18&type=section&id=Dividends) The Board does not recommend any dividend payment for the current year, contrasting with the previous year's cash dividends and special dividend paid by way of distribution in specie - The Board does not recommend the payment of any dividend for the year ended March 31, 2025[35](index=35&type=chunk) - For the year ended March 31, 2024, a final cash dividend, a special cash dividend, and a special dividend paid by way of distribution in specie were distributed[35](index=35&type=chunk) [Business Review](index=18&type=section&id=Business%20Review) The business review details the company's adaptation to challenging retail conditions through strategic retail expansion, e-commerce collaboration, cross-border live streaming, and product innovation, with new product launches and brand promotion in Chinese medicine, sales growth in Western medicine and personal care, and fair value gains and disposals in property investment [Chinese Medicine and Health Food Products](index=19&type=section&id=Chinese%20Medicine%20and%20Health%20Food%20Products) In Chinese medicine and health food products, the company successfully navigated market challenges by expanding its retail footprint, enhancing e-commerce partnerships, leveraging live streaming platforms, and launching innovative products, boosting brand awareness and sales - Strategically expanded retail footprint by opening new stores in key tourist areas and optimizing operating hours[37](index=37&type=chunk) - Strengthened cooperation with leading health and beauty retailers and e-commerce platforms in Hong Kong and mainland China, utilizing platforms like Douyin for live streaming activities to drive cross-border e-commerce sales growth[37](index=37&type=chunk) - Successfully launched **3 key products** in 2024: Bai Cao Ling Zhi Huang, Qu Shi Qing, and Xue Ji Wan Formula, with existing products like Wild Cordyceps King and Gu Ying Su more than doubling their sales contribution[38](index=38&type=chunk) [Western Medicine and Personal Care Products](index=20&type=section&id=Western%20Medicine%20and%20Personal%20Care%20Products) The Western medicine and personal care products business strengthened its market position and achieved sales growth through brand anniversary promotions, distribution network expansion, and cross-border e-commerce investments - Madame Pearl's brand celebrated its **70th anniversary** with new marketing campaigns, solidifying its position as the market leader in cough syrup for **15 consecutive years**, and achieving positive sales growth in the Hong Kong market[39](index=39&type=chunk) - Madame Pearl's Cough Syrup expanded its distribution in the Chinese market to over **10,000 stores**, including top pharmacy chains and leading hospitals[39](index=39&type=chunk) - Pedia-Care personal care products were promoted through MTR advertisements, Pokémon collaborations, and cross-border e-commerce flagship stores, resulting in a **10-fold increase** in cross-border e-commerce sales[40](index=40&type=chunk) [Property Investment](index=20&type=section&id=Property%20Investment) The property investment business benefited from a recovering property market, with investment property fair value turning into gains, and completed multiple retail property disposals, optimizing the asset portfolio - Net fair value gain on investment properties was approximately **HKD 11.1 million** (2024: net loss of approximately **HKD 17.9 million**), primarily due to a recovering property market[41](index=41&type=chunk) - This year, the disposal of multiple retail properties in Hong Kong was completed, with total consideration exceeding **HKD 130 million**[42](index=42&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) The financial review details changes in key financial metrics, including decreased total revenue due to lower Chinese medicine sales, stable gross margin, reduced other income from property disposals, increased selling expenses from staff costs and e-commerce promotion, a significant decrease in net other expenses due to reduced impairment losses, and lower finance costs from interest rate declines and loan repayments, ultimately leading to a turnaround in profit attributable to owners of the parent, with stable liquidity and retranslation losses from RMB exchange rate fluctuations [Revenue](index=21&type=section&id=Revenue) Total revenue for the year decreased by **4.9%** to **HKD 745.3 million**, primarily due to lower sales of Chinese medicine and health food products - Total revenue decreased by approximately **4.9%** to approximately **HKD 745.3 million**, primarily due to a decline in sales performance of Chinese medicine and health food products[43](index=43&type=chunk) [Gross Profit](index=21&type=section&id=Gross%20Profit) Gross profit decreased by **4.6%** year-on-year to **HKD 376.5 million**, consistent with the decline in sales revenue, while the gross profit margin remained stable at approximately **50.5%** - Gross profit decreased by approximately **4.6%** to approximately **HKD 376.5 million**, consistent with the reduction in sales revenue, but the gross profit margin remained stable at approximately **50.5%**[44](index=44&type=chunk) [Other Income and Gains, Net](index=21&type=section&id=Other%20Income%20and%20Gains%2C%20Net) Net other income and gains decreased by **21.3%** to **HKD 72.1 million**, primarily due to reduced gains from the disposal of owner-occupied properties - Other income and gains decreased by approximately **21.3%** to approximately **HKD 72.1 million**, mainly due to reduced gains from the disposal of owner-occupied properties[45](index=45&type=chunk) [Selling and Distribution Expenses](index=21&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by **21.5%** to **HKD 299.0 million**, primarily due to higher staff costs and increased advertising and promotion expenses for cross-border e-commerce - Selling and distribution expenses increased by approximately **21.5%** to approximately **HKD 299.0 million**, primarily due to higher staff costs and increased advertising and promotion expenses for cross-border e-commerce business[46](index=46&type=chunk) [Other Expenses, Net](index=21&type=section&id=Other%20Expenses%2C%20Net) Other expenses shifted from a net expense of **HKD 86.3 million** to a net income of **HKD 1.4 million**, primarily benefiting from reduced and reversed impairment losses on property, plant and equipment - Other expenses decreased from a net expense of approximately **HKD 86.3 million** to a net income of approximately **HKD 1.4 million**, primarily attributable to reduced and reversed impairment losses on property, plant and equipment[47](index=47&type=chunk) [Finance Costs](index=21&type=section&id=Finance%20Costs) Finance costs decreased by **30.9%** to **HKD 28.2 million**, primarily due to lower interest rates and loan repayments following property disposals - Finance costs decreased by approximately **30.9%** to approximately **HKD 28.2 million**, primarily due to lower interest rates and a reduction in outstanding loan amounts resulting from property disposals during the year[48](index=48&type=chunk) [Profit/(Loss) for the Year Attributable to Owners of the Parent](index=22&type=section&id=Profit%2F%28Loss%29%20for%20the%20Year%20Attributable%20to%20Owners%20of%20the%20Parent) Profit attributable to owners of the parent turned profitable this year, recording **HKD 7.1 million**, primarily influenced by reduced impairment losses, investment property fair value gains, and decreased finance costs - Profit attributable to owners of the parent for the year was approximately **HKD 7.1 million** (2024: loss of approximately **HKD 15.4 million**), achieving a turnaround to profitability[49](index=49&type=chunk) [Liquidity, Gearing Ratio and Financial Resources](index=22&type=section&id=Liquidity%2C%20Gearing%20Ratio%20and%20Financial%20Resources) As of March 31, 2025, the Group's total assets and interest-bearing debts decreased, while the current ratio and gearing ratio remained at prudent levels, reflecting sound financial management - As of March 31, 2025, total assets were approximately **HKD 1,735.2 million**, and total interest-bearing debts were approximately **HKD 343.3 million**[50](index=50&type=chunk) - The current ratio was approximately **1.7** (2024: **2.2**), and the gearing ratio was approximately **17.9%** (2024: **21.7%**), indicating prudent financial management[51](index=51&type=chunk) [Foreign Exchange](index=22&type=section&id=Foreign%20Exchange) The Group faces RMB foreign exchange risk, primarily from the retranslation of net assets of its mainland China subsidiaries, resulting in a retranslation loss of approximately **HKD 1.1 million** this year - The Group faces significant RMB foreign exchange risk, primarily arising from currency translation risk of net assets of its subsidiaries in mainland China[52](index=52&type=chunk) - Exchange rate translation as of the reporting date resulted in a retranslation loss of approximately **HKD 1.1 million** (2024: loss of approximately **HKD 87.9 million**), recognized in other comprehensive income/exchange reserve[52](index=52&type=chunk) [Treasury Policy](index=23&type=section&id=Treasury%20Policy) The Group manages exchange rate, interest rate, and price risks to ensure sufficient financial resources for business growth, maintains a prudent capital structure, and invests surplus funds in equity and debt securities to maximize asset efficiency - The Group manages financial risks, including exchange rate risk, interest rate risk, and price risk, to ensure sufficient financial resources for business growth while maintaining a prudent capital structure[53](index=53&type=chunk) - Surplus funds are invested in equity and debt securities to maximize asset efficiency[53](index=53&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of March 31, 2025, the Group had contracted but unprovided capital commitments of approximately **HKD 8.5 million** for the acquisition of property, plant and equipment - As of March 31, 2025, the Group had contracted but unprovided capital commitments for the acquisition of property, plant and equipment of approximately **HKD 8.5 million** (2024: approximately **HKD 2.6 million**)[54](index=54&type=chunk) [Pledge of Assets](index=23&type=section&id=Pledge%20of%20Assets) As of March 31, 2025, certain bank loans of the Group were secured by property, plant and equipment, owner-occupied investment properties, related rental income, and equity interests in certain subsidiaries, with a total carrying value of approximately **HKD 274.8 million** - As of March 31, 2025, certain bank loans of the Group were secured by property, plant and equipment, owner-occupied investment properties, certain rental income derived from these properties, and equity interests in certain subsidiaries of the Company, with a total carrying value of approximately **HKD 274.8 million**[55](index=55&type=chunk) [Financial Guarantees](index=23&type=section&id=Financial%20Guarantees) As of March 31, 2025, the Group had provided guarantees of up to **HKD 370 million** to banks for financing extended to China Agri-Products - As of March 31, 2025, the Group had provided guarantees of up to **HKD 370,000,000** to banks for financing extended to China Agri-Products[56](index=56&type=chunk) [Other Material Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures and Future Plans for Material Investments or Capital Assets](index=23&type=section&id=Other%20Material%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Group made no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures this year, and had no specific future plans for material investments or capital assets as of the reporting period end - There were no material investments held, nor any material acquisitions or disposals of subsidiaries, associates, and joint ventures during the year[57](index=57&type=chunk) - As of March 31, 2025, the Group had no specific plans for any material investments or capital assets, or acquisitions or disposals of subsidiaries, associates, and joint ventures[57](index=57&type=chunk) [Events After Reporting Period](index=23&type=section&id=Events%20After%20Reporting%20Period) Subsequent to the reporting period, on April 10, 2025, the Group entered into an agreement to dispose of a Hong Kong property for **HKD 19.5 million**, with the transaction completed on June 5, 2025 - On April 10, 2025, the Group entered into a provisional sale and purchase agreement with an independent third party to dispose of a property located at G/F with Cockloft, 60A Kinchuen Street, Kowloon, Hong Kong, for **HKD 19.5 million**, with the transaction completed on June 5, 2025[58](index=58&type=chunk) [Relationship with Employees, Suppliers and Customers](index=24&type=section&id=Relationship%20with%20Employees%2C%20Suppliers%20and%20Customers) The Group views employees as key to success, offering competitive compensation, benefits, and a safe work environment, while also fostering strong relationships with business partners, suppliers, and customers to provide high-quality products and promote long-term growth - As of March 31, 2025, the Group employed **759 employees** (2024: **810 employees**), with approximately **84.5%** located in Hong Kong and Macau[59](index=59&type=chunk) - The Group provides competitive remuneration, discretionary bonuses, share options, medical and retirement benefits, along with systematic training and a safe working environment[59](index=59&type=chunk) - The Group is committed to providing customers with reliable, diverse, and high-quality products, and establishing long-term, reliable cooperative relationships with suppliers[60](index=60&type=chunk) [Key Risks and Uncertainties](index=24&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces several key risks and uncertainties, including industry and environmental policies, cost control, inventory provisions, supply chain disruptions, emerging market penetration, changing customer behavior, retail rent fluctuations, and exchange rate risks, which the company is actively addressing through enhanced policy analysis, strategic adjustments, inventory control, and improved management - Industry policy risks: Policies such as healthcare system reform, cost control, pharmaceutical regulation, and Chinese medicine certification may have profound impacts[61](index=61&type=chunk) - Environmental policies: The environmental impact of waste and wastewater generated from pharmaceutical production and agricultural product trading market operations[61](index=61&type=chunk) - Cost control: Failure to effectively offset rising product costs and/or declining revenue[61](index=61&type=chunk) - Provision for obsolete inventory: Inventory provisions due to weather, product expiry dates, and other damages[61](index=61&type=chunk) - Supply chain disruptions: Shortages or price increases of raw materials due to industry events, supplier control, and flexibility risks[61](index=61&type=chunk) - Inability to capture emerging markets: The Group may not be able to rapidly capture emerging markets with traditional industries and products[65](index=65&type=chunk) - Responding to customer behavior: The Group may not be able to effectively respond to economic downturns, reduced consumer spending, and changes in impulse buying behavior[65](index=65&type=chunk) - Retail rent fluctuations: Rising rents may reduce profitability[65](index=65&type=chunk) - Exchange rates: Unfavorable fluctuations in exchange rates may adversely affect the Group's cash flow and profitability[65](index=65&type=chunk) - The company will enhance marketing investment, strictly control inventory, formulate sales policies and product development, improve safety management and environmental protection standards, and advance the construction of streamlined management and risk control systems to address risks[62](index=62&type=chunk) [Prospects](index=25&type=section&id=Prospects) The company plans to integrate traditional Chinese medicine with modern technology, launching an AI-powered diagnostic system, expanding telemedicine, and enhancing services with AI-driven CRM, while investing heavily in e-commerce, particularly live commerce in the Greater Bay Area, and actively exploring Southeast Asian markets for future growth [Chinese and Western Medicine and Health Food Products](index=25&type=section&id=Chinese%20and%20Western%20Medicine%20and%20Health%20Food%20Products) The company is committed to Chinese medicine innovation, having launched an AI-powered diagnostic system and planning to enhance accessibility to professional Chinese medicine services and foster customer loyalty through telemedicine platforms and AI-driven CRM systems - Launched a groundbreaking artificial intelligence Chinese medicine diagnostic system, utilizing imaging and data processing technologies to assess facial and voice characteristics, providing highly accurate health evaluations[63](index=63&type=chunk) - Plans to enhance the accessibility of professional Chinese medicine services and cultivate customer loyalty by expanding its telemedicine consultation platform and integrating an AI-driven customer relationship management system[64](index=64&type=chunk) [Digital Transformation and Expansion Strategy](index=26&type=section&id=Digital%20Transformation%20and%20Expansion%20Strategy) Digital transformation is a key driver of the company's growth strategy, involving significant investment in e-commerce capabilities, with a focus on live commerce platforms in the Greater Bay Area, and active pursuit of expansion into Southeast Asian markets - Significantly increased investment to enhance e-commerce capabilities, with a focus on live commerce platforms tailored for consumers in the Greater Bay Area[66](index=66&type=chunk) - Strengthened strategic relationships with leading cross-border e-commerce platforms and service providers to expand influence among consumers in mainland China[66](index=66&type=chunk) - Actively seeking expansion into Southeast Asian markets, leveraging the growing local interest in Chinese medicine and e-commerce penetration rates[66](index=66&type=chunk) [Brand Valuation](index=26&type=section&id=Brand%20Valuation) As of March 31, 2025, the total valuation of the Group's renowned brands, Watsons, Madame Pearl's, and Pedia-Care, reached **HKD 2.05 billion** - As of March 31, 2025, the total valuation of the Watsons, Madame Pearl's, and Pedia-Care brands was **HKD 2.05 billion**[68](index=68&type=chunk) [Environmental, Social and Governance](index=26&type=section&id=Environmental%2C%20Social%20and%20Governance) The Group is committed to enhancing environmental protection through product restructuring, energy conservation, emission reduction, and pollution prevention strategies to promote industry transformation, while fulfilling corporate social responsibility by improving quality management, strengthening audit quality, and actively participating in community donations and volunteer activities [Environmental Policies and Performance](index=26&type=section&id=Environmental%20Policies%20and%20Performance) The Group has intensified environmental protection efforts by adjusting product structure, implementing energy conservation, using recycled paper, emission reduction, and pollution prevention strategies, and upgrading industrial facilities for greater environmental friendliness, including solar energy utilization - Increased environmental protection efforts, implementing energy conservation, using recycled paper, emission reduction, and pollution prevention strategies, and upgrading industrial facilities to be more environmentally friendly, including the use of solar energy[69](index=69&type=chunk) [Corporate Social Responsibility](index=26&type=section&id=Corporate%20Social%20Responsibility) The Group is committed to improving quality management systems, strengthening audit quality to ensure the safety of Chinese and Western medicines, and actively fulfilling corporate social responsibility by giving back to the community through donations and volunteer activities - Improved quality management systems and strengthened audit quality to ensure the safety and quality of Chinese and Western medicines[70](index=70&type=chunk) - Actively donated to and supported the community, established volunteer teams, and encouraged employees to participate in charitable activities[70](index=70&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This section covers the company's corporate governance practices, including compliance with the Corporate Governance Code (deviation regarding the Chairman and CEO roles), directors' securities dealing code, listed securities transactions, audit committee composition and duties, independent auditor's scope of work, and upcoming AGM and annual report publication details [Compliance with Corporate Governance Code](index=27&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to high standards of corporate governance, but there is a deviation where the Chairman and Managing Director roles are held by the same person, an arrangement the Board deems valuable for efficiency and will continuously review - The company is committed to maintaining high standards of corporate governance, placing great emphasis on transparency, accountability, integrity, and independence[71](index=71&type=chunk) - There is a deviation from Code Provision C.2.1 of the Corporate Governance Code, where the roles of Chairman and Managing Director are held by the same person (Mr. Tang Ching Ho)[71](index=71&type=chunk) - The Board believes this arrangement is valuable for enhancing the company's efficiency in responding to a rapidly changing business environment and will continue to review this deviation[71](index=71&type=chunk) [Standard Code for Securities Transactions by Directors](index=27&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a stringent code of conduct for directors' securities transactions and confirms that all directors complied with this code during the review year - The company has adopted a code of conduct no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[73](index=73&type=chunk) - Following specific enquiries, it is confirmed that all Directors have complied with the required standards set out in the Model Code throughout the review year and up to the date of this announcement[73](index=73&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) This year, the company repurchased and cancelled **46,000,000 shares** on the Stock Exchange, aiming to enhance net asset value per share and earnings per share for the overall benefit of shareholders - During the year, the company repurchased a total of **46,000,000 shares** on the Stock Exchange, which were cancelled on May 3, 2024[74](index=74&type=chunk) - The share repurchases aimed to benefit shareholders as a whole by increasing the company's net asset value per share and earnings per share[75](index=75&type=chunk) Share Repurchase Details for April 2024 | Month of Repurchase | Number of Shares Repurchased (Million Shares) | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | Total Amount (Million HKD) | | :--- | :--- | :--- | :--- | :--- | | April 2024 | 46.00 | 0.260 | 0.250 | 11.80 | [Audit Committee](index=28&type=section&id=Audit%20Committee) The Audit Committee, composed of all independent non-executive directors, is responsible for reviewing and approving the Group's accounting principles, financial reporting matters, audit plan, internal controls, and risk management, and has reviewed and approved this year's consolidated financial statements - The Audit Committee comprises all independent non-executive directors, with Mr. Li Ka Fai, David as Chairman[77](index=77&type=chunk) - The Audit Committee reviewed and approved the Group's consolidated financial statements for the fiscal year ended March 31, 2025[78](index=78&type=chunk) [Scope of Work of Ernst & Young](index=29&type=section&id=Scope%20of%20Work%20of%20Ernst%20%26%20Young) Independent auditor Ernst & Young has confirmed the consistency of financial figures in this announcement with the draft consolidated financial statements, but their work does not constitute an assurance engagement, thus no opinion or assurance conclusion is expressed - Ernst & Young has acknowledged the figures in the Group's consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and related notes for the year ended March 31, 2025, as presented in this announcement[79](index=79&type=chunk) - The work performed by Ernst & Young in this regard does not constitute an assurance engagement, and therefore no opinion or assurance conclusion has been expressed on this announcement[79](index=79&type=chunk) [Annual General Meeting](index=29&type=section&id=Annual%20General%20Meeting) The company will hold its Annual General Meeting on August 19, 2025, with the relevant notice to be published and dispatched to shareholders as required - The company will hold its 2025 Annual General Meeting on August 19, 2025, at 11:30 a.m[80](index=80&type=chunk) [Closure of Register of Members](index=29&type=section&id=Closure%20of%20Register%20of%20Members) To determine eligibility for attending and voting at the Annual General Meeting, the register of members will be closed from August 14 to August 19, 2025, inclusive - The register of members will be closed from August 14, 2025, to August 19, 2025 (both dates inclusive), to determine eligibility for attending and voting at the Annual General Meeting[81](index=81&type=chunk) [Publication of Annual Results and Despatch of Annual Report](index=29&type=section&id=Publication%20of%20Annual%20Results%20and%20Despatch%20of%20Annual%20Report) This annual results announcement has been published on the Stock Exchange and company websites, and the 2025 annual report, containing all required information, will be dispatched to shareholders and published on the aforementioned websites in due course - The annual results announcement has been published on the Stock Exchange website (www.hkexnews.hk) and the company's website (www.wyth.net)[82](index=82&type=chunk) - The 2025 annual report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course[82](index=82&type=chunk)

Financial Performance - The Group's gross profit decreased by approximately HK$4.2 million or approximately 2.3% to approximately HK$182.0 million for the Period compared to approximately HK$186.2 million for the six months ended 30 September 2023[8]. - Revenue for the six months ended September 30, 2024, was HK$346,843,000, a decrease of 5.4% from HK$368,326,000 in the same period of 2023[126]. - Profit attributable to owners of the parent increased to approximately HK$23.7 million, up from approximately HK$3.5 million for the same period last year, mainly due to fair value gains on investment properties and decreased impairment losses[29]. - Profit before tax from continuing operations increased to HK$25,152,000, up 91.1% from HK$13,129,000 in the previous year[126]. - Profit for the period from continuing operations was HK$23,742,000, compared to HK$12,529,000 in the prior year, representing a growth of 89.0%[126]. - The company reported a profit attributable to owners of the parent of HK$23,701,000 for the six months ended September 30, 2024, compared to HK$3,549,000 in the same period of 2023, representing a significant increase[154]. - Total comprehensive income for the period was HK$24,004,000, a recovery from a loss of HK$189,922,000 in the previous year[154]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent for the period was HK2.10 cents, up from HK0.30 cent in the prior year[154]. - The company experienced a total comprehensive loss of HK$211,046,000 in the previous period, indicating a substantial turnaround in performance[153]. Expenses and Costs - Selling and distribution expenses increased by approximately HK$20.0 million or approximately 17.9% to approximately HK$131.9 million, primarily due to increased marketing costs for new product launches and e-commerce expansion[25]. - Administrative expenses rose by approximately HK$8.3 million or approximately 15.1% to approximately HK$63.4 million, mainly due to higher legal and professional fees[28]. - Administrative expenses increased to HK$63,443,000, up 15.1% from HK$55,117,000[126]. Assets and Liabilities - The current ratio was approximately 1.5, down from approximately 2.2 as of 31 March 2024, indicating a tightening liquidity position[17]. - As at 30 September 2024, the Group's total cash and cash equivalents were approximately HK$96.3 million, a decrease from approximately HK$159.4 million as of 31 March 2024[37]. - Total non-current assets decreased from HK$ 1,264,882,000 to HK$ 1,217,055,000, a decline of approximately 3.75%[155]. - Current liabilities decreased from HK$ 380,872,000 to HK$ 359,530,000, a reduction of about 5.6%[156]. - Net current assets decreased significantly from HK$ 449,356,000 to HK$ 197,500,000, representing a decline of approximately 56.0%[156]. - Total assets less current liabilities decreased from HK$ 1,714,238,000 to HK$ 1,414,555,000, a decrease of around 17.5%[156]. - Total equity decreased from HK$ 1,385,456,000 to HK$ 1,198,517,000, reflecting a decline of about 13.5%[156]. - Cash and cash equivalents decreased from HK$ 763,400,000 to HK$ 557,030,000, a drop of approximately 26.9%[155]. - Trade receivables increased from HK$ 81,356,000 to HK$ 86,457,000, an increase of about 6.4%[155]. - Interest-bearing bank borrowings increased slightly from HK$ 184,749,000 to HK$ 185,386,000, an increase of approximately 0.3%[156]. - Financial assets at fair value through profit or loss decreased from HK$ 28,753,000 to HK$ 12,258,000, a decline of about 57.4%[155]. - Total non-current liabilities decreased from HK$ 328,782,000 to HK$ 216,038,000, a reduction of approximately 34.2%[156]. Investments and Commitments - As of September 30, 2024, the Group had capital commitments of approximately HK$12,800,000 for the acquisition of properties, plants, and equipment, an increase from approximately HK$2,600,000 as of March 31, 2024[44]. - The Group provided a guarantee to a bank for a maximum financing of HK$370,000,000 related to agricultural products in China, unchanged from March 31, 2024[45]. - As of September 30, 2024, there were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[46]. Market and Strategic Positioning - The Group continues to develop new products, including "Madame Pearl's" cough syrup and "Pearl's" mosquito products, to meet consumer demand in both Hong Kong and Mainland China[33]. - The Group has engaged local distributors to enhance market penetration of its products in Mainland China, particularly in medical and consumer channels[13]. - The Group is strategically positioned to capitalize on favorable national policies in the Guangdong-Hong Kong-Macao Greater Bay Area, presenting significant growth and expansion opportunities in the Chinese medicine and health food industry[48]. - The national policy for the Guangdong-Hong Kong-Macau Greater Bay Area presents substantial growth opportunities for the Chinese pharmaceutical and health food sectors, which the company aims to leverage[75]. - The company is committed to investing in cross-border e-commerce initiatives to enhance brand presence and capitalize on regional opportunities[75]. - The company is strategically positioned to align its business strategies with the evolving market dynamics of the Greater Bay Area[75]. Corporate Governance - The company has maintained compliance with the Corporate Governance Code, except for a deviation where the roles of chairman and managing director are held by the same individual[96]. - The company plans to continue reviewing its corporate governance practices to enhance the best interest of the Group as a whole[99]. - The company is focused on maintaining high standards of corporate governance, emphasizing transparency, accountability, and integrity[97]. - The company has established an Audit Committee to oversee financial reporting processes and risk management, comprising three independent non-executive directors[136]. - The Audit Committee has reviewed the unaudited interim condensed consolidated financial information for the six months ended September 30, 2024, ensuring compliance with financial reporting standards[136]. - The company has adopted a code of conduct for securities transactions by directors, confirming compliance with the required standards throughout the period[134]. Share Capital and Options - The total number of share options available for grant as of September 30, 2024, was 117,110,288, with no share options granted, exercised, canceled, or lapsed under the 2023 Scheme during the period[70]. - The company did not grant, exercise, or cancel any share options under the 2023 Scheme during the period, with a total of 117,110,288 options available for grant as of September 30, 2024[94]. - The company plans to refresh the Scheme Mandate Limit for share options, which currently stands at 10% of shares in issue[105]. - The 2023 Share Option Scheme is effective for a period of ten years starting from August 22, 2023[108]. - The company repurchased a total of 46,000,000 shares at HK$0.01 each, which were subsequently cancelled on May 3, 2024[103]. - The total number of shares repurchased during the period was 46,000,000 at an average price of HK$0.260, totaling HK$11.80 million[113]. - As of September 30, 2024, the total number of shares in issue was 1,125,102,888[116]. - The company has issued a total of 1,125,102,888 shares as of the report date, reflecting its capital structure[133]. - The company aims to enhance shareholder value through share repurchases authorized at the annual general meeting held on August 22, 2023[133]. Foreign Exchange and Risks - The Group faced foreign exchange risks primarily due to its operations in mainland China, resulting in a retranslation loss of approximately HK$100,000 as of September 30, 2024, compared to a loss of approximately HK$187,500,000 for the six months ended September 30, 2023[43]. Subsequent Events - There were no material subsequent events undertaken by the Company or the Group after September 30, 2024, up to the date of this report[72].

Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 346.8 million, a decrease of 5.8% compared to HKD 368.3 million in the same period of 2023[1]. - Gross profit for the same period was HKD 182.0 million, down 2.3% from HKD 186.2 million year-on-year[1]. - Profit attributable to equity holders of the parent was HKD 23.7 million, representing a significant increase of 577.1% from HKD 3.5 million in the previous year[1]. - Basic and diluted earnings per share increased to HKD 2.10 from HKD 0.30, reflecting a growth of 577.1%[1]. - The company reported a net profit of HKD 23,742,000 for the period, compared to HKD 21,124,000 in the previous year, marking an increase of approximately 12.4%[38]. - The operating profit before tax was HKD 25,152,000, a decrease from HKD 38,429,000, representing a decline of about 34.5%[38]. - Total revenue for the six months ended September 30, 2024, decreased by approximately HKD 21,500,000 to about HKD 346,800,000, primarily due to weaker sales in traditional Chinese medicine and health food[82]. - Gross profit for the same period decreased by approximately HKD 4,200,000 or about 2.3% to approximately HKD 182,000,000, mainly due to reduced sales in traditional Chinese medicine and health food[83]. Assets and Liabilities - Net asset value as of September 30, 2024, was HKD 1,198.5 million, down 13.5% from HKD 1,385.5 million as of March 31, 2024[1]. - Cash and cash equivalents decreased to HKD 96.3 million, a decline of 37.9% from HKD 155.0 million[1]. - Total current liabilities decreased from HKD 380,872,000 to HKD 359,530,000, a reduction of approximately 5.5%[18]. - Net current assets dropped significantly from HKD 449,356,000 to HKD 197,500,000, representing a decline of about 56.0%[19]. - Total assets minus current liabilities decreased from HKD 1,714,238,000 to HKD 1,414,555,000, a decrease of approximately 17.5%[20]. - Total non-current liabilities decreased from HKD 328,782,000 to HKD 216,038,000, a reduction of about 34.2%[22]. - Total equity decreased from HKD 1,385,456,000 to HKD 1,198,517,000, reflecting a decline of approximately 13.5%[26]. - Trade receivables as of September 30, 2024, amounted to HKD 86,457,000, an increase from HKD 81,356,000 as of March 31, 2024[75]. - Trade payables as of September 30, 2024, decreased to HKD 19,940,000 from HKD 30,907,000 as of March 31, 2024[79]. Market and Segment Performance - The company operates in three main segments: Traditional Chinese Medicine, Western Medicine, and Property Investment[33]. - Revenue from customer contracts amounted to HKD 344,812,000, down from HKD 366,721,000 year-over-year, indicating a decrease of about 6.0%[41]. - The Chinese market contributed HKD 41,083,000 to total revenue, compared to HKD 36,636,000 in the previous year, reflecting an increase of approximately 12.0%[41]. - The Hong Kong market generated HKD 272,861,000 in revenue, down from HKD 295,023,000, which is a decline of around 7.5%[43]. - Sales of traditional Chinese medicine in Hong Kong decreased by 16.5% during the period from April to September 2024 compared to the same period in 2023[90]. - The flagship brand "Pei Fu Ren" achieved a revenue growth of 5.8% year-on-year, driven by strategic sales and marketing activities, maintaining its position as the top-selling cough syrup in Hong Kong for 14 consecutive years[96]. Expenses and Costs - Other income and gains decreased significantly to HKD 46.2 million from HKD 69.6 million year-on-year[4]. - Sales and distribution expenses increased by approximately HKD 20,000,000 or about 17.9% to approximately HKD 131,900,000, mainly due to increased marketing costs associated with new product launches and e-commerce business expansion[85]. - Administrative expenses increased by approximately HKD 8,300,000 or about 15.1% to approximately HKD 63,400,000, primarily due to higher legal and professional fees[86]. - The cost of inventories recognized as an expense, including obsolete inventory provision, was HKD 164,824,000 for the six months ended September 30, 2024, compared to HKD 182,114,000 in 2023, a decrease of approximately 9.5%[51]. - The depreciation of owned assets for the six months ended September 30, 2024, was HKD 16,915,000, down from HKD 18,775,000 in 2023, reflecting a decline of about 9.8%[52]. Strategic Initiatives - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming periods[4]. - The company plans to expand its market presence in mainland China, focusing on increasing sales in the healthcare sector[41]. - The company is actively pursuing new product development and technological advancements to enhance its competitive edge in the market[41]. - The company is actively expanding cross-border e-commerce channels, resulting in over 2x growth in cross-border e-commerce sales compared to the same period last year[91]. - The company is focusing on the health product market and plans to launch four innovative products next year targeting specific areas: (i) blood sugar levels, (ii) cholesterol levels, (iii) liver health, and (iv) joint function[117]. - The group is committed to investing in cross-border e-commerce initiatives to enhance brand influence and seize regional opportunities[113]. Governance and Compliance - The company emphasizes high standards of corporate governance, focusing on transparency, accountability, integrity, and independence to enhance competitiveness and operational efficiency[122]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ending September 30, 2024[126]. - The mid-term financial results have been published on the Hong Kong Stock Exchange website and the company's website, complying with all regulatory requirements[127].

Financial Performance - For the fiscal year ending March 31, 2024, the company reported revenue of HKD 783.9 million, an increase of 8.3% compared to HKD 723.6 million in the previous fiscal year[2]. - Gross profit for the same period was HKD 394.8 million, reflecting a 15.3% increase from HKD 342.4 million year-on-year[2]. - Core profit from continuing operations surged by 53.9% to HKD 62.5 million, up from HKD 40.6 million in the prior year[2]. - The company recorded a net profit of HKD 4.0 million, a 21.2% increase from HKD 3.3 million in the previous fiscal year[2]. - The company reported a revenue of HKD 553,973,000 for the year ending March 31, 2024, a decrease of 1.5% from HKD 562,830,000 in the previous year[71]. - Total revenue amounted to HKD 1,337,854,000, an increase from HKD 1,286,428,000 year-over-year, representing a growth of 4%[85]. - Revenue from customer contracts reached HKD 779,398,000 for continuing operations, compared to HKD 717,550,000 in the previous year, reflecting a growth of 8.6%[85]. - The adjusted pre-tax loss for the year was HKD 584,000, compared to a pre-tax loss of HKD 12,667,000 in the previous year, indicating an improvement[89]. - The company reported a loss attributable to equity holders of approximately HKD 15,400,000, an improvement from a loss of HKD 20,500,000 in the previous year[80]. Assets and Liabilities - The net asset value decreased significantly by 62.4% to HKD 1,385.5 million from HKD 3,688.4 million[2]. - Cash and cash equivalents dropped by 70.5% to HKD 155.0 million, down from HKD 525.9 million[2]. - The net current assets decreased to HKD 449,356,000 in 2024 from HKD 1,045,182,000 in 2023, representing a decline of approximately 57.0%[18]. - Total assets less current liabilities dropped to HKD 1,714,238,000 in 2024 from HKD 5,356,627,000 in 2023, a decrease of about 68.0%[18]. - Total non-current liabilities decreased to HKD 328,782,000 in 2024 from HKD 1,668,243,000 in 2023, reflecting a reduction of approximately 80.3%[18]. - The group’s investment in bonds and equity securities had a fair value of approximately HKD 33,100,000 as of March 31, 2024, down from approximately HKD 193,700,000 in 2023[151]. - As of March 31, 2024, the group's bank loans and notes payable amounted to approximately HKD 438.1 million, a decrease from HKD 3,086.8 million in 2023[156]. Dividends and Shareholder Returns - The company proposed a final cash dividend of HKD 3.0 per share, with a special dividend of HKD 14.7 per share[2]. - The company proposed a final cash dividend of HKD 3.0 cents per share, totaling HKD 33,753,000, and a special dividend of HKD 14.7 cents per share, totaling HKD 165,390,000[67]. - A special dividend was approved, involving the distribution of shares in two subsidiaries to eligible shareholders, based on their respective holdings[93]. Corporate Governance and Compliance - The company has established an audit committee composed of independent non-executive directors to oversee financial reporting and compliance[26]. - The company has adopted the principles of corporate governance as per the Stock Exchange Listing Rules, with some deviations noted[21]. - The company plans to continue reviewing and suggesting improvements regarding its corporate governance practices[22]. - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, with no significant impact from recent amendments on the classification of liabilities[39]. Operational Developments - The company plans to continue expanding its market presence and investing in new product development to drive future growth[4]. - The group has four reportable operating segments, including the production and sale of traditional Chinese medicine and health food products, primarily in mainland China and Hong Kong[55]. - The group has classified the management and sales of agricultural product trading market properties as discontinued operations following the completion of a physical distribution[56]. - The group has launched new products targeting respiratory health, including "Wild Cordyceps King," aimed at enhancing respiratory function for both adults and children[109]. - The flagship brand "Pei Fu Ren" has maintained its position as the top-selling cough syrup in Hong Kong for 14 consecutive years[111]. - The group has strengthened its online sales channels, expanding its e-commerce presence through its own platform and selected third-party platforms[111]. - The group plans to continue developing new products in both Hong Kong and mainland China markets to expand distribution networks for its brands[111]. Financial Management - The debt-to-asset ratio improved to 21.7%, down from 46.3% in the previous year, indicating a stronger balance sheet[2]. - The current ratio improved to approximately 2.2 from 1.6 in 2023, indicating better short-term financial health[175]. - The group maintains a cautious financial management policy, with a debt-to-equity ratio of approximately 21.7%, down from 46.3% in 2023[175]. - The group is actively monitoring market changes and adjusting its investment portfolio to ensure stable income generation[176]. Employee and Operational Costs - Employee benefits expenses totaled HKD 231,393,000, up from HKD 144,286,000, showing a significant increase of 60.5%[89]. - Research and development costs were HKD 1,786,000, slightly down from HKD 1,897,000 in the previous year[89]. Market Outlook - The company anticipates a moderate economic growth in Hong Kong, with GDP expected to grow by 2.7% year-on-year[107].

智通财经APP数据显示，截止3月11日收盘，有78只股票创52周新高，其中位元堂(00897)、乐思集团(02540)、博雅互动(00434)创高率位于前3位，分别为198.85%、65.00%、30.64%。另外有54只股票创52周新低，其中中国供应链产业(03708)、呷哺呷哺(00520)、朸濬国际(01355)创低率位于前三位，分别为-41.86%、-13.45%、-10.71%。 52周新高排行 股票名称 收盘价 最高价 创高率 位元堂(00897) 0.226 0.260 198.85% 乐思集团(02540) 2.500 2.640 65.00% 博雅互动(00434) 2.260 2.260 30.64% 光尚文化控股(08082) 0.041 0.042 13.51% 中电华大科技(00085) 1.790 1.840 10.84% 长久股份(06959) 24.500 24.450 10.63% 怡俊集团控股(02442) 1.960 2.360 9.77% TS WONDERS(01767) 0.220 0.220 8.91% 华营建筑(0158 ...

Revenue and Profit Performance - Revenue for the six months ended 30 September 2023 increased to HK$678,804,000, up from HK$606,127,000 in the same period last year, representing a growth of approximately 12%[18] - Gross profit for the period was HK$324,027,000, compared to HK$268,189,000 in the previous year, reflecting a 20.8% increase[18] - Profit before tax for the six months ended 30 September 2023 was HK$38,429,000, a significant improvement from a loss of HK$19,023,000 in the same period last year[18] - Profit attributable to owners of the parent was HK$3.549 million, a turnaround from a loss of HK$53.385 million in the previous year[25] - Basic and diluted earnings per share attributable to ordinary equity holders of the parent were HK0.30 cents, compared to a loss of HK4.35 cents in the same period last year[26] - Revenue for the period reached 2,097,109 units[156] - Profit for the period was 3,549 units[170] Share Repurchase and Issuance - The company repurchased 33,540,000 shares at a total cost of HK$14,727,600 during July 2023, with the highest purchase price per share at HK$0.45 and the lowest at HK$0.425[10] - The total number of shares in issue as of 30 September 2023 was 1,171,102,888[10] - Rich Time, WOE, and Wang On each hold 810,322,940 shares, representing 69.19% of the company's shares[34] - Mr. Tang holds a 50.67% interest in Wang On, which indirectly owns Rich Time and WOE, both holding 810,322,940 shares in the company[36] - Mr. Tang Ching Ho holds 7,320,095,747 shares in CAP, representing approximately 73.54% of CAP's total issued share capital[87] - Mr. Tang Ching Ho is also interested in 810,322,940 shares of the Company held by Rich Time Strategy Limited, with an approximate 50.67% interest[88] Share Option Schemes - The 2013 Share Option Scheme expired on 21 August 2023, and a new 2023 Share Option Scheme was adopted on 22 August 2023, effective for 10 years[40] - The 2023 Share Option Scheme allows the company to grant options to employees, directors, and associates as incentives, with a maximum issuance limit of 10% of the company's issued shares[40] - Any grant of options resulting in shares issued or to be issued exceeding 1% of the company's total shares within a 12-month period requires separate shareholder approval, with the participant and close associates abstaining from voting[42] - Share options granted to directors, chief executives, or substantial shareholders must be approved by independent non-executive directors (INEDs), excluding any INED who is the grantee[42] - Grants to substantial shareholders or INEDs resulting in shares exceeding 0.1% of the company's total shares within 12 months require shareholder approval via a poll, with the grantee and associates abstaining from voting[42] - The exercise period for options is determined by the Board but must not exceed 10 years from the grant date[42] - The minimum holding period before options can be exercised is generally not less than 12 months, with a vesting period that may be shortened under certain circumstances to encourage exceptional performance[42] - The 2023 Share Option Scheme is valid for 10 years starting from August 22, 2023, with no further options to be granted after this period, though existing options remain exercisable[42] - The exercise price for options must not be less than the highest of: (i) the closing price on the grant date, (ii) the average closing price for the 5 business days preceding the grant date, or (iii) the nominal value of the company's shares[42] - No share options were granted, exercised, cancelled, or lapsed under the 2013 and 2023 Schemes during the period, with 117,110,288 share options available for grant as of 30 September 2023[45] - The CAP 2022 Scheme, effective from 26 August 2022, allows the CAP Board to grant share options to eligible participants, with a validity period of 10 years until 25 August 2032[45] - The number of share options granted to any CAP Participant in any 12-month period cannot exceed 1% of the issued CAP Shares without prior shareholder approval[48] - Share options granted to substantial shareholders or independent non-executive directors exceeding 0.1% of issued CAP Shares and HK$5,000,000 in value require prior shareholder approval[48] - The CAP Board may refresh the share option limit to 10% of the total issued CAP Shares, subject to shareholder approval, with a cap of 30% for all outstanding options[49] - As of 30 September 2023, 50,000,000 share options were outstanding for CAP Director Leung Sui Wah, Raymond, with an exercise price of HK$0.118 per share[53] - Other employees had 126,000,000 share options outstanding as of 30 September 2023, down from 161,000,000 due to 35,000,000 lapsed options[53] - The total outstanding share options under the CAP 2012 Scheme decreased from 211,000,000 to 176,000,000 during the period, primarily due to lapsed options[53] - 35,000,000 share options lapsed under the CAP 2012 Scheme, leaving 176,000,000 shares available for issue, representing approximately 1.77% of the existing issued share capital of CAP[56] - No share options were granted, exercised, canceled, or lapsed under the CAP 2022 Scheme, with 995,306,782 share options remaining available for grant as of 30 September 2023[56] Asset and Liability Changes - Total non-current assets decreased to HK$4.057 billion from HK$4.311 billion as of 31 March 2023[27] - Total current assets decreased to HK$2.526 billion from HK$2.702 billion as of 31 March 2023[27] - Net current assets were HK$910.085 million, down from HK$1.045 billion as of 31 March 2023[27] - Trade receivables decreased to HK$66.566 million from HK$68.028 million as of 31 March 2023[27] - Cash and cash equivalents decreased to HK$456 million from HK$525.869 million as of 31 March 2023[27] - Trade payables increased to HK$125.164 million from HK$79.489 million as of 31 March 2023[27] - Other payables and accruals decreased to HK$640.713 million from HK$690.388 million as of 31 March 2023[27] - Total assets less current liabilities decreased from HK$5,356,627,000 to HK$4,968,002,000 as of 30 September 2023[62] - Non-current liabilities decreased from HK$1,668,243,000 to HK$1,482,266,000, primarily due to reductions in unsecured notes and interest-bearing bank borrowings[62] - Net assets decreased from HK$3,688,384,000 to HK$3,485,736,000, with equity attributable to owners of the parent declining from HK$2,349,191,000 to HK$2,225,827,000[62] - Total assets amounted to 2,349,191 units[166] Comprehensive Loss and Other Financial Metrics - Total comprehensive loss for the period was HK$189.922 million, compared to HK$420.356 million in the same period last year, showing a significant improvement[22][25] - Net loss for the period was (27,150) units[157] - Other comprehensive loss for the period was (10,076) units[185] - Changes in fair value resulted in a loss of (23,420) units[186] - Reversal of impairment losses on financial assets was (13,344) units[191] - Reclassification adjustment for gains/losses included in profit or loss was (93) units[200] Corporate Governance - The Company deviated from code provision C.2.1 of the Corporate Governance Code, with Mr. Tang Ching Ho serving as both chairman and managing director[59] - The Company maintains a high standard of corporate governance, emphasizing transparency, accountability, integrity, and independence[60] - The Board comprises three executive Directors and four independent non-executive Directors, ensuring a balance of skills and experience for the Group's development[59]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 WAI YUEN TONG MEDICINE HOLDINGS LIMITED （位 元 堂 藥 業 控 股 有 限公 司 *） （於百慕達註冊成立之有限公司） （股份代號：897） 截至二零二三年九月三十日止六個月之中期業績公佈 中期財務摘要 截至九月三十日止六個月 二零二三年 二零二二年 變動 百萬港元 （未經審核） （未經審核） 收益 678.8 606.1 12.0% 毛利 324.0 268.2 20.8% 母公司擁有人應佔溢利╱（虧損） 3.5 (53.4) 106.6% 每股盈利╱（虧損）（港仙） — 基本及攤薄 0.30 (4.35) 4.65 於 於 二零二三年 二零二三年 ...

Sales Performance and Market Position - Wai Yuen Tong has maintained its position as the top-selling product in the cough remedy category for nine consecutive years, based on sales value and volume in Hong Kong[14]. - Wai Yuen Tong's Hou Tsao Powder has been recognized for its sales performance, reinforcing the brand's market leadership[14]. - The flagship products include "Angong Niuhuang Wan" series, "Young Yum Pill," and "Hou Tsao Powder," with the latter ranked first in sales for 9 consecutive years in Hong Kong[28]. - The Group's flagship brand "Madame Pearl's" achieved the Hong Kong cough syrup sales champion for 12 consecutive years, supported by strategic sales and marketing efforts[58]. - The revenue of "Pearl's" Mosquitout product range reported satisfactory growth over the previous year, establishing leadership in the mosquito repellent product category in Hong Kong[59]. Commitment to Traditional Chinese Medicine (TCM) - The company reported a commitment to promoting Traditional Chinese Medicine (TCM) globally, emphasizing the importance of TCM in socio-economic development and healthcare services[22]. - The State Council of China has outlined future development priorities for TCM, indicating strong governmental support for the industry[22]. - Wai Yuen Tong aims to establish higher quality standards in the TCM industry while providing comprehensive pharmaceutical products and services[23]. - The company continues to focus on the integration of traditional practices with modern healthcare needs, aligning with national health policies[22]. - The company is positioned to leverage the growing demand for TCM services due to an aging population and the booming healthcare services industry in China[22]. Financial Performance - Total revenue for the financial year ended March 31, 2023, decreased by approximately 7.5% to approximately HK$1,286.4 million, primarily due to a decrease in property sales in agricultural produce exchange markets[46]. - The Group recorded a loss attributable to owners of the parent of approximately HK$20.5 million, a significant reduction from a loss of approximately HK$108.9 million in the previous year[47]. - Revenue from Chinese pharmaceutical and health food products increased to approximately HK$635.0 million, representing a growth of approximately 23.9% from the previous year[56]. - The total revenue of traditional Chinese medicine and health food products increased to approximately HK$635 million, representing a growth of about 23.9% compared to the previous year[60]. - The total revenue of Western pharmaceutical and health food products grew by 100.1% over the same period last year[64]. Business Expansion and Operations - As of March 31, 2023, the Group operated over 100 stores across Mainland China, Hong Kong, and Macau, with more than 80 Chinese medicine practitioners in Hong Kong[28]. - During the review year, the Group opened 9 new stores in Hong Kong and Macau, particularly in residential districts, indicating a growing demand for Chinese medicine clinic services[27]. - The Group launched new products across five major categories of Chinese medicine, enhancing product diversity and selection[28]. - The Group's business model leverages franchised stores for rapid expansion in the Chinese medicine sector[28]. - The Group has actively developed e-commerce business channels, distributing products through its own online platform and selected third-party platforms[63]. Legal Matters and Corporate Governance - The group continues to be the legal and beneficial owner of Baisazhou Agricultural, as confirmed by multiple court rulings[149][156]. - On April 20, 2023, the court ruled that Ms. Wang and Tian Jiu must pay damages to the group amounting to HK$567,037,325.74, plus interest from January 18, 2021[157]. - The group has been involved in multiple civil litigations since 2011 related to the Baisazhou acquisition, with various court decisions upholding its ownership[144][153]. - The Supreme People's Court dismissed the appeal from Ms. Wang and Tian Jiu regarding the December 23, 2019 judgment, reaffirming the group's ownership[153][158]. - The group has faced allegations of forged documentation related to the Baisazhou acquisition, which have been dismissed by the courts[145][152]. Sustainability and Corporate Social Responsibility - The company has received recognition as a "Caring Company" for over 10 years, reflecting its commitment to social responsibility[15]. - The Group's commitment to sustainability includes the installation of solar panels at the Yuen Long Factory to reduce carbon emissions[32]. - The Group's agricultural produce exchange markets have maintained health and hygiene measures to adapt to the post-pandemic environment[189]. Management and Employee Relations - CAP employed 1,941 staff as of March 31, 2023, an increase from 1,872 in 2022, with approximately 35.4% located in Hong Kong and Macau[172]. - The company provides various employee benefits, including medical and retirement benefits, and structured training programs[172]. - CAP recognizes employees as key contributors to its success and strives to provide a safe workplace[172]. - CAP has adopted a share option scheme in August 2022 to incentivize eligible participants and enhance the company's value[172]. Market Outlook and Strategic Initiatives - The expected faster growth of Mainland China's economy and the lifting of cross-boundary restrictions are anticipated to support Hong Kong's exports[182]. - Wai Yuen Tong aims to increase market share by opening self-operated and franchised retail outlets in the PRC, Hong Kong, and Macau[183]. - The CAP Group plans to build a nationwide agricultural produce exchange network leveraging its industry-leading position and advanced management systems[184]. - The Central Government of China has prioritized agricultural development, promoting investments in agricultural produce markets and improving logistics infrastructure[190]. - The CAP Group is adopting an "asset light" strategy to expand operations in the PRC and is exploring online platform development to leverage technology advancements[191].

Financial Performance - For the six months ended September 30, 2022, total revenue decreased by approximately 7.6% to approximately HK$606.1 million, primarily due to decreased sales performance in the management and sale of properties in agricultural produce exchange markets[15]. - The Group recorded a loss attributable to owners of the parent amounting to approximately HK$53.4 million, compared to a profit of approximately HK$14.1 million for the same period in 2021[16]. - The loss was mainly due to a decrease in fair value gains on investment properties, impairment losses on property, plant and equipment, and a decrease in revenue from property sales in agricultural produce exchange markets in the PRC[16]. - Revenue for the six months ended 30 September 2022 was HK$606,127,000, a decrease from HK$656,082,000 in the same period of 2021, representing a decline of approximately 7.6%[180]. - Gross profit for the same period was HK$268,189,000, down from HK$275,213,000, reflecting a decrease of about 2.4%[180]. - The Company reported a loss before tax of HK$19,023,000 for the six months ended 30 September 2022, compared to a profit of HK$54,289,000 in the prior year[180]. - The profit for the period was a loss of HK$35,643,000, contrasting with a profit of HK$35,320,000 in the same period of 2021[180]. - The company reported a total comprehensive loss attributable to owners of the parent of HK$239,983,000 for the six months ended September 30, 2022, compared to a comprehensive income of HK$81,851,000 in the same period of 2021[187]. - The profit attributable to owners of the parent was a loss of HK$53,385,000 for the six months ended September 30, 2022, compared to a profit of HK$14,109,000 in the same period of 2021[187]. Revenue Sources - The revenue of Chinese pharmaceutical and health food products business recorded a healthy growth of approximately 11.1% compared to the same period in 2021[22]. - The total revenue of Western pharmaceutical and personal care products business delivered a growth of approximately 80.6% over the corresponding period in 2021[24]. - The decline in revenue from property sales in the PRC was attributed to the performance of the Company's 53.37%-owned subsidiary, China Agri-Products Exchange Limited[16]. - CAP managed 11 agricultural produce exchange markets across five provinces in the PRC, generating revenue of approximately HK$303.6 million, down from approximately HK$393.6 million in the same period of 2021[31]. - Revenue from operating agricultural produce exchange markets was approximately HK$195.4 million, compared to approximately HK$203.0 million in the previous year[31]. - Revenue from the sale of properties was approximately HK$108.2 million, a decline from approximately HK$190.6 million in the same period of 2021[31]. Operational Developments - The Group has launched three Chinese specialists centers in Central, Causeway Bay, and Jordan to provide specialized solutions for patients with special medical needs[24]. - The Group plans to introduce nutritious soft meals for the elderly and an advanced disinfectant range under the brand name "Pearl's" in the coming year[24]. - The Group has been actively deploying resources to establish e-commerce channels, including distribution through its own online platform and selected third-party platforms[27]. - The Group expanded its property portfolio by subdividing a property in Mongkok, increasing owned properties from 13 to 14[29][33]. - The Group aims to improve the performance of the existing retail outlet portfolio to counteract the negative impact of the current uncertain business environment[24]. - The Group's efforts in strategic sales and marketing activities have contributed to its market leadership in the mosquito repellent product market in Hong Kong[24]. Financial Position - As of September 30, 2022, the Group's total assets were approximately HK$6,914.2 million, down from approximately HK$7,597.7 million as of March 31, 2022[43]. - The Group's total interest-bearing debts amounted to approximately HK$1,752.8 million as of September 30, 2022, an increase from approximately HK$1,681.2 million as of March 31, 2022[47]. - The current ratio was approximately 1.7 as of September 30, 2022, compared to approximately 1.5 as of March 31, 2022[50]. - The gearing ratio increased to approximately 51.1% as of September 30, 2022, up from approximately 45.3% as of March 31, 2022[50]. - The Group held financial assets at fair value through other comprehensive income of approximately HK$143.7 million and financial assets at fair value through profit or loss of approximately HK$46.0 million as of September 30, 2022[55]. - The Group's total non-current assets decreased to HK$4,315,163,000 as of September 30, 2022, from HK$4,709,007,000 as of March 31, 2022[190]. - Current assets totaled HK$2,599,038,000 as of September 30, 2022, down from HK$2,888,706,000 as of March 31, 2022[190]. - The company's cash and cash equivalents increased to HK$584,962,000 as of September 30, 2022, compared to HK$510,146,000 as of March 31, 2022[190]. Shareholder Information - The CAP Group owns approximately 73.54% of CAP's total issued share capital, amounting to 7,320,095,747 shares[124]. - Mr. Tang Ching Ho holds 67.26% of the company's total issued share capital, with 810,322,940 shares[117]. - The shareholding structure indicates that Mr. Tang and his associates have significant control over the Company through various subsidiaries[142]. - The Company has not granted any rights to acquire shares or debentures to its Directors or chief executives during the reporting period[137]. - The total number of shares held by major shareholders reflects a concentrated ownership structure, with Rich Time and its affiliates holding a substantial portion[139]. Corporate Governance - The company emphasizes maintaining a high standard of corporate governance with a focus on transparency, accountability, integrity, and independence[155]. - The board comprises three executive directors and four independent non-executive directors, ensuring a balance of skills and experience[154]. - The Company has established an Audit Committee to oversee financial reporting, internal controls, and risk management[177]. - The company does not propose to comply with code provision C.2.1 of the Corporate Governance Code for the time being but will continue to review such deviation[154]. Legal Matters - Since 2011, CAP Group has been involved in multiple civil proceedings in the PRC and Hong Kong regarding the Baisazhou Acquisition[82]. - The Hubei Court dismissed Ms. Wang and Tian Jiu's counterclaim for the return of CAP Group's 90% interest in Baisazhou Agricultural in December 2019[90]. - The Supreme People's Court upheld the Hubei Court's decision on 29 March 2021, confirming CAP Group's ownership of Baisazhou Agricultural[88]. - The former director of Baisazhou Agricultural was found guilty of misappropriating funds amounting to RMB 40.0 million and was sentenced to five years in prison[95]. Market Strategy - The Group plans to expand its market share by opening more retail outlets in the PRC, Hong Kong, and Macau, leveraging the development of the Guangdong-Hong Kong-Macau Greater Bay Area[106]. - The Group aims to launch more unique health supplements under the "Madame Pearl's" brand to meet market needs[107]. - The CAP Group will continue to build a nationwide agricultural produce exchange network, leveraging its leading industry position and advanced management systems[108]. - The Group's strategy includes enhancing cross-border e-commerce to reach consumers in the Greater Bay Area and the Asia Pacific Region[107]. - The CAP Group is pursuing an "asset light" strategy to expand operations in the PRC, focusing on partnerships and electronic platform development to leverage technology advancements promoted by the government[112].

Company Overview - Wai Yuen Tong Medicine Holdings Limited has maintained a strong reputation in providing Chinese and Western pharmaceutical products and services for over 125 years[19]. - The company has been recognized as a "Caring Company" for over 10 years by the Hong Kong Council of Social Service[17]. - The annual report for the year ended March 31, 2022, highlights the company's commitment to health and wellness in the community[22]. - The company continues to focus on excellence in both Chinese and Western medicine, as well as outpatient clinic services[19]. - The company aims to leverage the synergy between traditional Chinese medicine and Western pharmaceuticals to enhance its market position[68]. Product Performance - The company reported a significant achievement with its Hou Tsao Powder, ranking 1st in sales value and volume for 8 consecutive years in Hong Kong[14]. - Wai Yuen Tong's Madame Pearl's Cough Syrup has been the sales champion for 12 consecutive years in Hong Kong[17]. - The sales performance of Western pharmaceutical and personal care products increased by 61% compared to the previous year[49]. - The Group's flagship product, Hou Tsao Powder, ranked first in sales value and volume for 8 consecutive years in Hong Kong[37]. - The key brand "Madame Pearl's" has been the sales champion for cough syrup in Hong Kong for 12 consecutive years, with a target to achieve an annual production capacity of 10 million bottles of cough syrup[83]. Market Expansion and Development - Wai Yuen Tong aims to expand its market reach and enhance its product development strategies moving forward[19]. - The Group opened 4 new retail stores in local districts, increasing the total to 63 stores providing one-stop Chinese medicine healthcare services as of March 31, 2022[38]. - The first "Wai Yuen Tong Chinese Medicine Specialist Center" was launched, with two more expected to open by the end of 2022, enhancing access to traditional Chinese medicine services[39]. - The Group plans to expand the production capacity of cough syrup to 10 million bottles annually at the Yuen Long Factory[49]. - The Group's flagship stores on Tmall.com and JD.com were established to serve domestic consumers in Mainland China[45]. Community and Health Initiatives - The Chairman expressed gratitude for the dedication of all colleagues during a challenging year, emphasizing the importance of tradition and community health[19]. - The Group actively cooperated with the Hong Kong government in pandemic prevention, providing remote diagnosis and treatment services during the COVID-19 outbreak[32]. - The Group donated 7,000 tablets of Angong Niuhuang Wan and 100,000 bags of flu tea to support community health during the pandemic[53]. - The Group's Angong Niuhuang Wan was included in the National Health Commission's treatment protocol for critically ill COVID-19 patients[37]. Financial Performance - Total revenue for the financial year ended March 31, 2022, increased by approximately 25.5% to approximately HK$1,391.4 million, driven by growth in the production and sale of Chinese and Western pharmaceutical and health food products[70]. - The loss attributable to owners decreased to approximately HK$108.9 million from approximately HK$376.0 million in the previous year, primarily due to the absence of a significant loss on disposal of an investment recorded in the prior year[71]. - Revenue from Chinese pharmaceutical and health food products rose to approximately HK$512.6 million, reflecting a growth of approximately 13.1% compared to the previous year[74]. - The Group's retail store services saw a significant increase in demand during the Omicron variant outbreak, particularly in residential areas[41]. - The Group's sales of Western medicine and personal care products increased significantly by 61% compared to the previous year[51]. Legal and Regulatory Matters - CAP continues to be the legal and beneficial owner of Baisazhou Agricultural following the dismissal of the counterclaim by Ms. Wang and Tian Jiu[200]. - CAP is seeking legal advice for the recovery of the balance of the damages awarded to it[200]. - The court order from 2012 prevented CAP from making payments under the instruments until the final determination of the proceedings[200]. - The judgement from the Jianghan Court was delivered on November 19, 2021, regarding the misappropriation case[200]. - CAP's litigation efforts highlight ongoing legal challenges related to its acquisition activities[200]. Environmental Initiatives - The Group plans to install solar panels at the Yuen Long Factory in 2022 to reduce carbon emissions, aligning with the government's carbon neutrality target by 2050[24]. Economic Context - Hong Kong's economy grew by 6.4% in 2021, the highest growth rate since 2010, but remained approximately 2% below the 2018 level[29]. - The overall economy of Hong Kong grew by 6.4% in 2021, despite challenges posed by the Omicron variant and the fifth wave of COVID-19[73]. - The economic recovery in Hong Kong remains uneven, with sectors like import and export performing well, while inbound tourism is still largely inactive[73].