Financial Performance - For the six months ended September 30, 2021, the Group recorded a revenue increase of approximately 28.8% to approximately HK$656.1 million, compared to approximately HK$509.5 million in the same period of 2020[11]. - The Group recorded a profit attributable to owners of the parent amounting to approximately HK$14.1 million, a significant recovery from a loss of approximately HK$226.9 million in the same period of 2020[12]. - The profit increase was mainly due to the absence of a HK$209.0 million impairment recorded in the previous year and the overall revenue growth[12]. - Revenue from the production and sale of Chinese pharmaceutical and health food products increased by approximately 13.5% to approximately HK$239.9 million, while revenue from Western pharmaceutical and health food products increased by approximately 6.5% to approximately HK$18.3 million[11]. - Revenue from the management and sale of properties in agricultural produce exchange markets in the PRC increased by approximately 42.0% to approximately HK$393.6 million[11]. - Total comprehensive income for the period was HK$97,703,000, a turnaround from a loss of HK$30,561,000 in the same period of 2020[174]. - The profit for the period attributable to owners of the parent was HK$14,109,000, compared to a loss of HK$226,920,000 in the previous year[178]. - Gross profit for the period was HK$275,213,000, compared to HK$172,584,000 in the previous year, reflecting a gross margin improvement[171]. Economic Environment - The economic recovery in the PRC, Hong Kong, and Macau contributed to the improved financial performance, as strict anti-pandemic measures brought COVID-19 under control[11]. - The Hong Kong economy is on a recovery track with real GDP continuing to grow compared to last year, supported by improving global economic conditions and a decrease in local COVID-19 cases[18]. - The total employment rate has gradually improved, indicating a strengthening labor market, which is expected to align with the pace of economic recovery[18]. - The Consumption Voucher Scheme (CVS) is anticipated to continue supporting consumption-related activities in the near term, contributing to consumer sentiment[18]. - The government is enhancing vaccination measures and discussing border reopening with the central government to boost the economy, particularly in tourism and retail sectors[18]. Strategic Focus and Market Expansion - The Group's strategic focus on Chinese and Western pharmaceutical products has shown positive results, reflecting a growing market demand[11]. - The Group continues to explore opportunities for market expansion and new product development in response to changing consumer needs[11]. - The Group plans to expand its market share by opening retail outlets in the PRC, Hong Kong, and Macau, leveraging the Guangdong-Hong Kong-Macau Greater Bay Area policy for business development[105]. - The Group is focusing on branding efforts to strengthen customer loyalty for its "Madame Pearl's" and "Pearl's" product lines[20]. - The Group continues to invest in research and development for core medical solutions targeting institutional clients, local clinics, and medical groups[20]. Investment and Financial Strategy - The Group's investment strategy remains prudent, with a focus on long-term holdings aimed at generating stable income[57]. - The Group's treasury policy aims to ensure adequate financial resources for business growth while managing financial risks, including currency and interest rate risks[68]. - The Group intends to closely monitor market changes and adjust its investment portfolio as necessary to align with its strategic goals[57]. - The Group is adopting an "asset light" strategy to expand operations in the PRC, confident that this approach will yield long-term benefits for shareholders[110]. Employee and Corporate Governance - As of September 30, 2021, the Group employed 1,825 employees, with approximately 33.2% located in Hong Kong and Macau[97]. - The Group provides discretionary bonuses and share options based on performance, alongside regular remuneration[97]. - The Company has complied with the Corporate Governance Code throughout the six months ended September 30, 2021, except for a deviation regarding the role of the chairman and managing director[153]. - The Company emphasizes maintaining high standards of corporate governance with a focus on transparency, accountability, integrity, and independence[154]. Share Capital and Ownership - As of September 30, 2021, Mr. Tang Ching Ho holds 810,322,940 shares, representing approximately 65.79% of the company's total issued share capital[116]. - The total issued share capital of the company is 11,400,000,000 shares[130]. - The company is directly wholly-owned by Loyal Fame International Limited, which is owned by Mr. Tang[129]. - The 2013 Share Option Scheme allows share options to be granted to participants for a consideration of HK$1.00 per lot, which must be accepted within 30 days from the offer date[145].

0 艺元堂 Wai Yuen Tong Medicine Holdings Limited 位 元 堂 藥 業 控 股 有 限 公 司 Incorporated in Bermuda with limited liability 於百慕遴註冊成立之有限公司 Stock Code 股份代號: 897 Annual Repor 2 Corporate Information 公司資料 85 Independent Auditor's Report 獨立核數師報告 95 Consolidated Statement of Profit or Loss and Other Comprehensive Income 綜合損益及其他全面收益表 4 Awards 獎項 6 Chairman's Statement 主席報告 98 Consolidated Statement of Financial Position 綜合財務狀況表 14 Management Discussion and Analysis 管理層討論及分析 100 Consolidated Statement of Changes in Equity 綜 ...

Financial Performance - The company reported a significant decline in revenue due to market challenges, with specific figures not provided in the extracted content [12]. - For the six months ended 30 September 2020, the Group recorded revenue of HK$509.5 million, an increase of 80.9% compared to HK$281.6 million in the same period of 2019 [16]. - Revenue from Traditional Chinese Medicine and health food products decreased by 4.9% to HK$211.4 million, down from HK$222.3 million in 2019 [16]. - Revenue from Western pharmaceutical and health food products dropped by 68.5% to HK$17.1 million, compared to HK$54.2 million in 2019 [27]. - The Group recorded a loss attributable to owners of the parent amounting to HK$233.2 million, compared to a profit of HK$32.2 million in 2019 [16]. - The Group reported a loss before tax of HK$212,682,000 for the six months ended September 30, 2020, compared to a profit of HK$32,559,000 in 2019 [142]. - Profit attributable to owners of the parent was a loss of HK$233,191,000, contrasting with a profit of HK$32,213,000 in the previous year [149]. - Total comprehensive loss for the period was HK$42,311,000, compared to a comprehensive income of HK$12,838,000 in 2019 [146]. - Basic and diluted loss per share attributable to ordinary equity holders of the parent was HK(18.93) cents, compared to HK2.62 cents in 2019 [149]. Market Strategy and Outlook - Future outlook remains cautious as the company navigates ongoing market uncertainties and competition [12]. - The company is focusing on enhancing its product offerings and exploring new market opportunities to drive growth [12]. - The company aims to expand its market presence, particularly in regions with growth potential, although specific strategies were not outlined [12]. - Overall, the company is committed to adapting its strategies in response to evolving market conditions [12]. - The Group aims to explore new product development and sales platforms to adapt to changing market conditions [82]. - The Group plans to enhance its distribution network by penetrating more local communities and diversifying its product range to meet customer needs, while promoting scientific development in Chinese Medicine regulation [91]. Cost Management and Profitability - Management emphasizes the importance of cost control measures to maintain profitability during challenging times [12]. - Selling and distribution expenses were reduced to HK$81,547,000 from HK$114,001,000, a decrease of 28% [142]. - Administrative expenses increased significantly to HK$113,334,000 from HK$66,664,000, marking a 70% rise [142]. Investments and Acquisitions - The company is evaluating potential mergers and acquisitions to strengthen its market position, although no specific targets were disclosed [12]. - The Group's acquisition of 53.37% equity interests in China Agri-Products Exchange Limited contributed HK$277.2 million in revenue for the Period [16]. - The Group continues to invest in research and development for core medical solutions targeting institutional clients and local clinics [31]. Financial Position and Assets - As of September 30, 2020, the Group's total assets were HK$7,931.2 million, an increase from HK$7,730.2 million as of March 31, 2020 [50]. - The Group's cash and cash equivalents increased to HK$539.3 million from HK$475.7 million as of March 31, 2020 [51]. - The total interest-bearing debts amounted to HK$1,803.9 million, slightly up from HK$1,800.8 million as of March 31, 2020 [51]. - The current ratio remained stable at 1.2, consistent with the ratio as of March 31, 2020 [52]. - The gearing ratio improved to 55.3% from 57.6% as of March 31, 2020, indicating a more conservative financial management approach [52]. Employee and Corporate Governance - As of September 30, 2020, the Group employed 1,881 employees, an increase from 1,803 employees as of March 31, 2020, with 31.2% located in Hong Kong and Macau [81]. - The Group recognizes the importance of maintaining good relationships with stakeholders to achieve long-term business growth and enhance brand competitiveness [80]. - The Company has complied with the applicable provisions of the Corporate Governance Code throughout the period for the six months ended 30 September 2020, except for a deviation regarding the chairman also serving as managing director [130]. Share Capital and Ownership - As of September 30, 2020, Mr. Tang Ching Ho holds 715,322,940 shares, representing approximately 58.08% of the Company's total issued share capital [98]. - The total issued share capital of the Company as of September 30, 2020, is 1,231,642,888 shares [113]. - Following the privatization of Easy One on October 16, 2020, Mr. Chan Chun Hong's share options were cancelled [107]. Economic and Market Conditions - The overall economic situation in Hong Kong showed signs of stabilization in the second half of 2020, following a significant downturn due to the pandemic and social conditions [81]. - The COVID-19 pandemic significantly affected market performance in early 2020, but operations returned to normal with steady and satisfactory results thereafter [38].

Financial Performance - For the financial year ended March 31, 2020, the company reported total revenue of HK$620.7 million, despite a challenging economic environment[19] - Total revenue for the fiscal year ending March 31, 2020, reached HK$620.7 million[21] - For the financial year ended 31 March 2020, total revenue decreased by 17.4% to HK$620.7 million[62] - Revenue from Chinese pharmaceutical and health food products dropped by 25.2% to HK$467.0 million, accounting for 75.2% of total revenue[65] - Revenue from Western pharmaceutical and health food products decreased by 13.5% to HK$100.3 million[62] - The Group recorded a profit attributable to owners of the parent amounting to HK$95.8 million, an increase from HK$74.6 million in 2019[63] Market Conditions - The retail sales volume in Hong Kong fell by 12.3% year-on-year in 2019, marking the largest annual decline since 1998, which impacted the company's performance[19] - Visitor arrivals to Hong Kong decreased by 14.2% year-on-year in 2019, contributing to a slump in the retail market[19] - The total retail sales value in Hong Kong fell by 31.8% year-on-year in the first two months of 2020, indicating a challenging operating environment for the retail industry[44] - The Hong Kong retail environment is expected to remain challenging in the short term due to social unrest and the COVID-19 pandemic[46] - The retail environment in Hong Kong, Macau, and mainland China is expected to face significant challenges due to ongoing social unrest, COVID-19, and the Sino-US trade war, leading to potential slower or negative economic growth[179][181] Business Strategy and Development - The company aims to revitalize its century-old brand by improving product series and Chinese medical consultation services, focusing on sustainable development[16] - The Group plans to expand its business in mainland China, including the establishment of TCM plantation bases to ensure quality[49][51] - The Group aims to enhance its professional Chinese medical services and consolidate distribution channels for long-term growth[65] - The Group plans to open new stores in community districts in Hong Kong to serve local residents, particularly targeting the elderly market for TCM products and healthcare services[45] - The Group intends to open new stores in Macao in the second half of 2020 to capitalize on the growing tourism and gaming industry[45] - The Group will continue to enhance its online retail layout in mainland China to achieve an omni-channel operation model, connecting online and offline sales[45] Product Development and Innovation - The Group launched the "Angong Sanbao" series, including "Angong Niuhuang Wan," to address cardiovascular and cerebrovascular health needs[24] - New products launched during the year include "Colla Corii Asini Powder" and "Ejiao Cake," catering to urban healthcare needs[25] - The Group aims to enhance brand loyalty for its "Pei Fu Ren" and "Pei Shi" product lines through increased marketing resources[82] - Continuous cooperation with scientific research institutes will be pursued to promote the scientific development of Chinese Medicine and enhance the distribution network[186] Retail and Distribution - The Group maintains over 55 retail stores in Hong Kong, with around 40 staffed by professional registered TCM practitioners[31] - The Group has expanded its distribution network to over 3,000 sales points in Hong Kong, ensuring comprehensive coverage of major distribution channels[33] - The Group completed the disposal of five retail shops, recognizing a total gain of HK$60.9 million during the year[37] - The group plans to relocate retail shops to more successful locations to enhance customer attraction and optimize the distribution network[70] Financial Position and Risks - As of March 31, 2020, the Group's total assets were HK$7,730.2 million, an increase of 123.1% from HK$3,454.7 million in 2019[124] - The Group's cash and cash equivalents increased to HK$475.7 million, up 178.5% from HK$171.2 million in 2019[125] - Total interest-bearing debts rose to HK$1,800.8 million, a 111.5% increase from HK$852.2 million in 2019[125] - The current ratio decreased to 1.2 from 3.5 in 2019, indicating a decline in liquidity[128] - The gearing ratio increased to 57.6% from 27.9% in 2019, reflecting higher leverage[128] - The Group faces risks including a slow growth in customer base due to a decrease in mainland tourists and the recession in Hong Kong's economy[174] - The Group has identified risks related to supply chain disruptions and cost control challenges due to rising product costs[174] Leadership and Management - Mr. Chen Zhenkang has been appointed as the Executive Director since April 1, 2018, and is responsible for managing the group's corporate affairs[198] - Ms. Tang Mui Fun has extensive experience in the pharmaceutical industry and is responsible for overall strategic planning and development for the core business[200] - The company has a strong leadership team with members holding significant positions in various committees related to pharmacy and Chinese medicine[200]

Wai Yuen Tong Medicine Holdings Limited 位 元 堂 藥 業 控 股 有 限 公 司 Incorporated in Bermuda with limited liability 於百慕娃註冊成立之有限公司 Stock Code 股份代號: 897 Preparing Medicine with Dedication Growing Strong with Reputation 以誠意用心造藥 憑信譽繼往開來 Annual Report Contents 目錄 2 Corporate Information 公司資料 4 Awards 獎項 6 Chairman's Statement 主席報告 12 Management Discussion and Analysis 管理層討論及分析 28 Board of Directors and Senior Management 董事會及高級管理層 34 Environmental, Social and Governance Report 環境、社會及管治報告 62 Corporate Governance Report 企 ...