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告的內 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 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 Shunten International (Holdings) Limited 順騰國際（控股）有限公司 （於開曼群島註冊成立之有限公司） （股份代號：932） 補充公告 須予披露交易 直 接 比 較 法 假 設 物 業 以 其 現 狀 出 售 且 具 備 空 置 交 付 的 條 件，同 時 參 考 相 關市場中的可比 較 銷 售 交 易。估 值 師 認 為 直 接 比 較 法 為 對 該 物 業 進 行 估 值 的 最 適 當 估 值 方 法，該 物 業 為 香 港 的 標 準 住 宅 物 業。本 地住宅市場的 活 躍 度 高 且 透 明 度 高，其 特 點 是 具 有 豐 富、適 時 且 可 公 開 獲 取 的 交 易 憑 證，因 而 形 成 廣 泛 且 可 靠 的 可 比 較 交 易 範 圍。該 可 取性使得直接比較法 的應用 ...

机构评级方面，目前暂无机构对该股做出投资评级建议。 行业估值方面，药品及生物科技行业市盈率（TTM）平均值为3.12倍，行业中值6.67倍。顺腾国际控股 市盈率-2.49倍，行业排名第146位；其他精优药业（00858.HK）为1.27倍、金斯瑞生物科技 （01548.HK）为1.69倍、东瑞制药（02348.HK）为3.35倍、吉林长龙药业（08049.HK）为6.39倍、大健 康国际（02211.HK）为6.67倍。 资料显示，顺腾国际(控股)有限公司是一家于香港的上市公司(股份代号:932)。公司前称为御药堂集团 控股有限公司及自二零一三年十月十一日起于香港联合交易所有限公司("联交所")创业板("创业板")上 市。于二零一五年十一月二十日,本公司之股份已由联交所创业板转板上市。本公司主要于香港及中国 从事销售、推销及分销保健以及美容补品及产品。 7月28日，截至港股收盘，恒生指数上涨0.68%，报25562.13点。顺腾国际控股（00932.HK）收报0.032 港元/股，上涨10.34%，成交量73.2万股，成交额2.31万港元，振幅10.34%。 最近一个月来，顺腾国际控股累计跌幅9.38%，今年 ...

2024/2025 ANNUAL REPORT 年 報 ANNUAL REPORT 2024/2025 年報 Contents 目錄 綜合損益及其他全面收益表 2 Corporate Information 公司資料 4 Financial Highlights 財務概要 6 Information for Investors 給投資者的資料 7 Chairman's Statement 主席報告 9 Management Discussion and Analysis 管理層討論與分析 20 Biographical Details of Directors and Senior Management 董事及高級管理層履歷詳情 25 Report of the Directors 董事會報告書 42 Corporate Governance Report 企業管治報告 70 Environmental, Social and Governance Report 環境、社會及管治報告 112 Independent Auditor's Report 獨立核數師報告 118 Consolidated State ...

Company Overview - Shun Teng International Holdings (00932.HK) reported a closing price of HKD 0.033 per share, with a 10.0% increase and a trading volume of 3.328 million shares, totaling HKD 110,300, and a price fluctuation of 23.33% [1] - The company has experienced a cumulative increase of 25% over the past month, but a year-to-date decline of 3.23%, underperforming the Hang Seng Index, which has risen by 20.75% [2] Financial Performance - For the fiscal year ending March 31, 2025, Shun Teng International Holdings achieved total revenue of HKD 189 million, a year-on-year decrease of 12.96% [2] - The company reported a net profit attributable to shareholders of -HKD 33.4461 million, reflecting a significant decline of 6447.29% [2] - The gross profit margin stood at 77.03%, with a debt-to-asset ratio of 53.15% [2] Valuation and Industry Comparison - Currently, there are no institutional investment ratings for Shun Teng International Holdings [3] - The average price-to-earnings (P/E) ratio for the pharmaceutical and biotechnology industry is 3.78 times, with a median of 6.52 times [3] - Shun Teng International Holdings has a P/E ratio of -2.57 times, ranking 143rd in the industry [3] - Comparatively, other companies in the sector have the following P/E ratios: - Jingyou Pharmaceutical (00858.HK): 0.85 times - Kingsray Biotechnology (01548.HK): 1.44 times - Dongrui Pharmaceutical (02348.HK): 3.05 times - Jilin Changlong Pharmaceutical (08049.HK): 5.86 times - Dajiankang International (02211.HK): 5.97 times [3] Corporate Background - Shun Teng International Holdings Limited is a publicly listed company in Hong Kong (stock code: 932), previously known as Yuyatang Group Holdings Limited, and has been listed on the Hong Kong Stock Exchange since October 11, 2013 [3] - The company primarily engages in the sales, marketing, and distribution of health and beauty supplements and products in Hong Kong and China [3]

[Performance Summary](index=2&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) [Financial Highlights](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) The Group's total revenue for the fiscal year decreased by **13.0%** to **205 million HKD**, shifting from profit to a loss attributable to owners of the Company of **36.24 million HKD**, compared to a profit of **0.57 million HKD** in the prior year, with adjusted net loss of **5.84 million HKD** significantly down from prior year's adjusted net profit of **15.57 million HKD**, primarily due to weak performance in the health and beauty business and fair value loss on investment properties Key Financial Data for FY2025 | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 205,048 | 235,586 | -13.0% | | **Gross Profit** | 157,953 | 184,212 | -14.2% | | **Loss / (Profit) Attributable to Owners of the Company** | (36,243) | 571 | Shifted from profit to loss | | **Adjusted Net Loss / (Profit)*** | (5,843) | 15,571 | Shifted from profit to loss | - Adjusted net loss / (profit) is a non-GAAP measure excluding fair value changes of investment properties (**30.40 million HKD**), which management believes better reflects core operating performance[3](index=3&type=chunk) [Core Financial Statements](index=3&type=section&id=%E6%A0%B8%E5%BF%83%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The consolidated statement of profit or loss for the year shows that decreased revenue and significant fair value loss on investment properties were the main drivers of the loss before tax, while the consolidated statement of financial position reflects a reduction in total assets due to diminished investment property values and the Company's net current liabilities position [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This fiscal year's revenue decreased to **205 million HKD**, with gross profit consequently falling to **158 million HKD**. Due to a **30.40 million HKD** fair value loss on investment properties, the Company recorded a loss before tax of **33.37 million HKD**, a stark contrast to the **4.57 million HKD** profit before tax in the prior year, resulting in a final loss for the year of **36.24 million HKD** and basic loss per share of **1.17 HK cents** Key Items from Consolidated Statement of Profit or Loss | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 205,048 | 235,586 | | Gross Profit | 157,953 | 184,212 | | Selling and Distribution Expenses | (53,131) | (54,499) | | Administrative Expenses | (102,002) | (103,802) | | Fair Value Change of Investment Properties | (30,400) | (15,000) | | **Loss / (Profit) Before Tax** | **(33,368)** | **4,574** | | **Loss / (Profit) for the Year** | **(36,243)** | **518** | | **Basic Loss / (Earnings) Per Share (HK cents)** | **(1.17)** | **0.02** | [Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of March 31, 2025, the Group's total assets decreased to **289 million HKD**, primarily due to the fair value of investment properties falling from **207 million HKD** to **177 million HKD**. The Company recorded net current liabilities of **75.44 million HKD**, indicating short-term repayment pressure, and total equity decreased from **172 million HKD** to **135 million HKD** Key Items from Consolidated Statement of Financial Position | Item | March 31, 2025 (HKD thousands) | March 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Non-current Assets** | 218,788 | 258,379 | | Of which: Investment Properties | 176,700 | 207,100 | | **Current Assets** | 70,116 | 85,955 | | **Current Liabilities** | 145,557 | 165,500 | | **Net Current Liabilities** | (75,441) | (79,545) | | **Net Assets** | 135,345 | 171,608 | | **Total Equity** | 135,345 | 171,608 | - Despite net current liabilities, the Directors believe the Group can continue as a going concern, considering operating cash flows, ongoing financing capabilities, and undrawn shareholder loans[14](index=14&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Business and Market Review](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E8%88%87%E5%B8%82%E5%A0%B4%E5%9B%9E%E9%A1%A7) The Group's business was impacted by a weak retail market and a sluggish property sector in Hong Kong, where a resurgence in inbound tourist numbers was offset by a shift in tourist spending patterns, reduced purchasing power, and the trend of local residents spending in mainland China, all pressuring the Group's health supplement retail business, while high interest rates and a weak economic environment also hindered property market recovery - During the reporting period, Hong Kong's overall retail sales value decreased by **8.7%**, with traditional Chinese medicine and herbal categories, relevant to the Group's business, declining by **12.2%**[49](index=49&type=chunk) - Inbound tourist spending shifted from shopping to experiences, and the strong HKD led to cautious tourist spending[48](index=48&type=chunk) - Despite the government's withdrawal of property cooling measures, the residential and commercial property markets' recovery remains slow due to unfavorable economic conditions and high interest rates[50](index=50&type=chunk) [Segment Business Performance](index=19&type=section&id=%E5%88%86%E9%83%A8%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE) The core health and beauty supplements business actively responded to market challenges by launching new products, engaging new spokespersons, and expanding online channels, while the property investment business adopted a cautious strategy in a sluggish market to maintain stable rental returns [Health and Beauty Supplements and Products Business](index=19&type=section&id=%E4%BF%9D%E5%81%A5%E5%8F%8A%E7%BE%8E%E5%AE%B9%E8%A3%9C%E5%93%81%E5%8F%8A%E7%94%A2%E5%93%81%E6%A5%AD%E5%8B%99) This business segment owns proprietary brands like "Yu Yao Tang" and sells through retail chains, counters, and e-commerce platforms. During the reporting period, the Company launched several new products and engaged new spokespersons to rebrand. To expand its market, the Company entered mainland China's e-commerce platforms (Tmall, Douyin) and launched the "Yu Shang Hui" CRM mobile application to enhance customer loyalty - Successfully launched several new products, such as "Immunoglobulin Potent Formula" and "Melatonin Sleep 3-in-1 Formula", and upgraded best-selling products like NMN[52](index=52&type=chunk) - Invited renowned artist Mr. Johnny as spokesperson for multiple products and sponsored a TV drama to enhance brand image[53](index=53&type=chunk) - Expanded sales channels into mainland China by opening flagship stores on Tmall and Douyin[54](index=54&type=chunk) - Launched the "Yu Shang Hui" CRM mobile application to gain deeper insights into customer spending habits and formulate more precise marketing strategies[55](index=55&type=chunk) [Property Investment Business](index=20&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87%E6%A5%AD%E5%8B%99) The Group continues to hold commercial, residential, and industrial properties in Sham Shui Po, Mid-Levels, and Kwai Chung, Hong Kong. Facing a persistently sluggish Hong Kong property market, the Group adopted a cautious investment strategy, focusing on managing its existing property portfolio to ensure returns - The property portfolio includes tenement buildings in Sham Shui Po, residential properties in Mid-Levels, and industrial properties in Kwai Chung[56](index=56&type=chunk) [Financial Performance Analysis](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) The Group's financial performance significantly declined, with revenue decreasing by **13.0%** and shifting from profit to loss. The **13.3%** revenue decrease in the core health supplement business was the primary drag. Despite the Company's cost control measures on selling and administrative expenses, these were insufficient to offset the impact of revenue decline and the **30.40 million HKD** fair value loss on investment properties [Revenue Analysis](index=21&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue decreased by **13.0%** year-on-year to **205 million HKD**. Specifically, revenue from the health and beauty supplements business decreased by **13.3%** to **200 million HKD**, primarily due to the weak local retail market and changing tourist spending patterns, while property investment revenue slightly increased by **2.5%** to **5.13 million HKD** Segment Revenue Breakdown | Business Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Health and Beauty Supplements and Products | 199,918 | 230,580 | -13.3% | | Property Investment | 5,130 | 5,006 | +2.5% | | **Total Revenue** | **205,048** | **235,586** | **-13.0%** | [Cost and Gross Profit Analysis](index=21&type=section&id=%E6%88%90%E6%9C%AC%E8%88%87%E6%AF%9B%E5%88%A9%E5%88%86%E6%9E%90) Cost of sales decreased by **8.4%** year-on-year to **47.10 million HKD**, a smaller reduction than the revenue decline, leading to a slight **1.2** percentage point decrease in the overall gross profit margin from **78.2%** in the prior year to **77.0%** - Overall gross profit margin remained relatively stable, slightly decreasing to **77.0%**[58](index=58&type=chunk) [Operating Expense Analysis](index=22&type=section&id=%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF%E5%88%86%E6%9E%90) The Company successfully controlled operating expenses, with selling and distribution expenses decreasing by **2.6%** to **53.10 million HKD** and administrative expenses decreasing by **1.7%** to **102 million HKD**, reflecting reduced sales-linked commissions and rentals, as well as prudent cost control measures - The decrease in selling and distribution expenses was primarily due to reduced sales commission expenses[59](index=59&type=chunk) - The reduction in administrative expenses was mainly due to lower counter rental and cost control measures on back-office expenses[60](index=60&type=chunk) [Profitability Analysis](index=22&type=section&id=%E7%9B%88%E5%88%A9%E8%83%BD%E5%8A%9B%E5%88%86%E6%9E%90) Due to the continued deterioration of the Hong Kong property market, the Group recorded a fair value loss on investment properties of **30.40 million HKD**, which was a key factor in the full-year shift from profit to loss. Excluding this non-operating item, the adjusted net loss was **5.80 million HKD** - Due to the continued deterioration of the Hong Kong property market, fair value loss on investment properties expanded to **30.40 million HKD** (compared to **15.00 million HKD** in the prior year)[61](index=61&type=chunk) Profitability Metrics | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Loss / (Profit) for the Year | (36,243) | 518 | | Adjusted Net Loss / (Profit) | (5,843) | 15,571 | [Liquidity and Capital Resources](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The Group's financial position tightened, with the gearing ratio increasing to **87.9%**, cash and bank balances decreasing to **5.50 million HKD**, and the current ratio remaining at a low level of **0.5x**. Despite this, management believes the Group has sufficient resources to meet its financial needs, supported by internal funds generated from operations and undrawn banking and shareholder facilities totaling approximately **28.00 million HKD** Liquidity and Capital Structure Metrics | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances | Approx. **5.50 million HKD** | Approx. **12.70 million HKD** | | Current Ratio | Approx. **0.5x** | Approx. **0.5x** | | Gearing Ratio | Approx. **87.9%** | Approx. **79.8%** | - The increase in gearing ratio was primarily due to a decrease in total equity at the end of the reporting period[67](index=67&type=chunk) - The Group holds undrawn general banking facilities of approximately **10.00 million HKD** and loan facilities of **18.00 million HKD** provided by a shareholder[67](index=67&type=chunk) [Outlook](index=25&type=section&id=%E5%89%8D%E6%99%AF) Looking ahead, the Company anticipates continued challenges in Hong Kong's retail sector. To address this, the Group plans to actively explore new revenue streams, including launching a new high-end health supplement brand in FY2025/26, while implementing stringent cost control measures to navigate the uncertain macroeconomic environment and consolidate its industry position for long-term shareholder value creation - Hong Kong's retail sector is expected to continue facing challenges due to evolving consumer patterns[71](index=71&type=chunk) - Plans to establish a new brand focusing on premium health and beauty supplements in FY2025/26 to attract new customers[73](index=73&type=chunk) - Prudent cost control measures will be implemented for procurement, advertising, and back-office expenses starting from FY2025/26[74](index=74&type=chunk) [Principal Risks and Uncertainties](index=27&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E7%A2%BA%E5%AE%9A%E5%9B%A0%E7%B4%A0) The Group faces principal risks including regulatory and business risks. Regulatory changes concerning traditional Chinese medicine health products may impact operations. Business risks include the health supplement segment's close ties to Hong Kong's economic environment, where slowdowns affect consumption, and the property investment segment's vulnerability to a sluggish Hong Kong property market, potentially leading to fair value losses - Regulatory Risk: Changes in regulatory policies and laws concerning traditional Chinese medicine ingredient health products may impact industry development[83](index=83&type=chunk) - Business Risk (Health Supplements): A slowdown or recession in Hong Kong's economy may adversely affect consumer preferences and spending, impacting the business[84](index=84&type=chunk) - Business Risk (Property): Any downturn in Hong Kong's property market could significantly and adversely affect the Group's financial position and investment property values[85](index=85&type=chunk) [Other Significant Matters](index=28&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) [Dividends and Annual General Meeting](index=28&type=section&id=%E8%82%A1%E6%81%AF%E8%88%87%E8%82%A1%E6%9D%B1%E5%A4%A7%E6%9C%83) The Board does not recommend a final dividend for the reporting period. To determine eligibility for attending the Annual General Meeting, the Company will suspend share transfer registration from August 29 to September 3, 2025, with the AGM scheduled for September 3, 2025 - The Board does not recommend a final dividend for the year ended March 31, 2025[87](index=87&type=chunk) - The Annual General Meeting (AGM) is scheduled for September 3, 2025[88](index=88&type=chunk) [Corporate Governance](index=29&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company emphasizes its commitment to good corporate governance and confirms compliance with the Corporate Governance Code's provisions during the reporting period. An Audit Committee, comprising three independent non-executive directors, has been established and reviewed the annual consolidated financial statements - The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period[89](index=89&type=chunk) - The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's consolidated financial statements and final results[91](index=91&type=chunk)

Financial Performance - Total revenue for the six months ended September 30, 2024, was approximately HKD 102,996,000, a decrease of 19.5% compared to HKD 128,012,000 for the same period last year[9]. - The health and beauty supplements and products business generated revenue of HKD 100,191,000, down 20.5% from HKD 126,004,000 year-on-year[9]. - The property investment business saw revenue increase by 39.7% to HKD 2,805,000 from HKD 2,008,000 in the previous year[9]. - The company reported a loss attributable to owners of HKD 4,261,000, compared to a profit of HKD 10,846,000 in the same period last year, representing a decline of 139.3%[9]. - Adjusted net profit for the period was HKD 2,739,000, down 81.4% from HKD 14,746,000 year-on-year[9]. - Gross profit for the same period was HKD 79,655,000, down 19% from HKD 98,164,000 year-over-year[58]. - Operating profit significantly decreased to HKD 706,000 from HKD 17,449,000, reflecting a decline of 95.9%[58]. - The net loss for the period was HKD 4,261,000, a substantial decline from a profit of HKD 10,799,000 in the same period last year[58]. - Basic and diluted loss per share was HKD (0.14), compared to earnings of HKD 0.35 per share in the prior year[62]. Revenue Breakdown - Total revenue decreased by approximately 19.5% from about HKD 128,012,000 to approximately HKD 102,996,000, primarily due to weak retail market and consumer sentiment in Hong Kong and Macau[25]. - Revenue from health and beauty supplements decreased by about 20.5% from approximately HKD 126,004,000 to about HKD 100,191,000, attributed to declining consumer spending and changing consumption patterns[25]. - Revenue from property investment increased by approximately 40.0% from about HKD 2,008,000 to approximately HKD 2,805,000, reflecting additional rental income from property usage changes[26]. - The group reported segment revenue of HKD 100,191,000 from health and beauty supplements and products, and HKD 2,805,000 from property investment, totaling HKD 102,996,000 for the six months ended September 30, 2024[86]. Expenses and Costs - Sales cost decreased by approximately 21.8% to about HKD 23,300,000, aligning with the revenue decline, while gross margin slightly increased by about 0.6% to approximately 77.3%[27]. - Selling and distribution expenses decreased by approximately 13.7% to about HKD 22,600,000, mainly due to prudent cost control measures on advertising and reduced sales commissions[29]. - Administrative expenses decreased by approximately 2.5% to about HKD 49,800,000, primarily due to reduced rent for designated counters in retail stores[30]. - Employee costs during the reporting period were approximately HKD 36,100,000, down from approximately HKD 38,300,000 in the same period last year[40]. Cash and Liquidity - Cash and cash equivalents increased by 47.3% to HKD 18,704,000 from HKD 12,700,000[9]. - As of September 30, 2024, the company's cash and bank balances were approximately HKD 18,700,000, an increase from approximately HKD 12,700,000 as of March 31, 2024[36]. - The net cash generated from operating activities was HKD 16,927,000, a decrease from HKD 36,260,000 in the previous year[72]. - The company reported a net increase in cash and cash equivalents of HKD 5,999,000, compared to HKD 8,295,000 in the same period last year[72]. - The company’s operating cash flow before changes in working capital was HKD 12,767,000, significantly lower than HKD 26,308,000 in the previous year[72]. Assets and Liabilities - Total assets as of September 30, 2024, were HKD 248,210,000, down from HKD 258,379,000 as of March 31, 2024[64]. - The company’s total liabilities decreased to HKD 292,798,000 from HKD 287,296,000 year-over-year[68]. - Accounts receivable as of September 30, 2024, totaled approximately HKD 25,825,000, down from HKD 27,652,000 as of March 31, 2024[100]. - Bank borrowings as of September 30, 2024, amounted to approximately HKD 121,490,000, an increase from HKD 110,965,000 as of March 31, 2024[106]. Strategic Initiatives - The company launched a new customer relationship management mobile app "御賞會" to enhance customer engagement and marketing strategies[22]. - The company plans to expand its market presence by promoting products through designated cross-border e-commerce platforms, targeting mainland Chinese customers[48]. - New products launched include "Zhongda Traditional Chinese Medicine Sensitive Patch" and upgraded versions of existing products, with further launches planned for the second half of the year[49]. - The company plans to continue expanding its product offerings and market presence, focusing on health and beauty sectors[79]. Corporate Governance - The board does not recommend declaring an interim dividend for the reporting period, consistent with the previous year[46]. - The company has complied with the corporate governance code as per the listing rules during the reporting period[139]. - All directors confirmed compliance with the standard code for securities trading during the reporting period, with no violations reported[141]. - The Audit Committee consists of three independent non-executive directors, overseeing financial reporting and internal controls[142].

Financial Performance - For the six months ended September 30, 2024, the company reported revenue of HKD 102,996,000, a decrease of 19.5% compared to HKD 128,012,000 for the same period in 2023[3] - The adjusted net profit for the period was HKD 2,739,000, down 81.5% from HKD 14,746,000 in the previous year[3] - The company incurred a loss attributable to owners of HKD 4,261,000, compared to a profit of HKD 10,846,000 in the same period last year[3] - The company reported a pre-tax loss of HKD 2,893,000 for the six months ended September 30, 2024, compared to a pre-tax profit of HKD 13,556,000 for the same period in 2023[23][28] - The company recorded a loss attributable to shareholders of approximately HKD 4.3 million, compared to a profit of approximately HKD 10.8 million in the same period last year[45] - Total revenue for the period was HKD 103 million, a decrease of approximately 19.5% from HKD 128 million in the previous year[55] Revenue Breakdown - The segment revenue from health and beauty products was HKD 100,191,000, while property investment revenue was HKD 2,805,000 for the six months ended September 30, 2024[26] - The revenue from health and beauty supplements decreased by approximately 20.5% to about HKD 100.2 million, down from HKD 126 million in the same period last year[57] - Revenue from property investment increased by approximately 40.0% to about HKD 2.8 million, compared to HKD 2 million in the previous year[57] Cost and Expenses - The cost of sales decreased by approximately 21.8% to about HKD 23.3 million, with a gross margin slightly increasing to about 77.3%[58] - Selling and distribution expenses decreased by approximately 13.7% to about HKD 22.6 million, due to cost control measures and reduced sales commissions[59] - Administrative expenses decreased by approximately 2.5% to about HKD 49.8 million, primarily due to reduced rent for designated counters[60] - The company's employee costs decreased to HKD 36.07 million from HKD 38.27 million, a reduction of about 5.7%[32] - The company’s inventory costs decreased to HKD 16.9 million from HKD 22.48 million, a decline of approximately 25.0%[32] Assets and Liabilities - Total assets decreased to HKD 248,210,000 from HKD 258,379,000 as of March 31, 2024[12] - The company’s accounts receivable as of September 30, 2024, was approximately HKD 25.83 million, down from HKD 27.65 million as of March 31, 2024[40] - The company’s accounts payable as of September 30, 2024, was approximately HKD 1.84 million, a decrease from HKD 2.36 million as of March 31, 2024[42] - The total liabilities as of September 30, 2024, were HKD 164,303,000, a decrease from HKD 172,726,000 as of March 31, 2024, reflecting a reduction of about 4.9%[30] - The net current liabilities improved to HKD (73,745,000) from HKD (79,545,000) year-on-year[12] Cash Flow and Liquidity - The company's cash and cash equivalents increased to HKD 18,704,000 from HKD 12,700,000[12] - As of September 30, 2024, the cash and bank balance was approximately HKD 18.7 million, up from HKD 12.7 million as of March 31, 2024[66] - Current liabilities decreased to HKD 157,240,000 from HKD 165,500,000, indicating improved liquidity[12] Strategic Initiatives - The company launched a customer relationship management mobile app "御賞會" to enhance customer engagement and marketing strategies[52] - The company is expanding sales channels by opening flagship stores on Tmall and Douyin to enter the mainland China market[50] - The group plans to actively explore new revenue sources and expand sales channels to enhance market share in the health and beauty supplement sector[78] - The group aims to leverage cross-border e-commerce platforms to reach mainland Chinese customers, utilizing social media and key opinion leaders for product promotion[78] Future Outlook - The company continues to adopt the going concern basis in preparing its financial statements, indicating confidence in its operational sustainability in the foreseeable future[1] - The company will continue to monitor market conditions and implement appropriate strategies to optimize overall performance[46] Dividend Policy - The company did not recommend the payment of an interim dividend for the two interim periods[36] - The board does not recommend declaring an interim dividend for the reporting period, consistent with the previous year[77] Other Information - The company applied several amendments to the Hong Kong Financial Reporting Standards, which did not significantly impact the financial position or performance for the current and prior periods[18] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[71] - The overall capital management strategy remains unchanged, focusing on optimizing debt and equity balance to maximize shareholder returns[69] - The group has no significant contingent liabilities as of September 30, 2024, consistent with the previous reporting period[75]

Revenue and Profitability - Revenue from health and beauty supplements increased by 6.8% to HK$230,580,000 in 2024 from HK$215,920,000 in 2023[10] - Property investment revenue surged by 2,318.4% to HK$5,006,000 in 2024 from HK$207,000 in 2023[10] - Total revenue for continuing operations rose by 9.0% to HK$235,586,000 in 2024 compared to HK$216,127,000 in 2023[10] - Gross profit increased by 10.8% to HK$184,212,000 in 2024, with a gross profit margin of 78.2%[10] - Profit attributable to owners of the Company decreased by 98.6% to HK$571,000 in 2024 from HK$41,036,000 in 2023[10] - Adjusted Net Profit fell by 37.3% to HK$15,571,000 in 2024 from HK$24,847,000 in 2023[10] - The Group's total revenue for the Reporting Period reached HK$235.6 million, representing a year-on-year increase of 9.0% from HK$216.1 million[26] - The Group's revenue increased by approximately 9.0% to approximately HK$235.6 million for the Reporting Period, compared to approximately HK$216.1 million for the year ended 31 March 2023[42] Financial Position - Cash and cash equivalents decreased by 3.1% to HK$12,700,000 in 2024 from HK$13,108,000 in 2023[10] - Net assets increased by 19.7% to HK$171,608,000 in 2024 from HK$143,410,000 in 2023[10] - Total equity attributable to owners of the Company rose by 18.4% to HK$172,887,000 in 2024 from HK$146,007,000 in 2023[10] - Net assets per share increased by 20.0% to HK$0.06 in 2024 from HK$0.05 in 2023[10] - The Group's cash and bank balances were approximately HK$12.7 million, a slight decrease from HK$13.1 million in 2023, with a current ratio of approximately 0.5 times[86][90] - The gearing ratio improved to approximately 79.8% from 111.3% in 2023, indicating a reduction in total borrowings relative to equity[86][90] - As of March 31, 2024, the Group had secured bank borrowings of approximately HK$111.0 million, an increase from HK$61.7 million in 2023[119][124] Operational Performance - The Group's healthcare business in Hong Kong experienced steady growth due to increased demand following the reopening of borders and government initiatives[26] - Despite the recovery in the Hong Kong retail market, challenges such as rising global interest rates and increased operating costs have pressured pricing strategies and profit margins[27] - The Group is investing in research and development to introduce a diverse range of new healthcare products to meet evolving market demands[28] - Total visitor arrivals in Hong Kong increased by 715% to approximately 40,814,000 during the Reporting Period, compared to 5,008,000 for the year ended 31 March 2023[43] - Overall retail sales in Hong Kong recorded a growth of 9.6% for the Reporting Period compared to the year ended 31 March 2023, indicating a gradual recovery in the retail industry[45] Marketing and Customer Engagement - A flagship store on Tmall was established in June 2024 to tap into the mainland China market, with plans for an e-shop on Douyin[33] - A dedicated customer loyalty membership program mobile application was launched in June 2024 to enhance customer engagement and service experience[34] - The Group has intensified marketing efforts through social media and television advertisements to improve brand awareness and image[50] - The Group increased its special designated counters from 55 to 61 in Hong Kong and Macau as of 31 March 2024, aiming to enhance customer shopping experiences[51] Research and Development - The Royal Medic Research and Development Centre will continue to support the development of new products and improve existing ones to maintain competitive advantage[35] - The Group's research and development center, Yuyitang, will continue to support the development of new products to maintain a competitive edge in quality and innovation[38] - The Royal Medic Research and Development Centre is focused on improving quality control standards and developing new products to meet evolving customer demands[108] Cost Management - Selling and distribution expenses rose by 15.0% to approximately HK$54.5 million, primarily due to increased commission expenses[67] - Administrative expenses increased by 21.7% to approximately HK$103.8 million, mainly due to higher rent from designated counters[68] - The cost of sales increased by approximately HK$1.6 million or 3.2% to approximately HK$51.4 million, with a stable gross profit margin of 78.2%[65] - The Group plans to implement effective measures to control administration and production costs in response to economic challenges[128][129] Governance and Management - The company has a strong governance structure with independent non-executive directors serving on various committees, enhancing oversight and accountability[140][143] - The management team is composed of professionals with diverse backgrounds in finance, compliance, and business management, ensuring strategic leadership[144][148] - The board includes members with significant experience in both local and international markets, contributing to informed decision-making and strategic direction[139][140][143] Future Outlook and Strategy - The Group aims to capture new business opportunities arising from the gradual recovery of the retail market to enhance long-term shareholder value[109] - The Group is committed to enhancing operational efficiency and market responsiveness in the health and beauty supplements industry through optimized internal workflows and effective marketing strategies[101] - The Group aims to diversify its business by rolling out new products and expanding distribution channels to enhance overall performance[128][129] Risks and Compliance - The Group is exposed to foreign exchange risks primarily from transactions in US dollars and Renminbi, and management will continue to monitor and manage this exposure[118] - The Group is closely monitoring regulatory changes in the health supplement industry, which may significantly impact future development if compliance is not maintained[121][126] - The Group does not currently have a hedging policy for foreign exchange risks, primarily exposed to USD and RMB[123] Share Options and Dividends - The Board does not recommend the payment of a final dividend for the year ended 31 March 2024, consistent with the previous year where no dividend was paid[170] - As of 31 March 2024, there were no share options granted, exercised, cancelled, lapsed, or outstanding under both the 2013 and 2023 Share Option Schemes[185] - The purpose of the 2023 Share Option Scheme is to grant share options to eligible participants as incentives or rewards for their contributions[200]

Financial Performance - Revenue for the year ended March 31, 2024, increased to HKD 235,586,000, up 9.0% from HKD 216,127,000 in the previous year[4] - Adjusted net profit for the year was HKD 15,571,000, a decrease of 37.4% compared to HKD 24,847,000 in the prior year[5] - Gross profit rose to HKD 184,212,000, representing a 10.7% increase from HKD 166,310,000 year-on-year[4] - The company reported a net profit attributable to shareholders of HKD 571,000, a significant decline from HKD 41,036,000 in the previous year[4] - Basic and diluted earnings per share from continuing operations were HKD 0.02, down from HKD 1.33 in the previous year[11] - The segment performance for health and beauty supplements showed a profit of HKD 52,140, down from HKD 69,555 in the previous year, indicating a decline of about 25%[31] - The pre-tax profit for continuing operations was HKD 4,574, a decrease from HKD 43,766 in the previous year, indicating a decline of about 89%[31] - The profit attributable to the company's owners was approximately HKD 600,000, a significant decrease from HKD 41 million in the previous year[58] - Adjusted net profit for the year was approximately HKD 15.6 million, down from HKD 24.8 million in the previous year[58] Revenue Breakdown - Revenue from health and beauty supplements and products was HKD 230,580,000, while property investment revenue was HKD 5,006,000 for the year ended March 31, 2024[24] - The company confirmed revenue upon transfer of control of goods to customers, typically at the point of delivery, with a return policy affecting variable consideration[26] - The property investment revenue is recognized over time as rental income is accrued from operating leases[27] - The company's revenue from health and beauty supplements increased by approximately 6.8% from about HKD 215.9 million in the previous year to approximately HKD 230.6 million in the current reporting period[66] - Revenue from property investment surged 24 times from approximately HKD 200,000 to about HKD 5 million, primarily due to full-year rental income from a newly acquired property[67] Assets and Liabilities - Total assets as of March 31, 2024, were HKD 258,379,000, up from HKD 242,366,000 in the previous year[13] - Non-current assets increased to HKD 258,379,000, primarily driven by the rise in investment properties[13] - The company’s equity attributable to shareholders rose to HKD 172,887,000 from HKD 146,007,000 in the previous year[14] - Total assets for the reporting segments increased to HKD 318,915 from HKD 293,946, reflecting a growth of approximately 8.5%[33] - The total liabilities for the reporting segments decreased to HKD 92,729 from HKD 105,215, a reduction of about 12%[33] - Accounts receivable decreased from HKD 41.4 million to HKD 29.1 million, reflecting a reduction of approximately 29.7%[49] - The total amount of accounts payable decreased from HKD 24.6 million to HKD 21.1 million, a decline of approximately 14.2%[56] Cash Flow and Financing - The company’s cash and cash equivalents decreased to HKD 12,700,000 from HKD 13,108,000 year-on-year[13] - The group’s cash and bank balances as of March 31, 2024, were approximately HKD 12,700,000, slightly down from HKD 13,100,000 in 2023, with a current ratio of about 0.5 times[81] - The group held unutilized general bank financing of approximately HKD 40,000,000 as of March 31, 2024, up from HKD 20,000,000 in 2023[81] - The company incurred financing costs of HKD 7,777, an increase from HKD 4,968, representing a rise of about 56%[39] - Financing costs rose to approximately HKD 7.8 million from HKD 5 million, attributed to new bank loans and interest payable to a shareholder[75] - As of March 31, 2024, the group held secured bank borrowings of approximately HKD 111 million, an increase from HKD 61.7 million in 2023[96] Operational Changes - The company ceased operations of its e-commerce promotion business through Advance Rider Limited as of August 30, 2022, focusing on health and beauty supplements and property investment[29] - The company plans to expand its sales channels, having increased the number of designated counters from 55 to 61 in Hong Kong and Macau[62] - The company will continue to enhance its marketing strategy, including social media promotions and television advertisements, to improve brand image and awareness[62] - The group plans to expand its business through cross-border e-commerce platforms, having officially opened a flagship store on Tmall in June 2024[86] - A new customer relationship management system and a mobile application for loyal customers were launched in June 2024 to enhance digital service experiences[87] - The R&D center in Hong Kong Science Park is focused on improving product quality control and developing new products to meet changing customer demands[89] Market and Economic Conditions - The number of visitors to Hong Kong surged by 715% to approximately 40.8 million during the reporting period, compared to 5 million in the previous year[59] - The overall retail sales in Hong Kong grew by 9.6% during the reporting period, indicating a gradual recovery in the retail sector[59] - Economic downturns may significantly affect consumer preferences and spending, prompting the group to implement cost control measures and diversify its product offerings[100] Governance and Compliance - The company has adopted corporate governance practices in line with the applicable codes and has complied with all relevant regulations during the reporting period[105] - The audit committee has reviewed the consolidated financial statements and confirmed that they were prepared in accordance with applicable accounting standards[107] Dividends - The company did not declare or recommend any dividends for the year ending March 31, 2024[44] - The board did not recommend a final dividend for the reporting period, consistent with the previous year[102] Other Information - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards, with no significant impact from the new standards implemented during the year[18] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[90] - There have been no significant events occurring after the reporting period up to the date of this announcement[97] - The annual report and notice of the 2024 annual general meeting will be published in accordance with listing rules at the appropriate time[110]

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 128,012,000, an increase of 14% compared to HKD 112,294,000 for the same period in 2022[9] - Gross profit for the same period was HKD 98,164,000, up from HKD 86,111,000, reflecting a gross margin improvement[9] - Profit from continuing operations for the six months was HKD 10,799,000, a decrease of 43% from HKD 18,932,000 in the previous year[9] - Total comprehensive income for the period was HKD 30,202,000, compared to HKD 18,224,000 in the prior year, indicating a significant increase[11] - Basic and diluted earnings per share from continuing operations were both HKD 0.35, down from HKD 0.61 in the previous year[13] - The company reported a profit of HKD 10,846,000 during the period, contributing to the overall increase in equity[18] - For the six months ended September 30, 2023, the company reported a profit of HKD 10,846,000, a decrease of 42.4% compared to HKD 18,735,000 for the same period in 2022[41] Expenses and Liabilities - Administrative expenses increased to HKD 50,863,000 from HKD 39,367,000, reflecting a rise of approximately 29%[9] - The company reported a loss of HKD 50,000 from the sale of a subsidiary, compared to a loss of HKD 237,000 in the previous year[9] - Other income and losses included a loss of HKD 3,611,000, contrasting with a gain of HKD 3,462,000 in the prior year[9] - The company did not report any profit from associates during the current period, compared to a profit of HKD 6,000 in the previous year[9] - The total liabilities of the company as of September 30, 2023, were not disclosed in the provided documents, but the financial position indicates a need for careful monitoring of expenses and revenue growth strategies moving forward[4] Assets and Cash Flow - As of September 30, 2023, total assets amounted to HKD 264,491,000, an increase from HKD 242,366,000 as of March 31, 2023, representing a growth of approximately 9.3%[15] - The company's cash and cash equivalents increased to HKD 21,195,000 from HKD 13,108,000, marking a significant rise of 61.5%[20] - Net current liabilities improved to HKD (82,443,000) from HKD (94,875,000), indicating a reduction in liabilities by approximately 13.1%[15] - Operating cash flow before changes in working capital was HKD 26,308,000, down from HKD 33,736,000, a decrease of approximately 22.1%[20] - The company reported a net cash inflow from operating activities of HKD 36,260,000, compared to HKD 8,777,000 in the previous year, representing a substantial increase of 312.5%[21] Equity and Borrowings - The total equity attributable to owners of the company rose to HKD 176,257,000 from HKD 146,007,000, an increase of approximately 20.7%[18] - The company raised HKD 50,000,000 in new bank borrowings during the period, indicating a strategy to enhance liquidity[21] - As of September 30, 2023, the company had total bank and other borrowings of HKD 110,912,000, an increase from HKD 79,737,000 as of March 31, 2023[56] - The company repaid approximately HKD 18,825,000 of bank and other borrowings during the six months ended September 30, 2023, compared to HKD 11,985,000 for the same period in 2022[56] Market and Strategic Initiatives - The group is optimistic about the growth momentum in the consumer health market and plans to expand into new markets outside of Hong Kong, particularly in mainland China and other Asian regions[84] - The group is enhancing its internal management systems to improve cost efficiency, logistics management, and procurement cycles[85] - The group has appointed a well-known singer as the spokesperson for its new NMN product, aiming to attract a wider customer base across different age groups[87] - The group is closely monitoring regulatory changes in the health supplement industry to adapt its business strategies accordingly[90] - The company's health and beauty supplement business is closely tied to the economic environment in Hong Kong, with potential impacts on consumer preferences and spending due to economic slowdown or recession[91] - The company aims to launch more new products and expand distribution channels to diversify its business and enhance overall performance[91] Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes as per the listing rules during the reporting period[107] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial statements for the period[110] - The company has disclosed related party transactions in its interim report, with certain transactions exempt from disclosure requirements under listing rules[100] - The company has appointed new directors and executives, including a non-executive director and a deputy CEO, effective from September 25, 2023[102] Shareholder Information - As of September 30, 2023, the company had a total of 3,107,893,440 shares issued, with significant shareholdings disclosed[93] - Mr. Zhang Shaohui holds 723,242,000 shares, representing 23.27% of the company's issued share capital[93] - Leading Virtue Holdings Limited, controlled by Mr. Zhang, also holds 723,242,000 shares, indicating a strong ownership concentration[98] - Ms. Liang Lishan holds 718,804,033 shares, representing 23.13% of the company's issued share capital, indicating another significant shareholder[98] Share Option Plan - The board of directors has been granted options to purchase shares under a stock option plan adopted on September 13, 2023[97] - The company has adopted a new share option plan effective from September 27, 2023, replacing the previous plan from 2013, which was terminated[103] - As of September 30, 2023, the maximum number of share options available under the new plan is 310,789,344 shares, representing 10% of the company's issued shares[105] - No share options were granted, exercised, cancelled, or lapsed under the 2013 share option plan during the six months ending September 30, 2023[105]