Financial Performance - PuraPharm Corporation Limited reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year 2024[3]. - The company achieved a net profit margin of 20%, translating to a net profit of HKD 240 million, compared to HKD 200 million in the previous year[3]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 20% year-over-year growth[22]. - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 25%[24]. - The company reported a revenue of HKD 382.1 million for the year ending December 31, 2024, a decrease of HKD 24.8 million or 6.1% compared to HKD 406.9 million in the previous year[74]. - The group’s revenue for the year ended December 31, 2024, was HKD 382.1 million, a decrease of HKD 24.8 million or 6.1% compared to HKD 406.9 million in the previous year[132]. Market Expansion and Product Development - User data indicated a growth in active customers by 25%, totaling 500,000 users as of December 31, 2024[3]. - The company plans to launch three new herbal products in Q2 2025, aiming for a 10% increase in market share within the next fiscal year[3]. - PuraPharm is expanding its market presence in Southeast Asia, targeting a revenue contribution of 30% from this region by 2026[3]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next two years[26]. - New product launches are expected to contribute an additional $300 million in revenue, with a focus on innovative technology solutions[25]. - The company launched a new immune-boosting product, Yikangshi+, which is rich in vitamin C and produced in Japan[48]. - The company launched a new product line, the Natural Pure Extract Drink series, targeting young consumers, with sales in major chain pharmacies and convenience stores[62]. Research and Development - The company has allocated HKD 100 million for R&D in new technologies related to traditional Chinese medicine over the next two years[3]. - Research and development investments increased by 10%, focusing on advanced healthcare technologies and digital solutions[28]. - The company established a new R&D center in Nanning to enhance its product development capabilities and prepare for the standardization of concentrated Chinese medicine granules[55]. - The company continues to increase R&D investment and collaborates with top universities and research institutions in Hong Kong to enhance traditional Chinese medicine (TCM) research, focusing on clinical trials and molecular biology[80]. - The company has established a national research center for medicinal plants and seeds in Guizhou to protect herbal varieties and promote biodiversity[182]. Sustainability and ESG Initiatives - PuraPharm's environmental, social, and governance (ESG) initiatives are expected to enhance brand reputation and customer loyalty, contributing to long-term growth[3]. - The board of directors emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025[30]. - The company received the InnoESG Award for its contributions to creating a more sustainable society and environment[53]. - The company is actively seeking measures to improve energy efficiency and reduce emissions, particularly in response to climate risks affecting herbal supply stability[180]. - The company has implemented a sustainable procurement policy to manage environmental and social risks within its supply chain[183]. - The company aims to reduce total greenhouse gas emissions intensity and energy intensity by 2030, using 2020 as the baseline year[198]. Operational Efficiency - The company reported a 5% increase in gross margin, now at 60%, due to improved operational efficiencies[3]. - Sales and distribution expenses for the year ended December 31, 2024, were HKD 64.9 million, a decrease of HKD 26.8 million or 29.2% from HKD 91.7 million in the previous year, primarily due to effective marketing cost control[144]. - The percentage of sales and distribution expenses to revenue decreased from 22.5% in 2023 to 16.9% in 2024[144]. - Administrative expenses for the year ended December 31, 2024, were HKD 159.5 million, a decrease of HKD 12.0 million or 7.0% from HKD 171.5 million in the previous year[145]. Acquisitions and Partnerships - PuraPharm is exploring potential acquisitions to enhance its product portfolio, with a focus on companies specializing in herbal supplements[3]. - A strategic acquisition of a smaller tech firm was completed, expected to enhance the company's product offerings and increase operational efficiency[27]. - The company has established partnerships with leading universities to foster innovation and drive research in emerging technologies[31]. Employee and Financial Health - The total employee cost for the year ending December 31, 2024, was HKD 101.5 million, down from HKD 130.8 million in 2023, reflecting a reduction of approximately 22.4%[163]. - The group had 479 employees as of December 31, 2024, a decrease of 27.6% from 662 employees in the previous year[163]. - Cash and cash equivalents decreased by HKD 7.3 million or 36.4% to HKD 12.8 million from HKD 20.1 million in the previous year[155]. - The current ratio decreased from 0.6 in 2023 to 0.5 in 2024, primarily due to a significant reduction in trade receivables[158]. - The debt-to-equity ratio increased from 2.5 in 2023 to 3.1 in 2024, mainly due to a decrease in equity from the net loss for the year[158]. Quality Control and Compliance - The company implements strict quality control measures to ensure the highest product quality, adhering to GMP standards from NMPA, TGA, and USP[190]. - All product batches undergo multiple tests before packaging, utilizing advanced testing technologies such as FTIR and UHPLC for safety assessments[190]. - The company has established standardized complaint handling procedures, ensuring no significant product-related complaints or recalls during the reporting period[192]. - The company is committed to protecting customer privacy and complies with the Personal Data (Privacy) Ordinance, ensuring data protection principles are followed[192].

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 382,090,000, a decrease of 6.1% from HKD 406,859,000 in 2023[2] - The company reported a net loss of HKD 35,439,000 for the year, a significant improvement of 66.6% compared to a net loss of HKD 106,081,000 in 2023[4] - Gross profit for the year was HKD 205,142,000, down 5.3% from HKD 216,629,000 in the previous year[4] - The company reported a basic and diluted loss per share of HKD 8.97, compared to HKD 26.85 in the previous year[4] - The company reported a pre-tax loss of HKD 29,144,000 for the year ended December 31, 2024, compared to a loss of HKD 102,312,000 in 2023, representing a 71.5% improvement year-over-year[41] - The company reported a significant decrease in trade payables aged within one month, from HKD 52,514,000 in 2023 to HKD 20,498,000 in 2024, a drop of approximately 61%[60] - The company experienced a net foreign exchange gain of HKD 872,000 in 2024, compared to a gain of HKD 406,000 in 2023[5] Revenue Breakdown - Revenue from Chinese concentrated traditional Chinese medicine formula granules dropped by 51.3% to HKD 24,763,000, compared to HKD 50,807,000 in the previous year[2] - Revenue from Hong Kong concentrated traditional Chinese medicine formula granules remained relatively stable, decreasing slightly by 0.4% to HKD 207,591,000[2] - Sales of concentrated Chinese medicine granules amounted to HKD 273,300,000, down from HKD 298,634,000, representing a decline of 8.5%[32] - The sales revenue of concentrated Chinese medicine granules in China for the year ended December 31, 2024, was HKD 24.8 million, a decrease of HKD 26.0 million or 51.3% compared to HKD 50.8 million in the previous year[72] - The direct sales revenue of concentrated Chinese medicine granules in Hong Kong for the year ended December 31, 2024, was HKD 207.6 million, a slight decrease of HKD 0.8 million or 0.4% from HKD 208.4 million in the previous year[73] - The total sales revenue of Chinese medicine health products for the year ended December 31, 2024, was HKD 84.3 million, an increase of HKD 2.3 million or 2.8% compared to HKD 82.0 million in the previous year[74] - The revenue from the company's clinics increased to HKD 56.3 million for the year ended December 31, 2024, up HKD 2.6 million or 4.8% from HKD 53.7 million in the previous year[76] Cost and Expenses - Cash flow from operating activities improved to HKD 50,162,000, compared to HKD 19,596,000 in 2023[8] - The cost of goods sold decreased to HKD 170,020,000 in 2024 from HKD 185,881,000 in 2023, a reduction of 8.5%[5] - Research and development expenses were HKD 11,168,000 in 2024, down from HKD 16,770,000 in 2023, reflecting a decrease of 33.5%[5] - Sales and distribution expenses for the year ended December 31, 2024, were HKD 64.9 million, a decrease of HKD 26.8 million or 29.2% from HKD 91.7 million in the previous year, primarily due to effective marketing cost control[81] - Administrative expenses totaled HKD 159.5 million for the year ended December 31, 2024, down HKD 12.0 million or 7.0% from HKD 171.5 million in the previous year, mainly driven by reductions in employee costs and R&D expenses[82] - Other expenses significantly dropped to HKD 1.8 million, a decrease of HKD 20.6 million or 91.8% from HKD 22.5 million, mainly due to reduced fair value losses on biological assets[84] Assets and Liabilities - Non-current assets decreased to HKD 447,284,000 from HKD 494,395,000 in the previous year[6] - Total liabilities decreased from HKD 571,089,000 in 2023 to HKD 491,067,000 in 2024[6] - The company's equity decreased to HKD 111,198,000 from HKD 153,236,000 in the previous year[7] - Trade receivables decreased from HKD 132,273,000 in 2023 to HKD 103,260,000 in 2024, a reduction of approximately 22%[48] - The total impairment loss for trade receivables and notes decreased from HKD 133,266,000 in 2023 to HKD 107,795,000 in 2024, representing a decline of about 19%[48] - The aging analysis of trade receivables shows that amounts overdue for more than one year increased from HKD 4,803,000 in 2023 to HKD 6,014,000 in 2024, an increase of approximately 25%[49] - The total amount of bank loans secured decreased from HKD 145,792,000 in 2023 to HKD 107,436,000 in 2024, a decrease of about 26%[61] Cash Flow and Financing - The net cash flow from operating activities was HKD 103.985 million, an increase from HKD 79.608 million in the previous year[10] - The net cash flow used in investing activities was HKD 11.711 million, an improvement from HKD 18.203 million in the previous year[10] - The company has outstanding short-term bank and borrowings totaling HKD 154.0 million, with some loans in breach of covenants[13] - The company successfully obtained new bank loans of HKD 38.0 million after the reporting date[14] - The company plans to negotiate with banks to extend repayment terms for certain loans totaling HKD 24.3 million[14] - The company anticipates having sufficient operating funds to meet its financial obligations in the foreseeable future[14] Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring compliance with all applicable provisions[108] - The roles of Chairman and CEO have not been separated as of December 31, 2024, due to the nature of the business and the expertise of Mr. Chen[109] - The Audit Committee consists of three independent non-executive directors, ensuring adequate oversight of financial reporting and internal controls[110] - The Audit Committee has reviewed the financial performance for the year ending December 31, 2024, confirming compliance with relevant accounting standards and timely disclosures[111] Future Outlook - The company is actively restructuring its product portfolio and tightening overall cost control measures to achieve profitability and positive cash flow[13] - The company plans to further expand its clinic network in the Greater Bay Area and strengthen cross-border sales initiatives in the coming year[70] - The company aims to enhance its international market presence in Canada, the United States, Japan, Australia, and South Korea, leveraging existing production facilities to drive growth and shareholder value[71]

Financial Performance - For the six months ended June 30, 2024, the company achieved revenue of HKD 207.6 million, an increase of HKD 12.5 million or 6.4% compared to HKD 195.1 million in the same period last year[7]. - The net loss decreased to HKD 18.7 million, down HKD 19.0 million or 50.4% from a net loss of HKD 37.7 million in the previous year[7]. - The gross profit margin for the first half of 2024 was 54.6%, a decrease of 2.8 percentage points from 57.4% in the previous year, primarily due to higher production costs under new standards[25]. - The company reported a total comprehensive loss of HKD 23,490,000 for the period, compared to HKD 44,102,000 in the previous year, showing a reduction in overall losses[89]. - The company reported a loss attributable to equity holders of HKD 18.7 million for the six months ended June 30, 2024[99]. - The basic loss per share for the six months ended June 30, 2024, was HKD 4.73, compared to HKD 9.54 for the same period in 2023[121]. Revenue Breakdown - The revenue from Chinese concentrated traditional Chinese medicine granules was HKD 20.7 million, a decrease of HKD 1.6 million or 7.3% compared to HKD 22.3 million in the same period last year[18]. - The company reported a 20.9% increase in revenue from health products, reaching HKD 45.3 million, compared to HKD 37.5 million in the previous year[17]. - The sales revenue of traditional Chinese medicine health products reached HKD 45.3 million, an increase of HKD 7.8 million or 20.9% compared to HKD 37.5 million in the same period last year[20]. - The revenue from the clinic segment increased to HKD 29.4 million, a rise of HKD 3.8 million or 15.2% from HKD 25.6 million in the previous year, driven by an increase in outpatient visits due to flu prevalence[22]. - The sales revenue from the concentrated Chinese medicine formula granules in Hong Kong was HKD 107.6 million, up HKD 0.9 million or 0.8% from HKD 106.8 million year-on-year[19]. Cost Management - Effective cost control measures contributed to a reduction in administrative and sales expenses, aiding in the decrease of net loss[17]. - Sales and distribution expenses were HKD 40.2 million, a decrease of HKD 10.0 million or 19.9% from HKD 50.2 million in the previous year, attributed to effective control of marketing expenses[27]. - Administrative expenses totaled HKD 75.7 million, a reduction of HKD 4.9 million or 6.1% from HKD 80.6 million in the previous year[28]. - Other expenses for the group decreased to HKD 5.7 million, a reduction of 45.1% from HKD 10.3 million in the same period last year, primarily due to a decrease in the fair value loss of biological assets[29]. Strategic Initiatives - The company plans to expand its clinic chain in the Greater Bay Area, with three new clinics opening in Shenzhen this year[9]. - The company is focusing on developing new health products for both the Chinese and international markets, emphasizing cross-border sales channels[9]. - The company plans to continue expanding its clinic network in the Greater Bay Area to leverage brand recognition and market opportunities[23]. - The company is focusing on developing innovative new health products and enhancing online marketing strategies to tap into growth opportunities in China and overseas markets[21]. Financial Position - As of June 30, 2024, the group's total equity was approximately HKD 130.5 million, down from HKD 153.2 million as of December 31, 2023[34]. - The group's net current liabilities decreased to HKD 204.5 million from HKD 221.5 million as of December 31, 2023, with cash and cash equivalents increasing to HKD 22.8 million[35]. - The debt-to-equity ratio increased to 2.9 as of June 30, 2024, from 2.5 as of December 31, 2023, due to a decrease in equity from net losses[35]. - The company has secured new bank loans amounting to HKD 45.8 million during the reporting period and has access to undrawn bank financing of HKD 94.5 million[100]. - The company is facing significant uncertainties regarding its ability to continue as a going concern due to its financial position[99]. Shareholder Information - As of June 30, 2024, the company has a total of 395,897,275 shares issued, with significant shareholdings by key executives[46]. - Mr. Chen Yuling holds a 45.18% interest in the company through controlled entities, while Ms. Wen Yihui holds a 19.54% interest[45]. - The total number of issued shares as of June 30, 2024, is 395,897,275 shares[49]. - The company did not recommend any interim dividend for the 2024 interim period, consistent with the previous year[73]. Stock Options and Incentives - The company has a stock option plan adopted on June 12, 2015, allowing for the issuance of up to 39,489,294 shares, which is 10% of the issued shares as of May 28, 2021[51]. - The company granted stock options with an exercise price of HKD 2.3 on May 9, 2019, and the total number of options granted for the mid-term period in 2024 is 88,570[57]. - The company has a stock reward plan adopted on February 22, 2016, aimed at recognizing and incentivizing contributions from eligible participants[59]. - The total number of stock options that may expire by June 30, 2024, is 88,570 for the options granted on May 9, 2019[57]. - The share reward plan does not involve the issuance of any new shares, with a total of 10,000,000 HKD allocated for purchasing shares for eligible participants[62]. Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed and approved the interim results for the six months ending June 30, 2024[70]. - The company has complied with all applicable corporate governance code provisions during the interim period[69]. - There were no significant events affecting the company or its subsidiaries that required disclosure after the interim period ended[72].

Revenue Performance - Total revenue for the six months ended June 30, 2024, was HKD 207,627,000, representing a 6.4% increase from HKD 195,081,000 in the same period of 2023[1]. - Revenue from health products increased by 20.9% to HKD 45,313,000, up from HKD 37,465,000 in the prior year[1]. - Revenue from the sale of concentrated traditional Chinese medicine granules was HKD 150,000,000, compared to HKD 148,058,000 in the previous year, showing a slight increase[18]. - Revenue from Chinese concentrated traditional Chinese medicine granules decreased by 7.3% to HKD 20,675,000, compared to HKD 22,311,000 in the previous year[1]. - The group reported a total segment revenue of HKD 207.6 million, with the Chinese concentrated herbal granules segment contributing HKD 87.7 million and the Hong Kong segment contributing HKD 110.2 million[16]. - The Chinese herbal health products segment reported revenue of HKD 45.3 million, an increase of HKD 7.8 million or 20.9% compared to HKD 37.5 million last year, driven by growth in the mainland market[63]. Financial Performance - The company reported a loss of HKD 18,686,000 for the period, a 50.4% improvement from a loss of HKD 37,675,000 in the same period last year[2]. - The group incurred a net loss of HKD 18.7 million for the six months ended June 30, 2024, with a pre-tax loss of HKD 14.8 million[16]. - The net loss for the first half of 2024 was HKD 18.7 million, an improvement from a net loss of HKD 37.7 million in the same period last year, mainly due to reduced fair value losses and effective cost control[75]. - The gross profit margin for the group was 54.6%, a decrease of 2.8 percentage points from 57.4% in the previous year, primarily due to higher costs of production under new standards[67]. - The company reported a pre-tax loss of HKD 14.765 million for the six months ended June 30, 2024, compared to a loss of HKD 36.514 million in the same period of 2023, indicating a significant improvement[6]. Assets and Liabilities - Non-current assets totaled HKD 476,024,000 as of June 30, 2024, down from HKD 494,395,000 at the end of December 2023[4]. - Current assets decreased to HKD 305,708,000 from HKD 349,568,000 in December 2023[4]. - Total liabilities decreased from HKD 571,089,000 in December 2023 to HKD 510,222,000 as of June 30, 2024[4]. - The company's total equity decreased to HKD 130,471,000 from HKD 153,236,000 in December 2023[5]. - The company's cash and cash equivalents increased to HKD 22,829,000 from HKD 20,126,000 in December 2023[4]. Cash Flow and Financing - Cash flow from operating activities increased to HKD 43.125 million, up from HKD 24.807 million year-over-year, reflecting a growth of approximately 73.8%[7]. - The company recorded a net cash increase of HKD 4.008 million, a recovery from a decrease of HKD 32.560 million in the previous year[8]. - The net cash outflow from investing activities was HKD 6.695 million, an improvement from HKD 8.431 million in the previous year[7]. - The company’s financing activities resulted in a net cash outflow of HKD 32.422 million, compared to HKD 48.936 million in the same period last year[7]. - The group has secured new bank borrowings of HKD 45.8 million during the reporting period and has access to undrawn bank financing of HKD 94.5 million[11]. Cost Control and Operational Efficiency - The company continues to focus on expanding its health product offerings and improving operational efficiency[2]. - The group is implementing cost control measures to improve cash flow and operational efficiency, including restructuring its product portfolio and reducing non-profitable operations[11]. - Sales and distribution expenses for the first half of 2024 were HKD 40.2 million, a decrease of HKD 10.0 million or 19.9% compared to HKD 50.2 million in the same period last year[69]. - Administrative expenses totaled HKD 75.7 million, down HKD 4.9 million or 6.1% from HKD 80.6 million in the previous year, primarily due to reduced clinic operating costs[70]. - R&D costs decreased by HKD 4.0 million or 41.8%, mainly due to a reduction in testing and sampling expenses related to fewer products registered with relevant authorities[71]. Share Options and Capital Management - The company has a share option plan that allows for the issuance of up to 10% of the total issued shares at the time of listing, which is 22,500,000 shares[44]. - The company recognized stock option expenses of HKD 725,000 for the six months ended June 30, 2024, a decrease of 66.3% from HKD 2,147,000 in the same period of 2023[49]. - The total number of shares that may be issued upon the exercise of stock options granted under the plan was 23,962,424 shares, representing approximately 6.05% of the total issued shares as of January 1 and June 30, 2024[92]. - The company has not issued any unexercised or unvested reward shares under the share reward plan during the mid-term period of 2024[96]. - The company has adopted a share reward plan that allows employees and directors who have contributed to the company to participate through awarded shares[95]. Governance and Compliance - The company has complied with all applicable corporate governance codes during the six-month period ending June 30, 2024[97]. - The audit committee, consisting of three independent non-executive directors, has reviewed and approved the interim results for the six months ending June 30, 2024[99]. - All directors confirmed compliance with the standard code of conduct for securities trading during the six months ending June 30, 2024[100]. - The company has adhered to the non-competition agreement established with its major shareholder since June 2015[98]. - There are no known business or interest conflicts involving directors or major shareholders with the company's operations as of the mid-year period[98].

Financial Performance - PuraPharm Corporation Limited reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the fiscal year 2023, representing a growth of 15% compared to the previous year[10]. - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[32]. - The company reported total revenue of approximately HKD 406.9 million for the fiscal year ending December 31, 2023, a decrease of 9.2% compared to HKD 448.1 million in the previous fiscal year[73]. - The group’s revenue for the year ended December 31, 2023, was HKD 406.9 million, a decrease of HKD 41.2 million or 9.2% compared to HKD 448.1 million in the previous year[124]. - The company reported a net loss of HKD 106.1 million for the year, an improvement from a net loss of HKD 120.2 million in the previous year[149]. User Base and Market Expansion - The company’s user base expanded to 1.5 million active users, marking a 20% increase year-over-year[10]. - User data showed a 15% increase in active users, reaching 2 million by the end of the fiscal year[32]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 10% market share within the next two years[10]. - Market expansion plans include entering the Southeast Asian market, targeting a 10% market share within the first two years[32]. - The company plans to expand its market presence in the Greater Bay Area and enhance its online marketing strategies to capture growth opportunities[132]. Product Development and Innovation - PuraPharm has set a future revenue guidance of HKD 1.5 billion for the next fiscal year, indicating an expected growth of 25%[10]. - PuraPharm plans to launch three new products in the next quarter, focusing on herbal supplements and wellness solutions[10]. - New product launches included a groundbreaking herbal supplement line, expected to contribute $50 million in revenue in the first year[32]. - The company launched a new product line, the Natural Pure Extract Drink series, targeting young consumers, which was introduced in major chain pharmacies and convenience stores[64]. - The company will continue to enhance the R&D of high-quality CCMG products and launch more innovative health products featuring natural Chinese medicine components[79]. Research and Development - The company is actively investing in R&D, with a budget allocation of HKD 200 million, which is 16.7% of total revenue[10]. - The company is investing $10 million in research and development for new technologies aimed at enhancing product efficacy[32]. - The company established a new R&D center in Nanning to enhance its product development capabilities and prepare for the standardization of concentrated Chinese medicine formulas[58]. - The company aims to strengthen R&D for high-quality concentrated Chinese medicine granules and develop innovative health products to enrich its product line[132]. - The company is actively collaborating with world-class research institutions to advance research in traditional Chinese medicine and modernize its practices[132]. Sustainability and Corporate Governance - PuraPharm is committed to sustainability, with plans to reduce carbon emissions by 20% over the next five years[10]. - The company emphasized its commitment to sustainability, aiming to reduce carbon emissions by 30% over the next five years[32]. - The company has established a sustainable supply chain by cultivating over 50 types of medicinal herbs in Guizhou Province to ensure a stable supply of high-quality raw materials[186]. - The company has integrated ESG factors into its procurement decisions to enhance the overall sustainability and resilience of its supply chain[187]. - The company has established an ESG committee responsible for overseeing ESG-related matters, including governance, policies, and performance[175]. Quality Control and Certifications - The company achieved Good Manufacturing Practice (GMP) certification from the Australian Therapeutic Goods Administration (TGA) in 2010, recognized as one of the strictest certification standards globally[46]. - The company’s ONCO-Z cloud mushroom extract became the first traditional Chinese medicine ingredient to receive certification from the United States Pharmacopeia (USP), highlighting its commitment to quality[48]. - The company has received USP certification for its ONCO-Z® cloud mushroom extract, marking it as the first traditional Chinese medicine ingredient to achieve this standard[110]. - The company emphasizes the importance of quality control, adhering to GMP standards set by NMPA, TGA, and USP[197]. - The company has implemented a strict quality control system, ensuring all product batches undergo multiple tests before packaging[197]. Financial Health and Management - The management team emphasized the importance of maintaining strong corporate governance practices to support long-term growth[10]. - The management team highlighted the importance of maintaining strong financial health, with a current cash reserve of $100 million to support future initiatives[32]. - The company is considering equity financing to improve its current ratio and debt-to-equity ratio while enhancing working capital management[155]. - The company recorded a net cash generated from operating activities for the year ended December 31, 2023, was HKD 79.6 million, a decrease of HKD 8.9 million from HKD 88.5 million in the previous year[152]. - The total employee cost for the year ended December 31, 2023, was HKD 130.8 million, compared to HKD 91.4 million in the previous year[160].

Financial Performance - For the year ended December 31, 2023, the group recorded a net loss of HKD 106.1 million, compared to a net loss of HKD 120.2 million in the previous year, indicating an improvement in financial performance [14]. - The total loss before tax for the group was HKD 119.2 million, with a breakdown of losses from Mainland China at HKD 88.2 million, Hong Kong at HKD 3.0 million, and others at HKD 27.9 million [28]. - The basic loss per share attributable to ordinary shareholders for the year ended December 31, 2023, was HKD (26.85), compared to HKD (30.47) for the previous year [30]. - The adjusted net loss for the group was HKD 106,081,000, with a pre-tax loss of HKD 102,312,000 [188]. - The company reported a net loss of HKD 120,214,000 for the year, compared to a loss of HKD 119,182,000 before tax [199]. Revenue and Sales - Total revenue for 2023 is HKD 406,859 thousand, a decrease of 9.2% from HKD 448,069 thousand in 2022 [51]. - Revenue from sales of concentrated Chinese medicine formula granules is HKD 298,634 thousand in 2023, down from HKD 343,715 thousand in 2022 [51]. - The total sales revenue of Chinese medicine health products in the US, Japan, Hong Kong, and mainland China was HKD 82.0 million, an increase of HKD 3.1 million or 4.0% from last year's HKD 78.9 million [93]. - Revenue from product sales in Hong Kong amounted to HKD 290,989,000, while revenue from mainland China was HKD 62,832,000 [196]. - The concentrated Chinese medicine health products segment in the US recorded sales of HKD 30.1 million, accounting for 36.7% of total sales, representing an increase of HKD 3.3 million or 12.2% from last year [99]. Expenses and Costs - The cost of goods sold for 2023 is HKD 185,881 thousand, an increase from HKD 181,518 thousand in 2022 [55]. - Employee benefits expenses increased significantly to HKD 130,766 thousand in 2023 from HKD 91,351 thousand in 2022 [55]. - Selling and distribution expenses decreased by 41.8% to HKD 91.7 million from HKD 157.4 million, with the percentage of revenue dropping from 35.1% to 22.5% [110]. - Administrative expenses increased by 8.6% to HKD 171.5 million from HKD 157.9 million, driven by higher employee costs and new office leasing in Shenzhen [112]. - Financing costs increased by 13.2% to HKD 27.4 million from HKD 24.2 million, consistent with the increase in average bank borrowings [116]. Assets and Liabilities - As of December 31, 2023, the group's current liabilities net amount was HKD 221.5 million, an increase of 23.5% from HKD 179.4 million in 2022 [15]. - Cash and cash equivalents decreased by 73.5%, from HKD 75.8 million in 2022 to HKD 20.1 million in 2023 [15]. - The group had undrawn bank financing of HKD 105.5 million, which increased by 24.3% from HKD 84.8 million in 2022 [15]. - The company reported a total of HKD 304,023,000 in current borrowings due within one year or on demand, compared to HKD 410,140,000 in the previous year, indicating a reduction of about 26% [74]. - The total value of trade receivables pledged as collateral for bank loans was HKD 55,620,000, down from HKD 58,255,000 in the previous year [67]. Cash Flow - The net cash flow from operating activities for the year ended December 31, 2023, was HKD 79.6 million, a decrease of HKD 8.9 million compared to the previous year [123]. - The net cash used in financing activities increased to HKD 122.4 million, up HKD 86.8 million from the previous year, primarily due to a net decrease in bank loans and other borrowings [125]. - The net cash used in investment activities for the year ended December 31, 2023, was HKD 18.2 million, a decrease from HKD 31.2 million in the previous year, primarily due to a reduction in pledged time deposits and the purchase of property, plant, and equipment [16]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring compliance with all applicable provisions [160]. - The audit committee consists of three independent non-executive directors, ensuring proper oversight [163]. - The company believes that the current structure facilitates robust and consistent leadership for effective decision-making [160]. - The independent auditor agreed that the preliminary performance announcement figures for the year ending December 31, 2023, are consistent with the consolidated financial statements [169]. Future Plans and Strategies - The company plans to continue diversifying its business and expanding into the Greater Bay Area, focusing on modernizing and smartening traditional Chinese medicine clinics over the next two years [88]. - The company plans to utilize approximately HKD 282.0 million of the net proceeds from its IPO for various purposes, including expanding production facilities and establishing new TCM clinics in Hong Kong and China [141]. - The company anticipates that the demand for health products will rise due to increased consumer health awareness, providing more opportunities for its Chinese medicine health products segment [100]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth [196].

Revenue Performance - The sales revenue of concentrated Chinese medicine granules in Hong Kong reached HKD 106.8 million during the mid-term period of 2023, an increase of HKD 23.1 million or 27.6% compared to HKD 83.7 million in the same period last year[1]. - The revenue generated from the company's clinics increased to HKD 25.6 million, up HKD 3.5 million or 15.8% from HKD 22.1 million year-on-year, attributed to enhanced clinic network services and increased demand due to COVID-19 and flu transmission[3]. - The total sales revenue of Chinese medicine health products in the US, Japan, and Hong Kong was HKD 37.5 million, a decrease of HKD 0.8 million or 2.2% from HKD 38.3 million in the same period last year[10]. - For the six months ended June 30, 2023, the company recorded revenue of HKD 195.1 million, a decrease of HKD 35.7 million or 15.5% compared to HKD 230.8 million in the same period last year[120]. - Revenue from Chinese concentrated traditional Chinese medicine (TCM) decreased significantly by HKD 55.1 million or 71.2%, contributing to the overall revenue decline[120]. - Revenue from Hong Kong and overseas concentrated TCM increased by HKD 23.1 million or 27.6%, accounting for 54.7% of total revenue[120]. Profitability and Expenses - The gross profit margin for the mid-term period of 2023 was 57.4%, down 7.6 percentage points from 65.0% in the same period last year, primarily due to higher production costs under new standards[15]. - Other income and gains decreased to HKD 6.1 million, down HKD 1.8 million or 23.3% from HKD 7.9 million in the same period last year, mainly due to a reduction in government subsidies[16]. - Sales and distribution expenses were HKD 50.2 million, a decrease of HKD 32.2 million or 39.1% from HKD 82.4 million year-on-year, resulting in a reduction in the percentage of sales and distribution expenses to revenue from 35.7% to 25.7%[21]. - Administrative expenses totaled HKD 80.6 million, a slight increase of HKD 0.6 million or 0.8% from HKD 80.0 million year-on-year[23]. - The group recorded a net loss of HKD 37.7 million for the first half of 2023, an improvement from a net loss of HKD 39.9 million in the same period last year, mainly due to increased sales in Hong Kong and overseas segments[33]. - The net loss for the same period was HKD 37.7 million, an improvement of HKD 2.2 million or 5.6% from a net loss of HKD 39.9 million in the previous year[121]. Financial Position - As of June 30, 2023, the group's current liabilities net amounted to HKD 205.6 million, an increase from HKD 179.4 million as of December 31, 2022, with cash and cash equivalents at HKD 48.1 million[32]. - The debt-to-equity ratio as of June 30, 2023, was 1.9, slightly up from 1.8 as of December 31, 2022, reflecting a stable financial position despite a decrease in interest-bearing bank borrowings[35]. - The total assets less current liabilities amounted to HKD 296,059 million, down from HKD 351,091 million, indicating a decrease of approximately 15.7%[174]. - The company’s non-current assets totaled HKD 501,676 million as of June 30, 2023, compared to HKD 530,501 million as of December 31, 2022, representing a decrease of about 5.4%[182]. - The company’s cash and cash equivalents were HKD 48,073 million as of June 30, 2023, down from HKD 75,831 million as of December 31, 2022, indicating a decline of approximately 36.7%[182]. Capital Expenditures and Investments - Capital expenditures totaled HKD 10.2 million in the first half of 2023, significantly lower than HKD 43.9 million in the same period last year, primarily for purchasing new production equipment for the Nanning factory[34]. - The company incurred capital expenditures of HKD 10,150,000 during the reporting period[195]. Shareholder Information - As of June 30, 2023, the total issued shares of the company were 395,897,275[57]. - The major shareholders include Mr. Chen Yu-ling, holding 45.18% of the shares, and Ms. Wen Yi-hui, holding 19.54%[51]. - The total number of shares that may be issued upon the exercise of options under the share option scheme is 16,329,091 shares as of June 30, 2023[63]. - The total number of shares available for issuance under the share option scheme represents approximately 6.07% of the company's issued share capital as of June 30, 2023[64]. - The company reported a net share reward expense of HKD 39,000 for the six months ended June 30, 2023, consistent with the previous year[83]. Strategic Initiatives - The company plans to expand its clinic network into the Greater Bay Area to explore market opportunities, leveraging its brand recognition in Hong Kong[3]. - The company is focusing on developing innovative new health products and enhancing online marketing strategies to reach broader markets in China and overseas[10]. - The company plans to enhance its R&D capabilities for high-quality concentrated TCM products and develop innovative health products featuring natural ingredients[112]. - The company aims to expand its market presence in the Greater Bay Area by establishing a network of small and medium-sized clinics and leveraging successful store experiences[113]. - The company is focusing on online marketing to promote competitive products and enhance customer loyalty in preparation for retail market recovery[112]. Compliance and Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with all applicable provisions during the six-month period ending June 30, 2023[94].

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，且明確表示概不就因本公告全部或任何部 分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 PURAPHARM CORPORATION LIMITED 培 力 農 本 方 有 限 公 司 （於開曼群島註冊成立的有限公司） 1498 （股份代號： ） 截至二零二三年六月三十日止六個月之 中期業績公告 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 收入 佔總額 收入 佔總額 變動 % 千港元 百分比 千港元 百分比 千港元 22,311 11.5% 77,429 33.6% (55,118) (71.2%) 中國濃縮中藥配方顆粒 106,755 54.7% 83,668 36.3% 23,087 27.6% 香港及海外濃縮中藥配方顆粒 37,465 19.2% 38,309 16.6% (844) (2.2%) 中藥保健品 ...

Financial Performance - The company reported a significant increase in revenue for 2022, reaching HKD 1.2 billion, representing a growth of 15% compared to the previous year[22]. - The total revenue for the year ended December 31, 2022, was HKD 448.1 million, a decrease of HKD 211.5 million or 32.1% compared to HKD 659.6 million in the previous year[120]. - The net loss for the company was HKD 120.2 million, a slight decrease of HKD 1.7 million or 1.4% from the previous year's loss of HKD 121.9 million, primarily due to a decline in sales of concentrated Chinese medicine granules[70]. - Adjusted operating loss for the year was HKD 63.7 million, a decrease of HKD 82.6 million compared to an adjusted operating profit of HKD 18.9 million in the previous year[120]. - The gross profit for the year was HKD 262.7 million, a decrease of HKD 160.6 million or 37.9% from HKD 423.4 million in the previous year[118]. Customer and Market Growth - User data showed a 20% increase in active customers, totaling 500,000 by the end of 2022[22]. - User data showed an increase in active users by 25%, reaching a total of 500,000 users by the end of 2022[26]. - The company provided a positive outlook for 2023, projecting a revenue growth of 10% to 12%[22]. - The company provided a positive outlook for 2023, projecting a revenue growth of 20% driven by new product launches and market expansion strategies[26]. - The company plans to expand its operations into Southeast Asia, aiming for a revenue contribution of 15% from this region by 2025[26]. Product Development and Innovation - New product launches included three herbal supplements, which are expected to contribute an additional HKD 100 million in revenue[22]. - Investment in new product development increased by 30%, with a budget allocation of HKD 300 million for research and development initiatives[26]. - The company is investing HKD 50 million in R&D for new technologies aimed at enhancing product efficacy[22]. - A new technology platform is set to launch in Q3 2023, expected to improve user engagement by 40%[26]. - The company launched a new immune-boosting product, Yikangshi+™, which is rich in Vitamin C and produced in Japan[58]. Strategic Initiatives - Market expansion plans include entering two new Southeast Asian countries by Q3 2023[22]. - The company is considering strategic acquisitions to enhance its market position, with a budget of HKD 200 million allocated for potential targets[22]. - The company is exploring potential acquisitions to enhance its market presence, targeting a 10% increase in market share by 2024[26]. - The company has established strategic partnerships with three key players in the industry to enhance its product offerings and distribution channels[26]. - The company plans to enhance the research and promotion of high-quality concentrated TCM granule products and develop innovative health products featuring natural ingredients, aiming to increase market share[73]. Sustainability and ESG Efforts - The management emphasized a focus on sustainability initiatives, aiming to reduce carbon emissions by 25% by 2025[22]. - The company received the ESG Care Prize from Society Next Foundation for its contributions to sustainable development and environmental protection[54]. - The board has established an Environmental, Social, and Governance (ESG) committee to oversee ESG management and reporting[182]. - The group has intensified efforts on ESG issues due to the impacts of COVID-19, recognizing climate-related risks as a major threat to operations[179]. - The company aims to enhance its climate change adaptability through extreme weather event forecasting and response capability building[192]. Operational Efficiency - The gross profit margin improved to 45%, up from 42% in the previous year, indicating better cost management[22]. - The gross margin improved to 45%, up from 40% in the previous year, indicating better cost management and pricing strategies[26]. - Selling and distribution expenses decreased to HKD 157.4 million, down HKD 62.6 million or 28.5% from HKD 220.0 million last year[140]. - Administrative expenses totaled HKD 157.9 million, a decrease of HKD 10.5 million or 6.3% from HKD 168.5 million last year[143]. - The company has committed to responsible and ethical procurement practices, considering the environmental and social impacts of its products and services[196]. Supply Chain and Production - The company has established its own herbal medicine plantation in Guizhou Province, capable of harvesting over 50 types of medicinal materials to ensure a stable supply of high-quality herbs[193]. - The number of suppliers in China increased from 144 in 2021 to 402 in 2022, indicating significant growth in the supplier network[198]. - The company emphasizes strict quality control measures, adhering to production quality management standards set by NMPA, TGA, and USP[200]. - The company operates a state-of-the-art traditional Chinese medicine production facility in Nanning, Guangxi, covering approximately 17,241 square meters with a total building area of about 7,760 square meters, certified by GMP, TGA, PIC/S, and USP standards[89]. - A new smart factory is under construction in Nanning, covering about 49,185 square meters with a total building area of approximately 65,967.66 square meters, aimed at transitioning from traditional automation to fully interconnected systems[90].

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，且明確表示概不就因本公告全部或任何部分內容而產生或因 依賴該等內容而引致的任何損失承擔任何責任。 PURAPHARM CORPORATION LIMITED 培 力 農 本 方 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1498） 截至二零二二年十二月三十一日止年度之 全年業績公告 財務摘要 截至十二月三十一日止年度 二零二二年 佔總額 二零二一年 佔總額 變動 千港元 百分比 千港元 百分比 千港元 % 收入 — 中國濃縮中藥配方顆粒 117,751 26.3% 352,996 53.5% (235,245) -66.6% — 香港濃縮中藥配方顆粒 192,094 42.9% 162,740 24.7% 29,354 18.0% — 中藥保健品 78,858 17.6% 78,098 11.8% 760 1.0% — 農本方®中醫診所 46,112 10.3% 50,027 7.6% (3,915) -7.8% — 種植 13,254 2.9% 15,731 2.4% (2,47 ...