Risk Management and Internal Control - The company has established a robust internal audit system, ensuring the effectiveness of the first and second lines of defense, with independent assurance provided to the audit committee and board[1]. - Risk management measures are assigned to specific risk owners with expected completion dates, ensuring accountability in risk mitigation[2]. - The board, with the assistance of external consultants, has reviewed the effectiveness of the risk management and internal control systems for the fiscal year ending March 31, 2023, and deemed them effective and sufficient[3]. - Significant risks and internal control issues have been discussed in internal audit reports presented to the audit committee and board, reinforcing confidence in the company's risk management systems[4]. - The group believes that risk management is crucial for operational efficiency and effectiveness, with management assisting the board in evaluating significant risks[94]. - The management team is involved in formulating appropriate risk management and internal control measures to be implemented in daily operations[94]. Shareholder Engagement and Communication - The company encourages shareholder participation in annual general meetings and ensures clarity in voting procedures[11]. - The company has implemented various communication channels to maintain ongoing dialogue with shareholders and stakeholders regarding environmental, social, and governance performance[22]. - The company’s website provides regular updates on announcements, annual reports, and other relevant information to shareholders[13]. - The company has established a share award scheme, with an independent third party appointed as the trustee to manage the plan[120]. - The independent non-executive directors have reviewed the continuing connected transactions and confirmed they are conducted on normal commercial terms and in the best interest of shareholders[181]. Environmental, Social, and Governance (ESG) Initiatives - A third-party assessment identified 12 significant environmental, social, and governance issues, which the company is committed to addressing[29]. - The company has adopted an environmental policy aimed at reducing environmental impact through energy conservation and waste reduction initiatives[29]. - The board is responsible for overseeing the company's environmental, social, and governance matters, ensuring alignment with strategic objectives[26]. - The company has not reported any significant regulatory non-compliance regarding applicable environmental laws and regulations during the reporting period[95]. - The company maintains a strong commitment to social responsibility through community service initiatives and partnerships with non-profit organizations[87]. Financial Performance - Total revenue for the fiscal year 2023 was HKD 520.3 million, an increase from HKD 406.1 million in fiscal year 2022, representing a growth of approximately 28%[6]. - The company reported revenue of HKD 520,323,000 for the year ended March 31, 2023, representing a 28.1% increase from HKD 406,139,000 in the previous year[130]. - Gross profit for the year was HKD 205,509,000, with a gross margin of approximately 39.4%, compared to HKD 161,510,000 in the previous year[130]. - Operating profit increased to HKD 87,040,000, up from HKD 38,943,000, reflecting a significant growth in operational efficiency[130]. - Net profit for the year was HKD 63,328,000, which is a 171.5% increase compared to HKD 23,328,000 in the previous year[130]. - Basic and diluted earnings per share rose to HKD 6.41, compared to HKD 2.75 in the previous year, indicating strong profitability growth[130]. - The company achieved a total comprehensive income of HKD 52,905,000 for the year, compared to HKD 23,202,000 in the previous year[130]. - The company reported a profit attributable to equity holders of HKD 57,093,000 for the year, compared to HKD 24,620,000 in the previous year, marking a substantial increase of 131.5%[136]. Operational Efficiency and Resource Management - Water consumption for fiscal year 2023 was 31,593 cubic meters, compared to 29,855 cubic meters in fiscal year 2022, indicating an increase of about 5.2%[35]. - The density of water usage per HKD revenue decreased from 0.00007 cubic meters to 0.00006 cubic meters, reflecting improved efficiency[35]. - The amount of hazardous waste disposed of in fiscal year 2023 was 6,112 kg, slightly up from 6,012 kg in fiscal year 2022, showing a 1.7% increase[37]. - The density of hazardous waste disposed of per HKD revenue decreased from 0.015 grams to 0.012 grams, indicating enhanced waste management efficiency[37]. - The company has established a policy for effective resource use, including energy and water management, although specific data on waste generation was not collected due to its minor impact[57]. Market Position and Competition - The company operates in three competitive market segments: branded pharmaceuticals, health supplements, and traditional Chinese medicine, facing intense competition from existing competitors and new entrants[62]. - The company has a strong focus on research and development in consumer healthcare products, leveraging over 33 years of industry experience[125]. - The company plans to continue expanding its market presence and developing new healthcare products to drive future growth[130]. Corporate Governance - The board of directors has approved the financial statements for publication on June 15, 2023, ensuring transparency and compliance[132]. - The company is committed to enhancing its corporate governance and strategic planning through experienced board members[126]. - The company has received annual confirmations from each independent non-executive director regarding their independence, in compliance with listing rules[102]. Cash Flow and Financial Position - The company reported a net cash generated from operating activities of HKD 157,088,000 for the year ended March 31, 2023, compared to HKD 76,941,000 in the previous year, representing an increase of 104.5%[139]. - The net cash generated from operating activities after tax payments was HKD 145,616,000, up from HKD 59,996,000, indicating a significant improvement in operational efficiency[139]. - The cash and cash equivalents at the end of the year stood at HKD 152,266,000, significantly up from HKD 69,843,000 at the beginning of the year, reflecting strong cash flow management[139]. - The company’s total equity increased to HKD 1,030,990,000 as of March 31, 2023, from HKD 946,943,000 a year earlier, indicating growth in shareholder value[136]. Shareholder Structure and Ownership - Mr. Chan holds 11,600,000 shares of Jacobson Pharmaceutical and has beneficial ownership of 308,404,000 shares through Queenshill, which he wholly owns[149]. - The Kingshill Trust, established by Mr. Chan, holds 850,684,000 shares of Jacobson Pharmaceutical, with Mr. Chan and his family as the sole beneficiaries[149]. - The ownership percentages for Jacobson Pharmaceutical are approximately 43.98% by Kingshill, 15.94% by Queenshill, 0.42% by The Queenshill Trust, and 0.60% by Mr. Chan personally[151]. - The trustee of The Queenshill Trust holds 782,000 shares of the company through a wholly-owned subsidiary[152]. - The company has a significant shareholder structure, with JBM Group BVI owning approximately 53.96% of the shares, and the total equity held by major shareholders including Kingshill and Lincoln's Hill amounts to 70.29%[171][174]. Compliance and Regulatory Matters - The company has complied with applicable laws and regulations that significantly impact its operations during the reporting period[64]. - There were no recorded incidents of data breaches during the reporting period[54]. - The company has not recorded any improper conduct related to bribery, extortion, fraud, or money laundering during the reporting period[55]. - The group has not applied any new standards or interpretations that have not yet come into effect during the accounting period[117].

Financial Performance - For the fiscal year ending March 31, 2023, total revenue reached HKD 520.3 million, representing a growth of 28.1% compared to the previous year[11]. - Adjusted EBITDA increased by 36.2%, while profit attributable to equity holders surged by 132.1%, indicating a strong operational performance[11]. - The brand healthcare business achieved a total revenue of HKD 520.3 million, reflecting a notable growth of 28.1%, with gross profit rising by 27.2% to HKD 205.5 million[30]. - The equity holders' share of consolidated profit surged by 132.1% to HKD 57.1 million, attributed to the gradual recovery of retail consumer sentiment and the easing of COVID-19 restrictions[30]. - Operating profit increased by HKD 48.1 million or 123.7% to HKD 87.0 million, mainly driven by an increase in gross profit and gains from the sale of a stake in a joint venture[51]. - The total comprehensive income for the year was HKD 52.9 million, compared to HKD 23.2 million in 2022[134]. - The basic and diluted earnings per share for the year were HKD 6.41 and HKD 6.41 respectively, compared to HKD 2.75 in the previous year[135]. Revenue Segmentation - The brand's Chinese medicine segment recorded a robust growth of 54.5%, driven by strong demand for concentrated Chinese medicine granules and significant sales increase of Baoji pills[17]. - The brand's pharmaceutical division experienced a slight decline of 7.7%, primarily due to decreased sales of AIM eye drops, offset by strong performance from e-commerce platforms[15]. - The health products division saw a minor decline of 6.2%, mainly due to reduced sales in the Hong Kong retail market, although this was partially mitigated by stable growth from Oncotype DX[19]. - The brand Chinese medicine segment accounted for 69% of total revenue, while the brand pharmaceutical and health supplement segments contributed 24% and 7%, respectively[27]. - Revenue from external customers in Hong Kong reached HKD 331,887,000, an increase of 16.6% from HKD 284,610,000 in the previous year[180]. - Revenue from mainland China surged to HKD 135,253,000, a significant increase of 121.1% from HKD 61,012,000 in the previous year[180]. Dividend and Shareholder Value - The proposed final dividend per share is HKD 2.5, following an interim dividend of HKD 0.5 per share, reflecting a commitment to returning value to shareholders[1]. - The board proposed a final dividend of HKD 0.025 per share, totaling approximately HKD 22.8 million, with a total dividend of HKD 0.030 per share for the fiscal year[129]. E-commerce and Market Strategy - The company plans to enhance brand awareness for Baoji pills through creative advertising and promotional strategies, focusing on gastrointestinal health issues[18]. - The company is expanding its local and cross-border e-commerce platforms to strengthen its competitive position in the Asian healthcare market[20]. - The cross-border e-commerce team achieved strong market share and customer base expansion through flagship stores on Tmall International and JD International[21]. - E-commerce sales in Hong Kong grew by 20.8% year-on-year in 2022, indicating rapid growth in online business, which is expected to continue due to the home economy trend[25]. - The company plans to leverage its strengths to explore new development opportunities, focusing on local and cross-border e-commerce platforms and adjusting product offerings to meet evolving consumer demands[33]. Cost Management and Financial Stability - The company maintains a strong financial position through strict cost management and a healthy cash balance, ensuring ongoing operational capability and future growth[35]. - Employee costs slightly increased by HKD 1.4 million or 5.0% from the previous fiscal year, while other production costs remained stable[50]. - The net capital debt ratio decreased from 10.9% as of March 31, 2022, to 0.3% as of March 31, 2023, due to increased cash generated from operations and repayment of bank loans[60]. - The company reported a net capital debt ratio, indicating stable financial leverage without significant foreign exchange risk[88]. Market Outlook and Challenges - The company is optimistic about market recovery as restrictions are eased, but remains cautious due to ongoing macroeconomic uncertainties[46]. - The company continues to face intense competition in the branded drug, health supplement, and branded traditional Chinese medicine markets[64]. Environmental and Governance Initiatives - The company has implemented measures to encourage environmental sustainability and energy conservation[95]. - The board noted progress in various environmental, social, and governance initiatives during the fiscal year 2023[200]. - The company aims to ensure that environmental, social, and governance considerations are integrated into its strategy[200]. Corporate Governance - The audit committee, composed of three independent non-executive directors, oversees the integrity and accuracy of the company's financial statements[99]. - The company has adhered to all corporate governance codes throughout the reporting period, ensuring shareholder rights and enhancing corporate value[97].

Financial Performance - Total revenue for the six months ended September 30, 2022, was HKD 236.8 million, an increase of 25.1% compared to HKD 189.4 million for the same period in 2021[5]. - Profit attributable to equity holders increased by 114.8% to HKD 21.6 million, with a profit margin of 9.1% compared to 5.3% in the prior year[5]. - Adjusted EBITDA rose by 44.2% to HKD 56.7 million, with an adjusted EBITDA margin of 23.9%, up from 20.8%[5][7]. - Total revenue for the first half of fiscal year 2023 reached HKD 236.8 million, a 24% increase compared to HKD 189.4 million in the same period of fiscal year 2022[28]. - Revenue from the brand Chinese medicine segment was HKD 163.0 million, accounting for 69% of total revenue, reflecting a 7% increase from HKD 106.5 million in the previous year[28]. - Total revenue increased by HKD 47.4 million or 25.0% compared to the mid-term of the 2022 fiscal year, driven by a significant increase in the revenue of the Chinese medicine segment by HKD 56.5 million[29]. - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the first half of 2022, representing a 25% year-over-year growth[163]. Revenue Segmentation - Brand Chinese medicine revenue increased by 53.2% to HKD 163.1 million, while brand drugs revenue decreased by 10.3% to HKD 56.9 million[5]. - The brand pharmaceutical division reported a revenue decline of 10.3% during the reporting period, primarily due to weak retail performance in Hong Kong and Macau[19]. - Revenue from health supplements decreased by 13.3%, attributed to a decline in sales across various products in the Hong Kong retail sector[29]. - Revenue from mainland China surged to HKD 57,684,000, a significant increase from HKD 18,473,000 in the previous year, marking a growth of 212%[131]. Profitability and Margins - Gross profit for the period was HKD 85.5 million, representing a gross margin of 36.1%, down from 39.6% in the previous year[5]. - Operating profit surged by HKD 17.5 million or 112.2% to HKD 33.1 million, driven by increased gross profit and government employment support[39]. - The gross margin improved to 45%, up from 40% in the previous year, reflecting better cost management and pricing strategies[163]. Assets and Liabilities - Total assets as of September 30, 2022, were HKD 1.34 billion, a slight increase of 0.4% from HKD 1.33 billion[6]. - Total liabilities decreased by 2.4% to HKD 354.4 million, down from HKD 363.3 million[6]. - Total equity increased by 1.4% to HKD 982.8 million, compared to HKD 969.2 million at the end of the previous period[6]. Market Position and Strategy - The company aims to enhance its brand management and product portfolio to establish a sustainable regional platform for healthcare products in Asia[12]. - The company has established a solid local distribution network and partnerships with selected product manufacturers to strengthen its market position[12]. - The company is focused on leveraging its unique advantages to solidify its competitive position as a forward-looking healthcare company in Asia[20]. - The company plans to continue collaborating with new and existing e-commerce platforms to explore market opportunities, supported by a strengthened team in mainland China and Hong Kong[20]. Product Development and Innovation - The company is actively expanding its online education programs to promote the importance of regular eye health check-ups and the clinical benefits of AIM Myopia Control Eye Drops[19]. - The company plans to continue expanding its product offerings, including new health supplements based on traditional Chinese medicine[1]. - Investment in R&D has increased by 15%, focusing on developing innovative health products to enhance market competitiveness[163]. Marketing and Consumer Engagement - Strong advertising and promotional activities have been launched to enhance brand recognition and consumer demand for the He Ji Gong brand[19]. - The company has initiated a new marketing strategy, increasing digital advertising spend by 20% to boost brand awareness and customer acquisition[163]. Sustainability and Corporate Responsibility - The company has implemented measures to encourage environmental sustainability, with no significant environmental impact reported[66]. - Future guidance indicates a focus on sustainability initiatives, with plans to reduce operational carbon footprint by 25% over the next five years[163]. Shareholder Information - The interim dividend declared for the six months ending September 30, 2022, is HKD 0.5 per ordinary share, totaling approximately HKD 4.5 million, compared to zero for the same period last year[76]. - The company has not reported any changes in the interests of directors or key executives in the company's shares since the last annual report[79]. Compliance and Governance - The audit committee consists of three independent non-executive directors, responsible for overseeing the integrity and accuracy of the company's financial statements[74]. - The financial report was reviewed and found to comply with Hong Kong Accounting Standards[98].

Financial Performance - Total revenue for the fiscal year ended March 31, 2022, was HKD 406,139,000, representing a 2.3% increase from HKD 397,158,000 in the previous year[15]. - The revenue from branded Chinese medicine increased by 10.5% to HKD 232,908,000, while branded pharmaceuticals decreased by 0.1% to HKD 134,330,000[15]. - Gross profit decreased by 18.6% to HKD 161,510,000, with a gross margin of 39.8%, down from 50.0%[15]. - Adjusted EBITDA fell by 29.0% to HKD 89,208,000, with an adjusted EBITDA margin of 22.0%, down from 31.7%[15][16]. - Profit attributable to equity holders increased by 8.9% to HKD 24,620,000, resulting in a profit margin of 6.1%, up from 5.7%[15]. - Total assets decreased by 3.5% to HKD 1,332,489,000, while total liabilities decreased by 16.3% to HKD 363,299,000[15]. - Total equity increased by 2.3% to HKD 969,190,000[15]. Market and Product Development - The company achieved revenue growth despite challenges, focusing on opportunities in the Chinese market[20]. - New product launches remain a priority development strategy, supported by close collaboration with global partners[20]. - The healthcare product portfolio includes leading brands that showed strong momentum, particularly AIM eye drops and Oncotype DX®[27]. - AIM eye drops have established a leading brand position in myopia control for children, supported by clinical research and professional recommendations[28]. - The company is expanding its product offerings, including the launch of the first extension product under the Wei Xian - U brand, which has received positive market feedback[31]. - The company has launched over 60 products on Tmall, with more than 55 and 35 products available on Tmall and JD's cross-border flagship stores respectively[31]. - The health care products segment experienced a decline in sales by 24.9%, primarily due to reduced consumer demand for infection prevention products[54]. - The company is developing new concentrated Chinese medicine granules and launching herbal-based supplements to meet growing consumer demand[65]. Strategic Initiatives - The company aims to build a product portfolio that anticipates market demand and motivates employees to excel[19]. - Strategic priorities include building a robust foundation, delivering more results, and motivating employees to pursue excellence[20]. - New partnerships in the brand drug and nutritional supplement categories are expected to contribute to short-term and long-term business growth[22]. - The company aims to strengthen its operational position and business platform through a multi-faceted growth strategy, addressing evolving market trends and consumer needs[31]. - The company is committed to responsible operations and enhancing environmental, social, and governance performance[23]. Corporate Governance - The company has complied with all provisions of the corporate governance code during the reporting period[111]. - The board consists of seven members, including one executive director, three non-executive directors, and three independent non-executive directors[114]. - The audit committee, composed of three independent non-executive directors, ensures the integrity and accuracy of the company's financial statements[127]. - The company has established specific committees, including the audit, remuneration, nomination, and reward committees, to oversee various aspects of corporate governance[125]. - The company aims to enhance board diversity by actively seeking suitable female candidates for board positions, despite not having appointed any female directors since its listing[143]. Risk Management - The company has established a comprehensive risk management framework, guided by a "three lines of defense" model[175]. - The risk management department, consisting of the Vice President of Finance and Senior Finance Manager, oversees the overall risk management framework[177]. - The internal audit function plays a crucial role in providing independent assurance on the effectiveness of the risk management and internal control systems[187]. - The company conducts semi-annual reporting on significant risks identified from operational subsidiaries[186]. Shareholder Communication - The company maintains communication with shareholders through multiple channels and has a shareholder communication policy to address shareholder concerns effectively[190]. - All resolutions presented at the shareholders' meeting must be voted on, with results published on the company's and the stock exchange's websites after the meeting[192]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special meeting within two months of the request[196].

Financial Performance - Total revenue for the six months ended September 30, 2021, was HKD 189,372,000, a decrease of 3.4% compared to HKD 196,105,000 for the same period in 2020[5]. - Gross profit for the period was HKD 75,080,000, down 26.7% from HKD 102,406,000, resulting in a gross margin of 39.6% compared to 52.2% in the previous year[5]. - Profit attributable to equity holders decreased by 53.6% to HKD 10,040,000, with a profit margin of 5.3% compared to 11.0% in the prior year[5]. - Adjusted EBITDA fell by 42.2% to HKD 39,320,000, with an adjusted EBITDA margin of 20.8%, down from 34.7%[5][6]. - Operating profit fell by HKD 24.6 million or 61.2% to HKD 15.6 million, primarily due to a reduction in gross profit[51]. - Net profit for the period was HKD 8,275, a decrease of 71.5% from HKD 28,987 in 2020[103]. - Earnings per share (EPS) for the period was HKD 1.12, down from HKD 2.83 in the previous year[103]. - Total comprehensive income for the period was HKD 8,026, compared to HKD 29,513 in 2020, marking a decline of 72.8%[103]. Revenue Breakdown - Brand medicine revenue increased by 3.5% to HKD 63,425,000, while health supplements revenue decreased significantly by 36.4% to HKD 19,480,000[5]. - Sales revenue for the reporting period was HKD 189.4 million, a slight decrease of 3.4% compared to the previous period[19]. - The brand pharmaceutical segment saw a revenue growth of 3.5%, driven by strong sales of AIM eye drops and other well-known brands[21]. - The sales revenue of the brand Chinese medicine segment increased by 2.2% to HKD 106.5 million, driven by strong double-digit growth in concentrated Chinese medicine granules[23]. - Revenue from Hong Kong, the main source, accounted for 73% of total revenue, decreasing by HKD 32.7 million, primarily due to a significant drop in sales of certain products[43]. - Revenue from mainland China increased by HKD 18.5 million, attributed to a change in distributors and a substantial rise in cross-border e-commerce sales[43]. Cost and Expenses - Material costs increased by HKD 19.7 million or 30.2%, mainly due to the procurement of third-party products for cross-border e-commerce sales[46]. - Employee costs decreased by HKD 1.7 million or 10.6%, due to optimization plans and cost control measures implemented during the pandemic[47]. - The company incurred financing costs of HKD 3,403,000, slightly down from HKD 3,937,000 in the previous year[137]. - The total remuneration for key management personnel was HKD 1,762,000 for the six months ended September 30, 2021, a decrease from HKD 1,969,000 in the previous year[159]. Assets and Liabilities - Total assets as of September 30, 2021, were HKD 1,349,817,000, a decrease of 2.3% from HKD 1,381,193,000[5]. - Total liabilities decreased by 9.0% to HKD 395,243,000, while total equity increased by 0.8% to HKD 954,574,000[5]. - Inventory decreased by HKD 7.7 million or 16.0% due to strict inventory management measures during the COVID-19 pandemic and a decline in sales[59]. - Bank loans decreased from HKD 235.0 million as of March 31, 2021, to HKD 205.0 million as of September 30, 2021, attributed to the repayment of part of the bank loans[61]. - The net capital debt ratio increased slightly from 14.9% as of March 31, 2021, to 15.2% as of September 30, 2021, due to property, plant, and equipment purchases during the reporting period[67]. Market Strategy and Future Outlook - The company aims to enhance its position as a leading healthcare partner in Asia, focusing on personal health care products and solutions[10][11]. - Future strategies include expanding product offerings and enhancing market presence in selected countries[11]. - The company is making good progress in building a cross-border e-commerce platform to connect products with target consumers in mainland China[20]. - The company remains optimistic about the future prospects of the healthcare industry despite challenges in the Hong Kong consumer market due to delayed border reopening with mainland China[34]. - The company plans to leverage its competitive advantages to tap into the growth potential of the rapidly developing Greater Bay Area market[34]. Corporate Governance and Compliance - The company’s audit committee consists of three independent non-executive directors, responsible for overseeing the integrity and accuracy of financial statements[83]. - The company complied with all provisions of the corporate governance code during the reporting period[80]. - The company has implemented several measures to promote environmental sustainability and energy conservation[75]. - The company’s board is committed to maintaining a high standard of corporate governance to protect shareholder interests and enhance corporate value[78]. - The company adopted a share award scheme on January 18, 2021, aimed at rewarding eligible individuals for their contributions to the group's growth[95]. Risks and Challenges - The company continues to face risks related to the COVID-19 pandemic, which has negatively impacted consumer sentiment and retail consumption in Hong Kong[73]. - The company emphasizes the importance of risk management to ensure operational efficiency and effectiveness[74].

健倍苗苗（保健）有限公司 於開曼群島註冊成立的有限公司 股份代號 : 2161 Movement inspires 年報 2021 公司資料 董事會 執行董事 黃一偉先生 （行政總裁） 朱家榮博士 非執行董事 岑廣業先生 （主席） 嚴振亮先生 楊國晉先生 獨立非執行董事 陳錦釗先生 陸庭龍先生 劉述理先生 審核委員會 陳錦釗先生 （主席） 陸庭龍先生 劉述理先生 薪酬委員會 陸庭龍先生 （主席） 嚴振亮先生 陳錦釗先生 劉述理先生 提名委員會 岑廣業先生 （主席） 陳錦釗先生 陸庭龍先生 劉述理先生 授權代表 黃一偉先生 朱家榮博士 公司秘書 歐敏兒女士 註冊辦事處 Cricket Square Hutchins Drive PO Box 2681 Grand Cayman KY1-1111 Cayman Islands 香港總部及主要營業地點 香港 九龍觀塘 觀塘道388號 創紀之城 1期1座 23樓2303-07室 股份過戶登記總處 Conyers Trust Company (Cayman) Limited Cricket Square Hutchins Drive PO Box 2681 Grand ...