[Financial Highlights](index=4&type=section&id=Financial%20Highlights) This section provides a concise overview of the company's financial performance and position for the six months ended September 30, 2021 Summary of Results for the Six Months Ended September 30, 2021 | Indicator | For the Six Months Ended September 30, 2021 (Thousand HKD) | For the Six Months Ended September 30, 2020 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **750,413** | **695,425** | **+7.9%** | | - Generics | 562,177 | 503,795 | +11.6% | | - Branded Healthcare | 188,236 | 191,630 | -1.8% | | **Gross Profit** | **272,842** | **266,257** | **+2.5%** | | Gross Margin | 36.4% | 38.3% | -1.9pp | | **Profit Attributable to Owners of the Company** | **80,039** | **102,513** | **-21.9%** | | Adjusted EBITDA | 203,856 | 233,391 | -12.7% | Summary of Financial Position | Indicator | As at September 30, 2021 (Thousand HKD) | As at March 31, 2021 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 4,838,009 | 4,867,150 | -0.6% | | Total Liabilities | 1,931,556 | 2,007,041 | -3.8% | | Total Equity | 2,906,453 | 2,860,109 | +1.6% | [Company Overview](index=5&type=section&id=Company%20Overview) This section outlines the company's strategic vision, mission, and core competitive advantages in the pharmaceutical and healthcare sectors [Corporate Vision and Mission](index=5&type=section&id=Corporate%20Vision%20and%20Mission) The company aims to be a leading enterprise in essential medicines and consumer health solutions in Asia, creating sustainable value through R&D investment, guided by a core culture of "Dare to Challenge, Stay Connected, Keep Promises" - The company's vision is to be a leading enterprise in essential medicines and consumer health solutions in Asia[12](index=12&type=chunk) - The three core elements of the company's culture are: Dare to Challenge, Stay Connected, Keep Promises[12](index=12&type=chunk) [Company Profile and Competitive Advantages](index=6&type=section&id=Company%20Profile%20and%20Competitive%20Advantages) Jacobson Pharma is a leading Hong Kong pharmaceutical company with vertically integrated operations in R&D, manufacturing, sales, and distribution of generics, specialty drugs, and branded healthcare products. Its core competitive advantages include market leadership, strong R&D capabilities, a comprehensive sales network, and a portfolio of well-known brands managed by its subsidiary, JBM (Healthcare) Limited - The Group is a major generics supplier in Hong Kong with an extensive sales and distribution network covering public and private markets, operating 10 licensed generics manufacturing facilities and 2 GMP-certified branded Chinese medicine manufacturing facilities in Hong Kong[15](index=15&type=chunk) - Competitive advantages include: leadership in various drug categories, leading R&D capabilities, a comprehensive sales and distribution network, and well-known household and international brands supplied by subsidiary JBM (Healthcare) Limited (e.g., Po Chai Pills, Ho Chai Kung, Contractubex Gel)[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's business and financial performance, strategic initiatives, and key risks [Business Review](index=7&type=section&id=Business%20Review) Amidst a stabilizing pandemic situation in Hong Kong, the Group's business demonstrated resilience, with generics growing 11.6% due to recovering public and private sector demand, while branded healthcare slightly declined 1.8% due to a weak consumer market. The decrease in profit for the period was primarily due to a high base effect from one-off government subsidies in the prior year, with significant growth observed when excluding this factor. The company made progress in various therapeutic areas, successfully distributed Fosun BioNTech vaccines, and actively pursued new product, R&D, and business development opportunities [Performance Overview](index=7&type=section&id=Performance%20Overview) During the reporting period, total revenue increased by 7.9% to HKD 750.4 million, primarily driven by an 11.6% growth in the generics business. However, total profit for the period decreased by 26.3% to HKD 82.9 million, mainly due to a high comparative base from approximately HKD 55.8 million in one-off government Employment Support Scheme subsidies received in the prior year. Excluding this impact, profit on a like-for-like basis grew by approximately 46.2%. The company's financial position remained robust, with the net gearing ratio decreasing from 38.4% to 27.7% Performance Overview for the Reporting Period | Indicator | Amount (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Total Revenue | 750.4 | +7.9% | | - Generics | N/A | +11.6% | | - Branded Healthcare | N/A | -1.8% | | Total Gross Profit | 272.8 | +2.5% | | Total Profit for the Period | 82.9 | -26.3% | - The decrease in profit for the period was mainly due to the base effect of approximately **HKD 55.8 million** in one-off government Employment Support Scheme subsidies received in the interim period of FY2021. Excluding this subsidy, profit for the period on a like-for-like basis increased by approximately **46.2%**[23](index=23&type=chunk) - Financial position remained robust, with the net gearing ratio significantly decreasing from **38.4%** to **27.7%**, and cash balance at period-end was **HKD 537.1 million**[24](index=24&type=chunk) [Operating Performance](index=7&type=section&id=Operating%20Performance) The Group achieved significant growth in cardiovascular, psoriasis, and ADHD drug categories, leveraging its strong product portfolio. As the exclusive distributor of Fosun BioNTech vaccines in Hong Kong and Macau, 6.9 million doses were supplied during the period. The company continued to supply anti-epidemic products, launched several new drugs, and progressed its R&D pipeline with 171 products under development, while steadily improving production efficiency to meet market recovery - Sales of angiotensin II antagonists and lipid-lowering products in cardiovascular drugs recorded significant growth of **34.4%** and **27.7%** respectively[25](index=25&type=chunk) - Psoriasis formulations and ADHD drug treatment categories recorded strong growth of **328.1%** and **88.8%** respectively[26](index=26&type=chunk) - As the exclusive distributor of Fosun BioNTech Comirnaty vaccine in Hong Kong and Macau, a total of **6.9 million doses** were supplied as of the end of the reporting period[27](index=27&type=chunk) - Several new products were launched during the reporting period, with **10 products** completing development and submitted for registration approval. As of period-end, **171 products** were under development[30](index=30&type=chunk)[31](index=31&type=chunk) [Business Development](index=8&type=section&id=Business%20Development) The Group adopted an in-licensing strategy, signing exclusive agreements for four European specialty drugs in central nervous system and immunomodulatory fields. To address online shopping trends, the company is accelerating the expansion of its e-commerce platform to enhance customer service and management efficiency. Additionally, the Group is actively seizing policy opportunities in the Greater Bay Area, seeking strategic partners to expand its market presence - In-licensing is a key strategy to strengthen the specialty drug portfolio, with exclusive licensing agreements signed for **four European specialty drugs** in central nervous system and immunomodulatory categories during the reporting period[33](index=33&type=chunk)[34](index=34&type=chunk) - The company is accelerating the expansion of its Customer Relationship Management (CRM) system to an e-commerce platform, facilitating product browsing, inquiries, and ordering for healthcare professionals[38](index=38&type=chunk) - The Group is actively seizing business opportunities arising from the Greater Bay Area's innovative regulatory scheme for pharmaceuticals and medical devices, seeking potential strategic partners to consolidate its market position[39](index=39&type=chunk) [Outlook](index=9&type=section&id=Outlook) The Group remains optimistic about the future prospects of the healthcare industry and the growth momentum of the generics market. Driven by an aging population and the prevalence of chronic diseases, especially with increased government healthcare spending, demand for generics is expected to continue rising. The company will focus on enhancing its product portfolio and expanding into strategic Asian markets. Concurrently, the consumer healthcare market is also expected to maintain growth momentum in the post-pandemic era and with e-commerce development, benefiting the branded healthcare business - The Hong Kong government's healthcare expenditure budget for FY2021-2022 increased by nearly **18.0%** to **HKD 115.8 billion**, benefiting the healthcare industry[40](index=40&type=chunk) - Driven by an aging population and increasing prevalence of chronic diseases, generics consumption shows an upward trend, especially in the public sector. The expiry of patents for various blockbuster drugs will further enhance growth momentum[40](index=40&type=chunk) - Future strategic priorities include: leveraging product category opportunities, enhancing the product portfolio through in-licensing and internal R&D, and expanding strategic market presence in Asia[41](index=41&type=chunk) [Financial Review](index=10&type=section&id=Financial%20Review) This financial review details the Group's revenue, costs, profits, and asset-liability position. Total revenue grew 7.9%, primarily driven by the generics business. Cost of sales increased 11.3% due to higher sales and a decline in higher-margin product sales. Both operating profit and profit for the period decreased due to the high base effect of substantial government subsidies in the prior year, but showed growth when excluding this factor. Asset-wise, inventory management improved; liability-wise, bank borrowings decreased [Revenue](index=10&type=section&id=Revenue) During the reporting period, total revenue increased by 7.9% year-on-year to HKD 750.4 million. By segment, generics business grew 11.6%, accounting for 75% of total revenue; branded healthcare business slightly decreased by 1.8%. By geography, Hong Kong remained the primary market, contributing 90% of total revenue; revenue from Mainland China and Macau markets also recorded significant growth Revenue by Operating Segment (Million HKD) | Segment | Interim Period FY2022 | % of Total | Interim Period FY2021 (Restated) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Generics | 562.2 | 75% | 503.8 | 72% | | Branded Healthcare | 188.2 | 25% | 191.6 | 28% | | **Total** | **750.4** | **100%** | **695.4** | **100%** | Revenue by Geographical Region (Million HKD) | Region | Interim Period FY2022 | % of Total | Interim Period FY2021 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 676.2 | 90% | 652.6 | 94% | | China | 26.8 | 4% | 8.5 | 1% | | Macau | 33.2 | 4% | 20.1 | 3% | | Others | 14.2 | 2% | 14.2 | 2% | | **Total** | **750.4** | **100%** | **695.4** | **100%** | [Cost of Sales](index=12&type=section&id=Cost%20of%20Sales) Cost of sales increased by 11.3% year-on-year to HKD 477.6 million, primarily in line with revenue growth. Material costs were the main component, accounting for 51% of total costs, and significantly increased by 22.6% year-on-year, mainly due to increased sales of lower-margin third-party medicated oil products. Staff costs and other production costs remained relatively stable Cost of Sales Components (Million HKD) | Cost Item | Interim Period FY2022 | % of Total | Interim Period FY2021 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Material Costs | 244.8 | 51% | 199.7 | 47% | | Staff Costs | 124.7 | 26% | 126.0 | 29% | | Other Production Costs | 108.1 | 23% | 103.5 | 24% | | **Total** | **477.6** | **100%** | **429.2** | **100%** | [Operating Profit and Finance Costs](index=13&type=section&id=Operating%20Profit%20and%20Finance%20Costs) Operating profit decreased by 20.4% year-on-year to HKD 116.9 million, primarily due to the recognition of HKD 55.8 million in one-off government Employment Support Scheme subsidies in the prior year. Excluding the impact of this subsidy, operating profit actually increased by 28.5%. Finance costs decreased due to partial repayment of bank borrowings - Operating profit decreased from **HKD 146.8 million** to **HKD 116.9 million**, a year-on-year decrease of **20.4%**[65](index=65&type=chunk)[66](index=66&type=chunk) - Excluding the one-off government subsidy of **HKD 55.8 million** in the prior year, operating profit actually increased by **28.5%**[67](index=67&type=chunk) [Profit for the Period](index=14&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased by 26.3% year-on-year to HKD 82.9 million. This decrease was also affected by the high base effect of one-off government subsidies in the prior year. Excluding this factor, profit for the period actually increased by 46.2% - Profit for the period decreased from **HKD 112.5 million** to **HKD 82.9 million**, a year-on-year decrease of **26.3%**[73](index=73&type=chunk)[74](index=74&type=chunk) - Excluding the one-off government subsidy of **HKD 55.8 million** in the prior year, profit for the period actually increased by **46.2%**[75](index=75&type=chunk) [Assets and Liabilities Analysis](index=14&type=section&id=Assets%20and%20Liabilities%20Analysis) On the asset side, investment properties and other property, plant and equipment increased due to additions, while intangible assets decreased due to amortization. Inventory decreased by 10.3% due to strict management measures and sales recovery. On the liability side, bank borrowings decreased due to partial repayment during the period - Inventory decreased by **HKD 36.6 million** or **10.3%**, primarily due to strict inventory management and a recovery in generics business sales[78](index=78&type=chunk) - Bank borrowings decreased, mainly due to partial repayment of bank borrowings during the reporting period[81](index=81&type=chunk) [Use of Proceeds](index=15&type=section&id=Use%20of%20Proceeds) The company detailed the use of proceeds from its Initial Public Offering (IPO) and the issuance of new shares to Yunnan Baiyao. As of the reporting period end, HKD 26.14 million of the net IPO proceeds of HKD 695.5 million remained unutilized, primarily for expanding bioequivalence clinical studies, expected to be fully utilized by March 31, 2023. The HKD 411.7 million from the share issuance to Yunnan Baiyao has been fully utilized as planned Use of Proceeds from Initial Public Offering (Thousand HKD) | Item | Proposed Use | Utilized as at September 30, 2021 | Unutilized as at September 30, 2021 | | :--- | :--- | :--- | :--- | | **Total** | **695,540** | **669,400** | **26,140** | - The net proceeds of **HKD 411,658,000** from the share issuance to Yunnan Baiyao have been fully utilized as planned[83](index=83&type=chunk)[86](index=86&type=chunk) [Liquidity, Capital Resources and Share Capital Structure](index=16&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Share%20Capital%20Structure) The Group maintains a conservative capital management strategy with a robust financial position. Cash is primarily used for working capital and capital expenditures, funded by operating cash flow and bank borrowings. The net gearing ratio significantly decreased from 38.4% at the beginning of the period to 27.7% at period-end due to partial repayment of bank borrowings - The Group's net gearing ratio decreased from **38.4%** as at March 31, 2021, to **27.7%** as at September 30, 2021[90](index=90&type=chunk) - The Group primarily funds its cash requirements through cash generated from operations and bank borrowings[88](index=88&type=chunk) [Principal Risks and Uncertainties](index=17&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces principal risks including non-compliance with pharmaceutical regulations, M&A integration risks, new product development delays, and product liability for defective products. The company manages these risks through measures such as establishing quality control teams, conducting due diligence, investing in R&D, and purchasing product liability insurance - Principal risks include: - **Regulatory Risk**: Failure to comply with pharmaceutical regulations may restrict business operations - **M&A Risk**: Inability to successfully identify, complete, and integrate acquisitions - **R&D Risk**: Inability to develop and launch new products on time - **Product Liability Risk**: Defective products may lead to liability claims and reputational damage[96](index=96&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) This section covers corporate governance practices, dividend policy, and details on directors' and major shareholders' interests [Corporate Governance Summary](index=18&type=section&id=Corporate%20Governance%20Summary) The company is committed to maintaining a high standard of corporate governance. During the reporting period, the company complied with all code provisions of the Corporate Governance Code, with the only deviation being the non-segregation of the roles of Chairman and Chief Executive Officer, both held by Mr. Sum Kwong Yip, the founder. The Board believes this arrangement benefits the Group's strategic planning and decision-making efficiency - The company complied with most provisions of the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are not segregated, both held by Mr. Sum Kwong Yip[104](index=104&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board recommended an interim dividend of HKD 1.2 cents per ordinary share for the six months ended September 30, 2021, totaling approximately HKD 23.2 million, an increase compared to HKD 0.8 cents per share in the prior year Interim Dividend Details | Item | For the Six Months Ended September 30, 2021 | For the Six Months Ended September 30, 2020 | | :--- | :--- | :--- | | Interim Dividend Per Share | 1.2 HK cents | 0.8 HK cents | | Total Dividend Amount | Approx. 23.2 Million HKD | N/A | [Directors' and Major Shareholders' Interests](index=20&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) The report discloses the interests of directors, chief executives, and major shareholders in the company's shares as of September 30, 2021. Chairman Mr. Sum Kwong Yip collectively held approximately 58.95% of the company's shares through beneficial ownership, controlled corporations, and trusts. Other major shareholders include Yunnan Baiyao Group (10.34%) and Longjin Investments Limited (8.11%) - Chairman and CEO Mr. Sum is deemed to have an interest in **1,140,276,000 shares**, representing approximately **58.95%** of the issued share capital[119](index=119&type=chunk) - Major shareholders include Yunnan Baiyao Group, holding **200,000,000 shares**, representing approximately **10.34%**[126](index=126&type=chunk)[128](index=128&type=chunk) [Share Option and Share Award Schemes](index=22&type=section&id=Share%20Option%20and%20Share%20Award%20Schemes) The company has a share option scheme and a share award scheme to incentivize employees. During the reporting period, no new share options were granted, exercised, or cancelled, and no outstanding share options existed at period-end. Under the share award scheme, the trustee held 18,544,000 company shares, but no share awards were granted to any participants during the reporting period - During the reporting period, no share options were granted, exercised, lapsed, forfeited, or cancelled under the share option scheme. At period-end, there were no outstanding share options[132](index=132&type=chunk) - As of the end of the reporting period, the trustee had purchased **18,544,000 company shares** in the market under the share award scheme, but no share awards were granted during the period[137](index=137&type=chunk) [Financial Statements and Notes](index=24&type=section&id=Financial%20Statements%20and%20Notes) This section presents the unaudited consolidated financial statements and their accompanying notes, providing detailed financial disclosures [Review Report to the Board of Directors](index=24&type=section&id=Review%20Report%20to%20the%20Board%20of%20Directors) KPMG, the auditor, has reviewed this interim financial report and concluded that nothing has come to their attention that causes them to believe the report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" - The auditor, KPMG, concluded that they found no instances where the interim financial report was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[143](index=143&type=chunk) [Unaudited Consolidated Financial Statements](index=25&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) This section includes the Group's unaudited consolidated statement of profit or loss and other comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, and condensed consolidated statement of cash flows for the six months ended September 30, 2021, comprehensively reflecting the financial performance, financial position, and cash flow during the reporting period - Profit attributable to owners of the company was **HKD 80,039 thousand**, compared to **HKD 102,513 thousand** in the prior corresponding period[145](index=145&type=chunk) - As at September 30, 2021, the Group's net assets were **HKD 2,906,453 thousand**, an increase from **HKD 2,860,109 thousand** at the beginning of the period[150](index=150&type=chunk) - Net cash generated from operating activities during the reporting period was **HKD 311,501 thousand**, compared to **HKD 230,608 thousand** in the prior corresponding period[158](index=158&type=chunk) [Notes to the Unaudited Interim Financial Report](index=30&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) The notes to the financial report provide detailed explanations of the financial statements, covering key information such as company information, basis of preparation, changes in accounting policies, revenue and segment reporting, taxation, earnings per share, dividends, detailed composition of assets and liabilities, fair value measurement of financial instruments, and related party transactions - Note 4 provides detailed disclosure on revenue and segment reporting, categorizing business into two main reportable segments: generics and branded healthcare[170](index=170&type=chunk)[171](index=171&type=chunk) - Note 5 discloses that other net income for the six months ended September 30, 2020, included **HKD 55.8 million** in government Employment Support Scheme subsidies, which is key to understanding the period's profit changes[188](index=188&type=chunk) - Note 16 details the loss of control over Hon Ning Hong Limited (wholesale and retail business) due to its disposal in 2020, which is presented as a discontinued operation in this report[219](index=219&type=chunk)

迎接挑戰 推進轉型 雅各臣科研製藥有限公司 根據開曼群島法例註冊成立的有限公司 股份代號 : 2633 二零二一年年報 | --- | --- | --- | |-------|---------------------------|----------------------------------| | | | | | | | | | | | | | | | | | | | | | | 目錄 | | | | | | | | 1 公司資料 | 64 獨立核數師報告 | | | 2 | 69 | | | | | | | 財務摘要 4 | 綜合損益及其他全面收益表 71 | | | 主席致股東函件 6 | 綜合財務狀況表 72 | | | 企業願景及使命 7 公司簡介 | 綜合權益變動表 73 綜合現金流量表 | | | 8 管理層討論及分析 | 74 財務報表附註 | | | | | | | 20 企業管治報告 | 137 五年財務概要 | | | 32 環境、社會及管治報告 | 138 詞彙 | | | 48 董事報告書 | | 公司資料 董事會 執行董事 岑廣業先生 （主席兼行政總裁） 嚴振亮先生 潘裕慧 ...

專注於長遠發展重點 雅各臣科研製藥有限公司 根據開曼群島法例註冊成立的有限公司 股份代號: 2633 二零二零年中期報告 目錄 2 公司資料 3 財務摘要 4 企業願景及使命 5 公司簡介 6 管理層討論及分析 18 其他資料 25 致董事會的審閱報告 26 未經審核綜合損益及其他全面收益表 28 未經審核綜合財務狀況表 29 未經審核綜合權益變動表 30 未經審核簡明綜合現金流量表 31 未經審核中期財務報告附註 47 詞彙 | --- | --- | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|------------------------------------------------------------------------ ...

專注於長遠發展重點 雅各臣科研製藥有限公司 根據開曼群島法例註冊成立的有限公司 股份代號 : 2633 二零二零年年報 目錄 1 公司資料 2 財務摘要 4 致股東函件 6 企業願景及使命 7 公司簡介 8 管理層討論及分析 26 企業管治報告 38 環境、社會及管治報告 58 董事報告書 71 獨立核數師報告 76 綜合損益及其他全面收益表 78 綜合財務狀況表 79 綜合權益變動表 80 綜合現金流量表 81 財務報表附註 149 五年財務概要 150 詞彙 公司資料 董事會 執行董事 岑廣業先生 （主席兼行政總裁） 嚴振亮先生 潘裕慧女士 非執行董事 林誠光教授 獨立非執行董事 林烱堂醫生 楊俊文先生 黃志基教授 審核委員會 楊俊文先生（主席） 林烱堂醫生 黃志基教授 薪酬委員會 林烱堂醫生（主席） 楊俊文先生 潘裕慧女士 提名委員會 黃志基教授（主席） 林烱堂醫生 楊俊文先生 嚴振亮先生 授權代表 嚴振亮先生 潘裕慧女士 公司秘書 嚴振亮先生 註冊辦事處 Cricket Square Hutchins Drive PO Box 2681 Grand Cayman KY1-1111 Cayman Isl ...

[Company and Financial Overview](index=2&type=section&id=Company%20and%20Financial%20Overview) This section provides an overview of the company's financial performance and strategic positioning [Financial Highlights](index=4&type=section&id=Financial%20Highlights) For the six months ended September 30, 2019, total revenue grew 6.8% to HKD 872 million, gross profit increased 12.5% to HKD 359 million, and profit attributable to shareholders rose 30.5% to HKD 127 million 2019 Interim Financial Highlights (For the six months ended September 30) | Indicator | 2019 Interim (HKD '000) | 2018 Interim (HKD '000) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **871,686** | **816,260** | **+6.8%** | | - Generic Drugs | 626,867 | 595,227 | +5.3% | | - Branded Drugs | 130,340 | 110,743 | +17.7% | | - Wholesale & Retail | 114,479 | 110,290 | +3.8% | | **Gross Profit** | **358,517** | **318,694** | **+12.5%** | | Gross Margin | 41.1% | 39.0% | +2.1 p.p. | | **Profit Attributable to Company Shareholders** | **127,218** | **97,531** | **+30.5%** | | Adjusted EBITDA | 255,968 | 211,516 | +21.0% | Balance Sheet Summary | Indicator | September 30, 2019 (HKD '000) | March 31, 2019 (HKD '000) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 4,657,259 | 4,260,594 | +9.3% | | Total Liabilities | 1,921,901 | 1,573,456 | +22.1% | | Total Equity | 2,735,358 | 2,687,138 | +1.8% | [Company Profile and Competitive Advantages](index=6&type=section&id=Company%20Profile%20and%20Competitive%20Advantages) Jacobson Pharma is a leading Hong Kong pharmaceutical company with integrated R&D, production, and sales capabilities across generic, specialized, and branded drugs, leveraging its market leadership and strong R&D - The company is a major generic drug supplier in Hong Kong, with an extensive sales and distribution network covering public and private markets, actively expanding into strategic Asian markets[20](index=20&type=chunk) - The company owns several well-known branded medicines, such as Po Chai Pills, Ho Chai Kung, and Tang Tai Zong Medicated Oil, which enjoy high consumer recognition and a solid market position[20](index=20&type=chunk)[22](index=22&type=chunk) - Core competitive advantages include: leadership in multiple therapeutic areas, recognized branded medicines, leading R&D capabilities, and a comprehensive sales and distribution network[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section details the company's operational performance, financial results, and strategic initiatives during the reporting period [Business Review](index=7&type=section&id=Business%20Review) Despite economic pressures from social unrest in Hong Kong, the Group achieved a modest 6.8% revenue growth and a strong 30.5% increase in profit attributable to shareholders in H1 2019 - Amidst social unrest in Hong Kong, the company's total revenue grew **6.8%** to **HKD 871.7 million**, and profit attributable to shareholders increased by **30.5%**, primarily driven by stable sales performance, operating leverage, and cost control[27](index=27&type=chunk) - The generic drug business recorded **5.3%** growth, with sales revenue reaching **HKD 626.9 million**, mainly driven by product portfolio expansion and demand from an aging population[28](index=28&type=chunk) - The branded drug business achieved moderate growth, with both Po Chai Pills and Ho Chai Kung brands showing good performance in the Hong Kong and Macau markets[27](index=27&type=chunk) - The company successfully engaged in strategic collaborations with multinational partners involving high-end generic drug licensing, technology transfer, and branded product agency, while actively pursuing regional expansion plans[27](index=27&type=chunk) [Generic Drug Business Performance](index=7&type=section&id=Generic%20Drug%20Business%20Performance) The generic drug business achieved robust 5.3% growth, with sales reaching HKD 626.9 million, driven by strong performance in cardiovascular, CNS, and oral antidiabetic products Key Therapeutic Product Sales Growth | Therapeutic Category | Product Examples | Sales Growth Rate | | :--- | :--- | :--- | | Cardiovascular | β-blockers / Calcium Channel Blockers | +25.0% / +21.1% | | Central Nervous System | Antipsychotics / Hypnotics | +15.1% / +9.4% | | Oral Antidiabetics | - | +32.2% | - During the period, several new products were launched, including Diltiazem sustained-release tablets and Dihydrocodeine tablets, with multiple new products also approved for registration[34](index=34&type=chunk) - Production efficiency improved, with solid dosage forms like tablets and capsules reaching **1.598 billion units**, a **13.5%** year-on-year increase[35](index=35&type=chunk) [Business Development and New Market Potential](index=9&type=section&id=Business%20Development%20and%20New%20Market%20Potential) The company actively expanded its high-value product portfolio through strategic collaborations, signing exclusive licensing agreements for 19 specialty drugs with international manufacturers - Signed exclusive licensing agreements for **19** specialty drugs with manufacturers from Greece, Spain, South Korea, and Taiwan, covering cardiovascular, central nervous system, anti-infective, and oncology fields[39](index=39&type=chunk) - Entered the medical nutrition market, launching two products in Hong Kong: Aterinorm for cholesterol control and Gynositol for improving ovarian function[40](index=40&type=chunk) - Partnered with Smartfish of Norway to launch clinically tested health and sports nutrition beverages in Asia, with the first product, SMARTFISH REFLECT, already available in Hong Kong[41](index=41&type=chunk) [Branded Drug Business Performance](index=10&type=section&id=Branded%20Drug%20Business%20Performance) The branded drug segment's total revenue grew 17.7% to HKD 130.3 million, driven by strong performance of core brands like Po Chai Pills and Ho Chai Kung - The branded drug segment's total revenue reached **HKD 130.3 million**, a year-on-year increase of **17.7%**[45](index=45&type=chunk) - Core brands showed strong performance: Po Chai Pills sales in Hong Kong and Macau grew **11.0%**, and Ho Chai Kung pain relievers sales in Hong Kong and Macau increased significantly by **27.3%**[45](index=45&type=chunk) - Actively expanded online channels, with Po Chai Pills now available on JD Worldwide and Tmall Global to explore the potential of the mainland China market[46](index=46&type=chunk) [R&D Progress](index=10&type=section&id=R%26D%20Progress) The company's R&D projects progressed well, with 4 products successfully registered during the period, and 103 products currently in various stages of development - As of September 30, 2019, the company had **103** products under development, of which **48** were approved for registration, **8** submitted for registration, and **27** undergoing stability testing[47](index=47&type=chunk) - Production facilities for an innovative home-use diagnostic product for prostate cancer screening are expected to be certified by end of 2019, with plans for launch in Hong Kong and Macau within **12-18 months**[50](index=50&type=chunk) - The company invested **USD 15 million** in Fosun Pharma in December 2017, with the book value of this investment increasing to **HKD 212.7 million** as of September 30, 2019[54](index=54&type=chunk) [Corporate Actions and Human Resources](index=12&type=section&id=Corporate%20Actions%20and%20Human%20Resources) The company further acquired 43% equity in Orizen Capital Limited to accelerate branded Chinese medicine business expansion and fully redeemed HKD 500 million convertible bonds to save interest expenses - On August 6, 2019, the company further acquired a **43%** equity interest in Orizen Capital Limited for **HKD 113.4 million** to expand its branded Chinese medicine business portfolio[57](index=57&type=chunk) - The company fully redeemed convertible bonds with a principal amount of **HKD 500 million** and a coupon rate of **3.5%** ahead of schedule to reduce financing costs[58](index=58&type=chunk) - As of September 30, 2019, the Group had **1,911** employees, with total employee costs of **HKD 225.3 million** during the reporting period[59](index=59&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) Total revenue increased by 6.8% to HKD 871.7 million this period, with growth across all business segments, while operating profit and profit attributable to shareholders also saw significant increases [Revenue Analysis](index=13&type=section&id=Revenue%20Analysis) Total revenue increased by 6.8%, with generic drugs, branded drugs, and wholesale & retail segments growing by 5.3%, 17.7%, and 3.8% respectively Revenue by Operating Segment (HKD Million) | Segment | FY2020 Interim | FY2019 Interim | Growth Rate | | :--- | :--- | :--- | :--- | | Generic Drugs | 626.9 | 595.3 | +5.3% | | Branded Drugs | 130.3 | 110.7 | +17.7% | | Wholesale & Retail | 114.5 | 110.3 | +3.8% | | **Total** | **871.7** | **816.3** | **+6.8%** | - The Hong Kong market was the primary source of revenue, accounting for **94%** of total revenue and contributing **HKD 51.7 million** in revenue growth[72](index=72&type=chunk)[75](index=75&type=chunk) [Cost and Profit Analysis](index=14&type=section&id=Cost%20and%20Profit%20Analysis) Cost of sales increased by 4.6%, largely in line with sales growth, while operating profit rose 18.3% to HKD 187.7 million, driven by higher gross profit and fair value gains - Operating profit increased by **18.3%** from **HKD 158.6 million** to **HKD 187.7 million**[84](index=84&type=chunk)[85](index=85&type=chunk) - Finance costs decreased due to the early redemption of convertible bonds, saving interest expenses and amortization costs[86](index=86&type=chunk) - Profit attributable to shareholders increased by **30.5%** to **HKD 127.2 million**[90](index=90&type=chunk) [Assets and Liabilities Analysis](index=16&type=section&id=Assets%20and%20Liabilities%20Analysis) Intangible assets significantly increased by HKD 274 million due to the acquisition of a branded Chinese medicine business subsidiary, while bank borrowings rose to HKD 1,478 million - Intangible assets increased by **HKD 274 million** due to the acquisition of a subsidiary[92](index=92&type=chunk) - Bank borrowings increased from **HKD 829.6 million** to **HKD 1,478.1 million**, primarily used for the early redemption of **HKD 500 million** convertible bonds[97](index=97&type=chunk) [Use of Proceeds and Capital Structure](index=17&type=section&id=Use%20of%20Proceeds%20and%20Capital%20Structure) The company detailed the use of proceeds from its initial public offering, convertible bond issuance, and new share issuance, with most funds utilized as planned - Of the net proceeds of **HKD 695.5 million** from the initial public offering, **HKD 546.2 million** has been utilized[99](index=99&type=chunk) - Of the net proceeds of **HKD 490.4 million** from the issuance of convertible bonds, **HKD 449.1 million** has been utilized[100](index=100&type=chunk)[101](index=101&type=chunk) - The net gearing ratio increased from **24.8%** as of March 31, 2019, to **27.8%**, primarily due to additional bank borrowings[109](index=109&type=chunk) [Key Risks and Uncertainties](index=19&type=section&id=Key%20Risks%20and%20Uncertainties) The company faces key risks including regulatory compliance in pharmaceutical manufacturing, uncertainties in future M&A integration, and potential product liability - Key risks include: failure to comply with pharmaceutical regulations, inability to successfully integrate M&A projects, delays in new product development, and product liability risks[115](index=115&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers corporate governance, shareholder information, and employee incentive schemes [Corporate Governance and Compliance](index=20&type=section&id=Corporate%20Governance%20and%20Compliance) The company is committed to maintaining high corporate governance standards, though the Chairman and CEO roles are held by the same individual, Mr. Sum - The company's Chairman and Chief Executive Officer are held by the same person, Mr. Sum, which does not comply with Rule A.2.1 of the Corporate Governance Code regarding segregation of duties[123](index=123&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed these interim results[127](index=127&type=chunk)[129](index=129&type=chunk) [Dividends and Shareholder Information](index=21&type=section&id=Dividends%20and%20Shareholder%20Information) The Board recommended an interim dividend of 2.0 HK cents per share, and the report details the interests of directors, chief executives, and substantial shareholders - The Board recommended an interim dividend of **2.0 HK cents** per ordinary share, totaling approximately **HKD 40.3 million**[131](index=131&type=chunk) - Controlling shareholder Mr. Sum holds a total of **1,289,826,000** shares, representing approximately **63.99%** of the issued share capital, through beneficial ownership, controlled corporations, and trusts[143](index=143&type=chunk)[150](index=150&type=chunk) - Yunnan Baiyao Group holds **200,000,000** shares, representing approximately **9.92%** of the issued share capital[150](index=150&type=chunk)[155](index=155&type=chunk) [Share Options and Share Award Scheme](index=25&type=section&id=Share%20Options%20and%20Share%20Award%20Scheme) The company has a share option scheme and a share award scheme to incentivize and retain talent, with 22,980,000 outstanding share options as of September 30, 2019 - As of September 30, 2019, there were **22,980,000** outstanding share options under the share option scheme, primarily granted to directors and other employees[162](index=162&type=chunk)[166](index=166&type=chunk) - The company adopted a share award scheme in October 2018; as of the period-end, the trustee had purchased **7,700,000** company shares, but no shares had been awarded to any participants[170](index=170&type=chunk)[172](index=172&type=chunk) [Financial Reports and Notes](index=28&type=section&id=Financial%20Reports%20and%20Notes) This section presents the unaudited consolidated financial statements and their detailed explanatory notes [Unaudited Consolidated Financial Statements](index=28&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) This section contains the company's unaudited consolidated statement of profit or loss and other comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, and condensed consolidated statement of cash flows for the six months ended September 30, 2019 Consolidated Statement of Profit or Loss Key Data (For the six months ended September 30, 2019) | Indicator | Amount (HKD '000) | | :--- | :--- | | Revenue | 871,686 | | Gross Profit | 358,517 | | Operating Profit | 187,693 | | Profit Before Tax | 160,081 | | Profit for the Period | 131,879 | | Profit Attributable to Company Shareholders | 127,218 | Consolidated Statement of Financial Position Key Data (As of September 30, 2019) | Indicator | Amount (HKD '000) | | :--- | :--- | | Non-current Assets | 3,280,211 | | Current Assets | 1,377,048 | | Current Liabilities | 974,781 | | Non-current Liabilities | 947,120 | | Net Assets | 2,735,358 | | Total Equity Attributable to Company Shareholders | 2,666,898 | [Notes to the Unaudited Interim Financial Report](index=33&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) The notes provide detailed explanations of the financial statements, including the impact of HKFRS 16, segment reporting, business combinations, and fair value measurements - The company first applied HKFRS 16 (Leases) from April 1, 2019, using a modified retrospective approach, adjusting the opening equity balance and recognizing right-of-use assets and lease liabilities[198](index=198&type=chunk) - Segment reporting shows the generic drug segment contributed **HKD 198.7 million** in reportable segment profit (adjusted EBITDA), while the branded drug segment contributed **HKD 52.7 million**[238](index=238&type=chunk) - The company completed the further acquisition of Orizen Capital on August 6, 2019, with this business combination resulting in **HKD 56.191 million** in goodwill[276](index=276&type=chunk)[280](index=280&type=chunk) - Subsequent to the reporting period, a 50%-owned joint venture of the company acquired a company with generic and branded Chinese medicine production facilities for approximately **HKD 89 million**[294](index=294&type=chunk)

加速發展策略 實現可持續成長 Illustration by Rosanna Tasker 雅各臣科研製藥有限公司 根據開曼群島法例註冊成立的有限公司 股份代號 : 2633 二零一九年年報 目錄 66 獨立核數師報告 71 綜合損益及其他全面收益表 72 綜合財務狀況表 73 綜合權益變動表 74 綜合現金流量表 75 財務報表附註 137 五年財務概要 138 詞彙 1 公司資料 2 財務摘要 4 致股東函件 6 企業願景及使命 7 公司簡介 8 管理層討論及分析 25 企業管治報告 37 環境、社會及管治報告 51 董事報告書 | --- | --- | --- | |-------|--------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------| | | | | | | 楊俊文先生（主席） 林烱堂 ...