Financial Performance - Total revenue for the fiscal year ended December 31, 2022, was HKD 1,186,185,000, representing a 33.4% increase from HKD 888,872,000 in 2021[6] - Gross profit for the year was HKD 261,538,000, a 72.4% increase from HKD 151,701,000 in the previous year, resulting in a gross margin of 22.0%[6] - The company reported a profit attributable to equity holders of HKD 43,750,000, a significant turnaround from a loss of HKD 18,816,000 in 2021[6] - EBITDA for the fiscal year was HKD 79,661,000, reflecting a substantial increase of 1,135.8% from HKD 6,446,000 in the prior year[6] - The net profit for the fiscal year was HKD 43.6 million, a significant turnaround from a loss of HKD 17.4 million in the previous fiscal year[18] - Gross profit for the fiscal year 2022 increased by 72.4% to HKD 261.5 million, with a gross margin improvement of 4.9 percentage points to 22.0%[27] - Shareholders' profit for the fiscal year 2022 was HKD 43.8 million, a turnaround from a loss of HKD 18.8 million in the fiscal year 2021[29] Revenue Breakdown - E-commerce revenue increased by 35.3% to HKD 738,673,000, while distribution revenue rose by 31.7% to HKD 447,512,000[6] - Revenue from mainland China rose by 34.4% to HKD 750.9 million, driven by ongoing efforts in e-commerce sales expansion[26] - Revenue in Hong Kong increased by 42.8% to HKD 321.6 million, attributed to product portfolio optimization[26] - Revenue from other markets, such as Singapore, surged by 111.0% to HKD 19.2 million, following the acquisition of Fu Qing Chinese Medical Trading Pte. Limited[26] - The e-commerce business revenue reached HKD 738.7 million, a 35.3% increase from HKD 546.0 million in the previous fiscal year[19] - The distribution business recorded sales of HKD 447.5 million, up 31.7% from HKD 340.0 million in the previous fiscal year[20] Strategic Initiatives - The company plans to continue focusing on e-commerce and distribution channels to drive future growth[11] - The company plans to continue expanding its e-commerce operations and has established new procurement centers in France, Korea, and Vietnam to diversify its supply network[14] - The company is focused on capturing new opportunities and expanding its product portfolio through its dual-channel sales model[14] - The company anticipates a strong rebound in local consumption as travel restrictions ease and consumer confidence improves, particularly in the second quarter of 2023[14] - The company plans to continue its dual-channel strategy to drive growth in the Greater China region and Southeast Asia, focusing on health and lifestyle products[24] Dividend and Shareholder Returns - The board has declared a final dividend of HKD 0.03 per share for the fiscal year, a return to dividends after not declaring any in the previous year[13] - A final dividend of HKD 0.03 per share has been proposed for the year ended December 31, 2022, compared to no dividend in 2021, pending shareholder approval[41] - The company declared a final dividend of HKD 0.03 per share for the year ended December 31, 2022, compared to zero in 2021, pending shareholder approval[59] Assets and Liabilities - Total assets as of December 31, 2022, were HKD 1,012,117,000, up 14.7% from HKD 881,463,000 in 2021[7] - Total liabilities increased by 19.6% to HKD 718,957,000, compared to HKD 620,201,000 in the previous year[7] - The company's total equity rose by 3.0% to HKD 293,160,000 from HKD 261,262,000 in 2021[7] - Cash and cash equivalents as of December 31, 2022, were approximately HKD 74.6 million, up from HKD 71.6 million in the previous year[31] - The debt-to-equity ratio increased to 47.6% as of December 31, 2022, compared to 39.4% in the previous year, primarily due to increased invoice financing[31] Market and Economic Conditions - The management highlighted a recovery in retail consumption as COVID-19 measures were gradually relaxed in the second half of the year[11] - The overall economic recovery and increased health awareness among consumers are expected to drive further growth in both online and offline sales channels[16] - The company anticipates a significant recovery in economic activities following the easing of COVID-19 restrictions, with a projected increase in revenue from travel-related products[24] - The total number of visitors to Hong Kong in 2022 was 604,000, a year-on-year increase of 561.5%, indicating a potential rebound in tourism[24] Governance and Compliance - The company has adopted new articles of association to comply with the latest legal and regulatory requirements effective from January 1, 2022[44] - The board confirmed that all independent non-executive directors are independent individuals, ensuring proper governance and protection of shareholder interests[64] - The company has complied with the disclosure requirements of the Listing Rules regarding connected transactions[69] - The company has established compliance and risk management policies to monitor adherence to significant legal and regulatory requirements[113] - The company has adopted a Securities Trading Code for directors, confirming compliance during the fiscal year[147] Employee and Social Responsibility - The company emphasizes employee welfare and rights, ensuring no involvement in human rights violations, including forced labor and child labor[182] - Employee health and safety are prioritized, with efforts to eliminate potential workplace hazards and ensure a safe working environment[190] - The company has established a cross-departmental safety committee to enhance occupational health and safety measures, conducting regular training for all employees[191] - The company provides comprehensive employee benefits, including mandatory provident fund plans in Hong Kong and various paid leave options[195] - The company has implemented COVID-19 safety measures, including regular cleaning and disinfection schedules, to ensure employee health[191] Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the group's performance in environmental, social, and governance aspects for the fiscal year ending December 31, 2022[173] - The group identified and prioritized 21 significant sustainability issues through stakeholder engagement, with 13 ESG topics deemed important[176][178] - The top five ESG issues identified are product safety, product integrity, occupational health and safety, intellectual property protection, and employee welfare and benefits[178] - The group adheres to the "comply or explain" provisions of the ESG reporting guidelines[173] - The company has integrated climate change issues into its risk management system to mitigate environmental risks and seize opportunities[184]

Financial Performance - The group's revenue for the fiscal year ended December 31, 2022, was HKD 1,186.2 million, an increase of 33.4% compared to HKD 888.9 million for the fiscal year ended December 31, 2021[2]. - Gross profit for the fiscal year 2022 was HKD 261.5 million, up 72.4% from HKD 151.7 million in 2021[2]. - The gross profit margin increased by 4.9 percentage points from 17.1% in 2021 to 22.0% in 2022[2]. - The net profit for the fiscal year 2022 was HKD 43.6 million, reversing a loss of HKD 17.4 million in 2021[2]. - Total reported segment revenue for 2022 was HKD 1,220,973,000, a 35.0% increase compared to HKD 905,235,000 in 2021[14]. - The group reported a net profit of HKD 43,631,000 for the year, recovering from a loss of HKD 17,402,000 in the previous year[15]. - The group's net profit attributable to shareholders was HKD 43.8 million for the fiscal year, a turnaround from a loss of HKD 18.8 million in the 2021 fiscal year, driven by increased revenue and reduced inventory write-downs[47]. Revenue Breakdown - E-commerce segment revenue for 2022 reached HKD 738,673,000, up 35.1% from HKD 545,962,000 in 2021[14]. - Distribution segment revenue for 2022 was HKD 482,300,000, an increase of 35.4% from HKD 356,060,000 in 2021[14]. - Revenue from Mainland China increased to HKD 750,878,000 in 2022, up 34.3% from HKD 558,847,000 in 2021[18]. - Revenue in Hong Kong increased by 42.8% to HKD 321.6 million, attributed to an optimized product mix[44]. - Revenue from other markets, including Singapore, surged by 111.0% to HKD 19.2 million, following the acquisition of Fu Qing Chinese Medical Trading Pte. Limited[44]. Dividends and Earnings Per Share - The board declared a final cash dividend of HKD 0.03 per ordinary share for the fiscal year 2022, compared to no dividend in 2021[2]. - The company reported a basic and diluted earnings per share of HKD 0.06 for 2022, compared to a loss per share of HKD 0.02 in 2021[4]. - Basic earnings per share for 2022 was 6 HK cents, a recovery from a loss of 2 HK cents per share in 2021[25]. - The company plans to distribute a final dividend of 3 HK cents per share, totaling HKD 24,000,000 for 2022[28]. Assets and Liabilities - Total assets as of December 31, 2022, amounted to HKD 1,012.1 million, an increase from HKD 881.5 million in 2021[5]. - Total liabilities increased to HKD 718.96 million in 2022 from HKD 620.2 million in 2021[6]. - Current assets rose to HKD 829.65 million in 2022, compared to HKD 692.7 million in 2021[5]. - Trade receivables increased to HKD 256,213,000 in 2022 from HKD 204,971,000 in 2021[28]. - Trade payables decreased slightly to HKD 302.8 million in 2022 from HKD 306.6 million in 2021[31]. Strategic Initiatives - The company continues to focus on the distribution and retail of health and lifestyle-related products[8]. - The company aims to continue expanding its e-commerce business and explore new markets in Southeast Asia[36]. - The company plans to continue its dual-channel strategy to drive growth in mainland China, Hong Kong, and Macau, while actively expanding in Southeast Asia[42]. - The company has established strong online and offline sales networks, supplying over 1,500 products from more than 100 local and overseas brands[34]. - A strategic cooperation agreement was signed with Biotropics Malaysia to leverage brand management expertise and enhance product visibility in Greater China[41]. Operational Costs and Expenses - The company incurred a cost of goods sold of HKD 924,647,000 in 2022, compared to HKD 737,171,000 in 2021[22]. - Sales and distribution expenses rose by 25.0% to HKD 121.4 million, up from HKD 97.2 million in the previous fiscal year, primarily due to increased e-commerce sales and related marketing costs[45]. - Financial costs increased by 80.8% to HKD 11.3 million, up from HKD 6.3 million in the previous fiscal year, attributed to higher interest-bearing bank borrowings and rising interest rates[45]. - Total employee expenses for the fiscal year were approximately HKD 53.7 million, slightly up from HKD 53.4 million in the previous year, with a total employee count of 179 as of December 31, 2022[51]. Future Outlook - The company expects a rebound in offline sales as travel and social activities resume in 2023, boosting local consumption and confidence[35]. - The company anticipates a significant increase in sales of hair care products due to rising consumer awareness and an aging population[39]. - The company expects a gradual recovery of offline distribution business to pre-pandemic levels as travel restrictions ease[42]. Compliance and Governance - The company has fully complied with the corporate governance code, except for a deviation regarding the separation of roles between the chairman and the CEO[59]. - The auditor confirmed that the financial figures in the preliminary announcement align with the audited financial statements for the year ended December 31, 2022[63].

Financial Performance - Total revenue for the fiscal year 2021 reached HKD 888.9 million, a 75.7% increase from HKD 506.0 million in the previous fiscal year[13] - The company reported a net loss of HKD 17.4 million for the fiscal year 2021, a substantial reduction of 71.5% from a loss of HKD 61.0 million in the previous year[13] - Gross profit increased by 184.6% to HKD 151.7 million, with a gross margin of 17.1%, up from 10.5% in the previous year[7] - EBITDA for the fiscal year was HKD 6.4 million, a significant improvement from an EBITDA loss of HKD 44.5 million in the previous year[7] - The group recorded revenue of HKD 888.9 million for the fiscal year 2021, a 75.7% increase from HKD 506.0 million in fiscal year 2020[21] - The consolidated loss for the fiscal year 2021 narrowed significantly by 71.5% to HKD 17.4 million, compared to a loss of HKD 61.0 million in fiscal year 2020[21] - The group recorded a shareholder loss of HKD 18.8 million in fiscal year 2021, a substantial reduction from a loss of HKD 61.1 million in 2020, mainly due to increased revenue and gross profit[34] E-commerce Growth - E-commerce sales grew significantly, increasing by 143.0% to HKD 545.9 million, compared to HKD 224.7 million in the previous year[7] - The group plans to invest more resources into e-commerce and seek collaboration opportunities with well-known brands to expand into the domestic e-commerce market[15] - The group aims to continue expanding its online sales business, leveraging the shift in consumer purchasing habits towards e-commerce[19] - The group anticipates continued consumer shift from offline to online shopping, focusing on expanding its presence in the Chinese market[22] - The e-commerce segment primarily generates revenue from consumers in mainland China, while the distribution business serves major retail chains and non-chain retailers in Hong Kong and Macau[195] Market Expansion and Strategy - The group successfully obtained agency rights for several internationally renowned quality brands in the fiscal year 2021, expecting new product sales to be a major driver of revenue growth[15] - The group anticipates that future business growth will primarily come from the domestic market, particularly due to favorable policies from the Chinese government regarding the Greater Bay Area[15] - A strategic cooperation framework agreement has been established with a major shareholder's subsidiary to explore opportunities in drug research and comprehensive commercialization services in the Greater Bay Area[15] - The company aims to leverage its partnership with China Resources to tap into the vast domestic market for traditional Chinese medicine and health products[27] Operational Challenges - The overall retail industry in Hong Kong remains under pressure due to ongoing travel restrictions and social distancing measures, affecting consumer sentiment[19] - The board remains cautious due to ongoing external challenges and aims to improve profitability in the uncertain operating environment[13] - The COVID-19 pandemic has affected the company's business, leading to a shift in consumer purchasing habits from offline to online[55] Financial Position and Assets - Total assets rose by 42.2% to HKD 881.5 million, while total liabilities increased by 88.2% to HKD 620.2 million[8] - As of December 31, 2021, the group held cash and cash equivalents of approximately HKD 71.6 million, down from HKD 119.3 million on December 31, 2020[35] - The group's debt-to-equity ratio increased to 39.4% as of December 31, 2021, compared to 21.5% on December 31, 2020, primarily due to increased bank loans and invoice financing[35] Corporate Governance - The board of directors consists of eight members, including one executive director, four non-executive directors, and three independent non-executive directors[136] - The company has adopted the corporate governance code as its governance framework, ensuring transparency and formal procedures to protect shareholder interests[134] - The board's governance committee is responsible for formulating and reviewing the company's governance policies and practices[134] - The company has established compliance and risk management policies, ensuring adherence to significant legal and regulatory requirements[127] Sustainability and ESG - The company has established a committee to integrate ESG performance indicators and report on sustainability progress[188] - Regular assessments of environmental risks are conducted, with plans to collaborate with stakeholders to manage climate-related risks[189] - The company emphasizes the importance of stakeholder engagement to identify and prioritize development strategies[199] Employee and Management - The company has a total of 186 employees as of December 31, 2021, an increase from 172 employees in the previous year[46] - Total employee expenses for the fiscal year amounted to approximately HKD 53.4 million, up from HKD 38.6 million in the previous fiscal year[46] - The chairman and CEO roles are not separated and are held by the same individual, Mr. Wang Jia Jun, who has extensive knowledge and experience in the health and personal care products industry[150] Related Party Transactions - The company has entered into a main supply agreement with a major shareholder, China Resources Pharmaceutical, allowing for the sale of certain traditional Chinese medicine and health care products, with no minimum supply amount specified[86] - The annual cap for related party transactions under the main supply agreement was revised upwards following shareholder approval, with existing annual caps set at HKD 550 million for purchases and HKD 300 million for sales[88] - Independent non-executive directors have reviewed the ongoing related party transactions and confirmed they are conducted in the ordinary course of business and on normal commercial terms[93]

Financial Performance - Total revenue for the six months ended June 30, 2021, was HKD 380.66 million, a 107.3% increase from HKD 183.63 million in the same period of 2020[6] - Gross profit rose by 97.5% to HKD 71.49 million, with a gross margin of 18.8%[6] - The company reported a loss attributable to equity holders of HKD 10.97 million, a 77.3% improvement from a loss of HKD 48.36 million in the prior year[6] - Adjusted EBITDA was HKD 2.17 million, compared to a loss of HKD 23.47 million in the same period last year[6] - The group reported a net loss of HKD 10,198,000 for the period, down from HKD 48,358,000 in the previous year, representing a decrease of 78.9%[107] - The overall loss before tax for the company narrowed to HKD 9,881,000 in 2021 from HKD 51,314,000 in 2020, a reduction of 80.7%[107] Revenue Breakdown - E-commerce revenue surged by 261.6% to HKD 231.12 million, compared to HKD 63.92 million in the previous year[6] - Distribution revenue increased by 26.4% to HKD 147.08 million, up from HKD 116.31 million year-on-year[6] - Revenue from mainland China surged by 260.6% to HKD 230.5 million, driven by the easing of travel restrictions to Hong Kong[26] - Revenue in Hong Kong decreased by 9.0% to HKD 98.4 million due to the impact of COVID-19 and the closure of major transit points[26] - Revenue from Macau and other markets rose significantly by 347.5% to HKD 51.8 million, attributed to the acquisition of an 80% stake in a Macau distributor[26] Assets and Liabilities - Total assets increased by 11.8% to HKD 693.29 million, while total liabilities rose by 24.9% to HKD 411.53 million[7] - The group's debt-to-equity ratio increased to 77.3% from 68.3% at the end of 2020, mainly due to increased invoice financing[31] - Total current liabilities increased to HKD 404,994,000 as of June 30, 2021, compared to HKD 321,280,000 as of December 31, 2020, representing a 26% increase[71] - The company’s total liabilities rose to HKD 411,533,000 as of June 30, 2021, compared to HKD 329,471,000 as of December 31, 2020, marking a 25% increase[71] Market and Economic Conditions - The ongoing COVID-19 pandemic continues to impact the retail and distribution market in Hong Kong, with visitor numbers dropping by 99.1% year-on-year[13] - Approximately 60% of Hong Kong's population has received at least one COVID-19 vaccine dose, contributing to a stable environment for business recovery[19] - The company anticipates continued growth in the health and wellness sector due to heightened consumer awareness post-COVID-19[19] - The implementation of favorable policies in the Greater Bay Area is expected to create significant business opportunities for the company[22] Strategic Initiatives - The company aims to leverage its distribution channels in Macau to capitalize on economic recovery opportunities[14] - The company has obtained distribution rights for several new health products, including Culturelle® probiotics, which are expected to be a major driver of sales growth[16] - The company is expanding its product portfolio by establishing new subsidiaries in Japan and Thailand for quality health and beauty product distribution[18] - A joint venture with Jianbei Miaomiao aims to develop private label products, leveraging both companies' strengths in product development and distribution[18] - The company plans to enhance its e-commerce business by establishing more online stores and strengthening partnerships with major platforms like JD.com and Tmall.com[20] Shareholder Information - The company has a shareholding structure where the chairman and CEO roles are held by the same individual, which the board believes does not impair the balance of power[48] - As of June 30, 2021, the chairman held 448,096,326 shares (56.01%) and 200,000,000 shares (25.00%) in a controlled corporation[53] - Tycoon Empire holds 448,096,326 shares, representing 56.01% of the company's total shares, and has a short position of 200,000,000 shares, accounting for 25.00%[57] - The total issued share capital as of June 30, 2021, was HKD 100,000,000, with 10,000,000,000 ordinary shares issued at a par value of HKD 0.01 each[156] Employee and Operational Metrics - The total number of employees as of June 30, 2021, was 178, an increase from 167 in the previous year, with total employee expenses amounting to approximately HKD 25.6 million, up from HKD 19.6 million year-on-year[41] - The company incurred employee benefit expenses of HKD 25,608,000, up from HKD 19,552,000 in the previous year, reflecting an increase of 31%[131] Share Options and Awards - The company adopted a share option plan on March 23, 2020, allowing for the issuance of options up to 30% of the total issued share capital[158] - A share award plan was adopted on May 25, 2020, allowing for the issuance of shares up to 5% of the total issued share capital as of the adoption date, equating to 40,000,000 shares[163] - During the six months ended June 30, 2021, the company granted 10,348,000 shares under the share award plan, with no shares granted in the same period of the previous year[164]

Financial Performance - Total revenue for the fiscal year 2020 was HKD 505.99 million, a decrease of 27.8% compared to HKD 700.76 million in 2019[11]. - The company recorded a loss attributable to equity holders of HKD 61.13 million, a decline of 212.1% from a profit of HKD 54.52 million in 2019[7]. - Adjusted EBITDA was HKD (35.64) million, a decrease of 136.1% from HKD 98.62 million in the previous year[7]. - The group's revenue for the fiscal year 2020 was approximately HKD 506.0 million, a decrease of 27.8% from HKD 700.8 million in 2019, resulting in a loss of HKD 61.0 million compared to a profit of HKD 54.5 million in the previous year[24]. - Revenue from the distribution business decreased by 57.6% to HKD 274.3 million, down from HKD 646.9 million in 2019, while retail store revenue fell by 62.2% to HKD 7.0 million from HKD 18.5 million[31]. - Gross profit fell to HKD 83.8 million from HKD 191.1 million, with a gross margin decrease of 10.7 percentage points to 16.6%, attributed to a shift towards lower-margin e-commerce sales and increased competition in the market for pandemic-related products[36]. - General and administrative expenses increased by 70.3% to HKD 93.5 million from HKD 54.9 million, influenced by inventory write-offs and increased legal and compliance costs following the company's IPO[39]. - Shareholders' loss amounted to HKD 61.1 million, compared to a profit of HKD 54.5 million in the previous fiscal year[43]. E-commerce Growth - E-commerce revenue surged to HKD 224.69 million, representing a growth of 535.4% from HKD 35.36 million in the previous year[7]. - E-commerce sales revenue reached HKD 224.7 million, a sixfold increase from HKD 35.4 million in the previous fiscal year, reflecting the success of the dual online and offline sales strategy[27]. - The group's e-commerce revenue surged sixfold to HKD 224.7 million in the fiscal year, up from HKD 35.4 million in the previous fiscal year, primarily driven by increased online purchases from mainland Chinese consumers due to COVID-19 restrictions[32]. - The COVID-19 pandemic has shifted consumer behavior towards online shopping, leading to growth in the company's e-commerce business during this period[93]. - The company aims to strengthen its e-commerce presence by partnering with major platforms like JD.com and Tmall.com to expand its product distribution[93]. Business Expansion and Strategy - The company plans to expand its e-commerce operations by increasing the mainland e-commerce team and establishing more online stores[15]. - A joint venture with China Resources Pharmaceutical Group is expected to commence operations in Q2 2021, focusing on distributing quality health products in mainland China[15]. - The group plans to continue seeking and obtaining distribution rights for new health, skincare, and personal care products to diversify its product offerings[27]. - The group has expanded its workforce and office space in mainland China to support the growth of its e-commerce business[27]. - The group aims to leverage its existing distribution channels in Macau to benefit from the region's economic recovery[27]. - Future marketing strategies will focus on digital marketing and social media to promote the group's own brand products[97]. - The group plans to actively expand its O2O business model and enhance supply chain and retail management in mainland China[97]. - A new subsidiary has been established in Japan to negotiate exclusive operating and distribution rights for more quality health and beauty product brands[97]. Financial Position and Assets - Total assets increased by 69.2% to HKD 619.91 million from HKD 366.36 million in 2019[7]. - Total liabilities rose by 32.8% to HKD 329.47 million compared to HKD 248.00 million in 2019[7]. - As of December 31, 2020, the group held cash and bank balances of approximately HKD 119.3 million, up from HKD 50.4 million a year earlier, with a debt-to-equity ratio of 68.3%[47]. - The group's borrowings included secured bank loans of approximately HKD 92.9 million and unsecured bank loans of HKD 39.0 million as of December 31, 2020[48]. Shareholder Information and Dividends - The company declared a special dividend of HKD 0.02 per share for the fiscal year 2020[12]. - The board declared a special dividend of HKD 0.02 per share for the fiscal year, compared to a total dividend of HKD 50.0 million in the previous fiscal year[79]. - The board does not recommend any other dividends for the year ended December 31, 2020, aside from the special dividend[129]. - The company adopted a dividend policy effective from April 15, 2020, allowing for the declaration of interim or special dividends[130]. - As of December 31, 2020, the company's distributable reserves amounted to HKD 711.5 million, an increase from HKD 478.0 million in 2019[141]. Market Conditions and Challenges - The retail and distribution sectors faced significant challenges due to COVID-19, with a reported 50% decline in total sales value for drug and cosmetic retailers in Hong Kong[11]. - The total retail sales value of drugs and cosmetics in Hong Kong for the fiscal year 2020 was estimated at HKD 21.5 billion, a decline of 50.0% compared to the previous year[24]. - The number of visitors to Hong Kong in 2020 was 3.6 million, a significant drop of 93.6% from 55.9 million in 2019, severely impacting the retail market[20]. - The decline in offline sales was mitigated in the second half of the fiscal year, indicating a potential recovery trend[27]. - The company remains optimistic about the health industry outlook despite the challenges posed by the COVID-19 pandemic, anticipating increased demand for health and preventive products[91]. Acquisitions and Investments - The group acquired 80% of the shares in Jetfly Macau Limited, which holds a license for the import and wholesale of drugs in Macau, to expand its business in that region[28]. - The company agreed to acquire a 49% stake in Corning Holdings for HKD 41.7 million, enhancing its offline retail presence in Hong Kong and expanding sales channels[55]. - The acquisition of Corning Holdings is expected to increase market penetration and provide access to valuable market information for new product development[58]. - The company subscribed for shares in JBM Group for a total cash consideration of HKD 20.0 million, acquiring approximately 2.2% of JBM's issued shares[60]. - The strategic relationship with JBM Group is anticipated to broaden the product portfolio and enhance competitiveness in the health and wellness sector[60]. - The company acquired 80% of Jetfly for HKD 37.4 million, which is expected to leverage Jetfly's distribution channels in Macau[63]. - The acquisition of Jetfly will facilitate better access to consumers in Macau and strengthen the company's brand presence in the Greater Bay Area[64]. - Jetfly is required to achieve a net profit of at least HKD 14.0 million over two fiscal years to avoid price adjustments on the acquisition[65]. Corporate Governance and Compliance - The board expressed gratitude to shareholders for their continued support during a challenging year[128]. - The company has not entered into any management contracts with any individuals or entities for the management or operation of its business during the year ended December 31, 2020[157]. - The board confirmed that there were no interests held by directors in any business that competes or may compete with the group as of December 31, 2020[156]. - The company has purchased directors' liability insurance to provide appropriate protection for its directors[155]. - The company has complied with the disclosure requirements of the Listing Rules regarding related party transactions[158]. - The independent non-executive directors confirmed that the related transactions were conducted in the ordinary course of business and on normal commercial terms[169]. Risk Factors - The company has identified risks related to consumer preferences and spending habits, which could significantly impact its business and financial performance[86]. - The company has no foreign currency hedging policy, exposing it to currency risk from overseas procurement[87]. - The group is currently unable to accurately estimate the full impact of the pandemic on its operations but aims to return to pre-COVID-19 levels as soon as feasible[98]. - The group will continue to monitor the pandemic's development and explore acquisition opportunities cautiously[98].