Financial Performance - Total revenue for the fiscal year ended December 31, 2023, was approximately HKD 1,198.6 million, a year-on-year increase of 1.1%[25] - Net profit surged to HKD 297.3 million, representing a year-on-year growth of 579.6%[25] - Gross profit increased to HKD 321.1 million, with a gross profit margin of 26.8%, up from 22.0% in the previous year[25] - EBITDA for the fiscal year was HKD 360.8 million, with an EBITDA margin of 30.1%, compared to 6.7% in the previous year[25][27] - Return on equity (ROE) improved to 54.7%, up from 14.9% in the previous year[25] - Other income and net other gains amounted to HKD 209.0 million, significantly up from a loss of HKD 2.4 million in the previous fiscal year, mainly due to the sale of 51% stake in CWA[50] - Profit attributable to equity holders for the fiscal year 2023 was HKD 297.3 million, a substantial increase from HKD 43.8 million in fiscal year 2022[51] - Cash and cash equivalents as of December 31, 2023, were approximately HKD 39.1 million, down from HKD 74.6 million a year earlier[53] - The debt-to-equity ratio improved to 23.8% as of December 31, 2023, compared to 47.6% in the previous year, due to a higher percentage increase in total equity than in net debt[53] Sales and Market Expansion - Sales in Hong Kong reached HKD 623.7 million, a significant increase of 94.0% year-on-year, while sales in Macau grew by 19.1%[31] - Southeast Asia market sales reached HKD 41.8 million, with overall distribution sales in the region increasing by 151.6% year-on-year[33] - The company has established a presence in Southeast Asia, with exclusive distribution rights in Malaysia for Tianjin Tongrentang Pharmaceutical Co., Ltd.[32] - The group plans to invest more resources in the Southeast Asian market, focusing on Singapore and Malaysia distribution[33] - Revenue from Hong Kong surged by 94.0% to HKD 623.7 million, while revenue from Macau rose by 19.1% to HKD 112.7 million due to the resumption of normal travel between mainland China and Hong Kong[49] - Revenue from mainland China decreased by 44.9% to HKD 413.9 million, primarily due to the sale of 51% stake in CWA, effective from October 2023[49] Product Development and Marketing - The company continues to optimize its product mix and expand its own brand offerings in response to market trends[31] - The company plans to enhance its own brand development, launching new products under brands like "BG Pro" and "Craft by Wakan" to capture a broader market[43] - The company is collaborating with celebrities to promote its brands, enhancing its marketing efforts and brand recognition[43] - The company is optimistic about the sales prospects for hair care products due to increasing consumer awareness and an aging population[42] - The company aims to expand its market presence in Southeast Asia, particularly in Singapore and Malaysia, leveraging existing partnerships with major retail chains[44] Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.035 per share for the fiscal year, compared to HKD 0.03 per share in the previous year[31] - The mid-term dividend of HKD 0.035 per share was paid on October 30, 2023, with a proposed final dividend of HKD 0.035 per share for the year ending December 31, 2023, subject to shareholder approval[70] - The company declared a final dividend of HKD 0.035 per share for the year ending December 31, 2023, compared to HKD 0.03 in 2022, resulting in a total annual dividend of HKD 0.07 per share[89] Corporate Governance - The company has appointed at least three independent non-executive directors, ensuring compliance with listing rules and maintaining shareholder interests[94] - The board consists of eight members, including one executive director, four non-executive directors, and three independent non-executive directors[165] - The board held six meetings during the fiscal year to review financial and operational performance and discuss future strategies[167] - The company has complied with all corporate governance code provisions during the fiscal year, except for a specific deviation explained in the report[164] - The corporate governance committee is responsible for formulating and reviewing the company's governance policies and practices[162] Risk Management - The company is aware of its responsibilities regarding risk management and internal control systems, which are designed to manage risks rather than eliminate them[191] - The audit committee assists the board in overseeing the effectiveness of risk management and internal control systems, with an annual review conducted for the fiscal year[193] - The company has established various risk management procedures and guidelines, ensuring adequate internal controls across key business processes[193] Employee and Operational Insights - The group reported a total employee cost of approximately HKD 65.9 million for the fiscal year, an increase from HKD 53.7 million in the previous fiscal year[69] - The total number of employees as of December 31, 2023, was 130, down from 179 as of December 31, 2022[69] - The company has adopted share incentive and stock option plans to motivate and recognize employee contributions[69] Related Party Transactions - The company has complied with the disclosure requirements of the listing rules regarding related party transactions[100] - The annual cap for related party transactions with China Resources Pharmaceutical for purchases and sales is set at HKD 1,300 million and HKD 432 million, respectively, with actual transaction amounts of approximately HKD 145.2 million and HKD 29.8 million as of December 31, 2023[103] - The company has entered into a lease agreement with its executive director and major shareholder, Mr. Wang, for properties in Shatin, with a monthly rent of HKD 289,500 for a two-year term starting January 1, 2022[109] Strategic Acquisitions and Investments - The company completed the sale of 51% equity in CWA for a total consideration of HKD 130,000,000 on September 30, 2023[60] - The company acquired an additional 12% stake in 康寧行 for HKD 9.12 million, increasing its total ownership to 61%[42] - The company’s investment in Jianbei Miao Miao consists of 55,000,000 shares, representing 6.35% of its equity, with an investment cost of HKD 51.3 million[65] Future Outlook - The management provided guidance for the upcoming quarter, projecting a revenue increase of 10% to $165 million[80] - The company aims to become a leading supplier of health and wellness products through diversified online and offline sales channels[161] - The company is expanding its market presence in Southeast Asia, targeting a 30% growth in that region over the next two years[75]

Financial Performance - The group's revenue for the fiscal year ended December 31, 2023, was HKD 1,198.6 million, an increase of 1.1% compared to HKD 1,186.2 million for the fiscal year ended December 31, 2022[2]. - Gross profit for the fiscal year 2023 was HKD 321.1 million, up 22.8% from HKD 261.5 million in 2022, with a gross margin increase from 22.0% to 26.8%[2]. - Net profit for the fiscal year 2023 surged to HKD 297.3 million, a significant increase of 581.4% from HKD 43.6 million in 2022[2]. - Operating profit for the fiscal year 2023 was HKD 336.6 million, compared to HKD 64.9 million in 2022[3]. - The group reported a total comprehensive income of HKD 302.6 million for the fiscal year 2023, compared to HKD 39.7 million in 2022[4]. - Adjusted profit before tax for the group reached HKD 317,696,000, compared to HKD 50,367,000 in the previous year, indicating a significant increase of approximately 530.5%[14]. - The company reported a net profit attributable to equity holders of HKD 297,319,000 for 2023, compared to HKD 43,750,000 in 2022, marking a substantial increase of 579%[26]. - Basic earnings per share rose to HKD 0.38 in 2023 from HKD 0.06 in 2022, reflecting a significant improvement in profitability[26]. - The company incurred total tax expenses of HKD 20,373,000 in 2023, compared to HKD 6,736,000 in 2022, reflecting an increase in tax liabilities due to higher profits[24]. Revenue Breakdown - The group reported total revenue of HKD 1,229,648,000 for 2023, a slight increase from HKD 1,220,973,000 in 2022, representing a year-over-year growth of approximately 0.8%[14]. - Revenue from mainland China decreased significantly to HKD 413,892,000 in 2023 from HKD 750,878,000 in 2022, a decline of 45%[17]. - Revenue from Hong Kong increased to HKD 623,747,000 in 2023, up 94% from HKD 321,552,000 in 2022[17]. - The distribution segment generated revenue of HKD 706,378,000 in 2023, up from HKD 482,300,000 in 2022, reflecting a growth of about 46.7%[14]. - E-commerce segment revenue was HKD 406,397,000 in 2023, down from HKD 738,673,000 in 2022, showing a decline of approximately 45%[14]. - Retail store segment revenue increased to HKD 116,873,000 in 2023 from HKD 0 in 2022, marking a successful launch of this segment[14]. Dividends and Shareholder Returns - The board proposed a final cash dividend of HKD 0.035 per share for the fiscal year 2023, totaling HKD 0.07 per share including the interim dividend, compared to HKD 0.03 per share in 2022[2]. - The company declared a final dividend of HKD 0.035 per share for 2023, totaling HKD 28 million, compared to no dividend in 2022[28]. Assets and Liabilities - Total assets as of December 31, 2023, were HKD 988.9 million, a decrease from HKD 1,012.1 million in 2022[5]. - Total liabilities decreased to HKD 445.4 million in 2023 from HKD 718.9 million in 2022[7]. - The company's equity attributable to shareholders increased to HKD 536.2 million in 2023 from HKD 293.6 million in 2022[7]. - Trade receivables decreased to HKD 236.6 million in 2023 from HKD 256.2 million in 2022, indicating improved collection efficiency[29]. - The company’s trade payables decreased to HKD 156.7 million in 2023 from HKD 302.8 million in 2022, reflecting better cash flow management[31]. Strategic Initiatives and Market Expansion - The company is focusing on expanding into Southeast Asian markets and upgrading its own brands and product offerings[38]. - The company has established procurement centers in multiple countries, enhancing its product diversity and international presence[45]. - The focus on promoting self-owned brands in Southeast Asia aims to leverage the company's distribution channels and logistics advantages[45]. - The company plans to strengthen its presence in Southeast Asia, particularly in Singapore and Malaysia, to drive future revenue growth[46]. - The company has established a strong online and offline sales network, supplying over 1,500 products from more than 200 local and overseas brands[35]. Corporate Governance and Compliance - The company has adopted a code of conduct for directors regarding securities trading, which complies with the standards set out in the listing rules[75]. - The company has fully complied with the corporate governance code during the fiscal year, except for the separation of roles between the Chairman and the CEO[75]. - The audit committee reviewed the group’s accounting principles and internal controls, and the audited consolidated financial statements for the fiscal year[76]. - The chairman and CEO, Mr. Wang, has been responsible for the overall strategic planning and management since the group's establishment[75]. - The board of directors includes one executive director, four non-executive directors, and three independent non-executive directors[78]. Future Outlook - The company expects that the newly adopted accounting standards will not have a significant impact on current or future periods[11]. - The company anticipates a recovery in offline distribution business to pre-pandemic levels, with increased demand for traditional Chinese medicine products[46]. - The company plans to hold its annual general meeting on May 31, 2024[70].

Financial Performance - Total revenue for the first half of 2023 reached HKD 666.3 million, a 13.3% increase from HKD 588.2 million in the same period of 2022[18]. - Distribution revenue grew by 28.6% to HKD 375.1 million, while e-commerce revenue decreased by 7.1% to HKD 275.4 million[18]. - Gross profit increased by 34.9% to HKD 173.1 million, with a gross margin of 26.0%, up from 21.8% in 2022[18]. - Profit attributable to equity holders surged by 289.5% to HKD 87.5 million, resulting in a profit margin of 13.1% compared to 3.8% in the previous year[18]. - EBITDA for the first half of 2023 was HKD 117.7 million, a significant increase of 178.0% from HKD 42.4 million in 2022[18]. - Net profit surged to HKD 87.0 million, a significant increase of 281.9% compared to HKD 22.8 million in the first half of 2022[26]. - Profit before tax increased significantly to HKD 96,514,000, compared to HKD 29,437,000 in the previous year, marking a growth of 227.5%[80]. - Basic earnings per share for the six months ended June 30, 2023, was HKD 11, up from HKD 3 for the same period in 2022, indicating a significant increase of 266.7%[119]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 1,187.8 million, reflecting a 17.4% increase from HKD 1,012.1 million at the end of 2022[19]. - Total liabilities increased by 11.4% to HKD 801.0 million, while total equity rose by 31.9% to HKD 386.8 million[19]. - Cash and cash equivalents as of June 30, 2023, were approximately HKD 70.5 million, down from HKD 74.6 million at the end of 2022[42]. - The debt-to-equity ratio improved to 40.8% from 47.6% as total equity growth outpaced net debt growth[42]. - Total current liabilities increased to HKD 787,438 thousand as of June 30, 2023, compared to HKD 714,777 thousand at the end of 2022, representing a growth of 10.1%[82]. - Total equity surged to HKD 386,777 thousand as of June 30, 2023, up from HKD 293,160 thousand, reflecting a significant increase of 31.9%[82]. Market and Sales Growth - The retail market in Hong Kong showed signs of recovery, with retail sales in the first half of 2023 reaching HKD 205.1 billion, approximately 85% of the levels seen in the same period of 2019[24]. - The company anticipates continued growth in offline sales driven by the recovery of inbound tourism and upcoming traditional peak consumption seasons[25]. - Hong Kong distribution sales increased by 28.0%, while Macau distribution sales rose by 10.9% in the first half of 2023[28]. - Southeast Asia distribution sales saw a remarkable growth of 114.2% year-on-year in the first half of 2023[28]. - Revenue from Hong Kong rose by 35.0% to HKD 301.0 million, while revenue from Macau increased by 10.9% to HKD 60.1 million due to the resumption of normal travel between mainland China and Hong Kong[38]. Strategic Developments - The group plans to utilize proceeds from the sale of 51% stake in Combo Win Asia Limited to enhance distribution efforts in Hong Kong, Macau, and Southeast Asia[26][28]. - The group has secured exclusive agency rights for several international brands, including Culturelle® and Kaminowa, enhancing its product portfolio[31]. - The group is actively developing its own brands, including Boost & Guard Pro and Craft by Wakan, to meet the rising demand from travelers and market trends[32]. - The group has established procurement centers in various countries, including Japan and Malaysia, to diversify its product offerings and enhance international presence[33]. - The company plans to expand its business in the Greater Bay Area and Southeast Asia, focusing on health and lifestyle products[36]. Employee and Governance - The total employee cost for the group was approximately HKD 30.9 million for the review period, up from HKD 27.8 million in the previous year[54]. - The group had no significant capital commitments or contingent liabilities as of June 30, 2023[51]. - The company has adopted the Corporate Governance Code and has complied with its provisions, except for the separation of roles between the Chairman and the CEO[60]. - The Chairman and CEO roles are currently held by the same individual, which the board believes does not impair the balance of power and authority[60]. - The group has a total of 208 employees across various regions, an increase from 174 employees a year ago[54]. Acquisitions and Investments - The group acquired an additional 12% stake in 康寧行有限公司 for HKD 9.12 million, bringing total ownership to 61%[30]. - The company completed the acquisition of 12% of the issued shares of 康寧行 for a total consideration of HKD 9,120,000, increasing its ownership to 61%[48]. - 康寧行 contributed revenue of HKD 15,719,000 and net profit of HKD 511,000 from May 31, 2023, to the interim consolidated income statement[156]. - The fair value of identifiable assets acquired from 康寧行 totaled HKD 52,444,000, including intangible assets of HKD 15,700,000 and trade receivables of HKD 34,040,000[154]. - A sale agreement was signed on July 7, 2023, to sell 51% of Combo Win Asia Limited for HKD 130,000,000, pending certain conditions[157]. Shareholder Information - As of June 30, 2023, the Chairman holds approximately 56.01% of the company's shares[64]. - The total number of shares issued as of June 30, 2023, is 800,000,000[69]. - No stock options were granted or exercised under the stock option plan during the review period, with a total of 80,000,000 shares potentially issuable upon exercise, representing 10% of the issued shares[73]. - The share award plan allows for a maximum of 40,000,000 shares to be granted, which is 5% of the total issued share capital at the time of adoption[74]. - The company aims to attract suitable talent and retain employees through the share award plan[74].

Financial Performance - The group's revenue for the six months ended June 30, 2023, was HKD 666.3 million, an increase of 13.3% compared to HKD 588.2 million for the same period in 2022[2]. - Gross profit for the first half of 2023 was HKD 173.1 million, up 34.9% from HKD 128.4 million in the first half of 2022[2]. - Net profit for the first half of 2023 was HKD 87.0 million, a significant increase of 281.9% from HKD 22.8 million in the first half of 2022[2]. - Adjusted profit before tax for the group was HKD 96,514,000, compared to HKD 29,437,000 in the previous year, indicating a significant increase of approximately 227.5%[16]. - The company reported a basic and diluted earnings per share of HKD 0.11 for the first half of 2023, compared to HKD 0.03 for the same period in 2022[4]. - The group achieved a profit of HKD 87,047,000 for the period, a substantial increase from HKD 22,795,000 in the previous year, marking a growth of approximately 281.5%[16]. - The company recorded a total tax expense of HKD 9,467,000 for the six months ended June 30, 2023, compared to HKD 6,642,000 in the same period of 2022, representing an increase of about 42.5%[23]. - Basic earnings per share for the six months ended June 30, 2023, increased to 11 HK cents from 3 HK cents for the same period in 2022, representing a growth of 266.67%[24]. - The diluted earnings per share for the six months ended June 30, 2023, remained at 11 HK cents, consistent with the basic earnings per share due to the anti-dilutive effect of share awards in the previous period[26]. Dividends - The board has declared an interim dividend of HKD 0.035 per ordinary share for the first half of 2023, compared to no dividend in the first half of 2022[2]. - The interim dividend declared for the six months ended June 30, 2023, is 3.5 HK cents per share, compared to no dividend for the same period in 2022[27]. Assets and Liabilities - Total current assets as of June 30, 2023, amounted to HKD 938.4 million, an increase from HKD 829.7 million as of December 31, 2022[5]. - Total assets increased to HKD 1,187.8 million as of June 30, 2023, from HKD 1,012.1 million as of December 31, 2022[5]. - Total liabilities as of June 30, 2023, were HKD 801.0 million, compared to HKD 718.9 million as of December 31, 2022[7]. - The total liabilities decreased to HKD 801,017,000 as of June 30, 2023, from HKD 718,957,000 as of December 31, 2022, indicating a reduction of approximately 11.4%[17]. - The company’s cash and cash equivalents stood at approximately HKD 70.5 million as of June 30, 2023, compared to HKD 74.6 million at the end of 2022[52]. - The debt-to-equity ratio improved to 40.8% from 47.6% as of December 31, 2022, due to a higher percentage increase in total equity compared to net debt[52]. Revenue Segmentation - The distribution segment generated revenue of HKD 398,565,000, slightly up from HKD 389,982,000 year-on-year, reflecting a growth of about 0.2%[16]. - The e-commerce segment reported revenue of HKD 275,420,000, down from HKD 296,331,000 in the previous year, showing a decline of approximately 7.0%[16]. - The retail store segment contributed HKD 15,719,000 in revenue, with no prior year comparison available due to the acquisition of a subsidiary[16]. - The company achieved a geographical revenue breakdown with Hong Kong contributing HKD 301,011,000 and mainland China contributing HKD 280,315,000 for the six months ended June 30, 2023[20]. - Revenue from Hong Kong rose by 35.0% to HKD 301.0 million, while revenue from Macau increased by 10.9% to HKD 60.1 million[48]. - Revenue from mainland China decreased by 6.8% to HKD 280.3 million, down from HKD 300.9 million in the previous year[48]. - Other markets, including Singapore, saw a significant revenue increase of 146.5% to HKD 24.9 million[48]. Operational Highlights - The group is primarily engaged in the distribution and retail of health and lifestyle-related products[9]. - The group recognized a gain of HKD 10,000,000 from the sale of a joint venture during the reporting period[16]. - The group’s financial income increased to HKD 140,000 from HKD 3,000 in the previous year, reflecting a significant rise[16]. - The group’s financial costs, excluding lease liabilities, rose to HKD 11,736,000 from HKD 3,785,000, indicating an increase of approximately 209.5%[16]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[20]. - The company plans to enhance its distribution business in Southeast Asia, particularly in Malaysia and Singapore, leveraging successful models from Hong Kong[44]. - The company aims to introduce more overseas popular brands to the Hong Kong, Macau, and China markets, capitalizing on the post-pandemic recovery[45]. Employee and Operational Costs - Employee benefit expenses rose to HKD 30,898,000 for the six months ended June 30, 2023, compared to HKD 27,841,000 in the same period of 2022, reflecting an increase of approximately 7.4%[21]. - The group has a total employee count of 208 as of June 30, 2023, up from 174 a year earlier, with total employee costs amounting to approximately HKD 30.9 million[64]. Strategic Investments and Acquisitions - The company has entered into a sale agreement to sell 51% of Combo Win Asia Limited for a total consideration of 130,000,000 HKD, pending the fulfillment of certain conditions[33]. - The company plans to utilize proceeds from the sale of 51% of Combo Win Asia Limited for further investment in distribution business in Hong Kong, Macau, and Southeast Asia[37]. - The company acquired an additional 12% stake in 康寧行有限公司 for HKD 9.12 million, increasing its total ownership to 61%[40]. - The group completed the acquisition of a 12% stake in 康寧行 for a total consideration of HKD 9,120,000 on May 31, 2023, increasing its ownership to 61%[57]. - The investment in 健倍苗苗 represents 6.02% of its equity, with an investment cost of HKD 52.3 million, and the fair value of this investment as of June 30, 2023, was HKD 70.4 million[58][60]. - The fair value gain from financial assets measured at fair value through profit or loss for the investment in 健倍苗苗 was HKD 19.1 million for the six months ended June 30, 2023[60]. Governance and Compliance - The company has adopted a corporate governance code to enhance shareholder value and accountability, fully complying with the relevant provisions during the review period, except for a specific deviation[68]. - The roles of the Chairman and CEO are not separated, with Mr. Wang Jia Jun holding both positions, which the board believes does not impair the balance of power[68]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the review period, confirming they are prepared in accordance with applicable accounting standards[70]. - The mid-term report will be published on the Hong Kong Stock Exchange and the company's website, containing all information required by listing rules[71].

Company Information - The company is registered in the Cayman Islands and trades under stock code 3390[1] - The board of directors consists of one executive director and seven non-executive directors, including three independent non-executive directors[1] - The board is chaired by Wang Jia Jun, who is also the CEO[1] Financial Disclosure - The announcement serves as supplementary information to the 2022 annual report, which remains unchanged except for the disclosed details[1] - The announcement does not affect other information contained in the 2022 annual report[1] - The announcement includes details related to the share incentive plan as disclosed in the annual report[1] Share Options - The weighted average closing price of shares granted to other grantees before the vesting date was HKD 1.27[1] - The announcement was made on August 25, 2023, providing additional details regarding the unexercised share options for the fiscal year[1] Regulatory Information - The announcement clarifies that the Hong Kong Exchanges and Clearing Limited and the Hong Kong Stock Exchange do not accept responsibility for the content[1] - The company aims to provide accurate and complete information in its disclosures[1]

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]