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]
满贯集团(03390) - 2023 - 年度财报