Financial Performance - Total revenue for the six months ended September 30, 2021, was HKD 189,372,000, a decrease of 3.4% compared to HKD 196,105,000 for the same period in 2020[5]. - Gross profit for the period was HKD 75,080,000, down 26.7% from HKD 102,406,000, resulting in a gross margin of 39.6% compared to 52.2% in the previous year[5]. - Profit attributable to equity holders decreased by 53.6% to HKD 10,040,000, with a profit margin of 5.3% compared to 11.0% in the prior year[5]. - Adjusted EBITDA fell by 42.2% to HKD 39,320,000, with an adjusted EBITDA margin of 20.8%, down from 34.7%[5][6]. - Operating profit fell by HKD 24.6 million or 61.2% to HKD 15.6 million, primarily due to a reduction in gross profit[51]. - Net profit for the period was HKD 8,275, a decrease of 71.5% from HKD 28,987 in 2020[103]. - Earnings per share (EPS) for the period was HKD 1.12, down from HKD 2.83 in the previous year[103]. - Total comprehensive income for the period was HKD 8,026, compared to HKD 29,513 in 2020, marking a decline of 72.8%[103]. Revenue Breakdown - Brand medicine revenue increased by 3.5% to HKD 63,425,000, while health supplements revenue decreased significantly by 36.4% to HKD 19,480,000[5]. - Sales revenue for the reporting period was HKD 189.4 million, a slight decrease of 3.4% compared to the previous period[19]. - The brand pharmaceutical segment saw a revenue growth of 3.5%, driven by strong sales of AIM eye drops and other well-known brands[21]. - The sales revenue of the brand Chinese medicine segment increased by 2.2% to HKD 106.5 million, driven by strong double-digit growth in concentrated Chinese medicine granules[23]. - Revenue from Hong Kong, the main source, accounted for 73% of total revenue, decreasing by HKD 32.7 million, primarily due to a significant drop in sales of certain products[43]. - Revenue from mainland China increased by HKD 18.5 million, attributed to a change in distributors and a substantial rise in cross-border e-commerce sales[43]. Cost and Expenses - Material costs increased by HKD 19.7 million or 30.2%, mainly due to the procurement of third-party products for cross-border e-commerce sales[46]. - Employee costs decreased by HKD 1.7 million or 10.6%, due to optimization plans and cost control measures implemented during the pandemic[47]. - The company incurred financing costs of HKD 3,403,000, slightly down from HKD 3,937,000 in the previous year[137]. - The total remuneration for key management personnel was HKD 1,762,000 for the six months ended September 30, 2021, a decrease from HKD 1,969,000 in the previous year[159]. Assets and Liabilities - Total assets as of September 30, 2021, were HKD 1,349,817,000, a decrease of 2.3% from HKD 1,381,193,000[5]. - Total liabilities decreased by 9.0% to HKD 395,243,000, while total equity increased by 0.8% to HKD 954,574,000[5]. - Inventory decreased by HKD 7.7 million or 16.0% due to strict inventory management measures during the COVID-19 pandemic and a decline in sales[59]. - Bank loans decreased from HKD 235.0 million as of March 31, 2021, to HKD 205.0 million as of September 30, 2021, attributed to the repayment of part of the bank loans[61]. - The net capital debt ratio increased slightly from 14.9% as of March 31, 2021, to 15.2% as of September 30, 2021, due to property, plant, and equipment purchases during the reporting period[67]. Market Strategy and Future Outlook - The company aims to enhance its position as a leading healthcare partner in Asia, focusing on personal health care products and solutions[10][11]. - Future strategies include expanding product offerings and enhancing market presence in selected countries[11]. - The company is making good progress in building a cross-border e-commerce platform to connect products with target consumers in mainland China[20]. - The company remains optimistic about the future prospects of the healthcare industry despite challenges in the Hong Kong consumer market due to delayed border reopening with mainland China[34]. - The company plans to leverage its competitive advantages to tap into the growth potential of the rapidly developing Greater Bay Area market[34]. Corporate Governance and Compliance - The company’s audit committee consists of three independent non-executive directors, responsible for overseeing the integrity and accuracy of financial statements[83]. - The company complied with all provisions of the corporate governance code during the reporting period[80]. - The company has implemented several measures to promote environmental sustainability and energy conservation[75]. - The company’s board is committed to maintaining a high standard of corporate governance to protect shareholder interests and enhance corporate value[78]. - The company adopted a share award scheme on January 18, 2021, aimed at rewarding eligible individuals for their contributions to the group's growth[95]. Risks and Challenges - The company continues to face risks related to the COVID-19 pandemic, which has negatively impacted consumer sentiment and retail consumption in Hong Kong[73]. - The company emphasizes the importance of risk management to ensure operational efficiency and effectiveness[74].
健倍苗苗(02161) - 2022 - 中期财报