Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 346.8 million, a decrease of 5.8% compared to HKD 368.3 million in the same period of 2023[1]. - Gross profit for the same period was HKD 182.0 million, down 2.3% from HKD 186.2 million year-on-year[1]. - Profit attributable to equity holders of the parent was HKD 23.7 million, representing a significant increase of 577.1% from HKD 3.5 million in the previous year[1]. - Basic and diluted earnings per share increased to HKD 2.10 from HKD 0.30, reflecting a growth of 577.1%[1]. - The company reported a net profit of HKD 23,742,000 for the period, compared to HKD 21,124,000 in the previous year, marking an increase of approximately 12.4%[38]. - The operating profit before tax was HKD 25,152,000, a decrease from HKD 38,429,000, representing a decline of about 34.5%[38]. - Total revenue for the six months ended September 30, 2024, decreased by approximately HKD 21,500,000 to about HKD 346,800,000, primarily due to weaker sales in traditional Chinese medicine and health food[82]. - Gross profit for the same period decreased by approximately HKD 4,200,000 or about 2.3% to approximately HKD 182,000,000, mainly due to reduced sales in traditional Chinese medicine and health food[83]. Assets and Liabilities - Net asset value as of September 30, 2024, was HKD 1,198.5 million, down 13.5% from HKD 1,385.5 million as of March 31, 2024[1]. - Cash and cash equivalents decreased to HKD 96.3 million, a decline of 37.9% from HKD 155.0 million[1]. - Total current liabilities decreased from HKD 380,872,000 to HKD 359,530,000, a reduction of approximately 5.5%[18]. - Net current assets dropped significantly from HKD 449,356,000 to HKD 197,500,000, representing a decline of about 56.0%[19]. - Total assets minus current liabilities decreased from HKD 1,714,238,000 to HKD 1,414,555,000, a decrease of approximately 17.5%[20]. - Total non-current liabilities decreased from HKD 328,782,000 to HKD 216,038,000, a reduction of about 34.2%[22]. - Total equity decreased from HKD 1,385,456,000 to HKD 1,198,517,000, reflecting a decline of approximately 13.5%[26]. - Trade receivables as of September 30, 2024, amounted to HKD 86,457,000, an increase from HKD 81,356,000 as of March 31, 2024[75]. - Trade payables as of September 30, 2024, decreased to HKD 19,940,000 from HKD 30,907,000 as of March 31, 2024[79]. Market and Segment Performance - The company operates in three main segments: Traditional Chinese Medicine, Western Medicine, and Property Investment[33]. - Revenue from customer contracts amounted to HKD 344,812,000, down from HKD 366,721,000 year-over-year, indicating a decrease of about 6.0%[41]. - The Chinese market contributed HKD 41,083,000 to total revenue, compared to HKD 36,636,000 in the previous year, reflecting an increase of approximately 12.0%[41]. - The Hong Kong market generated HKD 272,861,000 in revenue, down from HKD 295,023,000, which is a decline of around 7.5%[43]. - Sales of traditional Chinese medicine in Hong Kong decreased by 16.5% during the period from April to September 2024 compared to the same period in 2023[90]. - The flagship brand "Pei Fu Ren" achieved a revenue growth of 5.8% year-on-year, driven by strategic sales and marketing activities, maintaining its position as the top-selling cough syrup in Hong Kong for 14 consecutive years[96]. Expenses and Costs - Other income and gains decreased significantly to HKD 46.2 million from HKD 69.6 million year-on-year[4]. - Sales and distribution expenses increased by approximately HKD 20,000,000 or about 17.9% to approximately HKD 131,900,000, mainly due to increased marketing costs associated with new product launches and e-commerce business expansion[85]. - Administrative expenses increased by approximately HKD 8,300,000 or about 15.1% to approximately HKD 63,400,000, primarily due to higher legal and professional fees[86]. - The cost of inventories recognized as an expense, including obsolete inventory provision, was HKD 164,824,000 for the six months ended September 30, 2024, compared to HKD 182,114,000 in 2023, a decrease of approximately 9.5%[51]. - The depreciation of owned assets for the six months ended September 30, 2024, was HKD 16,915,000, down from HKD 18,775,000 in 2023, reflecting a decline of about 9.8%[52]. Strategic Initiatives - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming periods[4]. - The company plans to expand its market presence in mainland China, focusing on increasing sales in the healthcare sector[41]. - The company is actively pursuing new product development and technological advancements to enhance its competitive edge in the market[41]. - The company is actively expanding cross-border e-commerce channels, resulting in over 2x growth in cross-border e-commerce sales compared to the same period last year[91]. - The company is focusing on the health product market and plans to launch four innovative products next year targeting specific areas: (i) blood sugar levels, (ii) cholesterol levels, (iii) liver health, and (iv) joint function[117]. - The group is committed to investing in cross-border e-commerce initiatives to enhance brand influence and seize regional opportunities[113]. Governance and Compliance - The company emphasizes high standards of corporate governance, focusing on transparency, accountability, integrity, and independence to enhance competitiveness and operational efficiency[122]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ending September 30, 2024[126]. - The mid-term financial results have been published on the Hong Kong Stock Exchange website and the company's website, complying with all regulatory requirements[127].
位元堂(00897) - 2025 - 中期业绩