Company Information Company Information Provides fundamental details about the company Financial Summary Financial Summary The group achieved robust growth in revenue and profit, with improved margins and stable financial health Key Financial Indicators for FY2025 (thousand HKD) | Indicator | Year Ended March 31, 2025 (thousand HKD) | Year Ended March 31, 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue from Continuing Operations | 1,576,897 | 1,467,798 | +7.4% | | Gross Profit | 692,939 | 620,475 | +11.7% | | Gross Margin | 43.9% | 42.3% | - | | Profit Attributable to Equity Holders | 300,833 | 266,968 | +12.7% | | Profit Margin Attributable to Equity Holders | 19.1% | 18.2% | - | | Adjusted EBITDA from Continuing Operations | 572,765 | 453,071 | +26.4% | | Adjusted EBITDA Margin from Continuing Operations | 36.3% | 30.9% | - | | Return on Equity | 12.3% | 10.3% | - | | Total Assets | 3,645,162 | 3,486,854 | +4.5% | | Total Equity | 2,477,439 | 2,396,360 | +3.4% | Chairman's Report Chairman's Report Highlights resilient growth, robust financial performance, R&D expansion, and strategic transformation in FY2025 - FY2025 performance robust, revenue grew 7.4% to HK$1,576.9 million, annual profit from continuing operations surged 43.1% to HK$300.8 million20 - Company R&D pipeline expanded with 219 products in various development stages, preparing for future market demand21 - Breakthroughs in innovative therapies, including oral Arsenol for acute promyelocytic leukemia co-developed with the University of Hong Kong, and CAR-T therapy Yikaida launched in collaboration with Fosun Pharma23 - To expand capacity, the company acquired a pharmaceutical facility in Tai Po InnoPark, planning to equip ten smart production lines with trial production expected by the end of 202625 Corporate Vision and Mission Corporate Vision and Mission Outlines the company's long-term goals and core values Company Profile Company Profile Presents an overview of the company's business and operations Management Discussion and Analysis Business Review The Group achieved robust performance in FY2025, driven by market demand and strategic initiatives - Market demand increased due to high influenza incidence, aging population, rising chronic disease prevalence, and enhanced public health awareness47 - The Group advanced sustainable development through the "Five Constants Development" framework, achieving significant progress and recognition in environmental, social, and governance aspects48 Performance Total revenue grew 7.4% to HK$1,576.9 million, with profit from continuing operations surging 43.1% FY2025 Performance Overview (million HKD) | Indicator | Amount (million HKD) | Year-on-Year Growth | | :--- | :--- | :--- | | Total Revenue | 1,576.9 | +7.4% | | Profit for the Year from Continuing Operations | 300.8 | +43.1% | | Profit Attributable to Equity Holders | 300.8 | +12.7% | | Adjusted EBITDA | 572.8 | - | - Net gearing ratio improved from 12.2% to 8.3%, with cash reserves maintained at HK$509.0 million, indicating a solid financial foundation50 Operating Performance Strong operating performance driven by product portfolio, R&D, expanded capacity, and business development Robust Product Portfolio High market demand for pharmaceuticals led to strong growth across key therapeutic categories - Strong growth momentum recorded in cardiovascular, oral anti-diabetic, and bladder and prostate drug segments53 R&D Pipeline The R&D pipeline includes 219 products, with 13 submitted for registration across various therapeutic areas R&D Pipeline Status (as of March 31, 2025) | Stage | Number of Products | | :--- | :--- | | Registered and Approved | 65 | | Under Registration Review | 13 | | Development Completed (Stability Preparation/Testing) | 63 | | In Formulation/Pre-Formulation Study | 22 | | Total | 219 | Expanded Production and Enhanced Smart Capacity Production capacity increased, with a new smart facility acquired for future manufacturing - Sterile eye drops production increased by 23.3% year-on-year to approximately 45,600 liters59 - Acquired a dedicated pharmaceutical facility in Tai Po InnoPark, to be expanded to over 70,000 square feet with 10 new smart production lines59 Business Development Business expanded through in-licensing, strategic collaborations, and digital transformation initiatives - In-licensed 20 high-efficacy specialty drugs across rheumatology, oncology, and cardiology61 - Oral arsenic therapy Arsenol, co-developed with HKU, received US FDA IND approval, with global Phase III clinical trials planned for 202663 - Successfully launched Hong Kong's first CAR-T therapy Yikaida treatment and became one of the first operators to obtain an Advanced Therapy Product (ATP) logistics handling license65 - Integrated e-business platform "e-MedLink" gained popularity among private clinic clients, streamlining drug procurement processes69 Outlook Confident in Hong Kong's pharmaceutical market growth, driven by policy reforms and demographic shifts - Hong Kong government's expansion of the Chronic Disease Co-Care Pilot Scheme (CDCC) and plans to establish the Hong Kong Centre for Drug and Medical Device Regulation are expected to accelerate drug registration and boost demand for generic drugs7374 - Aging population and increasing mental health issues will continue to stimulate demand for chronic disease treatments and psychotropic drugs74 Corporate Development Acquired a new pharmaceutical facility in Tai Po InnoPark for capacity expansion and smart manufacturing - Successfully acquired a dedicated pharmaceutical facility in Tai Po InnoPark, spanning over 70,000 square feet, to be equipped with ten smart production lines77 - New facility will integrate AI, real-time data analytics, and robotics, with the first production line expected to commence trial production by late 202677 Remuneration Policy Details employee numbers, total costs, remuneration structure, and benefits as of March 31, 2025 Employee and Remuneration Overview (million HKD) | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 1,749 | 1,723 | | Total Employee Costs (million HKD) | 473.1 | 452.1 | Financial Review Robust financial performance with 7.4% revenue growth and 12.7% increase in profit attributable to equity holders Revenue Group revenue grew 7.4% to HK$1,576.9 million, primarily from specialty and generic drugs in Hong Kong Revenue Overview (million HKD) | Indicator | FY2025 (million HKD) | FY2024 (million HKD) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 1,576.9 | 1,467.8 | +7.4% | Revenue by Region (FY2025) (million HKD) | Region | Revenue (million HKD) | Percentage | | :--- | :--- | :--- | | Hong Kong | 1,514.6 | 96% | | Mainland China | 34.6 | 2% | | Macau | 27.6 | 2% | | Other | 0.1 | 0% | | Total | 1,576.9 | 100% | Cost of Sales Cost of sales increased 4.3% to HK$884.0 million, aligned with sales growth, driven by material and staff costs Cost of Sales Composition (FY2025) (million HKD) | Cost Item | Amount (million HKD) | Percentage | | :--- | :--- | :--- | | Material Costs | 382.7 | 43% | | Staff Costs | 297.9 | 34% | | Other Production Costs | 203.4 | 23% | | Total | 884.0 | 100% | Operating Profit, Finance Costs, and Income Tax Operating profit rose 24.5% to HK$414.6 million, with finance costs significantly reduced - Operating profit increased by 24.5% to HK$414.6 million9192 - Finance costs significantly decreased by 47.4%, primarily due to bank loan repayments and lower market interest rates93 Profit Attributable to Equity Holders Profit attributable to equity holders increased 12.7% to HK$300.8 million, driven by continuing operations Profit Attributable to Equity Holders (million HKD) | Indicator | FY2025 (million HKD) | FY2024 (million HKD) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Holders | 300.8 | 267.0 | +12.7% | Assets and Liabilities Property, plant, and equipment increased, while goodwill impairment tests showed no impairment - The estimated recoverable amount of the generic drug segment's cash-generating unit exceeded its carrying amount by approximately HK$1,268.3 million, with no goodwill impairment identified99 Use of Proceeds IPO and share placement proceeds of HK$734.4 million were fully utilized for acquisitions and investments - Proceeds of HK$695.5 million from the IPO and HK$38.9 million from the share placement were fully utilized as of March 31, 2025105106 Liquidity, Capital Resources, and Equity Structure Strong financial position with net gearing ratio improving from 12.2% to 8.3% - Net gearing ratio decreased from 12.2% to 8.3%, indicating an improved financial leverage level110 Corporate Governance Report Board and Committees The Board and its five committees oversee governance, ensuring compliance and diversity - The company complied with all code provisions of the Corporate Governance Code during the reporting period, except for the provision separating the roles of Chairman and Chief Executive Officer117124 - The Board has established an Audit Committee, Remuneration Committee, Nomination Committee, Executive Committee, and Environmental, Social and Governance Committee to oversee specific governance matters138 Gender Diversity of Board and Senior Management | Level | Female Percentage | Male Percentage | | :--- | :--- | :--- | | Board | 14.29% (1 person) | 85.71% (6 persons) | | Senior Management* | 14.29% (1 person) | 85.71% (6 persons) | | Other Employees | 42.25% (736 persons) | 57.75% (1,006 persons) | *Senior management includes directors only Policies and Functions The company adopted policies for director nomination and dividends, balancing returns with growth - The company adopted a Director Nomination Policy, specifying that candidates are evaluated across character, qualifications, diversity, and independence161164 - The company adopted a Dividend Policy, aiming to distribute reasonable, stable, and consistent dividends while retaining sufficient reserves for future growth166 Accountability and Audit Emphasizes accountability, with a "three lines of defense" risk management framework and external audit - The company established a "three lines of defense" risk management framework (operational management, risk management function, internal audit), with the Board bearing overall responsibility for its effectiveness175176177 - The Board reviewed the risk management and internal control systems for the year ended March 31, 2025, deeming them effective and adequate184 Auditor's Remuneration (for the year ended March 31, 2025) (HKD) | Service Type | KPMG (HKD) | Other External Consultants (HKD) | | :--- | :--- | :--- | | Audit Services | 4,880,000 | - | | Non-Audit Services | 1,642,000 | 348,000 | Shareholder Rights and Communication The company prioritizes shareholder communication through various channels and policies - Shareholders holding not less than one-tenth of the company's voting rights are entitled to request an extraordinary general meeting192 - The company has established a Shareholder Communication Policy and communicates with shareholders through various channels, including general meetings, the company website, and investor relations functions190198199 Directors' Report Business Review and Principal Risks Outlines generic drug business, key risks, and management measures - The Group is primarily engaged in the development, production, marketing, and sales of generic drugs205 - Principal risks include failure to comply with pharmaceutical regulations, unsuccessful M&A integration, delays in new product development, and product liability risks for defective products211 Results and Dividends Board recommends a total annual cash dividend of HK 15.00 cents per share for FY2025 FY2025 Dividend Proposal (HK cents per share) | Dividend Type | Amount Per Share (HK cents) | | :--- | :--- | | Interim Cash Dividend | 3.50 | | Proposed Final Cash Dividend | 5.50 | | Proposed Special Cash Dividend | 6.00 | | Total for the Year | 15.00 | Directors and Equity-Linked Agreements Details director information, share option scheme, and share award scheme - A total of 20,400,000 award shares were granted to directors and eligible employees under the Share Award Scheme during the reporting period250 - As of the end of the reporting period, there were no outstanding share options under the Share Option Scheme247 Connected Transactions and Continuing Connected Transactions Discloses connected transactions with Health & Happiness Group and its subsidiaries - In November 2024, Europharm, an indirect wholly-owned subsidiary, acquired a total of 100,500 shares in Lee Chung Shing Tong (Holdings) Limited for a total consideration of HK$46,230,000261 - The Group has multiple continuing connected transactions with Health & Happiness Group, including logistics services, manufacturing services, and overseas sales administrative services, all subject to annual caps and regular review267270274278 Independent Auditor's Report Independent Auditor's Report KPMG issued an unmodified opinion on the consolidated financial statements, with goodwill impairment as a key audit matter - The auditor issued an unmodified audit opinion, stating that the financial statements are true and fair291 - A key audit matter was assessing the potential impairment of goodwill related to the generic drug business; the auditor evaluated management's methodology, key assumptions (e.g., revenue growth rate, gross margin, discount rate), and sensitivity analysis, finding no significant issues293294295 Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue from continuing operations grew 7.4% to HK$1,576.9 million, with profit attributable to equity holders up 12.7% Consolidated Statement of Profit or Loss Summary (thousand HKD) | Item (thousand HKD) | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue (Continuing Operations) | 1,576,897 | 1,467,798 | | Gross Profit | 692,939 | 620,475 | | Operating Profit | 414,600 | 333,126 | | Profit for the Year from Continuing Operations | 300,833 | 210,169 | | Profit for the Year from Discontinued Operations | – | 52,392 | | Profit for the Year | 300,833 | 290,778 | | Profit Attributable to Equity Holders | 300,833 | 266,968 | | Basic Earnings Per Share (HK cents) | 15.15 | 13.90 | Consolidated Statement of Financial Position Total assets increased 4.5% to HK$3,645.2 million, with net assets up 3.4% Consolidated Statement of Financial Position Summary (thousand HKD) | Item (thousand HKD) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Non-Current Assets | 2,607,208 | 2,522,438 | | Current Assets | 1,037,954 | 964,416 | | Total Assets | 3,645,162 | 3,486,854 | | Current Liabilities | 553,140 | 372,843 | | Non-Current Liabilities | 614,583 | 717,651 | | Total Liabilities | 1,167,723 | 1,090,494 | | Net Assets | 2,477,439 | 2,396,360 | Consolidated Statement of Cash Flows Strong net cash inflow of HK$526.8 million from operating activities, with year-end cash at HK$509.0 million Consolidated Statement of Cash Flows Summary (thousand HKD) | Item (thousand HKD) | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 526,777 | 484,363 | | Net Cash (Used in) / Generated from Investing Activities | (297,758) | 43,342 | | Net Cash Used in Financing Activities | (131,296) | (1,053,255) | | Net Increase / (Decrease) in Cash and Cash Equivalents | 97,723 | (525,550) | | Cash and Cash Equivalents at Year-End | 509,045 | 411,937 | Notes to the Financial Statements Provides detailed explanations of financial statements, including discontinued operations and dividend policy - The branded healthcare segment was classified as a discontinued operation for the year ended March 31, 2024, due to the spin-off of Health & Happiness by way of distribution in specie307414536 - Goodwill impairment tests were based on a five-year financial forecast, using a 3% growth rate and a 14%-16% discount rate, with management believing no reasonable change in assumptions would lead to impairment452453 - The Board recommended a final dividend of HK 5.50 cents per share and a special dividend of HK 6.00 cents per share439 Group Properties Group Properties Lists and describes the properties held by the Group Five-Year Financial Summary Five-Year Financial Summary Shows new highs in revenue and profit from continuing operations in FY2025 after divestment Five-Year Financial Summary (thousand HKD) | Year Ended March 31 | 2025 | 2024 | 2023 (Restated) | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,576,897 | 1,467,798 | 1,267,598 | 1,595,543 | 1,445,915 | | Gross Profit | 692,939 | 620,475 | 538,918 | 620,522 | 561,083 | | Profit for the Year from Continuing Operations | 300,833 | 210,169 | 207,369 | 187,705 | 186,305 | | Profit for the Year | 300,833 | 290,778 | 283,209 | 187,705 | 186,308 | | Profit Attributable to Equity Holders | 300,833 | 266,968 | 251,044 | 177,666 | 173,713 | | Net Assets | 2,477,439 | 2,396,360 | 3,256,522 | 2,957,965 | 2,860,109 | Glossary Glossary Provides definitions for key terms used in the report
雅各臣科研制药(02633) - 2025 - 年度财报