Financial Performance - Total revenue for the year ended 31 March 2022 was approximately HK$154.823 million, an increase of approximately HK$40.737 million compared to 2021[15]. - Gross profit for the year was approximately HK$54.234 million, representing an increase of approximately HK$12.898 million compared to 2021[15]. - Loss attributable to the owners of the Company for the year was approximately HK$50.999 million, primarily due to an impairment loss on goodwill of approximately HK$46.630 million[15]. - Revenue from hemodialysis treatment and consultancy service business was approximately HK$103.640 million, a significant increase of 87.36% compared to 2021[19]. - Revenue from pharmaceutical wholesale and distribution business was approximately HK$51.183 million, representing a decrease of approximately 12.91% compared to 2021[20]. - Total revenue for the year ended March 31, 2022, was approximately HK$154.823 million, representing an increase of approximately 35.71% compared to 2021[34]. - Gross profit for the year was approximately HK$54.234 million, an increase of approximately 31.20% over 2021[34]. - The loss for the year attributable to owners of the Company was approximately HK$50.999 million, primarily due to an impairment loss on goodwill of approximately HK$46.630 million[34]. - The basic and diluted loss per share was approximately HK$9.10 cents, compared to approximately HK$0.81 cents in 2021[34]. - The Group had total cash and cash equivalents of approximately HK$5.768 million as of March 31, 2022, down from approximately HK$25.099 million in 2021[34]. Business Strategy and Development - The Group plans to centralize resources in developing the hemodialysis treatment and consultancy service business through organic growth and acquisitions[21]. - The establishment of new self-operated hemodialysis treatment centers is a key focus for expanding operating scale and market penetration[22]. - The Group believes there is significant unmet demand for hemodialysis treatment services in the PRC market, indicating strong potential for future growth[23]. - The Group plans to focus resources on developing the hemodialysis treatment and consultancy service business through organic growth and acquisitions[25]. - The Group aims to establish new self-operated hemodialysis treatment centers in China to expand operational scale and market penetration[25]. - The Group plans to open six self-operated or joint-venture hemodialysis treatment centers by the end of the fiscal year 2022, with three already opened as of the report date[89]. - The Group's business plan remains unchanged, but delays in opening new centers are being addressed, with alternative locations being considered if delays persist[87]. - Future plans include establishing new self-operated hemodialysis treatment centers and providing consulting services to hospitals[133]. Operational Challenges - Ongoing COVID-19 challenges may continue to create uncertainties in the Group's operating environment, particularly in Guangdong and Fujian Provinces[38]. - Losses were exacerbated by increased costs of sales and services due to COVID-19 restrictions impacting overall profitability in pharmaceutical distribution and hemodialysis services[64]. - The Group's hemodialysis center in Huidong has faced delays in obtaining a specialized license, which is expected to take longer due to the COVID-19 pandemic, with enrollment anticipated in Q2 or Q3 of 2023[72]. - The Huidong Center's operations have been delayed due to the COVID-19 pandemic, with the expected professional license acquisition pushed to Q2 or Q3 of 2023, which was originally anticipated to take 2.5 to 3 years[74][81]. - The Maoming Center's business plan has been significantly delayed due to strong objections from local villagers regarding potential sewage pollution, with an expected opening timeline of 2 to 3 years after objections are resolved[77][87]. - The opening of additional centers in Huizhou and Maoming has been delayed due to unforeseen circumstances, including disputes with partners and the impact of COVID-19[90]. - The combined impact of multiple adverse events in the financial year 2022 has led to the consideration of impairment, reflecting the current value in use of the hemodialysis treatment business[82][83]. Financial Position and Ratios - As of March 31, 2022, the Group had total cash and cash equivalents of approximately HK$5.768 million, a decrease from approximately HK$25.099 million in 2021 due to repayment of shareholder and director loans[94]. - Total current assets increased to approximately HK$81.453 million as of March 31, 2022, compared to approximately HK$66.512 million in 2021, while total current liabilities rose to approximately HK$45.468 million from approximately HK$32.916 million[94]. - The current ratio as of March 31, 2022, was approximately 1.79, down from approximately 2.02 in 2021[94]. - The Group's gearing ratio as of March 31, 2022, was approximately 0.15, an increase from approximately 0.07 in 2021[95]. - The Group had no material capital commitments as of March 31, 2022, compared to approximately HK$1.245 million in 2021[103]. - The Group's financial statements were prepared on a going concern basis, indicating sufficient financial resources for ongoing operations in the foreseeable future[98]. Human Resources - The Group employed 184 full-time employees as of March 31, 2022, an increase from 178 in 2021[117]. - For the year ended 31 March 2022, staff costs amounted to approximately HK$19.247 million, a decrease of 5.7% from HK$20.409 million in 2021[118]. Environmental, Social, and Governance (ESG) - The Group is committed to refining its sustainability governance policies and addressing environmental, social, and governance risks[132]. - The reporting period for the Environmental, Social and Governance Report is from 1 April 2021 to 31 March 2022, covering the Group's pharmaceutical and hemodialysis businesses[139]. - The Group conducted an internal materiality assessment to identify key environmental, social, and governance (ESG) issues relevant to stakeholders during the Reporting Period[146]. - The Group's environmental and social KPIs are disclosed quantitatively, following specific reporting guidance[148]. - The Board oversees the Group's ESG risk management and is responsible for setting and managing ESG-related targets[158]. - The Group employs a strict anti-corruption policy and has established a whistleblowing policy to enhance corporate governance[162]. - During the Reporting Period, the Group did not have any legal cases regarding corrupt practices and was not aware of any material non-compliance with relevant laws[168]. - The Group's pharmaceutical wholesale and distribution business strictly complies with laws and regulations stipulated by the State Food and Drug Administration, including the Medicinal Product Administration Law and the Advertising Law of the People's Republic of China[181]. - During the Reporting Period, 8 significant ESG issues were identified, including Wastewater Management, Combating Climate Change, and Anti-Corruption[177]. - The Group has added a new ESG topic "Combating Climate Change" to address its climate change strategy, reflecting the international community's increasing focus on this issue[177]. - The Group engages stakeholders through various communication channels, including annual general meetings and customer feedback forms, to understand their concerns and expectations[170]. Quality Management and Supply Chain - The Group has established an effective quality management system to protect customers' personal information and ensure the quality of after-sale services[183]. - The Group's operational practices emphasize drug safety and effectiveness, with effective quality control measures in place during procurement, storage, sales, and transportation[181]. - The Group's environmental protection efforts include management of air emissions, energy, and waste, with a focus on compliance and sustainability[179]. - The Group actively participates in community activities and charitable donations to enhance community relations and environmental protection awareness[171]. - The Group engaged a total of 58 medicines and consumables suppliers, all located in the PRC, to ensure supply chain stability[185]. - The Group's storage and transportation facilities comply with national regulations, with systems in place to monitor temperature and humidity, ensuring no products were recalled for safety and health reasons during the Reporting Period[196]. - The Quality Management Department conducts regular internal reviews and risk assessments to maintain stable quality throughout the supply chain[194]. - The Group has established long-term relationships with various large and medium-sized pharmaceutical suppliers to diversify and stabilize the supply chain[185]. - All suppliers are reassessed annually to ensure compliance with the Group's requirements, including environmental policies[190]. - The Group has developed a medicines recycling management system to facilitate systematic recycling when necessary[196]. - No material non-compliance with laws and regulations related to health and safety, advertising, and privacy matters was reported during the Reporting Period[184]. - The Group maintains contact with suppliers through various channels to identify collaboration opportunities and ensure product quality[191]. - The Group's mission is to provide pharmaceutical products to the community and distribute medicine for healthcare institutions[185].
万嘉集团(00401) - 2022 - 年度财报