Company Overview - Wai Yuen Tong Medicine Holdings Limited has maintained a strong reputation in providing Chinese and Western pharmaceutical products and services for over 125 years[19]. - The company has been recognized as a "Caring Company" for over 10 years by the Hong Kong Council of Social Service[17]. - The annual report for the year ended March 31, 2022, highlights the company's commitment to health and wellness in the community[22]. - The company continues to focus on excellence in both Chinese and Western medicine, as well as outpatient clinic services[19]. - The company aims to leverage the synergy between traditional Chinese medicine and Western pharmaceuticals to enhance its market position[68]. Product Performance - The company reported a significant achievement with its Hou Tsao Powder, ranking 1st in sales value and volume for 8 consecutive years in Hong Kong[14]. - Wai Yuen Tong's Madame Pearl's Cough Syrup has been the sales champion for 12 consecutive years in Hong Kong[17]. - The sales performance of Western pharmaceutical and personal care products increased by 61% compared to the previous year[49]. - The Group's flagship product, Hou Tsao Powder, ranked first in sales value and volume for 8 consecutive years in Hong Kong[37]. - The key brand "Madame Pearl's" has been the sales champion for cough syrup in Hong Kong for 12 consecutive years, with a target to achieve an annual production capacity of 10 million bottles of cough syrup[83]. Market Expansion and Development - Wai Yuen Tong aims to expand its market reach and enhance its product development strategies moving forward[19]. - The Group opened 4 new retail stores in local districts, increasing the total to 63 stores providing one-stop Chinese medicine healthcare services as of March 31, 2022[38]. - The first "Wai Yuen Tong Chinese Medicine Specialist Center" was launched, with two more expected to open by the end of 2022, enhancing access to traditional Chinese medicine services[39]. - The Group plans to expand the production capacity of cough syrup to 10 million bottles annually at the Yuen Long Factory[49]. - The Group's flagship stores on Tmall.com and JD.com were established to serve domestic consumers in Mainland China[45]. Community and Health Initiatives - The Chairman expressed gratitude for the dedication of all colleagues during a challenging year, emphasizing the importance of tradition and community health[19]. - The Group actively cooperated with the Hong Kong government in pandemic prevention, providing remote diagnosis and treatment services during the COVID-19 outbreak[32]. - The Group donated 7,000 tablets of Angong Niuhuang Wan and 100,000 bags of flu tea to support community health during the pandemic[53]. - The Group's Angong Niuhuang Wan was included in the National Health Commission's treatment protocol for critically ill COVID-19 patients[37]. Financial Performance - Total revenue for the financial year ended March 31, 2022, increased by approximately 25.5% to approximately HK$1,391.4 million, driven by growth in the production and sale of Chinese and Western pharmaceutical and health food products[70]. - The loss attributable to owners decreased to approximately HK$108.9 million from approximately HK$376.0 million in the previous year, primarily due to the absence of a significant loss on disposal of an investment recorded in the prior year[71]. - Revenue from Chinese pharmaceutical and health food products rose to approximately HK$512.6 million, reflecting a growth of approximately 13.1% compared to the previous year[74]. - The Group's retail store services saw a significant increase in demand during the Omicron variant outbreak, particularly in residential areas[41]. - The Group's sales of Western medicine and personal care products increased significantly by 61% compared to the previous year[51]. Legal and Regulatory Matters - CAP continues to be the legal and beneficial owner of Baisazhou Agricultural following the dismissal of the counterclaim by Ms. Wang and Tian Jiu[200]. - CAP is seeking legal advice for the recovery of the balance of the damages awarded to it[200]. - The court order from 2012 prevented CAP from making payments under the instruments until the final determination of the proceedings[200]. - The judgement from the Jianghan Court was delivered on November 19, 2021, regarding the misappropriation case[200]. - CAP's litigation efforts highlight ongoing legal challenges related to its acquisition activities[200]. Environmental Initiatives - The Group plans to install solar panels at the Yuen Long Factory in 2022 to reduce carbon emissions, aligning with the government's carbon neutrality target by 2050[24]. Economic Context - Hong Kong's economy grew by 6.4% in 2021, the highest growth rate since 2010, but remained approximately 2% below the 2018 level[29]. - The overall economy of Hong Kong grew by 6.4% in 2021, despite challenges posed by the Omicron variant and the fifth wave of COVID-19[73]. - The economic recovery in Hong Kong remains uneven, with sectors like import and export performing well, while inbound tourism is still largely inactive[73].
位元堂(00897) - 2022 - 年度财报