Sales Performance and Market Position - Wai Yuen Tong has maintained its position as the top-selling product in the cough remedy category for nine consecutive years, based on sales value and volume in Hong Kong[14]. - Wai Yuen Tong's Hou Tsao Powder has been recognized for its sales performance, reinforcing the brand's market leadership[14]. - The flagship products include "Angong Niuhuang Wan" series, "Young Yum Pill," and "Hou Tsao Powder," with the latter ranked first in sales for 9 consecutive years in Hong Kong[28]. - The Group's flagship brand "Madame Pearl's" achieved the Hong Kong cough syrup sales champion for 12 consecutive years, supported by strategic sales and marketing efforts[58]. - The revenue of "Pearl's" Mosquitout product range reported satisfactory growth over the previous year, establishing leadership in the mosquito repellent product category in Hong Kong[59]. Commitment to Traditional Chinese Medicine (TCM) - The company reported a commitment to promoting Traditional Chinese Medicine (TCM) globally, emphasizing the importance of TCM in socio-economic development and healthcare services[22]. - The State Council of China has outlined future development priorities for TCM, indicating strong governmental support for the industry[22]. - Wai Yuen Tong aims to establish higher quality standards in the TCM industry while providing comprehensive pharmaceutical products and services[23]. - The company continues to focus on the integration of traditional practices with modern healthcare needs, aligning with national health policies[22]. - The company is positioned to leverage the growing demand for TCM services due to an aging population and the booming healthcare services industry in China[22]. Financial Performance - Total revenue for the financial year ended March 31, 2023, decreased by approximately 7.5% to approximately HK$1,286.4 million, primarily due to a decrease in property sales in agricultural produce exchange markets[46]. - The Group recorded a loss attributable to owners of the parent of approximately HK$20.5 million, a significant reduction from a loss of approximately HK$108.9 million in the previous year[47]. - Revenue from Chinese pharmaceutical and health food products increased to approximately HK$635.0 million, representing a growth of approximately 23.9% from the previous year[56]. - The total revenue of traditional Chinese medicine and health food products increased to approximately HK$635 million, representing a growth of about 23.9% compared to the previous year[60]. - The total revenue of Western pharmaceutical and health food products grew by 100.1% over the same period last year[64]. Business Expansion and Operations - As of March 31, 2023, the Group operated over 100 stores across Mainland China, Hong Kong, and Macau, with more than 80 Chinese medicine practitioners in Hong Kong[28]. - During the review year, the Group opened 9 new stores in Hong Kong and Macau, particularly in residential districts, indicating a growing demand for Chinese medicine clinic services[27]. - The Group launched new products across five major categories of Chinese medicine, enhancing product diversity and selection[28]. - The Group's business model leverages franchised stores for rapid expansion in the Chinese medicine sector[28]. - The Group has actively developed e-commerce business channels, distributing products through its own online platform and selected third-party platforms[63]. Legal Matters and Corporate Governance - The group continues to be the legal and beneficial owner of Baisazhou Agricultural, as confirmed by multiple court rulings[149][156]. - On April 20, 2023, the court ruled that Ms. Wang and Tian Jiu must pay damages to the group amounting to HK$567,037,325.74, plus interest from January 18, 2021[157]. - The group has been involved in multiple civil litigations since 2011 related to the Baisazhou acquisition, with various court decisions upholding its ownership[144][153]. - The Supreme People's Court dismissed the appeal from Ms. Wang and Tian Jiu regarding the December 23, 2019 judgment, reaffirming the group's ownership[153][158]. - The group has faced allegations of forged documentation related to the Baisazhou acquisition, which have been dismissed by the courts[145][152]. Sustainability and Corporate Social Responsibility - The company has received recognition as a "Caring Company" for over 10 years, reflecting its commitment to social responsibility[15]. - The Group's commitment to sustainability includes the installation of solar panels at the Yuen Long Factory to reduce carbon emissions[32]. - The Group's agricultural produce exchange markets have maintained health and hygiene measures to adapt to the post-pandemic environment[189]. Management and Employee Relations - CAP employed 1,941 staff as of March 31, 2023, an increase from 1,872 in 2022, with approximately 35.4% located in Hong Kong and Macau[172]. - The company provides various employee benefits, including medical and retirement benefits, and structured training programs[172]. - CAP recognizes employees as key contributors to its success and strives to provide a safe workplace[172]. - CAP has adopted a share option scheme in August 2022 to incentivize eligible participants and enhance the company's value[172]. Market Outlook and Strategic Initiatives - The expected faster growth of Mainland China's economy and the lifting of cross-boundary restrictions are anticipated to support Hong Kong's exports[182]. - Wai Yuen Tong aims to increase market share by opening self-operated and franchised retail outlets in the PRC, Hong Kong, and Macau[183]. - The CAP Group plans to build a nationwide agricultural produce exchange network leveraging its industry-leading position and advanced management systems[184]. - The Central Government of China has prioritized agricultural development, promoting investments in agricultural produce markets and improving logistics infrastructure[190]. - The CAP Group is adopting an "asset light" strategy to expand operations in the PRC and is exploring online platform development to leverage technology advancements[191].
位元堂(00897) - 2023 - 年度财报