Risk Management and Internal Control - The company has established a robust internal audit system, ensuring the effectiveness of the first and second lines of defense, with independent assurance provided to the audit committee and board[1]. - Risk management measures are assigned to specific risk owners with expected completion dates, ensuring accountability in risk mitigation[2]. - The board, with the assistance of external consultants, has reviewed the effectiveness of the risk management and internal control systems for the fiscal year ending March 31, 2023, and deemed them effective and sufficient[3]. - Significant risks and internal control issues have been discussed in internal audit reports presented to the audit committee and board, reinforcing confidence in the company's risk management systems[4]. - The group believes that risk management is crucial for operational efficiency and effectiveness, with management assisting the board in evaluating significant risks[94]. - The management team is involved in formulating appropriate risk management and internal control measures to be implemented in daily operations[94]. Shareholder Engagement and Communication - The company encourages shareholder participation in annual general meetings and ensures clarity in voting procedures[11]. - The company has implemented various communication channels to maintain ongoing dialogue with shareholders and stakeholders regarding environmental, social, and governance performance[22]. - The company’s website provides regular updates on announcements, annual reports, and other relevant information to shareholders[13]. - The company has established a share award scheme, with an independent third party appointed as the trustee to manage the plan[120]. - The independent non-executive directors have reviewed the continuing connected transactions and confirmed they are conducted on normal commercial terms and in the best interest of shareholders[181]. Environmental, Social, and Governance (ESG) Initiatives - A third-party assessment identified 12 significant environmental, social, and governance issues, which the company is committed to addressing[29]. - The company has adopted an environmental policy aimed at reducing environmental impact through energy conservation and waste reduction initiatives[29]. - The board is responsible for overseeing the company's environmental, social, and governance matters, ensuring alignment with strategic objectives[26]. - The company has not reported any significant regulatory non-compliance regarding applicable environmental laws and regulations during the reporting period[95]. - The company maintains a strong commitment to social responsibility through community service initiatives and partnerships with non-profit organizations[87]. Financial Performance - Total revenue for the fiscal year 2023 was HKD 520.3 million, an increase from HKD 406.1 million in fiscal year 2022, representing a growth of approximately 28%[6]. - The company reported revenue of HKD 520,323,000 for the year ended March 31, 2023, representing a 28.1% increase from HKD 406,139,000 in the previous year[130]. - Gross profit for the year was HKD 205,509,000, with a gross margin of approximately 39.4%, compared to HKD 161,510,000 in the previous year[130]. - Operating profit increased to HKD 87,040,000, up from HKD 38,943,000, reflecting a significant growth in operational efficiency[130]. - Net profit for the year was HKD 63,328,000, which is a 171.5% increase compared to HKD 23,328,000 in the previous year[130]. - Basic and diluted earnings per share rose to HKD 6.41, compared to HKD 2.75 in the previous year, indicating strong profitability growth[130]. - The company achieved a total comprehensive income of HKD 52,905,000 for the year, compared to HKD 23,202,000 in the previous year[130]. - The company reported a profit attributable to equity holders of HKD 57,093,000 for the year, compared to HKD 24,620,000 in the previous year, marking a substantial increase of 131.5%[136]. Operational Efficiency and Resource Management - Water consumption for fiscal year 2023 was 31,593 cubic meters, compared to 29,855 cubic meters in fiscal year 2022, indicating an increase of about 5.2%[35]. - The density of water usage per HKD revenue decreased from 0.00007 cubic meters to 0.00006 cubic meters, reflecting improved efficiency[35]. - The amount of hazardous waste disposed of in fiscal year 2023 was 6,112 kg, slightly up from 6,012 kg in fiscal year 2022, showing a 1.7% increase[37]. - The density of hazardous waste disposed of per HKD revenue decreased from 0.015 grams to 0.012 grams, indicating enhanced waste management efficiency[37]. - The company has established a policy for effective resource use, including energy and water management, although specific data on waste generation was not collected due to its minor impact[57]. Market Position and Competition - The company operates in three competitive market segments: branded pharmaceuticals, health supplements, and traditional Chinese medicine, facing intense competition from existing competitors and new entrants[62]. - The company has a strong focus on research and development in consumer healthcare products, leveraging over 33 years of industry experience[125]. - The company plans to continue expanding its market presence and developing new healthcare products to drive future growth[130]. Corporate Governance - The board of directors has approved the financial statements for publication on June 15, 2023, ensuring transparency and compliance[132]. - The company is committed to enhancing its corporate governance and strategic planning through experienced board members[126]. - The company has received annual confirmations from each independent non-executive director regarding their independence, in compliance with listing rules[102]. Cash Flow and Financial Position - The company reported a net cash generated from operating activities of HKD 157,088,000 for the year ended March 31, 2023, compared to HKD 76,941,000 in the previous year, representing an increase of 104.5%[139]. - The net cash generated from operating activities after tax payments was HKD 145,616,000, up from HKD 59,996,000, indicating a significant improvement in operational efficiency[139]. - The cash and cash equivalents at the end of the year stood at HKD 152,266,000, significantly up from HKD 69,843,000 at the beginning of the year, reflecting strong cash flow management[139]. - The company’s total equity increased to HKD 1,030,990,000 as of March 31, 2023, from HKD 946,943,000 a year earlier, indicating growth in shareholder value[136]. Shareholder Structure and Ownership - Mr. Chan holds 11,600,000 shares of Jacobson Pharmaceutical and has beneficial ownership of 308,404,000 shares through Queenshill, which he wholly owns[149]. - The Kingshill Trust, established by Mr. Chan, holds 850,684,000 shares of Jacobson Pharmaceutical, with Mr. Chan and his family as the sole beneficiaries[149]. - The ownership percentages for Jacobson Pharmaceutical are approximately 43.98% by Kingshill, 15.94% by Queenshill, 0.42% by The Queenshill Trust, and 0.60% by Mr. Chan personally[151]. - The trustee of The Queenshill Trust holds 782,000 shares of the company through a wholly-owned subsidiary[152]. - The company has a significant shareholder structure, with JBM Group BVI owning approximately 53.96% of the shares, and the total equity held by major shareholders including Kingshill and Lincoln's Hill amounts to 70.29%[171][174]. Compliance and Regulatory Matters - The company has complied with applicable laws and regulations that significantly impact its operations during the reporting period[64]. - There were no recorded incidents of data breaches during the reporting period[54]. - The company has not recorded any improper conduct related to bribery, extortion, fraud, or money laundering during the reporting period[55]. - The group has not applied any new standards or interpretations that have not yet come into effect during the accounting period[117].
健倍苗苗(02161) - 2023 - 年度财报