Core Viewpoint - Long Fung Group Holdings Limited, based in Hong Kong, has submitted a prospectus to the Hong Kong Stock Exchange for a main board listing, positioning itself as a leading retail pharmacy and drugstore operator in Hong Kong with a significant market share in the sector [1] Group 1: Company Overview - Long Fung Group operates under the "Long Fung" brand with 29 retail stores and various online sales platforms, offering a wide range of drugstore products and consumer goods [1] - The company is projected to be the largest pharmacy retailer in Hong Kong by retail sales in 2024, holding a market share of 5.2%, and is also the largest drugstore retailer by average SKU per store, with approximately 6,500 SKUs available [1] - The flagship store located in Mong Kok has a total floor area of about 17,500 square feet, making it the largest drugstore retail store in Hong Kong by floor area in 2024 [1] Group 2: Product Offering and Supplier Relationships - Long Fung Group's product range includes 11 categories such as traditional Chinese medicine, Western medicine, health supplements, skincare, cosmetics, personal care, baby products, food, pet food, and household items, with over 46,000 product SKUs sold during the reporting period [2] - The company collaborates with over 600 suppliers, including local distributors in Hong Kong and major overseas suppliers from Japan, South Korea, Southeast Asia, Europe, and the United States, with a supply chain office established in Fukuoka, Japan [2] - Long Fung Group maintains long-term partnerships with well-known brands, being the largest purchaser of certain products like infant formula from Meiji and specific cold medicine products from Heping Pharmaceutical in Hong Kong [2] Group 3: Financial Performance and Growth - For the fiscal years 2023 to 2025, Long Fung Group's total revenue is projected to be HKD 1.094 billion, HKD 2.021 billion, and HKD 2.461 billion, respectively, reflecting a strong compound annual growth rate (CAGR) of 50.0% over three years [3] - In contrast, the CAGR for Hong Kong's consumer goods retail sales from 2020 to 2024 is only 3.6%, indicating that Long Fung Group significantly outperforms the market [3] - The net profit is expected to increase from approximately HKD 145 million in the fiscal year 2024 to about HKD 170 million in the fiscal year 2025, representing a growth of 17.9% [3] Group 4: IPO Fund Utilization - The funds raised from the IPO are intended for expanding and optimizing the company's physical and online sales networks, enhancing supply chain capabilities through the expansion of overseas procurement offices in Japan and South Korea, and upgrading IT systems including warehouse management and point-of-sale systems [3] - The company also plans to seek selective strategic investments and acquisition opportunities to further develop its business scale and geographic coverage [3]

Core Viewpoint - Lung Fung Group Holdings Limited has submitted an application for listing on the Hong Kong Stock Exchange, with DBS acting as the sole sponsor. The company is a leading retail pharmacy and cosmetics operator in Hong Kong, aiming to expand its market presence and product offerings. Group 1: Company Overview - Lung Fung operates under the "Lung Fung" brand and is the largest pharmacy retailer in Hong Kong by retail sales, holding a market share of 5.2% as of 2024 [3] - The company has 29 retail stores in Hong Kong and various online sales platforms, providing a wide range of products [3][4] - Lung Fung's flagship store in Mong Kok is the largest cosmetics retail store in Hong Kong by total floor area, measuring approximately 17,500 square feet [3] Group 2: Product Range and Supply Chain - The company offers a diverse range of products across 11 categories, including traditional Chinese medicine, Western medicine, health supplements, skincare, cosmetics, and pet products [4] - Lung Fung has established over 40 private label brands and offers more than 700 SKUs under these brands as of Q1 2026 [5] - The company sources products from over 600 suppliers globally, including local distributors and major suppliers from Japan, Korea, Southeast Asia, Europe, and the United States [5] Group 3: Financial Performance - Lung Fung's revenue grew significantly from HKD 1.094 billion in FY2023 to HKD 2.461 billion in FY2025, with a compound annual growth rate (CAGR) of 50.0% [8] - The company recorded a net profit of HKD 145 million in FY2024, with a net profit margin of 7.2%, and further increased to HKD 170 million in FY2025 [8] - For Q1 FY2026, the profit reached HKD 47.8 million, a 130.7% increase from Q1 FY2025, with a profit margin of 6.8% [9] Group 4: IPO Fund Utilization - The funds raised from the IPO are intended for expanding and optimizing both physical and online sales networks, including opening up to 11 new retail stores in Hong Kong by March 31, 2029 [9][10] - The company plans to invest in brand management and marketing to enhance public awareness and effectiveness of promotional activities [9] - Additional funds will be allocated for upgrading IT systems, enhancing supply chain capabilities, and seeking strategic investment opportunities [10]

Core Viewpoint - Long Fung Group Holdings Limited, Hong Kong's largest drugstore retailer, has submitted its main board listing application to the Hong Kong Stock Exchange, with DBS Asia Capital as the sole sponsor [3]. Financial Performance - Long Fung Group's revenue is projected to grow from approximately HKD 1.094 billion in FY2023 to about HKD 2.461 billion in FY2025, reflecting a compound annual growth rate (CAGR) of 50.0%, significantly outpacing the Hong Kong retail sector's CAGR of 3.6% from 2020 to 2024 [4]. - The company's gross profit margins have shown consistent improvement over the past three fiscal years, recorded at 24.9%, 29.3%, and 31.6%, with net profit expected to rise from approximately HKD 145 million in FY2024 to about HKD 170 million in FY2025, marking a 17.9% increase [4]. Market Position and Strategy - Long Fung Group has established a comprehensive retail ecosystem in Hong Kong's health, pharmaceutical, and beauty product market, leveraging a three-dimensional strategy of "brand uniqueness, product diversity, and immersive experience" to surpass traditional drugstore retail models [5]. - The average store size exceeds 4,250 square feet, with the flagship store in Mong Kok being the largest drugstore in Hong Kong at approximately 17,500 square feet, featuring 15 registered pharmacists and over 38 professional beauty consultants [5]. Supply Chain and Management - The company's competitive edge is supported by a flexible supply chain and an experienced management team, with long-term partnerships with key suppliers and a procurement office in Japan to stay aligned with emerging product trends [6]. - The founder, Mr. Hsieh Shao-Hai, has over 35 years of experience in the Hong Kong retail drugstore industry, and the core team includes talents from internationally renowned retail groups, combining global perspectives with local consumer insights [6].