Comprehensive Overview

The Group is a supplier of a wide range of proprietary Chinese medicines, health care, skin care, personal care and other health care products, mainly selling and distributing such products in Hong Kong. According to Ipsos reports, based on revenue, the group ranked third in Hong Kong's proprietary Chinese medicine distribution market in fiscal year 2018, with a market share of about 8.1%.

The distribution business is the main operating division of the Group. In the distribution business, the Group distributes products to chain retailers, non-chain retailers (mainly pharmacies) and traders. The products distributed by the group include products with third party brand brands, as well as private label products. In terms of retail business, the Group directly sells third party brand products and private label products with third party brand brands to the public. The Group sells products to consumers online and offline. On the online side, the group stocks products sold on the global and Tmall international platforms; offline, it also has two physical retail stores in Macau.

Risk Factors

The group's current performance is largely determined by factors that may influence the level and pattern of consumption expenditure. These factors include consumer preferences, consumer confidence, consumer income, and consumer perceptions about the safety and quality of group products. If these factors change, consumer demand for its products may fall, and its operating performance may be significantly adversely affected.