HONG KONG, March 28, 2025 /PRNewswire/ -- Hong Kong Pharma Digital Technology Holdings Limited (NASDAQ: HKPD) ("HKPD" or the "Company"), a leading provider of over the counter ("OTC") pharmaceutical cross-border e-commerce supply chain services in Hong Kong, today announced its unaudited financial results for the six months ended September 30, 2024.
Financial Highlights for the Six Months Ended September 30, 2024:
Net Revenues: The Company reported net revenues of $11,091,189, an increase of 58.9% compared to $7,009,209for the same period in 2023.
Revenue Breakdown:
Six Months ended September 30, 2024
Six Months ended September 30, 2023
Supply chain services
$
6,329,678
$
4,646,951
Procurement and distribution
4,759,301
2,346,931
Consignment sales and other revenue
2,210
15,327
Total Revenue
$
11,091,189
$
7,009,209
- Supply Chain Services: $6,329,678, up 36.3% from $4,646,951 for the same period in 2023. - Procurement and Distribution: $4,759,301, a 102.7% increase from $2,346,931 for the same period in 2023. - Consignment Sales and Other Revenue: $2,210, down from $15,327 for the same period in 2023.
Gross Profit: The gross profit for the period was $1,905,603, a 42.6% increase from $1,335,988 for the same period in 2023.
Total Expenses
Total Expenses: Increased to $10,066,706 for the six months ended September 30, 2024, up from $6,667,999 for the same period last year.
Six Months ended September 30, 2024
Six Months ended September 30, 2023
Changes in inventories of merchandised goods
$
4,513,873
$
2,171,361
Storage cost
530,012
463,412
Transportation cost
2,619,599
1,046,455
Consumption of packing material
514,714
515,594
Depreciation and amortization
30,153
31,727
Labor cost
1,318,041
1,589,164
Outsourcing expenses
328,755
202,169
Others
211,559
648,117
Total cost of sales, selling, general and administrative expenses
$
10,066,706
$
6,667,999
Net Income
Net Income: The Company achieved a net income of $828,559, a 232.6% increase compared to $249,037 in the same period last year.
Management Commentary
Lap Sun Wong, Chief Executive Officer of HKPD, stated, "The Company has delivered a strong performance for the six months ended September 30, 2024, demonstrating our ability to grow in a competitive and evolving market. The significant increase in net revenues reflects the effectiveness of our strategic initiatives to enhance our supply chain and procurement services. Despite the rise in expenses due to increased marketing efforts and workforce expansion, our net income reflects our focus on profitability and operational efficiency."
Man Bun Kwok, Chief Financial Officer, added, "While we are pleased with our financial progress, we remain mindful of the importance of maintaining a disciplined cost structure as we scale operations. Our investment in marketing aims to capture additional market share in the OTC pharmaceutical supply chain sector, and we believe these efforts will continue to drive growth in the coming periods."
About Hong Kong Pharma Digital Technology Holdings Limited
Hong Kong Pharma Digital Technology Holdings Limited offers two main categories of services: (i) OTC pharmaceutical cross-border e-commerce supply chain services through its Hong Kong subsidiary, Joint Cross Border Logistics Company Limited ("Joint Cross Border"), and (ii) OTC pharmaceutical cross-border procurement and distribution through its Hong Kong subsidiary, V-Alliance Technology Supplies Limited.
Through its engagement with OTC pharmaceutical suppliers, logistics companies, and merchants on Chinese e-commerce platforms, Joint Cross Border provides a convenient one-stop solution for Mainland Chinese customers seeking access to OTC pharmaceutical products outside Mainland China.
Joint Cross Border's comprehensive service offerings include pre-consultation, product information review, procuring overseas OTC pharmaceutical products, enlisting products with the Hong Kong Department of Health, obtaining import and export permits, storing products, packaging, and arranging logistics and end-to-end delivery services for customers.
For more information, please visit the Company's website: www.9zt.hk.
Forward-Looking Statements
All forward-looking statements, expressed or implied, in this release are based only on information currently available to us and speak only as of the date on which they are made. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this release. Except as otherwise required by applicable law, we disclaim any duty to publicly update any forward-looking statement to reflect events or circumstances after the date of this release. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in our filings with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
For investor and media inquiries please contact:
Hong Kong Pharma Digital Technology Holdings Limited Media Contact: pr@9zt.hk Investor Relations: ir@9zt.hk Telephone: +852 2618-9289
HONG KONG PHARMA DIGITAL TECHNOLOGY HOLDINGS LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Expressed in U.S. dollar, except for the number of shares)
For the Six Months Ended
September 30,
Note
2024
unaudited
2023
unaudited
Revenues
7
$
11,091,189
$
7,009,209
Cost of revenues
8
(9,185,586)
(5,673,221)
Gross profit
1,905,603
1,335,988
Other income
9
804
427
Operating expenses:
Selling, general and administrative expenses
8
(881,120)
(994,778)
Other gains/(losses), net
10
1,751
(32,817)
Total operating expenses
(879,369)
(1,027,595)
Operating profit
1,027,038
308,820
Financial income
11
1,078
156
Finance costs
11
(49,254)
(34,812)
Finance costs, net
(48,176)
(34,656)
Profit before income taxes
978,862
274,164
Income tax expense
12
(150,303)
(25,127)
Net profit for the year
13
828,559
249,037
Less: profit attributable to non-controlling interests
-
-
Profit attributable to owners of the Company
828,559
249,037
Other comprehensive income
Foreign currency translation adjustments
20,032
227
Comprehensive income attributable to the Company's shareholders
$
848,591
$
249,264
Earnings per share
Basic and diluted *
15
$
0.083
$
0.036
Weighted average number of shares outstanding
Basic and diluted *
10,000,000
6,843,000
HONG KONG PHARMA DIGITAL TECHNOLOGY HOLDINGS LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in U.S. dollar, except for the number of shares)
September
March 31,
Note
30, 2024
unaudited
2024
audited
ASSETS
NON-CURRENT ASSETS:
Property and equipment, net
16
119,407
103,242
Intangible assets, net
17
89,299
31,825
Right of use assets, net
25
1,073,857
730,451
TOTAL NON-CURRENT ASSETS
1,282,563
865,518
CURRENT ASSETS:
Deferred IPO costs
21
2,161,496
1,260,075
Inventories
18
555,522
933,299
Trade receivables, net
19
4,880,309
3,698,757
Other receivables and prepayments
19
902,406
1,262,351
Amount due from related parties
23
14,755
19,971
Restricted cash
401
7,682
Cash and cash equivalents
20
364,990
619,575
TOTAL CURRENT ASSETS
8,879,879
7,801,710
TOTAL ASSETS
$
10,162,442
$
8,667,228
LIABILITIES AND EQUITY
NON-CURRENT LIABILITIES:
Lease liabilities non-current portion
25
200,759
117,836
Longterm bank loan non-current portion
24
1,005,610
1,119,276
TOTAL NON-CURRENT LIABILITIES
1,206,369
1,237,112
CURRENT LIABILITIES:
Trade and other payables
22
1,801,047
$
1,416,182
Tax payable
12
345,742
218,831
Contract liabilities
7
74,877
191,066
Due to related parties
23
239,802
500,677
Lease liabilities – current portion
25
910,714
634,504
Current portion of long-term bank loan
24
231,641
180,493
Short-term bank loan
24
-
34,704
TOTAL CURRENT LIABILITIES
3,603,823
3,176,457
TOTAL LIABILITIES
4,810,192
4,413,569
COMMITMENTS AND CONTINGENCIES
-
-
EQUITY:
Ordinary shares, 50,000,000 shares authorized, consisting of 49,501,000 Class A ordinary shares of $0.001 par value per share and 499,000 Class B ordinary shares of $0.001 par value per share *
Class A ordinary shares, 9,501,000 and 6,843,000 shares issued and outstanding at September 30, 2024 and March 31, 2024, respectively *
26
9,501
9,501
Class B Ordinary shares, 499,000 and nil shares issued and outstanding at September 30, 2024 and March 31, 2024, respectively *
