Adjusted Net Profit* Increases by 13.3% to HK$54.6 Million
JBM (Healthcare) Limited (JBM Healthcare or the Group; Stock Code: 2161), a leading branded healthcare products marketer and distributor in Hong Kong, has announced today the first annual results of the Group after its spin-off listing on the Main Board of The Stock Exchange of Hong Kong Limited on 5 February 2021.
Despite the unprecedented challenges due to the COVID-19 pandemic, the Group posted a total revenue of HK$397.2 million during the year ended 31 March 2021 (Reporting Period), representing a growth of 4.1% from last year. Before taking into account the one-off listing expenses, the adjusted net profit* increased by 13.3% to HK$54.6 million when compared with last year. Basic earnings per share was HK2.78 cents.
Resilient Performance Driven by Strong Product Portfolio
JBM Healthcare carries a robust and broad portfolio of branded healthcare products in the segments of branded medicines, proprietary Chinese medicines, and health and wellness products.
As for the proprietary Chinese medicines (“PCM”) business, sales revenue notably increased by 14.6% to HK$210.9 million, driven by the buoyant performance of Hoitin concentrated Chinese medicine granules products, alongside a 16.8% revenue growth on Flying Eagle Woodlok Oil attributed to a broadened sales penetration in China.
During the Reporting Period, the Group has enriched its PCM product portfolio to include third-party brands, namely Angong Niuhuang Wan and Ganoderma Spores, to exploit the potential demand of the Chinese market.
The branded medicines business of the Group recorded revenue of HK$134.5 million during the Reporting Period, representing a drop of 5.4% from last year. Among its well-established brands, sales of AIM Atropine Eye Drops delivered year-on-year growth of 9.7% despite the disruption by the COVID-19 pandemic on the consultation visits of children to hospitals and ophthalmologists.
For health and wellness products, sales revenue recorded a moderate decline of 6.3% during the Reporting Period under the impact of the COVID-19 outbreak. This product segment comprises supplements, personal care products, as well as diagnostic for the general health and wellness of consumers. Among these, the demand for personal hygiene and infection control products within the segment surged. As part of its strategy to further enhance its health and wellness product offerings, the Group launched the Dr. Freeman product series, a health and wellness product line, in response to the growing market demand for infection control and personal hygiene products.
Establishment of Flagship Online Stores
To tap the potential of fast-growing PRC cross-border e-commerce, the Group has established self-operated flagship online stores on Tmall Global Marketplace and JD-HK Open Platform with an expanded selection of more than 40 branded quality healthcare products for Chinese consumers. JBM Healthcare has set up its own e-commerce team in Shenzhen, the PRC, providing direct operational and customer service support for its online flagship stores.
Formation of a Joint Venture with Tycoon Group
The Group has entered into collaboration agreements with Tycoon Group Holdings Limited (“Tycoon Group”; Stock Code: 3390) in a bid to leverage synergies in the market segments of PCM, Chinese healthcare and supplement products. Through this strategic co-operation, the Group is to develop and/or manufacture own-brand products to cater to market trends and consumer needs via a joint venture company newly-formed by the parties to provide distribution, strategic marketing and sales support for these products. The own-brand products are expected to be launched in the third quarter of 2021.
Mr. Patrick Wong, Chief Executive Officer of JBM Healthcare, said, “2020 has set off with a rough ride. Against the backdrop of the pandemic, we remained steadfast with our resolve to navigate the impact of COVID-19 on our business. Thanks to the robust commitment of our team in delivering the strategies, along with our diversified portfolio of offerings and geographic markets, we managed to sustain a resilient performance albeit the market challenges. Moving forward, we will continue to strengthen our commercial capabilities both offline and online, enrich our portfolio targeting unmet healthcare needs, expand our core market coverage in Greater China and Asia, and fortify our collaboration with strategic partners – to strengthen our position as a key provider of healthcare solutions in the region.”
About JBM (Healthcare) Limited (Stock Code: 2161)
JBM Healthcare is a Hong Kong-based company that markets and distributes branded healthcare products across Greater China, Southeast Asia and certain other countries. The Group is a unique field player with marketing expertise and a drug heritage that prioritizes product efficacy and quality to meet consumers’ healthcare needs. As a renowned healthcare brand operator in Hong Kong, the Group carries a wide-ranging portfolio of branded healthcare products comprising branded medicines, proprietary Chinese medicines and health and wellness products, which include well-recognized household brands such as Po Chai Pills, Ho Chai Kung Tji Thung San, Contractubex, Bite-X, Mederma Kids, Tong Tai Chung Woodlok Oil, Flying Eagle Woodlok Oil, Saplingtan and Shiling Oil. For more details about JBM Healthcare, please visit: www.jbmhealthcare.com.hk
*Adjusted net profit is the net profit excluding one-off expenses incurred in the spin-off listing which amounted to HK$32.0 million.