EX-99.2 3 ea023554201ex99-2_hongkong.htm PRESS RELEASE DATED MARCH 28, 2025

Exhibit 99.2

 

Hong Kong Pharma Digital Technology Holdings Limited Reports Financial Results for the Six Months Ended September 30, 2024

 

HONG KONG, March 28, 2025 // -- 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 $7,009,209 for 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 

 

oSupply Chain Services: $6,329,678, up 36.3% from $4,646,951 for the same period in 2023.

 

oProcurement and Distribution: $4,759,301, a 102.7% increase from $2,346,931 for the same period in 2023.

 

oConsignment 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.”

 

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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

 

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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  

 

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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 30,     March 31,  
    Note     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 *             499       499  
Additional paid in capital     26       3,017,409       3,017,409  
Subscription receivable     26       (50,000 )     (300,000 )
Retained earnings     27       2,359,667       1,531,108  
Accumulated other comprehensive (loss) income     27       15,174       (4,858 )
TOTAL SHAREHOLDERS’ EQUITY             5,352,250       4,253,659  
                         
TOTAL LIABILITIES AND EQUITY           $ 10,162,442     $ 8,667,228  

 

 

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