#Hong Kong #Digital Technology #Hong Kong Pharma #OTC Pharmaceuticals

Financial Report Overview

Hong Kong Pharma Digital Technology Holdings Limited (NASDAQ: HKPD) recently announced its financial results for the six months ending September 30, 2024. As a leading provider in the over-the-counter pharmaceutical e-commerce sector, the company has demonstrated robust performance amid industry challenges.

Revenue Growth

In the reported period, HKPD achieved net revenues of $11,091,189, marking a remarkable increase of 58.9% from $7,009,209 in the same timeframe the previous year. This impressive growth can be attributed to the company's focus on enhancing its supply chain services and expanding its reach within the OTC market.

Breakdown of Revenue Sources

• - Supply Chain Services contributed $6,329,678, reflecting a 36.3% increase from $4,646,951 in 2023.
• - Procurement and Distribution saw a substantial 102.7% increase, totaling $4,759,301 compared to $2,346,931 last year.
• - Consignment Sales and Other Revenue dropped to $2,210 from $15,327 in the previous period.

Despite the decline in consignment sales, the overall revenue increase underscores the effectiveness of HKPD's service offerings in a competitive market.

Profitability and Expenses

HKPD reported a gross profit of $1,905,603, which is an increase of 42.6% from the gross profit of $1,335,988 from the prior year. However, total expenses rose to $10,066,706, up from $6,667,999 in 2023, primarily due to increased costs in marketing, labor, and logistics to support its expanding operations.

Expense Breakdown

• - Changes in Inventories accounted for $4,513,873, a significant jump from $2,171,361 last year.
• - Transportation Costs increased dramatically to $2,619,599 from $1,046,455, highlighting the company's intensified marketing and distribution efforts.

Net Income

The company's net income reached $828,559, a staggering increase of 232.6% compared to $249,037 in the previous year. This improvement reflects HKPD's commitment to operational efficiency, despite the increased expenses.

Management Insights

Lap Sun Wong, the CEO of HKPD, expressed pride in the company’s significant financial progress, noting, "The strong performance illustrates our capabilities in a shifting marketplace. The rise in net revenues is a direct result of our strategic efforts to enhance our procurement and supply chain services. Although expenses have risen, our focus on profitability remains strong."

Chief Financial Officer Man Bun Kwok added, "We are pleased with our progress and recognize the importance of maintaining a careful approach to our cost structure as we grow. Our marketing investments are strategically aimed at increasing our market share within the OTC pharmaceutical supply chain, which we believe will sustain our growth."

Company Profile

Hong Kong Pharma Digital Technology Holdings Limited specializes in OTC pharmaceutical cross-border e-commerce through its subsidiaries. Their services include direct logistics, procurement solutions, and comprehensive supply chain management catering to clients in the Asian markets. The company facilitates access to OTC pharmaceutical products for customers in Mainland China by leveraging its connections within the industry to ensure compliance and efficient delivery.

For more details on their service offerings and corporate updates, visit their official website at www.9zt.hk.

Forward-Looking Statements

It is essential to note that all statements regarding future performance are based on current data and are subject to risks and uncertainties. Actual results may vary and investors are encouraged to consider multiple factors when evaluating the company’s performance. Detailed filings can be found on the SEC website.

In conclusion, Hong Kong Pharma Digital Technology Holdings Limited stands at a pivotal point, demonstrating robust revenue growth and profitability amid a dynamic market landscape. The company’s strategic initiatives appear to position it well for continued success in the evolving e-commerce and pharmaceutical sectors.