HONG KONG SAR – Media OutReach Newswire – March 28, 2024 –
Tycoon Group Holdings Limited (“Tycoon Group“or the”Band“,
Stock code: 3390.HK), an integrator of omnichannel healthcare marketing and brand management services in Hong Kong, announced its audited consolidated annual results for the financial year ended December 31, 2023 (the “Financial year” Or “Fiscal year 2023“).
In 2023, Hong Kong’s economy began its road to recovery. The number of visitors returning to Hong Kong continued to increase and Southeast Asian markets were also recovering rapidly. These positive developments have provided additional support for local consumption. During the financial year, the Group achieved steady growth in its turnover and continues to generate profits. In fiscal 2023, the Group recorded revenue of approximately HK$1,198.6 million, an increase of 1.1% compared to the fiscal year ended December 31, 2022. (“last financial year” or “fiscal year 2022”) of HK$1,186.2 million. The group’s net profit jumped to HK$297.3 million (FY2022: HK$43.6 million), an increase of 581.4% year-on-year. The Group’s gross profit increased by 22.8% to HK$321.1 million for the financial year, compared to HK$261.5 million for FY2022, and the gross profit margin increased by increased by 4.8 percentage points to 26.8%. The increase in gross profit and gross profit margin is mainly due to the Group’s continuous efforts to optimize its product portfolio, explore new markets in Southeast Asia, improve its own brands and introduce new own products. These initiatives led to an increase in overall revenue and gross margin. The Board of Directors has recommended declaring a final dividend of 3.5 Hong Kong cents in cash per ordinary share for the financial year 2023 (financial year 2022: 3 Hong Kong cents). Together with the interim dividend of HK 3.5 cents per ordinary share, this brings the total dividend for FY 2023 to HK 7 cents per ordinary share (total dividend for FY 2022: HK 3 cents).
Building on its rapid growth, the Group will concentrate its resources on promoting its
distribution company
During the Financial Year, the Group mainly operates three major operating segments, namely the distribution business, the e-commerce business and the retail business. The full reopening of Hong Kong’s borders at the start of the year strengthened the performance of the Group’s distribution business, maintaining its upward trajectory. During the financial year, the Group’s distribution sales in Hong Kong reflected a significant year-on-year increase of 94.0%. Similarly, the Group’s distribution sales in Macau experienced a notable growth rate of 19.1%, attributed to the combined effects of the resumption of cross-border travel between Hong Kong, Macau and mainland China and the expansion of the tourism industry in Macau. In addition to its continued efforts to strengthen its operations in Hong Kong, the Group has focused on penetrating the Southeast Asian market in recent years, resulting in growth of 152.3 % year-over-year of its distribution sales in Southeast Asia.
Given the rapid growth of the Group’s distribution business, the Group will prioritize the allocation of resources to advance the distribution business. In July 2023, the Group announced the sale of a 51% stake in Combo Win Asia Limited (“CWA”) for HK$130 million. The additional proceeds from the sale of the stake in CWA will provide the Group with further resources to strengthen its distribution activities in Hong Kong, Macau and South East Asia, as well as to develop its own brands. These initiatives will propel the Group’s long-term development, enrich the Group’s product portfolio, improve gross profit margins and achieve even better performance.
In FY2023, the segment profit of the e-commerce business was HK$48.4 million (FY2022: HK$40.7 million).
Strengthen the marketing of best-selling brands and actively develop your own brands
During the Financial Year, the Group continued to develop its marketing and omnichannel brand management activities, including one of the world’s best-selling probiotic brands, Culturelle®; Japanese anti-hair loss and hair protection brand, Kaminowa; and the leading French baby wash brand, Biolane, and much more. For Biolane, the Group also has exclusive distribution rights in Singapore and Malaysia.
In addition to its brand agency activity, the Group also actively develops its own brands. The Group has created and developed its own health product brands, including “Boost & Guard Pro (BG Pro 博健專研)”, “Craft by Wakan (和漢匠心)” and “Kinmen Qiangxiao (金門強效). )”. Among them, “Boost & Guard Pro” and “Craft by Wakan” quickly responded to market trends by introducing a diverse range of new products, enabling the Group to tap into a broader blue ocean market.
The Group’s marketing capabilities have also been promoted by renowned brands. The group teamed up with well-known artists Mr. Wong Tak Bun, Kenny and Ms. Tse On Kay, Kay. They successively became ambassadors for the Japanese anti-hair loss and hair protection brand Kaminowa in Hong Kong. In terms of own brands, the Group enlisted the support of renowned artist Ms. Lin Min Chen as the spokesperson for its flagship product “Craft by Wakan Japanese Probiotics”, and invited popular artist Mr. Cheung Kai Chung, Louis, to support its own brands. best-selling brand “Kinmen Qiangxiao”.
Furthermore, in order to align with the Group’s strategy to strengthen the development of its own brands, Mr. Wong Ka Chun Michael, Chairman, Executive Director and Managing Director of the Group, personally acquired the well-established Hong Kong brand Po Wo. Tong, which has a rich century-old heritage. This acquisition positions Mr Wong as a major shareholder, enabling collaboration with the Group to launch and sell a wider range of new products. The objective is to strengthen the Group’s portfolio of own-brand offerings. With proceeds from the previous sale of a partial stake in its e-commerce business, the Group is investing more resources in its own brands with higher gross profit margins, and developing and launching more of its own brands and different products for to respond to needs. visitors from the mainland traveling under the Individual Visits Program (“IVS”) after the border reopening, as well as the new trend in the PCM and healthcare products market as a whole.
Focus on business development in Southeast Asia
The Group believes that a presence in South East Asia will be advantageous and is therefore establishing companies in Singapore and Malaysia before going public. The Group will invest more resources in the Southeast Asian market and apply the successful Hong Kong distribution model to its distribution operations in Singapore and Malaysia. The Group aims to establish partnerships with leading personal care product chains in Malaysia and Singapore. Among them is the Guardian chain of stores, known as Mannings in Hong Kong, which is headquartered in Hong Kong and maintains friendly and cooperative relations with the Group. This partnership benefits the Group by expanding its sales channels in Southeast Asia, which is expected to become another major profit-generating region for the Group in the future. Additionally, in FY2023, Singapore’s distribution revenue reached HK$41.8 million, an increase of 121.3% from HK$18.9 million. of Hong Kong in fiscal 2022. It is expected that sales will continue to experience rapid growth in 2024.
Mr. Wong Ka Chun Michael, President and CEO of Tycoon Groupsaid: “2024 is a year of seeking performance, revenue and growth for the Group. By leveraging the experience and resources accumulated over the past three years of the epidemic, the Group can expect to shine brightly. By focusing on its development in Hong Kong, Macau and mainland China, the Group will strengthen its presence in the Southeast Asian market, particularly in Singapore and Malaysia, and expand its presence internationally. In the local market, the Group has a positive market outlook for prepared Chinese herbal medicines and dry supplements and has actively expanded its supplement range and strengthened its PCM offering. Let us look forward to the next successful season for the Group as a gesture of appreciation for the trust and support of all shareholders, employees, business partners and customers.
Hashtag: #TycoonGroup
The issuer is solely responsible for the content of this announcement.
