The Group Recorded Revenue of Approximately HK$1,200 million Net Profit for FY2023 increased more than 5.8 times YoY Business is booming and Sales in Southeast Asia doubled Leading the Group to Reach New Heights
HONG KONG SAR – Media OutReach Newswire – 28 March 2024 – Tycoon Group Holdings Limited (“Tycoon Group” or the “Group“, Stock Code: 3390.HK), an omnichannel brand marketing and management service integrator of health products in Hong Kong, announced its audited consolidated annual results for the year ended 31 December 2023 (the “Financial Year” or “FY2023“).
In 2023, Hong Kong’s economy began its journey towards recovery. The number of visitors returning to Hong Kong continued to rise, and the Southeast Asian markets were also recovering rapidly. These positive developments provided further support for local consumption. During the Financial Year, the Group has achieved steady growth in revenue and continues to generate profit. In FY2023, the Group recorded revenue of approximately HK$1,198.6 million, an increase of 1.1% from the year ended 31 December 2022 (“Last Financial Year” or “FY2022”) of HK$1,186.2 million. The Group’s net profit surged to HK$297.3 million (FY2022: HK$43.6 million), representing an increase of 581.4% year-on-year. The gross profit of the Group increased by 22.8% to HK$321.1 million for the Financial Year as compared to that of HK$261.5 million for FY2022, and the gross profit margin increased by 4.8 percentage points to 26.8%. Increase in gross profit and gross profit margin was mainly due to the Group’s continuous efforts in optimising its product portfolio, exploring new markets in Southeast Asia, enhancing its own brands, as well as introducing new own products. These initiatives have led to an increase in overall revenue and gross profit. The Board has recommended to declare a final dividend of HK3.5 cents in cash per ordinary share for FY2023 (FY2022: HK3 cents). Together with the interim dividend of HK3.5 cents per ordinary share, this brings the total dividend for FY2023 to HK7 cents per ordinary share (FY2022 total dividend: HK3 cents).
Building on the rapid growth, the Group will focus its resources on promoting its
distribution business
During the Financial Year, the Group mainly operates three major operating segments, namely distribution business, e-commerce business and retail store business. The full reopening of Hong Kong’s borders at the beginning of the year has bolstered the performance of the Group’s distribution business, maintaining its upward trajectory. In the Financial Year, the Group’s Hong Kong distribution sales reflected a significant 94.0% year-on-year increase. Similarly, the Group’s Macau distribution sales 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 continuous efforts to strengthen its business in Hong Kong, the Group has focused on penetrating the Southeast Asian market in recent years, resulting in a 152.3% year-on-year growth in its Southeast Asia distribution sales.
Considering the rapid growth of the Group’s distribution business, the Group will prioritise allocating resources to drive the distribution business forward. In July 2023, the Group announced the sale of a 51% stake in Combo Win Asia Limited (“CWA”) for a consideration of HK$130 million. The additional proceeds from the sale of the CWA stake will provide the Group with more resources to strengthen its distribution business in Hong Kong, Macau and Southeast Asia, as well as develop its own brands. These initiatives will propel the long-term development of the Group, enrich the Group’s product portfolio, enhance gross profit margins, and achieve even better performance.
In FY2023, the segment result of the e-commerce business amounted to HK$48.4 million (FY2022: HK$40.7 million).
Strengthen well-known best-selling brands marketing and actively develop its own brands
During the Financial Year, the Group continued to develop the omnichannel brand marketing and management business, including one of the global best-selling probiotic brands, Culturelle®; Japanese anti-hair loss and hair protection brand, Kaminowa; and leading French baby washing care brand, Biolane, and more. For Biolane, the Group also has exclusive distribution rights in Singapore and Malaysia.
In addition to its brand agency business, the Group is also actively developing its own brands. The Group has established and developed its own well-received brands of healthcare products, 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” have quickly responded to market trends by introducing a diverse range of new products, allowing the Group to tap into a broader market of blue ocean.
The Group’s marketing capabilities have also been regonized by renowned brands. The Group has partnered with well-known artistes Mr. Wong Tak Bun, Kenny and Ms. Tse On Kay, Kay. They have successively become the brand 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 artiste Ms. Lin Min Chen as the spokesperson for its flagship product “Craft by Wakan Japanese Probiotics”, and invited the popular artiste Mr. Cheung Kai Chung, Louis, to endorse its best-selling brand “Kinmen Qiangxiao”.
In addition, to align with the Group’s strategy of strengthening the development of its own brands, Mr. Wong Ka Chun Michael, the Chairman, Executive Director, and Chief Executive Officer 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 reinforce the Group’s portfolio of own brand offerings. Using the proceeds from the previous sale of 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 to cater for the needs of Mainland visitors travelling under the Individual Visit Scheme (“IVS”) after the reopening of the border, as well as the new trend of the PCM and healthcare products market as a whole.
Focus on business development in Southeast Asia
The Group believes that establishing a presence in Southeast Asia will be advantageous and consequently set up companies in Singapore and Malaysia before going public. The Group will put more resources into the Southeast Asian market and apply the successful distribution model in Hong Kong to its distribution operations in Singapore and Malaysia. The Group aims to partner with prominent personal care product chains in Malaysia and Singapore. Among them is the chain store Guardian, known as Mannings in Hong Kong, which has its headquarters in Hong Kong and has maintained a friendly, cooperative relationship with the Group. This partnership benefits the Group by expanding its sales channels into Southeast Asia, which is expected to become another major profit-contributing region for the Group in the future. In addition, in FY2023, the sales revenue from distribution in Singapore reached HK$41.8 million, representing an increase of 121.3% compared to HK$18.9 million in FY2022. It is anticipated that sales will continue to experience rapid growth in 2024.
Mr. Wong Ka Chun Michael, the Chairman and the Chief Executive Officer of Tycoon Group, said, “2024 is a year of striving for performance, revenue, and growth for the Group. Leveraging the experience and resources accumulated over the past three years of the epidemic, the Group can be anticipated to shine brightly. In addition to its continued focus on 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 international presence. In the local market, the Group has a positive outlook on the market for prepared Chinese herbal medicine and dry supplement products and has been actively expanding its range of supplement products and strengthening its PCM offerings. Let’s anticipate the next fruitful 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.
About Tycoon Group Holdings Limited (Stock Code: 3390)
Tycoon Group is a reputable omnichannel brand marketing and management service integrator of health and well-being related products in Hong Kong. The Group specialises in providing one-stop services for PCM, health supplements, skincare, personal care and other healthcare products, including omnichannel brand agent, marketing, management, distribution and sales. The Group has established a strong online and offline sales network in Hong Kong, Macau, the PRC and Southeast Asia by cultivating the industry for many years with the mission of bringing health and vitality to consumers in Mainland China, Hong Kong, Macau and Asia-Pacific. The Group has provided over 200 local and foreign brands. With a vision of establishing its own brands, the Group developed its own-brand products including “Boost & Guard Pro”, ” Craft by Wakan”, and ” Kinmen Qiangxiao”. Tycoon has established sound relationships with chain retailer customers, with the top two chain retailer customers operating over 470 stores in Hong Kong. The Group is also one of the major distributors for PCM in Hong Kong. For more details, please visit the Group’s official website: 
https://www.tycoongroup.com.hk/
