Chairman’s Statement

The year of 2014 was an important year for Hang Fat, a year in which was the 30th anniversary of Hang Fat and its predecessor, and the Group was successfully listed on the Main Board of the Stock Exchange. The successful listing has enhanced the Group’s profile, strengthened its financial position and lays a solid foundation for future development of the Group.

PERFORMANCE OF THE YEAR

Hang Fat have achieved outstanding performance and generated attractive returns for our shareholders in the financial year ended 31 December 2014. Its revenue grew significantly by 59.9% to HK$1,219,651,000 in financial year 2014 from last year’s HK$762,970,000 the Group’s net profit amounted to HK$205,324,000, representing a remarkable increase of 59.6% over last year’s HK$128,613,000.

REVIEW OF THE YEAR

In 2014, with a number of new policies and regulations in mainland China were introduced, the pace in traditional Chinese medicine and healthcare industry further intensified. American Ginseng, being one of the most important Chinese medicine and healthcare products, the demand of American Ginseng was maintained a continuous growth momentum recent years. Hang Fat continues to thrust forward and further consolidate its leading position in the American Ginseng industry.

FINAL DIVIDEND AND SPECIAL DIVIDEND

I am pleased to announce that the Board is recommending a final dividend of HK$0.02 per ordinary share (the “Share”) and a special dividend of HK$0.03 per Share in respect of 2014 to shareholders whose names appear on the register of members of the Company on 4 June 2015, subject to the shareholders’ approval at the Company’s annual general meeting to be held on 22 May 2015. I would like to express my heartfelt gratitude to the shareholders and the community for your great support and encouragement to Hang Fat.

LOOKING AHEAD

The Directors believe that the successful listing of the Shares on the Main Board of the Stock Exchange could enhance the Group’s profile, while net proceedings raised from the global offering will strengthen the Group’s financial position and enable the Group to implement its business plan. The Group intends to further enhance its Hang Fat brand recognition among the general public and reinforce its leading position in the American Ginseng industry in Hong Kong. Confident of the prospect of the markets in which it operates, the Group also aims to further extend its footprints in Hong Kong, Mainland China and overseas.

In the coming years, we will endeavor to strengthen our competitive advantage, enrich product portfolio, seize market opportunities and expand distribution network so as to increase our market shares and attain broader development horizons. We will adhere to the core value of Hang Fat to care for the public’s health concern and spare no efforts in providing high quality American Ginseng and other health products for customers.

ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all our staff for their tireless efforts and excellent performance, the shareholders, customers, business partners and suppliers for their strong support and contributions to the Group’s success. We will continue to strive for excellence with a view to generating sustainable returns to our shareholders.