Cellyan Biotechnology Co., Ltd (NASDAQ: HKPD)

Hong Kong Pharma is a holding company that oversees two Hong Kong based subsidiaries Joint Cross Border and V-Alliance which together provide over the counter pharmaceutical cross border electronic commerce supply chain services and procurement and distribution. The company operates primarily in Mainland China’s over the counter pharmaceutical market facilitating access to overseas OTC products for consumers and merchants. Joint Cross Border focuses on supply chain solutions while V-Alliance handles procurement and distribution of over the counter pharmaceutical products. The company is headquartered in Hong Kong.

Revenue is generated from fees for supply chain services such as warehousing, customs clearance, packaging, and last mile delivery, and from the sale of procured over the counter pharmaceutical products to merchants on electronic commerce platforms and to pharmaceutical distributors. In the fiscal year ended March 31 2025 the supply chain services division contributed $12,481,187 representing 61.4% of total revenue while the procurement and distribution division contributed $7,826,897 representing 38.5% of total revenue. For the fiscal year ended March 31 2024 the supply chain services division contributed $10,145,855 or 60.8% of total revenue and the procurement and distribution division contributed $6,217,798 or 37.3% of total revenue. The company’s total revenue increased from approximately $16.7 million in FY2024 to about $20.3 million in FY2025.

The company operates through the following segments.

• Supply Chain Services: This segment provides pre consultation, product information review, procurement of overseas over the counter pharmaceutical products, enlisting products with the Hong Kong Department of Health, obtaining import and export permits, storing products at warehouses, packaging, arranging logistics and end to end delivery, adding specific labels, providing extended storage, conducting product inspection, performing batch processing, taking photographs, counting items, managing disposal, and adding gift packaging, samples or pamphlets for consumers.

• Procurement and Distribution: This segment sources over the counter pharmaceutical products from overseas suppliers, ensures they are enlisted with the Hong Kong Department of Health, negotiates with suppliers on pricing and delivery times, confirms shipping schedules, coordinates with freight companies for arrival at destination ports, collects import data for reporting to government authorities, executes sales contracts with customers based on their needs, confirms product availability in warehouses, and ships out products after finance confirms receipt of payment.

Hong Kong Pharma ranks as a leading provider in Mainland China’s over the counter pharmaceutical cross border electronic commerce market having been ranked first by revenue in this sector for 2022 according to the F&S Report.

The company differentiates itself through its proprietary technology infrastructure, scalability, flexible offerings, regulatory compliance, and experienced management team. It holds certifications such as ISO 9001:2015 quality management system and maintains multiple licenses and permits from Hong Kong authorities covering customs, pharmaceutical wholesale, and food importation, which support its compliance and operational reliability.

The company serves e commerce platform logistics partners such as CaiNiao, merchants on electronic commerce platforms including Tmall, JD.com, Meituan, Pinduoduo, Xiaohongshu, and Youzan, and pharmaceutical distributors. As of March 31 2025 it had relationships with over 300 online merchants and CaiNiao accounted for approximately 11.5% of total revenue for the fiscal year ended March 31 2025. The firm is also developing relationships with internet hospitals in Mainland China to offer access to overseas over the counter drugs although it has not yet generated revenue from this customer group.