17. 關連人士交易 管理層要員之酬金 | --- | --- | --- | |--------------|-----------------------|------------------------------------------------| | | 二零二四年 \n千港元 | 截至三月三十一日止六個月 \n二零二三年 \n千港元 | | | | | | 董事袍金 | 500 | 500 | | 基本薪金 | 4,234 | 4,084 | | 花紅 | 10,181 | 5,542 | | 退休福利成本 | 9 | 9 | | | | | | | 14,924 | 10,135 | 以上之關連人士交易根據上市規則第14A章屬獲全面豁免之關連交易。 18. 財務工具之公平值計量 財務資產及財務負債之公平值乃採用普遍採納之定價模式根據貼現現金流量分析釐定。 本公司董事認為，按攤銷成本入賬的財務資產及財務負債於中期簡明綜合財務報表內之賬面值與彼等之公平 值相若。 19. 報告期後事項 於報告期後並無重大其後事項。 22 2024 其他資料 中期股息及暫停辦理股份登記手續 董事會已就截至二零二四年三 ...

Revenue and Profitability - The group's revenue for the six months ended March 31, 2024, increased by 2.3% to approximately HKD 503,400,000 compared to HKD 492,000,000 for the same period last year[39] - The group reported a profit of HKD 40.1 million for the period, down from HKD 57.1 million in the same period last year[49] - As of March 31, 2024, the group reported a net profit of HKD 40,100,000, down from HKD 57,100,000 in the same period last year[85] - The company reported a profit for the period of HKD 40,067,000, down 29.9% from HKD 57,066,000 in the previous year[124] - The group’s profit before tax for the current period was HKD 13,388,000, compared to HKD 15,787,000 in the previous period, reflecting a decrease of 15.2%[140] Gross Profit and Margins - The gross profit margin improved from 89.4% to 90.2% year-on-year, attributed to a higher contribution from beauty services[41] - Gross profit margin improved from 89.4% to 90.2% year-on-year due to strong performance in the beauty services segment[48] Revenue Breakdown - Revenue from beauty services rose to HKD 423,300,000, while revenue from beauty product sales slightly decreased to HKD 80,200,000[41] - The proportion of beauty services to product sales in the group's portfolio shifted from 82.9% to 84.1% during the review period[41] - The proportion of revenue from beauty services increased from 82.9% to 84.1%, while product sales decreased from 17.1% to 15.9%[48] - The group's revenue from Hong Kong and Macau was HKD 468,266,000, an increase of 3.8% from HKD 451,015,000 in the previous year[162] - The group's revenue from mainland China was HKD 35,168,000, a decrease of 14.3% from HKD 40,942,000 in the previous year[162] Employee Costs and Management - Employee costs significantly increased due to a competitive hiring environment in Hong Kong, despite a reduction in employee numbers[42] - The company’s employee costs rose to HKD 229,672,000 from HKD 211,466,000, an increase of 8.6%[124] - The group employed 1,011 staff as of March 31, 2024, down from 1,073 on September 30, 2023, with competitive compensation packages offered to employees[101] - The group has a strong focus on employee training and development, which is essential for maintaining a skilled workforce[102] Dividends and Shareholder Returns - The board proposed an interim dividend of HKD 0.035 per share, down from HKD 0.070 per share in the previous year[58] - The company declared a final dividend of HKD 0.07 per share for the year ended September 30, 2023, totaling approximately HKD 47,639,000, down from HKD 51,041,000 in 2022[144] - The company declared an interim dividend of HKD 0.035 per share, down from HKD 0.070 per share in 2023, resulting in total dividends of HKD 23,819 for 2024 compared to HKD 47,639 in 2023[169] Financial Position and Cash Management - The group's current liabilities net value was approximately HKD 282,300,000 as of March 31, 2024, compared to HKD 309,300,000 on September 30, 2023[67] - The group has no loans as of March 31, 2024, maintaining a prudent financial management strategy[68] - As of March 31, 2024, the group's cash reserves were approximately HKD 396 million, up from HKD 271.8 million on September 30, 2023, indicating a strong liquidity position[97] - The group continues to practice prudent cash management, with foreign exchange risk being at an acceptable level due to most assets and liabilities being denominated in local currencies[98] - As of March 31, 2024, the group had no significant contingent liabilities, reflecting a stable financial position[99] Capital Expenditures and Investments - Approximately HKD 11.7 million was spent on store renovations and equipment procurement during the period, including HKD 8.1 million for relocating the Glycel flagship store[50][62] - The group has capital commitments of approximately HKD 200,000 for the acquisition of property and equipment as of March 31, 2024[100] - Capital expenditures for property and equipment amounted to approximately HKD 11,670,000 for the six months ended March 31, 2024, compared to HKD 17,760,000 for the same period in 2023[175] Market Conditions and Strategic Focus - The outlook for the consumer market remains pessimistic, with expectations of prolonged low consumer confidence and spending[93] - The group aims to maintain its leading position in the industry and provide high-quality services despite the challenging market conditions[50] - The group plans to strategically relocate stores and potentially close underperforming locations to improve brand performance[94] - The group is investing in new beauty equipment and retaining top talent while upgrading and innovating treatment offerings[95] - The group anticipates increased headwinds in the second half of the year, which may lead to the elimination of smaller competitors, presenting an opportunity for the group to acquire new customers and expand market share[96] Impairment and Goodwill - The goodwill generated from the acquisition of subsidiaries amounted to HKD 11,429,000[1] - The group has no impairment to recognize for its cash-generating units, including indefinite life goodwill or trademarks[2] - The group decided to terminate the distribution of the HABA brand in China, incurring a one-time goodwill impairment loss of approximately HKD 11,400,000[88] - The company experienced a goodwill impairment loss of HKD 11,429,000, which was not present in the previous year[124] - The company recognized an impairment loss of HKD 12,006,000 related to cash-generating units, with goodwill of HKD 11,429,000 fully impaired[174] Advertising and Marketing - Advertising costs as a percentage of revenue rose from 1.4% to 2.1% due to increased investment in high-impact advertising campaigns[49] Governance and Shareholding - Major shareholders include Yu Lisi with 24.41% ownership, Tian Jun Limited with 22.82%, and Billion Well Holdings Limited with 11.11%[193] - The board of directors includes independent non-executive members who oversee the audit committee and other governance matters[183]

Financial Position - As of September 30, 2023, the capital debt ratio was 0%, compared to 1.1% in 2022, indicating a strong financial position[26]. - The company maintained a robust financial position with internal resources used to meet operational needs[154]. - The group reported a total asset value of HKD 225,000,000 as of September 30, 2023, with no outstanding mortgage loans[124]. - As of September 30, 2023, the group's cash and bank deposits amounted to approximately HKD 271,800,000, an increase from HKD 234,300,000 in 2022[154]. - As of September 30, 2023, the company's distributable reserves amounted to approximately HKD 91.9 million, a decrease from HKD 108.3 million in 2022[145]. Shareholder Returns - The board emphasizes sustainable shareholder returns as a primary goal, with a policy to pay stable interim and final dividends each fiscal year[22]. - The company will not declare dividends if there is reasonable belief that it will be unable to meet its debt obligations post-dividend payment[24]. - The company proposed a final dividend of HKD 0.07 per share for the year ending September 30, 2023, pending approval at the upcoming annual general meeting[133]. Risk Management - The company has implemented a risk management and internal control system to identify and manage significant risks associated with achieving business objectives[7]. - The board has engaged a risk consulting firm to assess the effectiveness of the risk management and internal control systems, with no significant issues found[8]. Environmental Initiatives - The company is committed to reducing emissions and improving indoor air quality, particularly from volatile organic compounds[25]. - The company has implemented various environmental protection measures, including energy-efficient practices and waste management[55]. - The company actively promotes digital technology and paper recycling to reduce waste generation[29]. - The company encourages the use of energy-saving technologies in beauty instruments to minimize environmental impact[1]. - The group has implemented multiple environmental measures to reduce energy consumption and waste generation, promoting sustainability among employees[107]. Employee Management - The company employed 1,073 staff as of September 30, 2023, a decrease from 1,112 in 2022[37]. - Employee training participation was 100% for directors and senior management, and 88% for supervisors and general staff[69]. - The average training hours for male employees was 4 hours, while female employees received an average of 7 hours[69]. - The employee turnover rate is 20% for males and 35% for females, with the highest turnover rate of 45% in the 26-35 age group[90]. - The company is committed to maintaining a harassment-free and equitable work environment, with zero tolerance for discrimination[64]. - The company has established policies to ensure compliance with employment laws, including those related to child labor and forced labor[68]. Supplier Management - The group has a total of 48 major suppliers from various countries, including Hong Kong (23), Mainland China (3), and overseas regions (22) in 2023[73]. - The top five suppliers accounted for approximately 48.8% of the total procurement, with the largest supplier representing 25.0%[144]. - The group prioritizes suppliers that use environmentally friendly materials and complies with local construction requirements[72]. - The group regularly identifies suitable new suppliers to control internal risks and will take relevant procedures to replace suppliers with significant issues[97]. - The group has designed a procurement management system to oversee the entire procurement process, ensuring the selection of suitable suppliers[71]. Compliance and Governance - The company has confirmed compliance with the standard code of conduct for securities trading by all directors during the fiscal year ending September 30, 2023[10]. - The company has complied with all relevant laws and regulations affecting its business and operations as of September 30, 2023[132]. - The group strictly prohibits any actions that violate ethical codes or involve fraud, with no concluded corruption lawsuits reported during the reporting period[126]. - The group encourages anonymous reporting of suspected corruption or unethical activities, ensuring confidentiality in all investigations[127]. - The audit committee reviewed the accounting principles and practices adopted by the group for the fiscal year ending September 30, 2023[161]. Community Engagement - The group engaged over 100 employees in a community recycling initiative, successfully recovering 12 kilograms of used red packets[128]. - The company reported charitable donations of HKD 26,000 for the year, down from HKD 50,000 in 2022[143]. Business Strategy - The company emphasizes sustainable development as a key business strategy to create long-term value for stakeholders[33]. - The company is focused on expanding its beauty service offerings and enhancing its product distribution channels[130]. - The company operates various beauty service brands, including Glycel Skinspa and Oasis Homme, across Hong Kong, Macau, and mainland China[130]. Financial Reporting - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of September 30, 2023[193]. - The company has appointed Hong Kong Lixin Dehao CPA Limited as the independent auditor to fill the temporary vacancy left by Deloitte[190]. - No convertible securities, options, or similar rights were issued or exercised during the fiscal year ending September 30, 2023[157]. - The company has not entered into any stock-linked agreements that would lead to the issuance of shares during the fiscal year[187]. - The company has deferred prepaid treatment services, which are presented as contract liabilities in the consolidated financial position[196]. - Management's estimation of expected unused rights involves significant judgment based on the company's historical experience with prepaid treatment services[197].

Financial Performance - The group's revenue for the year ended September 30, 2023, increased by approximately 16.0% to about HKD 976,600,000, primarily driven by strong demand for beauty services[46] - Net profit for the year was HKD 110,200,000, an increase of 64.9% compared to the previous fiscal year[46] - Basic earnings per share increased to 16.2 HK cents from 9.9 HK cents year-on-year[49] - The company reported a profit before tax of HKD 29,719,000 in 2023, compared to HKD 26,782,000 in 2022, reflecting a growth of 7.2%[57] - The company's earnings for the year ended September 30, 2023, showed a strong performance with a profit of 110,320,000 HKD, up from 67,432,000 HKD in 2022, reflecting a significant increase[89] Revenue Breakdown - Total revenue for 2023 reached HKD 976,572,000, up from HKD 841,936,000 in 2022, marking an increase of 16.0%[54] - The service segment generated revenue of HKD 823,757,000, up from HKD 671,789,000, reflecting a growth of about 22.6%[78] - The product sales segment reported revenue of HKD 180,806,000, down from HKD 204,764,000, indicating a decline of approximately 11.7%[78] - In 2023, skincare product sales generated revenue of HKD 152,815,000, a decrease of 10.5% from HKD 170,147,000 in 2022[54] Expenditure and Costs - The group reported a stable core expenditure year-on-year, with depreciation costs accounting for 4.8% of revenue, similar to the previous year[4] - Rental costs as a percentage of revenue decreased from 20.5% to 16.9%, reflecting a slowdown in rental levels due to market conditions[4] - Employee costs increased from 38.8% to 43.7% of revenue, despite a slight decrease in total employees from 1,112 to 1,073, indicating challenges in the Hong Kong labor market[4] - The marketing expenses slightly decreased to HKD 19,891,000 in 2023 from HKD 20,259,000 in 2022[57] - The company's bank fees increased significantly to HKD 35,027,000 in 2023 from HKD 25,448,000 in 2022, representing a rise of 37.5%[57] Dividends - The board proposed a final dividend of HKD 0.07 per share for the year ending September 30, 2023, subject to approval at the upcoming annual general meeting[26] - The company proposed a final dividend of 7.0 HK cents per share, totaling approximately HKD 47,639,000[63] - The company proposed a final dividend of 7.0 HKD cents per share, totaling 95,278,000 HKD for the year, compared to 51,041,000 HKD in the previous year[90] - Total dividends paid for the year amounted to approximately 98,680,000 HKD, down from 112,291,000 HKD in the previous year[105] Assets and Liabilities - The group has zero mortgage loan balance as of September 30, 2023, down from HKD 3.2 million in the previous year, indicating improved financial stability[18] - Total assets less current liabilities amounted to HKD 487,312,000, compared to HKD 509,951,000 in the previous year[41] - The total equity increased to HKD 312,878,000 from HKD 301,978,000 year-on-year[41] - The total liabilities decreased from HKD 751,209,000 to HKD 735,448,000[41] - The capital debt ratio was zero as of September 30, 2023, compared to 1.1% in 2022[101] Business Operations - As of September 30, 2023, the group operated 16 Glycel stores in Hong Kong and 2 in Macau, contributing to its product sales[9] - The group has successfully operated Oasis Dental since its opening in April 2022, contributing to its overall service offerings[7] - The company has successfully integrated major brands into flagship stores, operating 64 stores in Hong Kong at year-end, down from 69 stores last year[67] - The group operates a total of 54 beauty salons in Hong Kong, 2 in Macau, and 3 in mainland China[70] - The flagship medical beauty center in Causeway Bay has been expanded to over 7,000 square feet, providing a luxurious experience for customers[70] Growth and Future Plans - The group is preparing for further growth in the coming year, exploring new technologies and products at international trade fairs[15] - The group is focusing on growth in Hong Kong, citing significant development potential and plans for strategic investments in flagship stores[70] - The group plans to invest in new technology products and unique advanced equipment to offer tailored services to customers in Hong Kong[70] - The company plans to enhance marketing in targeted segments and strengthen its e-commerce business over the next year[119] - The company will launch several creative marketing campaigns in the coming months[119] Customer Engagement - Customer feedback has been extremely positive, with increased interest from potential customers due to various advertising and marketing initiatives[16] - The company experienced double-digit revenue growth in its beauty centers, attributed to new treatments and special promotions[68] - New product offerings included the 4D Pump device and the world's first HI-Frush technology, aimed at enhancing skin rejuvenation and collagen activation[68] - New treatments launched include entry-level medical beauty procedures and the AestheFill® injection, aimed at stimulating collagen production[91] Compliance and Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations throughout the fiscal year[132] - The company has not issued or granted any convertible securities or options during the fiscal year ending September 30, 2023[124] - The company has no significant contingent liabilities as of September 30, 2023[127] Cash Management - The group continues to maintain a prudent cash management approach, with assets valued at HKD 225 million as of September 30, 2023[18] - The company has a cash balance of approximately 271,800,000 HKD and a current ratio of 0.58:1 as of September 30, 2023[90] - As of September 30, 2023, the company had cash and bank deposits totaling approximately HKD 271,800,000, an increase from HKD 234,300,000 in 2022[120] Employee Management - The company employed 1,073 staff as of September 30, 2023, down from 1,112 in 2022, while maintaining a competitive compensation scheme[121] - The company continues to adopt a learning culture focused on employee training and development[128]

Financial Performance - The group's revenue increased by 26.7% to approximately HKD 492 million for the six months ended March 31, 2023, compared to HKD 388.3 million for the same period last year[7]. - Profit for the period was HKD 57.1 million, up from HKD 26.4 million in the previous year[7]. - Total comprehensive income for the period was HKD 59,623 thousand, up from HKD 28,694 thousand year-over-year, indicating a growth of 107.2%[43]. - The company reported a profit of HKD 57,211,000 for the period, reflecting a significant increase compared to the previous period's profit of HKD 2,557,000[60]. - The group’s profit for the six months ended March 31, 2023, was HKD 57,211,000, compared to HKD 26,588,000 for the same period in 2022, representing a significant increase[72]. - Profit before tax for the same period was HKD 72,853,000, up 93.0% from HKD 37,737,000 in 2022[96]. - Net profit for the period was HKD 57,066,000, compared to HKD 26,381,000 in the previous year, representing a growth of 116.5%[96]. Revenue Breakdown - Revenue from Hong Kong and Macau reached HKD 451,015,000, up 36.3% from HKD 330,974,000 in the previous year[65]. - Revenue from China decreased to HKD 40,942,000, down 28.5% from HKD 57,373,000 in the prior year[65]. - Total revenue for the six months ended March 31, 2023, was HKD 491,957,000, an increase of 26.6% compared to HKD 388,347,000 for the same period in 2022[60]. Cash and Financial Position - The cash on hand as of March 31, 2023, was approximately HKD 243.4 million[7]. - As of March 31, 2023, the group's cash reserves were approximately HKD 243.4 million, an increase from HKD 234.3 million on September 30, 2022[29]. - The capital debt ratio was approximately 0.5% as of March 31, 2023, down from 1.1% on September 30, 2022, indicating improved financial stability[29]. - The company’s total assets amounted to HKD 831,058 thousand as of March 31, 2023, slightly down from HKD 848,239 thousand as of September 30, 2022[44]. - The company’s total liabilities were HKD 719,409 thousand, compared to HKD 751,209 thousand in the previous period, showing a decrease of 4.2%[44]. - Cash and cash equivalents at the end of the period were HKD 243,356 thousand, down from HKD 307,618 thousand year-over-year[48]. Operational Highlights - The sales mix shifted to 17.1% products and 82.9% services during the period, compared to 26.4% products and 73.6% services last year, reflecting the recovery of beauty services[8]. - The strong performance was partly due to the full operation of beauty services, which had been closed for a significant portion of the previous year due to COVID-19 restrictions[15]. - The group operates 54 beauty centers in Hong Kong as of March 31, 2023, including 10 Oasis Medical Beauty Centers and 12 Glycel beauty centers, contributing positively to revenue since the acquisition of the Man Shih Che Group in 2021[21]. - The group opened a new beauty center in Beijing, increasing the total number of self-operated beauty centers in the area to four[14]. - The group has introduced advanced beauty equipment and new treatment options, including the i-Body Slim device and various skincare treatments, to maintain a competitive edge[20]. Investment and Expenditure - Capital expenditure decreased significantly from HKD 27.1 million to HKD 17.8 million, focusing on major projects like the flagship medical beauty center in Causeway Bay[10]. - The group has invested significantly in flagship stores, enhancing brand visibility and customer experience, with a focus on consolidating multiple brands in larger spaces[27]. - The group has capital commitments of approximately HKD 2.6 million for property and equipment acquisitions as of March 31, 2023[31]. - The group's capital expenditure on property and equipment for the six months ended March 31, 2023, was approximately HKD 17,760,000, down from HKD 27,115,000 for the same period in 2022[80]. Marketing and Customer Engagement - Advertising expenses increased by 76.3% compared to the previous year, aimed at attracting new customers and enhancing brand image[17]. - The group plans to continue investing in new store openings and renovations to enhance customer experience and brand presence[11]. - The company is investing in new product development and technology to improve service efficiency and customer experience[60]. - A new marketing strategy has been implemented, focusing on digital channels, which is expected to increase customer engagement by H%[155]. Employee and Management Information - The group employs 1,047 staff as of March 31, 2023, down from 1,112 on September 30, 2022, while maintaining competitive compensation packages[32]. - Employee costs for the period were HKD 211,466,000, an increase from HKD 151,773,000 in the previous year[96]. - The company’s management remuneration totaled HKD 10,135,000 for the period, down from HKD 18,962,000 in the previous year[17]. Corporate Governance - The company has adopted the standard code of corporate governance and confirmed compliance during the review period[131]. - The company has established a disclosure committee to ensure timely disclosure of inside information as defined by the Securities and Futures Ordinance since January 10, 2013[118]. - The audit committee is responsible for reviewing the group's financial information and monitoring the financial reporting system, risk management, and internal control systems[138].

[Announcement Cover and Disclaimer](index=1&type=section&id=%E5%85%AC%E5%91%8A%E5%B0%81%E9%9D%A2%E5%8F%8A%E5%85%8D%E8%B2%AC%E8%81%B2%E6%98%8E) [Disclaimer](index=1&type=section&id=%E9%A6%99%E6%B8%AF%E4%BA%A4%E6%98%93%E5%8F%8A%E7%B5%90%E7%AE%97%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E5%8F%8A%E9%A6%99%E6%B8%AF%E8%81%AF%E5%90%88%E4%BA%A4%E6%98%93%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E5%B0%8D%E6%9C%AC%E5%85%AC%E5%91%8A%E7%9A%84%E5%85%A7%E5%AE%B9%E6%A6%82%E4%B8%8D%E8%B2%AC) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement's content, accuracy, or completeness, and any resulting losses - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss[4](index=4&type=chunk) [Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) [Company Announcement Overview](index=1&type=section&id=%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%B8%89%E5%B9%B4%E4%B8%89%E6%9C%88%E4%B8%89%E5%8D%81%E4%B8%80%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%E4%B9%8B%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) A.S. Watson Group Limited announces unaudited interim results for the six months ended March 31, 2023, showing significant growth driven by beauty services recovery - A.S. Watson Group Limited announces its unaudited consolidated results for the six months ended March 31, 2023[5](index=5&type=chunk)[10](index=10&type=chunk) - The condensed consolidated financial statements have been reviewed by the independent auditor, confirming compliance with Hong Kong Accounting Standard 34[10](index=10&type=chunk) [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Group revenue increased by **26.7%** to approximately **HK$492 million**, profit surged **116.3%** to **HK$57.1 million**, and gross profit margin rose to **89.4%**, with an interim dividend of **HK7.0 cents** per share declared 2023 H1 Key Financial Data Summary | Metric | Six Months Ended March 31, 2023 (HK$'000) | Six Months Ended March 31, 2022 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 492,000 | 388,300 | +26.7% | | Profit for the Period | 57,100 | 26,400 | +116.3% | | Gross Profit Margin | 89.4% | 84.9% | +4.5pp | | Advertising Expenses | Increased 76.3% | | | | Staff Costs | Increased 39.3% | | | - The increase in revenue was primarily due to the lifting of COVID-19 restrictions and the full six-month contribution from the beauty services business, which was affected by the pandemic in the prior year[6](index=6&type=chunk) - The decrease in product revenue was mainly due to the large-scale outbreak of COVID-19 in China at the end of 2022, severely impacting supply chains and consumer spending[6](index=6&type=chunk) - The Board of Directors declared an interim dividend of **HK7.0 cents** per share[8](index=8&type=chunk) [Operating Highlights](index=2&type=section&id=%E7%B6%93%E7%87%9F%E6%91%98%E8%A6%81) The Group expanded its beauty services, operating **54** beauty centers in Hong Kong, **2** in Macau, and **4** in mainland China, opening flagship stores and optimizing its product sales network - As of March 31, 2023, the Group operated **54 beauty centers** in Hong Kong, **2** in Macau, and **4** in China[8](index=8&type=chunk) - The Causeway Bay Goldin Financial Centre A.S. Watson Medical Beauty Centre flagship store opened in October 2022, occupying over **7,000 square feet**[8](index=8&type=chunk) - In China, the Group opened its fourth self-operated Watermill House in Beijing in October 2022[8](index=8&type=chunk) - As of March 31, 2023, the Group operated **10 retail stores** in Hong Kong, **5** in Macau, and **1** in China[8](index=8&type=chunk) [Outlook](index=2&type=section&id=%E5%B1%95%E6%9C%9B) The Group invested heavily in flagship stores to enhance synergy and customer satisfaction, and is optimistic about second-half performance given improving Hong Kong consumer confidence and rising tourist arrivals - The Group has undertaken several projects, including opening and renovating large flagship stores, concentrating key brands to create greater operational synergy[8](index=8&type=chunk) - With continuously improving consumer confidence in Hong Kong and a gradual increase in tourist arrivals, the Group is confident that the economy and consumer sentiment are progressively recovering[8](index=8&type=chunk) - Leveraging its strong financial background, loyal customer base, and good reputation, the Group is confident in achieving positive results in the second half of the year[8](index=8&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended March 31, 2023, Group revenue reached **HK$492 million**, a **26.7%** year-on-year increase, with profit for the period surging **116.3%** to **HK$57.066 million** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended March 31) | Metric | 2023 (HK$'000) | 2022 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 491,957 | 388,347 | +26.7% | | Purchases and changes in inventories of finished goods | (52,026) | (58,522) | -11.1% | | Other income | 4,664 | 8,678 | -46.3% | | Other gains or losses | (981) | (2,272) | -56.8% | | Staff costs | (211,466) | (151,773) | +39.3% | | Depreciation | (80,439) | (80,622) | -0.2% | | Finance costs | (4,002) | (3,057) | +30.9% | | Other expenses | (74,854) | (63,042) | +18.7% | | Profit before tax | 72,853 | 37,737 | +93.1% | | Tax | (15,787) | (11,356) | +39.0% | | Profit for the period | 57,066 | 26,381 | +116.3% | | Profit attributable to owners of the Company | 57,211 | 26,588 | +115.9% | | Non-controlling interests | (145) | (207) | -29.9% | | Basic and diluted earnings per share | **8.4 HK cents** | **3.9 HK cents** | +115.4% | Other Comprehensive Income (Six Months Ended March 31) | Metric | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Exchange differences arising on translation of foreign operations | 2,557 | 2,313 | | Total comprehensive income for the period | 59,623 | 28,694 | | Total comprehensive income attributable to owners of the Company | 59,768 | 28,912 | | Total comprehensive income attributable to non-controlling interests | (145) | (218) | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of March 31, 2023, total assets less current liabilities were **HK$508 million**, total equity increased to **HK$311 million**, and net current liabilities improved to **HK$323 million** Condensed Consolidated Statement of Financial Position (As of March 31) | Metric | March 31, 2023 (HK$'000) | September 30, 2022 (HK$'000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Intangible assets | 75,076 | 75,424 | | Goodwill | 29,673 | 29,673 | | Investment properties | 225,954 | 226,068 | | Property and equipment | 124,856 | 130,487 | | Right-of-use assets | 335,327 | 343,014 | | Rental deposits | 35,055 | 37,922 | | Deferred tax assets | 5,117 | 5,651 | | **Current assets** | | | | Inventories | 55,519 | 72,293 | | Trade receivables | 18,681 | 18,016 | | Contract costs | 43,277 | 43,241 | | Bank balances and cash | 243,356 | 234,284 | | **Current liabilities** | | | | Trade payables | 1,933 | 2,103 | | Contract liabilities | 499,653 | 490,197 | | Tax payable | 5,195 | 39,916 | | **Total equity** | **310,560** | **301,978** | | **Net current liabilities** | **(323,494)** | **(338,288)** | | **Total assets less current liabilities** | **507,564** | **509,951** | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1. Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared under HKAS 34 and Listing Rules Appendix 16, reviewed by an independent auditor, with no significant impact from new HKFRS amendments - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of Appendix 16 to the Listing Rules[17](index=17&type=chunk) - The condensed consolidated financial statements are unaudited but have been reviewed by BDO Limited[17](index=17&type=chunk) - The application of amendments to Hong Kong Financial Reporting Standards in this interim period had no significant impact on the amounts and disclosures presented in the condensed consolidated financial statements[28](index=28&type=chunk) [2. Revenue and Segment Information](index=7&type=section&id=2.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's business comprises product and service segments; service revenue significantly grew to **HK$408 million**, while product revenue decreased to **HK$84.154 million**, with Hong Kong and Macau contributing most revenue - The Group's business is divided into product segment (skincare product sales) and service segment (beauty treatment services, spa services, and medical beauty center services)[21](index=21&type=chunk) Revenue Recognition Timing and Segment (Six Months Ended March 31) | Segment | Revenue Recognition Timing | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | :--- | | Product Segment | At a point in time | 84,154 | 102,405 | | Service Segment | Over time | 407,803 | 285,942 | | **Total** | | **491,957** | **388,347** | Geographical Revenue Information (Six Months Ended March 31) | Region | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Hong Kong and Macau | 451,015 | 330,974 | | China | 40,942 | 57,373 | | **Total** | **491,957** | **388,347** | Segment Results (Six Months Ended March 31) | Segment | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Product Segment Results | 10,860 | 9,575 | | Service Segment Results | 108,780 | 76,462 | | **Total Segment Results** | **119,640** | **86,037** | [3. Tax](index=9&type=section&id=3.%20%E7%A8%85%E9%A0%85) Hong Kong profits tax is tiered at **8.25%** and **16.5%**, China's corporate income tax is **25%**, and tax expense for the period was **HK$15.787 million** - Hong Kong profits tax is calculated under a two-tiered profits tax rate regime, with the first **HK$2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[23](index=23&type=chunk)[44](index=44&type=chunk) - China corporate income tax is calculated at the statutory rate of **25%**[36](index=36&type=chunk) Tax Expense (Six Months Ended March 31) | Metric | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Current tax | 20,543 | 10,485 | | Deferred tax | (4,756) | 871 | | **Total tax** | **15,787** | **11,356** | [4. Profit for the Period](index=10&type=section&id=4.%20%E6%9C%AC%E6%9C%9F%E9%96%93%E6%BA%A2%E5%88%A9) Profit for the period was **HK$57.066 million**, a significant increase from the prior year, after various deductions and inclusions Components of Profit for the Period (Six Months Ended March 31) | Item | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Amortisation of contract costs | 42,748 | 29,914 | | Loss on fair value change of investment properties | 114 | 2,129 | | Fair value loss on financial assets at fair value through profit or loss | 33 | 149 | | Loss on disposal/write-off of property and equipment | 660 | 123 | | Depreciation: property and equipment | 22,713 | 18,040 | | Depreciation: right-of-use assets | 57,726 | 62,582 | | Net exchange loss | 284 | – | | Interest income from bank deposits | 1,897 | 706 | | Government grants | 72 | 45 | | Rental income from investment properties | 1,745 | 1,712 | | COVID-19 related rent concessions | – | 5,341 | [5. Earnings Per Share](index=11&type=section&id=5.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share for the six months ended March 31, 2023, were **HK8.4 cents**, a **115.4%** increase from **HK3.9 cents** in the prior year Earnings Per Share Calculation (Six Months Ended March 31) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share (HK$'000) | 57,211 | 26,588 | | Weighted average number of ordinary shares for the purpose of calculating basic and diluted earnings per share | 680,552,764 | 680,552,764 | | **Basic and diluted earnings per share** | **8.4 HK cents** | **3.9 HK cents** | [6. Dividends](index=11&type=section&id=6.%20%E8%82%A1%E6%81%AF) The Board declared an interim dividend of **HK7.0 cents** per share for the six months ended March 31, 2023, payable on July 3, 2023 - The Board of Directors has declared an interim dividend of **HK7.0 cents** per share for the six months ended March 31, 2023[48](index=48&type=chunk)[52](index=52&type=chunk) - The dividend will be dispatched to shareholders on July 3, 2023[81](index=81&type=chunk) Dividend Declaration (Six Months Ended March 31) | Dividend Type | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Interim dividend of HK7.0 cents per share declared after the end of the reporting period | 47,639 | – | [7. Trade Receivables](index=12&type=section&id=7.%20%E6%87%89%E6%94%B6%E8%B3%AC%E6%AC%BE) As of March 31, 2023, total trade receivables were **HK$18.681 million**, with most receivables aged within **30 days** - The Group generally grants credit periods of **30 to 180 days** for trade receivables[50](index=50&type=chunk) Ageing Analysis of Trade Receivables (As of March 31) | Ageing | March 31, 2023 (HK$'000) | September 30, 2022 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 13,343 | 10,283 | | 31 to 60 days | 1,531 | 1,752 | | 61 to 90 days | 965 | 1,674 | | 91 to 120 days | 1,464 | 1,396 | | 121 to 150 days | 937 | 2,180 | | 151 to 180 days | 391 | 660 | | Over 180 days | 50 | 71 | | **Total** | **18,681** | **18,016** | [8. Trade Payables](index=12&type=section&id=8.%20%E6%87%89%E4%BB%98%E8%B3%AC%E6%AC%BE) As of March 31, 2023, total trade payables were **HK$1.933 million**, with most payables aged within **30 days** Ageing Analysis of Trade Payables (As of March 31) | Ageing | March 31, 2023 (HK$'000) | September 30, 2022 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 1,735 | 1,799 | | 31 to 60 days | 191 | 299 | | Over 60 days | 7 | 5 | | **Total** | **1,933** | **2,103** | [Events After the Reporting Period](index=12&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events occurred after the reporting period - There were no significant subsequent events after the reporting period[64](index=64&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Performance and Dividends](index=13&type=section&id=%E6%A5%AD%E7%B8%BE%E5%8F%8A%E8%82%A1%E6%81%AF) Group revenue increased by **26.7%** to **HK$492 million**, profit reached **HK$57.1 million**, and gross profit margin rose to **89.4%**, with an interim dividend of **HK7.0 cents** per share declared - Group revenue increased by **26.7%** year-on-year to approximately **HK$492 million**[65](index=65&type=chunk) - Profit for the period was **HK$57.1 million**, compared to HK$26.4 million in the prior year[40](index=40&type=chunk) - The beauty services business operated for a full six months, with the sales mix adjusting from 73.6% to **82.9%** for beauty services and from 26.4% to **17.1%** for product sales[42](index=42&type=chunk) - The Group's gross profit margin increased from **84.9%** in the prior year to **89.4%**[42](index=42&type=chunk) - The Board resolved to declare an interim dividend of **HK7.0 cents** per share[52](index=52&type=chunk) [Beauty Services Business](index=14&type=section&id=%E7%BE%8E%E5%AE%B9%E6%9C%8D%E5%8B%99) The Group's beauty services brands showed strong double-digit revenue growth, enhancing brand image and customer experience through strategic store expansions and new treatments - Almost all of the Group's beauty services brands performed strongly, recording **double-digit revenue growth**[71](index=71&type=chunk) - The Causeway Bay Goldin Financial Centre A.S. Watson Medical Beauty Centre flagship store opened in October 2022, occupying over **7,000 square feet**[54](index=54&type=chunk) - The Group continuously acquired advanced high-tech beauty equipment and products, and introduced various new treatments[56](index=56&type=chunk) - As of March 31, 2023, the Group operated **54 beauty centers** in Hong Kong[57](index=57&type=chunk) - In China, the Group opened an additional Watermill House beauty center in Beijing in October 2022, increasing the total to **four**[59](index=59&type=chunk) [Product Sales Business](index=16&type=section&id=%E7%94%A2%E5%93%81%E9%8A%B7%E5%94%AE) Product sales decreased by **17.8%** due to China's pandemic impact and H2O+ brand termination, while the Group continues to launch new products and optimize retail store layouts - Product sales decreased by approximately **17.8%** year-on-year, mainly due to the COVID-19 outbreak in China impacting supply chains and consumer spending[60](index=60&type=chunk) - The Group ceased selling H2O+ brand products after its global distribution was withdrawn in December 2022[60](index=60&type=chunk) - All of the Group's beauty brands continue to launch high-quality new products[60](index=60&type=chunk) - The HABA counter at SOGO Tsim Sha Tsui, Hong Kong, has relocated to Facesss at Harbour City[75](index=75&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of March 31, 2023, cash reserves increased to **HK$243.4 million**, net current liabilities improved to **HK$323.5 million**, and the capital gearing ratio remained sound at approximately **0.5%** - As of March 31, 2023, the Group's cash reserves were approximately **HK$243.4 million**[63](index=63&type=chunk)[99](index=99&type=chunk) - As of March 31, 2023, the Group's net current liabilities were approximately **HK$323.5 million**[90](index=90&type=chunk) - The capital gearing ratio was approximately **0.5%**, with all borrowings denominated in Hong Kong dollars[91](index=91&type=chunk) - The Group maintains prudent cash management, with acceptable foreign exchange fluctuation risks[91](index=91&type=chunk) [Outlook](index=17&type=section&id=%E5%B1%95%E6%9C%9B) The Group completed most strategic growth projects, maintaining a strong financial position, and is optimistic about second-half performance as consumer confidence and tourist arrivals recover - The Group's relatively high expenditure strategy over the past year, focused on growth, has largely been completed[99](index=99&type=chunk) - The Group's financial position remains strong and robust, with ample cash[99](index=99&type=chunk) - With continuously improving consumer confidence in Hong Kong and a gradual increase in tourist arrivals, the Group is confident that the economy and consumer sentiment are progressively moving in the right direction[62](index=62&type=chunk) - The Group will consolidate its efforts from the past year and closely monitor the performance of its large stores to formulate future growth strategies[61](index=61&type=chunk) [Other Information](index=18&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Contingent Liabilities](index=18&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of March 31, 2023, the Group had no significant contingent liabilities - As of March 31, 2023, the Group had no significant contingent liabilities[79](index=79&type=chunk) [Capital Commitments](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of March 31, 2023, the Group had capital commitments of approximately **HK$2.6 million** for property and equipment acquisition - As of March 31, 2023, the Group had capital commitments of approximately **HK$2,600,000** for the acquisition of property and equipment[103](index=103&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of March 31, 2023, the Group employed **1,047 staff**, with remuneration policies based on experience, responsibilities, tenure, and market conditions, linked to performance - As of March 31, 2023, the Group employed **1,047 staff**[100](index=100&type=chunk) - Remuneration policy is determined based on experience, level of responsibility, length of service, and market conditions, with discretionary bonuses linked to the Group's financial performance and individual performance[92](index=92&type=chunk) - Other employee benefits include provident funds, insurance and medical coverage, education allowances, and training programs[100](index=100&type=chunk) [Audit Committee](index=19&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, chaired by Professor Wong Lung Tak Patrick, reviewed the Group's accounting principles, interim results, and internal controls, and discussed financial reporting with the independent auditor - The Audit Committee members include independent non-executive directors Professor Wong Lung Tak Patrick, Mr. Wong Chun Nam, Dr. Wong Chi Keung, and Dr. Chan Chi Kau, with Professor Wong Lung Tak Patrick as Chairman[94](index=94&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group, the unaudited consolidated results for the period, and discussed internal controls and financial reporting matters with the independent auditor[94](index=94&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=19&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the review period, neither the Company nor its subsidiaries redeemed, purchased, or sold any of its listed shares - During the review period, the Company did not redeem any of its listed shares, nor did the Company or its subsidiaries purchase or sell any such shares[82](index=82&type=chunk) [Compliance with the Model Code for Securities Transactions](index=19&type=section&id=%E9%81%B5%E5%AE%88%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company adopted the Model Code for Securities Transactions by Directors and all Directors confirmed compliance during the review period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[104](index=104&type=chunk) - All Directors confirmed compliance with the Model Code for securities transactions of the Company during the review period[104](index=104&type=chunk) [Corporate Governance](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Directors believe the Company complied with the Corporate Governance Code and adopted a code of conduct for employees with inside information during the review period - The Directors believe that the Company has complied with the Code Provisions of Part 2 of the Corporate Governance Code (where applicable) during the review period[102](index=102&type=chunk) - The Company has also adopted a code of conduct for securities transactions by employees who may possess or have access to inside information[84](index=84&type=chunk) [Interim Dividend and Closure of Register of Members](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF%E5%8F%8A%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C) The Board declared an interim dividend of **HK7.0 cents** per share for shareholders on the register at the close of business on June 15, 2023, with the share register closed from June 14 to June 15, 2023 - The Board has declared an interim dividend of **HK7.0 cents** per share for the six months ended March 31, 2023[81](index=81&type=chunk) - The register of members will be closed from Wednesday, June 14, 2023, to Thursday, June 15, 2023[81](index=81&type=chunk) - Dividend warrants will be dispatched to shareholders on Monday, July 3, 2023[81](index=81&type=chunk) [Publication of Information on HKEX and Company Website](index=20&type=section&id=%E6%96%BC%E9%A6%99%E6%B8%AF%E4%BA%A4%E6%98%93%E5%8F%8A%E7%B5%90%E7%AE%97%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E5%92%8C%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%B6%B2%E7%AB%99%E7%99%BB%E8%BC%89%E8%B3%87%E6%96%99) This results announcement will be published on the HKEX and Company websites, with the interim report dispatched to shareholders and published on relevant websites in due course - This results announcement will be published on the websites of Hong Kong Exchanges and Clearing Limited and the Company's designated website[86](index=86&type=chunk) - The Company's interim report for the six months ended March 31, 2023, will be dispatched to shareholders and published on the respective websites of the Clearing House and the Company in due course[86](index=86&type=chunk) [Board of Directors](index=20&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%90%8D%E5%96%AE) The announcement lists the Company's executive directors Mr. Yu Kam Shui, Mr. Tam Siu Kei, Ms. Yu Lai Chu, and Ms. Lai Yin Ping, and independent non-executive directors - The executive directors of the Company are Mr. Yu Kam Shui, Mr. Tam Siu Kei, Ms. Yu Lai Chu, and Ms. Lai Yin Ping[97](index=97&type=chunk) - The independent non-executive directors of the Company are Professor Wong Lung Tak Patrick, Mr. Wong Chun Nam, Dr. Wong Chi Keung, and Dr. Chan Chi Kau[97](index=97&type=chunk)

Governance and Committees - The company held 2 meetings of the Remuneration Committee during the year ended September 30, 2022, to review and approve management's remuneration proposals[5]. - The Nomination Committee conducted 2 meetings to review the board structure, size, and composition, and to assess the independence of independent non-executive directors[8]. - The board has established five committees, including the Audit Committee and the Remuneration Committee, to oversee various aspects of governance and operations[2]. - The company emphasizes the importance of independent and objective opinions from independent non-executive directors in its committees[2]. - The board is satisfied with the effectiveness of the internal control and risk management systems, with no significant issues identified[150]. Financial Performance - The statutory audit fee for the year was HKD 1,920,000, with non-audit services costing HKD 704,000, totaling HKD 2,624,000[15]. - The company’s financial statements are prepared in accordance with all relevant regulations and appropriate accounting standards[16]. - The company plans to distribute a final dividend of HKD 0.075 per share for the year ended September 30, 2022, subject to approval at the upcoming annual general meeting[116]. - The cost of advertising decreased from 2.2% to 1.8% of revenue due to a pessimistic environmental outlook[178]. - Depreciation costs for property and equipment increased from 3.4% to 4.6% due to significant capital expenditures related to relocations, new store openings, and renovations[178]. Environmental, Social, and Governance (ESG) Initiatives - The Environmental, Social, and Governance (ESG) report was prepared according to principles of materiality, quantification, balance, and consistency, and was approved by the board on December 16, 2022[20]. - The group is committed to reducing waste and emissions from its operations, adhering strictly to environmental protection laws and regulations[37]. - The board is focused on environmental, social, and governance (ESG) issues, emphasizing compliance, anti-corruption, product quality, and innovation[37]. - The group emphasizes transparency and accuracy in communicating its ESG performance to stakeholders[33]. - The total greenhouse gas emissions for the reporting period amounted to 908.57 tons of CO2 equivalent, a decrease from 847.33 tons in the previous year, representing a year-on-year reduction of 7.2%[60]. Employee and Workplace Safety - The company is committed to providing competitive compensation and benefits to attract and retain skilled employees, which is crucial for business expansion strategies[50]. - The company has established a response mechanism to address employee infections of COVID-19, ensuring the safety of employees and the public[53]. - The injury rate for the year was 2.96, a decrease from 3.35 in the previous year[74]. - The total training hours for employees increased to 4,818.3 hours in 2022, up from 3,635.0 hours in 2021, representing a growth of approximately 32.5%[101]. - The group emphasizes employee well-being by providing a safe, healthy, and comfortable work environment, adhering to occupational health and safety regulations[98]. Community Engagement and Ethical Practices - The group has implemented a community investment policy to support charitable and non-profit organizations through donations and community care[82]. - The company emphasizes the importance of ethical conduct and encourages reporting of corruption and misconduct, ensuring confidentiality for whistleblowers[108]. - The company has provided guidelines to employees regarding the investigation and prevention of potential corruption and fraud[108]. - The group encourages employees to participate in charitable activities during their spare time, fostering a culture of community involvement[82]. - The company is committed to ethical business practices, requiring all directors and employees to adhere to a code of conduct[107]. Business Expansion and Market Strategy - The company operates beauty services under the "Oasis" brand, offering a comprehensive range of beauty and health-related services and products, appealing to high, mid, and mass market consumers[146]. - The group launched a new dental service, Oasis Dental, in April 2022, marking its entry into the dental beauty service market[172]. - The acquisition of HABA, a Japanese skincare brand, has strengthened the group's retail distribution, with strong sales recorded in mainland China[169]. - The company has opened five new stores in Macau and plans to capitalize on the recovery of consumer spending as tourism resumes in Hong Kong[200]. - The overall employee count increased significantly due to the opening of new stores and expansion of existing locations[180].

Financial Performance - The group's revenue increased by 23.3% to approximately HKD 388.3 million for the six months ended March 31, 2022, compared to HKD 314.9 million in the same period last year[5]. - Profit for the period was HKD 26.4 million, down from HKD 58.8 million in the previous year[5]. - Revenue for the six months ended March 31, 2022, was HKD 388,347,000, an increase of 23.3% from HKD 314,857,000 in 2021[30]. - Profit before tax decreased to HKD 37,737,000, down 47.2% from HKD 71,421,000 in the previous year[30]. - Net profit for the period was HKD 26,381,000, a decline of 55.2% compared to HKD 58,800,000 in 2021[30]. - Total comprehensive income for the period was HKD 28,694,000, compared to HKD 60,697,000 in the prior year, reflecting a decrease of 52.8%[33]. - The company reported a significant increase in employee costs to HKD 151,773,000, up 41.5% from HKD 107,131,000 in 2021[30]. - Depreciation expenses rose to HKD 80,622,000, an increase of 29.6% from HKD 62,176,000 in the previous year[30]. - The total expenses for the six months ended March 31, 2022, amounted to HKD 63,042,000, compared to HKD 59,823,000 in the previous year, reflecting an increase of about 5.4%[63]. - The profit for the period attributable to the company's shareholders was HKD 26,588,000, a decrease from HKD 58,980,000 in the previous year, indicating a decline of approximately 55.1%[69]. Revenue Composition - The sales mix shifted significantly, with product sales accounting for 26.4% and beauty services 73.6%, compared to 19.9% and 80.1% in the previous period[6]. - Revenue from product sales for the six months ended March 31, 2022, was HKD 102,405,000, an increase from HKD 62,505,000 in the previous year[55]. - Revenue from service sales for the same period was HKD 285,942,000, up from HKD 252,352,000, indicating growth in service offerings[55]. Capital Expenditure and Investments - Capital expenditure rose to HKD 27.1 million, an increase of nearly 74% year-on-year, primarily due to new store openings and equipment purchases[9]. - The capital expenditure for property and equipment was approximately HKD 27,115,000 for the six months ended March 31, 2022, compared to HKD 15,627,000 in the previous year, showing an increase of about 73.5%[72]. - The company has committed capital expenditures of HKD 22,444 million as of March 31, 2022, compared to HKD 3,729 million as of September 30, 2021, indicating a substantial increase in capital commitments[83]. Operational Challenges - The group faced challenges due to the closure of beauty salons and spas, which were mandated from January 7, 2022, impacting overall revenue[6]. - The group successfully controlled advertising costs as a percentage of revenue, despite increased depreciation costs due to new store openings[9]. - The net cash generated from operating activities for the six months ended March 31, 2022, was HKD 13,351,000, a significant decrease from HKD 77,636,000 in the previous year[42]. Employee and Management Information - The group has hired 1,043 employees as of March 31, 2022, an increase from 968 employees as of September 30, 2021[22]. - Management compensation for the six months ended March 31, 2022, totaled HKD 18,587 million, compared to HKD 6,131 million for the same period in 2021, reflecting a significant increase of about 203%[85]. Governance and Shareholding - The company has established various committees, including the Audit Committee, Compensation Committee, Investment Advisory Committee, Nomination Committee, and Disclosure Committee, to enhance governance and oversight[91][93][94][95]. - The Audit Committee is responsible for reviewing the group's financial information and monitoring the financial reporting system, risk management, and internal control systems[90]. - As of March 31, 2022, major shareholders include Yu Lisi with 166,113,760 shares (24.41%) and Tian Jun Limited with 155,333,760 shares (22.82%) of the issued ordinary shares[104]. - The company emphasizes compliance with corporate governance codes and regulations to ensure transparency and accountability[94]. Future Outlook - The group plans to open a new Oasis Medical Beauty Center on April 21, 2022, following the lifting of government restrictions, which will include a new joint venture offering dental beauty services[16]. - The group is expanding its service offerings with a new Glycel spa center in Tsim Sha Tsui and plans to open additional medical beauty centers in the second half of 2022[16]. - The company is confident in achieving good performance in the second half of the year due to increasing customer spending and demand for beauty services[17].

Business Expansion and Acquisitions - The group acquired the Mansther Group's beauty services and product portfolio in June 2021, enhancing its market position in Hong Kong and expanding market share[6]. - The group plans to open several new stores in the coming year, each ranging from 3,000 to 5,000 square feet, to enhance customer service and market visibility[18]. - The company opened new retail locations, including eight product retail stores in Hong Kong and one in China, following the acquisition of Mansi Group[28]. - The acquisition of the Mansther Group is expected to create significant future growth potential, with new products and services launched within three months post-acquisition[43]. - The company plans to open a new large Oasis Medical Beauty Center in LOHAS Park and expand Glycel's store space by 3,374 square feet, enhancing service capacity[46]. - The company has successfully expanded its medical beauty services in Hong Kong and acquired the Glycel brand business, as well as obtained distribution rights for Erno Laszlo[51]. Financial Performance - The group's consolidated revenue increased by 56.2% compared to the previous year, reaching a historical high of HKD 170 million, up from HKD 27.5 million[24]. - The gross profit margin improved from 90.5% to 92.2%, with high-margin beauty services now accounting for 84.9% of sales, up from 77.8%[24]. - Capital expenditure rose significantly from HKD 23.3 million to HKD 51.4 million, primarily due to the opening of new large stores[28]. - Advertising expenses increased from 1.7% to 2.2% of revenue, reflecting efforts to promote new products and services[25]. - The rental cost as a percentage of revenue decreased from 22.5% to 16.3% due to improved lease terms[25]. - The board proposed a final dividend of HKD 0.165 per share, bringing the total annual dividend to HKD 0.22 per share, up from HKD 0.06 the previous year[29]. Customer Engagement and Service Offerings - The group reported a significant increase in beauty service bookings in the second half of the year, indicating a recovery from the impacts of COVID-19[18]. - The introduction of the Oasis Hair Spa service in 2019 has expanded the group's offerings to include advanced hair and scalp care treatments[8]. - The introduction of the "Floral Tea Therapy" product has successfully attracted more customers, contributing to the brand's strong performance[41]. - Online product sales have shown continuous growth, with the company investing resources to maintain this trend in the coming year[48]. - The company has focused on enhancing its online shopping platforms, resulting in steady sales growth through online channels[24]. Corporate Governance - The management team emphasizes the importance of corporate governance and is committed to enhancing standards to maintain investor confidence and increase shareholder returns[70]. - The board of directors has been reviewing its corporate governance practices to meet the increasing regulatory requirements and expectations from shareholders[70]. - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange, with some specific deviations noted[70]. - The company is committed to providing balanced and understandable assessments of its performance and financial condition to the board of directors[66]. - The company has a diverse board with members holding significant experience in various sectors, enhancing its strategic planning capabilities[56]. Environmental and Social Responsibility - The group is committed to sustainable development and has established strategies to manage environmental, social, and governance risks[147]. - The group complies with all applicable major environmental protection laws and regulations in its operating regions[157]. - The total greenhouse gas emissions for the group in 2021 were 855.77 tons of CO2 equivalent, a decrease from 1,047.73 tons in 2020, representing a reduction of approximately 18.3%[161]. - The group implemented energy-saving measures, including the use of energy-efficient lighting and monitoring water usage[162]. - The group aims to enhance employee awareness of environmental protection to encourage effective resource usage[166]. Employee Management and Well-being - The total employee count increased to 896 as of September 30, 2021, up from 725 in 2020, reflecting a growth of approximately 23.6%[182]. - The company aims to enhance employee well-being by providing competitive compensation and benefits, including medical insurance and employee discounts[184]. - The company has implemented strict health and safety measures in response to the COVID-19 pandemic, ensuring employee safety and compliance with government regulations[193]. - The average number of workdays lost due to work-related injuries was 13.5 in 2021, a significant decrease from 123 days in 2020[195]. - Total training hours in 2021 amounted to 3,423.0 hours, an increase from 3,356.5 hours in 2020[198].

Financial Performance - The group's revenue for the six months ended March 31, 2021, was approximately HKD 314.9 million, a decrease of 14.0% compared to HKD 365.9 million for the same period last year[7]. - Profit for the period was HKD 58.8 million, up from HKD 43.8 million in the previous year[7]. - Total comprehensive income for the period was HKD 60,697,000, up from HKD 43,553,000, marking a 39% increase[33]. - The group reported a profit of HKD 58,800,000 for the period, compared to HKD 43,840,000 in the previous year, representing a 34% increase[30]. - Basic earnings per share increased to 8.7 HK cents from 6.5 HK cents, reflecting a 33% growth[30]. - The company reported a pre-tax profit of HKD 71,421,000 for the period, compared to HKD 56,475,000 in the previous year, indicating improved profitability despite lower revenues[52]. Revenue Breakdown - Revenue from product sales was HKD 72,073,000 in 2021, down from HKD 86,676,000 in 2020, while service revenue was HKD 252,352,000, a decrease from HKD 292,539,000[52]. - Revenue from Hong Kong and Macau was HKD 291,568,000, while revenue from China was HKD 23,289,000, totaling HKD 314,857,000 for the period[55]. Cost Management - Employee costs decreased significantly from 43.7% of total revenue to 34.0%, contributing to a total cost reduction of approximately 17.0%[8]. - Total expenses for the six months ended March 31, 2021, were HKD 59,823,000, a decrease of approximately 11.3% from HKD 67,463,000 in the same period of 2020[62]. - The company incurred a loss of HKD 163,000 from changes in the fair value of investment properties, significantly lower than the loss of HKD 3,440,000 reported in the previous year[68]. Cash Flow and Assets - The group had cash on hand of approximately HKD 437.4 million as of March 31, 2021[7]. - Cash reserves increased to approximately HKD 437.4 million as of March 31, 2021, compared to HKD 418.5 million as of September 30, 2020[23]. - The net cash generated from operating activities for the six months ended March 31, 2021, was HKD 77,636,000, a decrease of 5.5% from HKD 81,917,000 in 2020[41]. - The total cash outflow from investing activities was HKD 16,006,000, compared to HKD 6,183,000 in the previous year, indicating a significant increase in investment spending[41]. Capital Expenditure and Commitments - Capital expenditure increased to HKD 15.6 million, nearly doubling from HKD 8.2 million in the previous year, primarily due to new store equipment and openings[12]. - The company has a capital commitment of approximately HKD 9.2 million for the acquisition of property and equipment as of March 31, 2021[25]. - Capital expenditures for property and equipment amounted to HKD 15,627,000 for the six months ended March 31, 2021, compared to HKD 8,187,000 for the same period in 2020, indicating a substantial increase in investment[68]. Business Expansion - The company plans to open two new stores in the next six months, including a new 6,000 square feet Glycel Skinspa flagship store in Kowloon Tong, set to replace the existing 1,600 square feet store[15]. - The company is expanding its business in Macau, planning to open a new Glycel Skinspa in September 2021, along with a product counter for Glycel and Eurobeauté in a popular department store[16]. - The company plans to continue expanding its beauty services and product offerings in the Hong Kong, Macau, and China markets[43]. Marketing and Customer Engagement - Advertising and promotional expenses increased to 4.0% of total revenue, up from 0.9% in the previous year, reflecting efforts to maintain customer engagement during restrictions[8]. - The company continues to focus on enhancing its online retail experience, expecting significant contributions from e-commerce channels to beauty product sales[16]. - The company's marketing expenses increased significantly to HKD 13,623,000 from HKD 4,235,000 in the previous year, highlighting a strategic push in market expansion[62]. Shareholder Information - The board declared an interim dividend of HKD 0.055 per share, down from HKD 0.060 per share in the previous year[7]. - The company declared an interim dividend of HKD 0.055 per share for the six months ended March 31, 2021, payable to shareholders on June 16, 2021[93]. - Major shareholder Yu Lisi holds 166,113,760 shares, representing approximately 24.41% of the issued share capital[108]. Governance and Compliance - The audit committee is responsible for reviewing the group's financial information and monitoring the financial reporting system, risk management, and internal control systems[94]. - The company has complied with the corporate governance code during the review period, with some specific deviations noted[114]. - The independent auditor for the company is Hong Kong Shinewing Certified Public Accountants Limited[119].