Financial Performance - The group's revenue for the six months ended March 31, 2020, decreased by 4.0% to approximately HKD 365.9 million, compared to HKD 381.3 million for the same period last year[8]. - Profit for the period was HKD 43.8 million, down from HKD 55.0 million in the previous year, representing a decrease of 20.0%[8]. - Revenue for the six months ended March 31, 2020, was HKD 365,939,000, a decrease of 4% from HKD 381,283,000 in the same period of 2019[35]. - Profit before tax for the period was HKD 56,475,000, down from HKD 67,020,000, representing a decline of approximately 16%[35]. - Net profit for the period was HKD 43,840,000, compared to HKD 55,033,000 in 2019, reflecting a decrease of about 20%[38]. - Total comprehensive income for the period was HKD 43,553,000, down from HKD 55,717,000, a decrease of around 22%[38]. - The operating profit for the period was HKD 56,475,000, down from HKD 67,020,000 in the previous year, a decrease of around 15.5%[68]. - The company's profit for the six months ended March 31, 2020, was HKD 44,000,000, a decrease of 20.2% compared to HKD 55,094,000 for the same period in 2019[82]. Revenue Breakdown - The service segment accounted for 79.9% of total sales, while retail accounted for 20.1%, with an increase in online sales of skincare and beauty products[9]. - Revenue from product sales was HKD 73,400,000 for the six months ended March 31, 2020, compared to HKD 74,699,000 in 2019, indicating a decrease of about 1.7%[74]. - Revenue from service sales was HKD 292,539,000 for the six months ended March 31, 2020, down from HKD 306,584,000 in 2019, reflecting a decline of approximately 4.6%[74]. Cost Management - Advertising expenses were reduced by 52.8% year-on-year, decreasing from 1.9% of revenue to 0.9%[11]. - Employee costs decreased by 3.0%, but as a percentage of revenue, it slightly increased from 43.2% to 43.7%[11]. - The group actively negotiated rent reductions and closed underperforming stores to manage overall rental costs during the challenging market conditions[11]. - The company reported financing costs of HKD 3,941,000, significantly higher than HKD 177,000 in the previous year, indicating increased financial expenses[35]. - The total administrative costs were HKD 45,531,000, slightly up from HKD 45,344,000 in 2019, showing a marginal increase of about 0.4%[68]. - The company reported a total of HKD 67,463,000 in other expenses for the six months ended March 31, 2020, down from HKD 112,508,000 in 2019, a decrease of about 40.0%[76]. Cash Flow and Liquidity - The group maintained cash on hand of approximately HKD 377.7 million as of March 31, 2020[8]. - The group's cash reserves were approximately HKD 377.7 million as of March 31, 2020, down from HKD 385.6 million as of September 30, 2019[24]. - The net cash generated from operating activities for the six months ended March 31, 2020, was HKD 81,917,000, a decrease of 11.8% compared to HKD 92,853,000 in 2019[45]. - The net cash used in investing activities was HKD (6,183,000) for the six months ended March 31, 2020, compared to HKD (13,147,000) in 2019, indicating a significant improvement[45]. - The net cash used in financing activities increased to HKD (83,138,000) in 2020 from HKD (38,368,000) in 2019, primarily due to higher dividend payments[45]. - The total cash and cash equivalents at the end of the period decreased to HKD 377,748,000 from HKD 419,056,000 in the previous year[45]. Capital Expenditure - Capital expenditure fell nearly 50% from HKD 15.2 million to HKD 8.2 million compared to the same period last year[15]. - Capital expenditure on property and equipment for the six months ended March 31, 2020, was approximately HKD 8,187,000, a decrease from HKD 15,227,000 in the same period of 2019[87]. Future Plans and Strategies - The group plans to continue expanding its Oasis Hair Spa services, currently operating three locations within existing beauty centers[13]. - The group plans to open new flagship stores, including a combined beauty center in Mong Kok and a Glycel store in a high-end shopping center in Tseung Kwan O in the second half of the year[21]. - The group plans to enhance e-commerce and online shopping facilities, as well as provide efficient delivery services to rebuild consumer confidence[21]. - The group anticipates that it will take over a year for economic recovery and consumer confidence in traditional shopping and beauty treatments to return[20]. Impact of COVID-19 - The group has implemented strict cost control measures and applied for various government subsidy programs to mitigate the impact of COVID-19 on its beauty services business[22]. - The company is closely monitoring the impact of the COVID-19 pandemic on its financial condition and operations, with ongoing assessments being conducted[115]. Shareholder Information - The company declared an interim dividend of HKD 0.06 per share for the six months ended March 31, 2020[118]. - The interim dividend declared was HKD 0.06 per share, down from HKD 0.08 per share in 2019, totaling HKD 40,833,000 compared to HKD 54,444,000 in the previous year[85]. - The company paid dividends of HKD 47,639,000 during the period, compared to HKD 37,430,000 in the previous year, representing a 27.5% increase[45]. Corporate Governance - The company has appointed an independent audit committee responsible for reviewing financial data and monitoring the financial reporting system[119]. - The company has established a remuneration committee to recommend compensation policies for executive directors and senior management[120]. - The company has a disclosure committee to ensure timely disclosure of inside information as defined by the Securities and Futures Ordinance[124]. - The company’s board structure and diversity are reviewed annually by the nomination committee[123]. - The board believes the company has complied with the corporate governance code during the review period[138].

Business Operations - Water Oasis Group Limited operates 15 Oasis Beauty centers in Hong Kong and 3 in Beijing, catering to the middle-class demand for quality skincare products and advanced beauty treatments[8]. - The company launched a new Oasis Hair Spa service in 2019, providing advanced hair and scalp care treatments for both men and women[9]. - Water Oasis Group acquired the Water Juicery brand in January 2019, offering fresh cold-pressed juice products available for online ordering[13]. - The company has a strong portfolio of proprietary and licensed brands, including Glycel, which features innovative cell regeneration technology and operates 17 stores in Hong Kong and 1 in Macau[11]. - DermaSynergy and Eurobeauté are key in-house brands that enhance the medical beauty center's offerings, providing advanced skincare systems and products tailored for post-treatment care[12]. - The company continues to expand its market presence with a focus on high-end beauty services and products, appealing to a wide range of consumer demographics[8]. - Oasis Medical Centers are staffed by registered doctors and professional beauty therapists, equipped with advanced technology to address various skin issues[8]. - The company emphasizes a comprehensive beauty service and product offering, creating a competitive advantage in the beauty and health market[8]. Financial Performance - The financial performance and growth strategies will be detailed in the upcoming annual report, highlighting key metrics and future outlook[3]. - The company's revenue increased by 7.9% for the fiscal year ending September 30, 2019, despite challenging macroeconomic conditions[26]. - The gross profit margin improved from 92.4% to 92.6% year-on-year[26]. - Net profit reached HKD 107.4 million, a 12.9% increase compared to the previous year[26]. - The ratio of products to services shifted from 20.8% (products) and 79.2% (services) to 18.2% (products) and 81.8% (services)[26]. - Advertising expenses decreased by 16.0%, with the advertising cost-to-revenue ratio dropping from 3.8% to 2.9%[26]. - Rental costs as a percentage of revenue decreased from 17.8% to 16.6%[27]. - Employee count increased from 764 to 824, with employee costs rising by 7.9% but maintaining 42.5% of revenue[27]. - Depreciation costs rose significantly by 68.4%, accounting for 3.7% of revenue[28]. - The company had cash reserves of approximately HKD 385.6 million as of September 30, 2019[28]. - The board proposed a final dividend of HKD 0.07 per share, totaling HKD 0.15 per share for the year, up from HKD 0.085 the previous year[28]. Market Expansion - The group launched a new service, Oasis Hair Spa, targeting hair and scalp treatments, expanding its customer base[30]. - The group's major brands, including Water House, showed strong year-on-year growth, with Water House performing the best due to high demand and new customer acquisition[30]. - The group opened 2 new Oasis Medical Beauty Centers, increasing the total to 8, with this segment growing steadily by 7.5% year-on-year[33]. - Glycel brand revenue increased by 19.1%, driven by significant investments and the introduction of new treatments and products[36]. - Online cash revenue surged by 156% year-on-year, indicating a strong potential for e-commerce development[44]. - The group plans to enhance e-commerce capabilities for brands like Glycel, Eurobeauté, and Erno Laszlo, focusing on online shopping features[44]. - The group is exploring new locations for Water House services in Beijing and southern China, capitalizing on strong performance in existing centers[44]. Innovation and Technology - The group introduced new technologies and treatments, including V-liner and Thermage FLX, to meet customer demand in the medical beauty segment[33]. - Despite challenges, the group remains confident in its future outlook, focusing on service-oriented strategies and maintaining cost control while investing in new treatments[45]. - The company has successfully expanded its medical beauty services in Hong Kong, contributing to overall business growth[48]. - The acquisition of the Glycel brand and the distribution rights for Erno Laszlo have been pivotal in enhancing the company's product offerings[48]. Corporate Governance - The board is committed to enhancing corporate governance standards to maintain investor confidence and increase shareholder returns[56]. - The company has adhered to the corporate governance code as stipulated by the Hong Kong Stock Exchange during the fiscal year ending September 30, 2019[57]. - The board of directors consists of four executive directors and three independent non-executive directors, ensuring diverse industry and professional backgrounds[60]. - The board held a total of 6 meetings during the fiscal year ending September 30, 2019, with all directors actively participating[74]. - The company has implemented a board diversity policy since August 2013, recognizing its importance for enhancing company performance[66]. - All independent non-executive directors have confirmed their independence in accordance with the listing rules[60]. - The company provides suitable ongoing training and professional development programs for all directors to ensure they are well-informed and capable of contributing effectively[79]. - The chairman and CEO roles are distinct, with the executive director currently fulfilling the chairman's responsibilities[65]. - The company has established procedures for directors to seek independent professional advice at the company's expense when necessary[59]. - The nomination committee monitors the implementation of the board diversity policy and reviews it periodically to ensure its effectiveness[69]. - The company has obtained directors' and officers' liability insurance for its directors and executives[64]. - The board's composition and attendance at meetings are documented, ensuring transparency and accountability[76]. Risk Management and Compliance - The company is committed to maintaining a robust risk management and internal control system to identify and manage significant risks[110]. - The company has adopted a policy for handling and disclosing inside information, ensuring compliance with the Securities and Futures Ordinance and the Listing Rules[113]. - All directors confirmed compliance with the standard code of conduct for securities trading during the fiscal year ending September 30, 2019[114]. - The company secretary has completed no less than 15 hours of relevant professional training, meeting the requirements of the Listing Rules[117]. - The company has complied with all relevant laws and regulations, including the Companies Ordinance and the Securities and Futures Ordinance[185]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the group's performance from October 1, 2018, to September 30, 2019, focusing on core business operations in Hong Kong[125]. - The ESG report adheres to the guidelines set forth by the Hong Kong Stock Exchange, ensuring compliance with the "comply or explain" principle[127]. - Stakeholder engagement is crucial for understanding expectations and concerns, aiding in identifying risks and opportunities related to business strategy and future development[130]. - The company aims to minimize environmental impact while providing high-quality, innovative, and personalized beauty services[132]. - The total greenhouse gas emissions for the group amounted to 1,133.81 tons of CO2 equivalent, a decrease of 22.45% compared to the previous year[136]. - The emission density was recorded at 0.123 tons of CO2 equivalent per square meter, down 30.51% from 0.177 tons per square meter in the previous year[138]. - The total electricity consumption was 1,633,385 kWh, representing a reduction from 1,822,587 kWh in the previous year, with an energy intensity of 176.82 kWh per square meter[147]. - Water consumption totaled 941 cubic meters, an increase from 731 cubic meters in the previous year, with a water intensity of 0.63 cubic meters per square meter[148]. - The group generated 0.21 tons of hazardous waste, a slight decrease from 0.24 tons in the previous year, all disposed of properly[143]. - The group recycled approximately 2.10 tons of paper waste, contributing to a reduction of 10.10 tons of CO2 equivalent emissions[144]. - The total gasoline consumption for the company's vehicle fleet was 22,385.79 liters, with a per capita emission density of 0.07 tons of CO2 equivalent[149]. - The group used 11.29 tons of paper and printed materials, an increase from 5.26 tons in the previous year, contributing to greenhouse gas emissions of approximately 54.20 tons of CO2 equivalent[150]. - The group has implemented various energy-saving measures, including the use of energy-efficient lighting and encouraging public transport usage[140]. - The group aims to enhance employee environmental awareness and promote sustainable resource usage in its operations[145]. - The total amount of packaging materials used for beauty products increased to 40.49 tons in 2019, up 131.77% from 17.47 tons in 2018[153]. - The amount of packaging waste generated, including plastic bottles and containers, rose to 39.60 tons in 2019, representing a 215.79% increase from 12.54 tons in 2018[153]. Employee Development and Safety - The total number of employees increased to 755 in 2019, compared to 707 in 2018, reflecting a growth in workforce[155]. - The total training hours provided to employees reached 10,194 hours in 2019, up from 7,306 hours in 2018, indicating a focus on employee development[164]. - The injury rate increased to 6.62 in 2019 from 4.18 in 2018, highlighting a need for enhanced safety measures[161]. - The employee turnover rate for the age group 18 to 25 years was 9.7% in 2019, down from 11.0% in 2018, showing improvement in retention for younger employees[158]. - The company has implemented measures to reduce packaging waste and promote recycling, aligning with environmental sustainability goals[153]. - The company provided various employee benefits, including medical insurance and discounts on beauty services, to enhance employee satisfaction and retention[156]. - The company conducted regular safety reviews and provided personal protective equipment to ensure a safe working environment[160]. - The company has not faced any violations of health and safety regulations during the reporting period, indicating compliance with industry standards[161]. Supplier Management - The group has established a procurement management system to ensure high-quality service and product safety, overseeing all processes from raw material selection to final product delivery[166]. - The approved supplier list includes 45 strategic suppliers for beauty-related products and services, an increase from 44 in 2018, with suppliers from various countries including France, Germany, and Japan[168]. - The group recorded zero product recalls during the reporting period, indicating a strong commitment to maintaining brand quality[171]. - Significant resources have been invested in upgrading service processes and enhancing customer experience, ensuring professional and attentive service delivery[170]. - The group emphasizes the importance of selecting reputable suppliers to meet customer demands for reliable, high-quality, and technologically advanced products[168]. Customer Service - The company has established a customer service hotline to handle inquiries and feedback, contributing to ongoing training and development[169].

Financial Performance - The group's revenue for the six months ended March 31, 2019, increased by 4.0% to approximately HKD 381.3 million, compared to HKD 366.5 million for the same period last year[5]. - Profit for the period was HKD 55 million, down from HKD 60.4 million in the previous year, impacted by increased capital expenditure and depreciation costs[5]. - Profit before tax for the same period was HKD 67,020,000, down 8.4% from HKD 73,434,000 in 2018[30]. - Net profit for the period was HKD 55,033,000, a decrease of 8.8% compared to HKD 60,360,000 in the previous year[30]. - Total comprehensive income for the period was HKD 55,717,000, down from HKD 61,805,000 in 2018[33]. - Basic and diluted earnings per share increased to HKD 8.1 cents from HKD 7.9 cents[30]. - The company reported a net profit of HKD 55,094,000 for the period, down from HKD 60,529,000 in 2018, reflecting a decline of about 9.4%[89]. Revenue Breakdown - Revenue for the six months ended March 31, 2019, was HKD 381,283,000, an increase of 4.99% from HKD 366,462,000 in 2018[30]. - Retail segment revenue was HKD 74,699,000, down from HKD 81,871,000 in 2018, a decrease of about 8.0%[78]. - Service segment revenue increased to HKD 306,584,000 from HKD 284,591,000, reflecting a growth of approximately 7.7%[78]. Cost and Expenses - Employee costs rose by 7.8%, accounting for 43.2% of revenue, primarily due to hiring for new stores and improving service quality[8]. - Advertising expenses decreased by 21.7%, representing only 1.9% of revenue, indicating effective market penetration[8]. - Total tax expense for the period was HKD 11,987,000, compared to HKD 13,074,000 in 2018, a decrease of approximately 8.3%[84]. - The company paid dividends amounting to HKD 37,430,000 during the period, compared to HKD 30,618,000 in the previous year, marking a 22.3% increase in dividend payouts[41]. Assets and Liabilities - Non-current assets amounted to HKD 404,088,000 as of March 31, 2019, compared to HKD 402,536,000 as of September 30, 2018[35]. - Current assets increased to HKD 581,094,000 from HKD 535,920,000 in the previous period[35]. - Total liabilities increased to HKD 679,697,000 from HKD 624,215,000[35]. - Total equity attributable to owners of the company was HKD 281,823,000, slightly up from HKD 281,707,000[35]. Cash Flow - The net cash generated from operating activities for the six months ended March 31, 2019, was HKD 92,853,000, compared to HKD 90,727,000 for the same period in 2018, reflecting a growth of 2.3%[41]. - The net cash used in investing activities was HKD (13,147,000) for the six months ended March 31, 2019, compared to HKD (12,083,000) in 2018, indicating an increase in investment outflows[41]. - The net cash used in financing activities totaled HKD (38,368,000) for the six months ended March 31, 2019, up from HKD (30,604,000) in the previous year, representing a 25.5% increase[41]. - The cash and cash equivalents at the end of the period amounted to HKD 419,056,000, down from HKD 452,676,000 at the end of the previous year, reflecting a decrease of 7.4%[41]. Operational Highlights - The beauty services segment continued to grow, with service and retail sales composition at 80.4% and 19.6%, respectively, compared to 77.7% and 22.3% last year[8]. - The group launched new technologies and treatments, including the i-Skinix treatment series and advanced V-liner equipment, enhancing service offerings[13]. - The self-owned brand Glycel recorded double-digit growth, driven by retail sales and Skinspa services, with store expansion contributing to this performance[14]. - The group operates 9 Glycel Skinspas, 15 beauty centers, and 6 medical beauty centers, maintaining the number of stores since March 2018[13]. Strategic Initiatives - The group plans to launch new Glycel products and promotional activities in the coming year, capitalizing on the strong performance of the brand[15]. - The group plans to open new Erno Laszlo and Glycel stores in the newly renovated shopping mall in Shatin before Christmas 2019[17]. - The online brand O~KO!beauty continued to grow moderately, with plans to enhance this e-commerce channel for long-term potential[17]. - The acquisition of a 70% stake in Water Juicery for HKD 1,050,000 is expected to create synergies with the group’s existing customer base[19]. Compliance and Governance - The Audit Committee is responsible for reviewing the group's financial data and monitoring the financial reporting system, risk management, and internal control systems[125]. - The company has established a Remuneration Committee to recommend remuneration policies for executive directors and senior management, ensuring transparency in the process[126]. - The Nomination Committee is responsible for reviewing the board's structure and diversity at least annually[129]. - The company has no other directors or senior management with interests in shares or bonds as of March 31, 2019, apart from those disclosed[134].

Business Operations - As of September 30, 2018, the company operated 15 Oasis Beauty centers in Hong Kong and 3 in Beijing, catering to middle-class customers seeking quality skincare products and advanced beauty treatments[18]. - The company has 6 Oasis Medical Centres staffed by registered doctors and professional beauty therapists, equipped with advanced technology to address various skin issues[20]. - The company continues to operate 1 Oasis Beauty Store in Macau, selling H2O+ and Glycel brand products while providing beauty treatment services[21]. - The company has established 3 Oasis Spa centers that provide luxurious beauty services and body treatments using advanced European equipment[19]. - The company operates 2 Oasis Homme locations in Hong Kong, offering high-end facial and body treatments for men[18]. - The group operates 17 beauty centers in Hong Kong and 3 self-operated stores in mainland China, with strong performance in both markets[48]. Product Offerings - The company has expanded its product offerings with the introduction of Glycel, a skincare brand known for its revolutionary cell regeneration technology developed in Switzerland[7]. - The company has introduced DermaSynergy, an advanced medical beauty product line, to expand its medical beauty center's business coverage[8]. - The company has a strong portfolio of proprietary and licensed brand products, enhancing its competitive advantage in the beauty service market[16]. - The Glycel brand saw an 8.7% increase in sales, with plans to expand product offerings and open two new stores, bringing the total to 15 in Hong Kong and one in Macau[64][66]. Financial Performance - The company reported record performance for the fiscal year ending September 30, 2018, indicating successful implementation of recent strategies[28]. - Overall revenue rose by 9.9% year-on-year, with a gross profit margin increasing to 92.4% from 91.9% in the previous year[36]. - The group's profit increased by 37.2% year-on-year, driven by the popularity of various products and services[35]. - The number of customers increased significantly due to effective new advertising channels and methods[35]. - The group closed underperforming stores and opened two new stores in high-end shopping centers, bringing the total number of stores to 55[36]. Marketing and Growth Strategies - The company emphasizes internal growth, cautious expansion, and prudent cash management, which have contributed to stable performance during economic recovery[26]. - The company has expanded its online marketing efforts, including social media outreach and the introduction of popular payment methods like WeChat Pay, to enhance online sales[29]. - The company plans to enhance digital marketing strategies and expand its target customer base, focusing on innovative digital promotions and online sales channels[70]. - The beauty services segment currently contributes nearly 80% of total sales and will remain a key focus for future growth[70]. Corporate Governance - The company emphasizes its commitment to enhancing corporate governance standards and business ethics to maintain investor confidence and increase shareholder returns[81]. - The management team has over 30 years of experience in financial management, accounting, and business planning, with the CFO holding a Master's degree in Business Administration[79]. - The board of directors consists of four executive directors and three independent non-executive directors, ensuring diverse industry and professional backgrounds[85]. - The company has adopted a board diversity policy to enhance performance quality, considering factors such as gender, age, and professional experience[95]. - The company has established five board committees, including the Audit Committee, Remuneration Committee, Investment Advisory Committee, Nomination Committee, and Disclosure Committee, to oversee various aspects of corporate governance[108]. Environmental and Social Responsibility - The environmental, social, and governance report covers the group's performance from October 1, 2017, to September 30, 2018, focusing on key operational activities in the beauty services and retail sector in Hong Kong[154]. - Key performance indicators related to environmental performance include emissions policies, resource usage, and compliance with labor standards[157]. - The company aims to minimize environmental impact while providing high-quality and innovative beauty services[166]. - The total greenhouse gas emissions for the company amounted to 1,420.86 tons of CO2 equivalent, reflecting a 2.90% increase compared to the previous year[169]. - The company has implemented energy-saving strategies, including the use of energy-efficient lighting and shutting down unused air conditioning and equipment[170]. Employee Management - The total number of employees increased to 707 from 696 in 2017, with 674 being female and 33 male[186]. - The overall training hours provided were 7,306, a decrease from 7,824.50 hours in 2017[197]. - The injury rate increased to 4.18 from 2.87 in 2017, indicating a need for enhanced safety measures[195]. - The employee turnover rate for ages 18 to 25 was 11%, down from 12% in 2017, while the rate for ages 26 to 35 decreased to 20% from 21%[189].