Financial Performance - For the six months ended September 30, 2023, the total revenue was HK$240,086,000, a decrease from HK$243,482,000 as of March 31, 2023[8]. - The company reported a loss for the period of HK$13,050,000, compared to a profit of HK$3,411,000 in the previous period[10]. - The Group's revenue for the six months ended September 30, 2023, was approximately HK$237.0 million, an increase of approximately HK$25.1 million or 11.8% compared to HK$211.9 million for the same period in 2022[35]. - Loss attributable to the owners of the Company was approximately HK$13.1 million for the six months ended September 30, 2023, compared to a profit of approximately HK$3.4 million for the same period in 2022[35]. - Total comprehensive loss for the period was HK$13.2 million, compared to a comprehensive income of HK$3.3 million for the same period in 2022[36]. - The Group reported a loss before tax of HK$13,050,000 for the six months ended September 30, 2023, compared to a profit of HK$3,411,000 in the same period of 2022[122]. - The Group recorded a loss of HK$13.1 million for the period, compared to a profit of HK$3.4 million in the previous period[159]. Revenue Breakdown - Revenue from contracts with customers for the six months ended September 30, 2023, was HK$237,010,000, an increase of 11.8% from HK$211,900,000 in the same period of 2022[112]. - Revenue from Hong Kong was HK$215,069,000, up 5.9% from HK$203,124,000 year-on-year[73]. - Revenue from Mainland China surged to HK$21,941,000, a significant increase of 149.5% compared to HK$8,776,000 in the previous year[73]. - Treatment services revenue increased to HK$176,335,000, up from HK$153,569,000, representing a growth of 14.8% year-over-year[113]. - Skincare products revenue rose to HK$60,631,000, compared to HK$58,120,000, marking a 4.3% increase[113]. Assets and Liabilities - Total current assets as of September 30, 2023, were HK$272,953,000, slightly down from HK$273,329,000 as of March 31, 2023[8]. - The total non-current assets decreased to HK$240,086,000 from HK$243,482,000[8]. - The company’s total equity as of September 30, 2023, was HK$137,525,000, a decrease from HK$150,713,000 as of April 1, 2023[10]. - Net current liabilities increased to HK$24.8 million as of September 30, 2023, compared to HK$13.2 million as of March 31, 2023[38]. - Total assets less current liabilities amounted to HK$215.3 million as of September 30, 2023, down from HK$230.2 million as of March 31, 2023[38]. - Non-current liabilities totaled HK$77.8 million as of September 30, 2023, slightly decreased from HK$79.5 million as of March 31, 2023[38]. - Net assets decreased to HK$137.5 million as of September 30, 2023, from HK$150.7 million as of March 31, 2023[38]. Cash Flow and Investments - Net cash flows from operating activities for the six months ended September 30, 2023, were HK$24,581,000, a decrease from HK$54,118,000 in the same period last year[11]. - Net cash flows used in investing activities amounted to HK$25,820,000, compared to HK$19,426,000 in the previous year, indicating increased investment outflows[11]. - Cash and cash equivalents were reported at HK$97,784,000, down from HK$116,911,000[8]. - Cash and cash equivalents at the end of the period were HK$77,329,000, down from HK$80,802,000 at the end of the previous period[11]. - The total cash and cash equivalents at the beginning of the period were HK$105,610,000, showing a decrease in liquidity during the reporting period[11]. Operational Focus and Strategy - The company plans to focus on market expansion and new product development in the upcoming quarters[5]. - The Group expanded its CosMax+ operation scale by approximately 4,000 square feet to enhance customer experience[157]. - The Group's marketing expenses increased due to the expansion into the Mainland market, impacting overall profitability[161]. - The Group's two brands, CosMax+ and VITAE, are positioned to leverage synergies and enhance market coverage[162]. - The Group plans to adopt a cautiously optimistic approach in the second half of the year, focusing on improving management and operational efficiency[190]. Compliance and Governance - The interim financial information has been prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with local regulations[12]. - The Group has adopted new and revised Hong Kong Financial Reporting Standards (HKFRSs) effective from April 1, 2023, which did not impact the interim financial information but will affect annual disclosures[80]. - The Group's accounting policies remain consistent with those applied in the previous fiscal year, with no significant impact from recent amendments[87]. - The Group did not experience any material impact on liquidity from exchange rate fluctuations and did not engage in hedging transactions during the review period[200]. Shareholder Information - The Board did not declare an interim dividend for the six months ended September 30, 2023, consistent with the previous year[35]. - The average number of ordinary shares issued during the period was 400,000,000, consistent with the previous period[144].

[Summary](index=1&type=section&id=Summary) The Group reported an 11.8% revenue increase to **HKD 237 million** but incurred a **HKD 13.1 million** loss due to higher marketing expenses for its XOVĒ brand's expansion into mainland China Key Financial Highlights for the Six Months Ended September 30, 2023 | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 237,010 | 211,900 | +11.8% | | Profit/(Loss) attributable to owners of the Company | (13,100) | 3,400 | Turned from profit to loss | | Basic Earnings/(Loss) Per Share | (3.26) HK cents | 0.85 HK cents | Turned from profit to loss | | Interim Dividend | Nil | Nil | No change | [Financial Results](index=2&type=section&id=Financial%20Results) This section presents the Group's unaudited consolidated financial statements, detailing income, expenses, profit/loss, and asset-liability structure for the period [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue grew 11.8% to **HKD 237 million**, but increased costs across several categories led to a **HKD 13.05 million** loss for the period, reversing last year's profit Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 237,010 | 211,900 | | Other income | 2,724 | 7,002 | | Cost of inventories and consumables | (27,009) | (18,985) | | Staff costs | (91,520) | (82,392) | | Property rental and related expenses | (34,917) | (35,872) | | Depreciation of property, plant and equipment | (20,868) | (21,702) | | Other expenses, net | (79,496) | (53,899) | | Finance costs | (2,558) | (1,741) | | Profit/(Loss) before tax | (16,634) | 4,311 | | Income tax credit/(expense) | 3,584 | (900) | | Profit/(Loss) for the period | (13,050) | 3,411 | [Other Comprehensive Loss](index=2&type=section&id=Other%20Comprehensive%20Loss) The Group reported an other comprehensive loss of **HKD 0.138 million** from foreign operation translation differences, an increase from the prior period Other Comprehensive Loss | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Exchange differences on translation of foreign operations | (138) | (102) | | Total comprehensive income/(loss) for the period | (13,188) | 3,309 | [Basic Earnings/(Loss) Per Share Attributable to Owners of the Company](index=2&type=section&id=Basic%20Earnings%2F%28Loss%29%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic loss per share was **3.26 HK cents**, a reversal from **0.85 HK cents** earnings per share in the prior year, driven by the period's loss Earnings/(Loss) Per Share | Indicator | September 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | Basic Earnings/(Loss) Per Share | (3.26) HK cents | 0.85 HK cents | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets stood at **HKD 513 million**, with net current liabilities of **HKD 24.769 million** and total equity of **HKD 137.5 million**, a decline from March 31, 2023 Interim Condensed Consolidated Statement of Financial Position (Summary) | Indicator | September 30, 2023 (Thousand HKD) | March 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 89,587 | 101,075 | | Right-of-use assets | 102,929 | 109,304 | | Deferred tax assets | 21,240 | 17,643 | | Total non-current assets | 240,086 | 243,482 | | **Current assets** | | | | Inventories | 46,192 | 38,194 | | Trade receivables | 19,271 | 18,077 | | Cash and cash equivalents | 97,784 | 116,911 | | Total current assets | 272,953 | 273,329 | | **Current liabilities** | | | | Trade payables | 12,965 | 10,544 | | Contract liabilities and deferred income | 200,102 | 182,048 | | Interest-bearing bank borrowings | 15,840 | 19,170 | | Total current liabilities | 297,722 | 286,565 | | Net current liabilities | (24,769) | (13,236) | | **Non-current liabilities** | | | | Lease liabilities | 62,088 | 66,639 | | Total non-current liabilities | 77,792 | 79,533 | | **Equity** | | | | Total equity | 137,525 | 150,713 | [Notes](index=5&type=section&id=Notes) This section details the basis of preparation, accounting policy changes, segment information, revenue, other income, profit/loss before tax, income tax, dividends, earnings per share, and trade receivables/payables [Company Information](index=5&type=section&id=Company%20Information) Chauvet Holdings Group Limited, incorporated in the Cayman Islands, operates primarily in Central, Hong Kong, and is ultimately held by Glorious Holdings Limited - The Company is a limited company incorporated in the Cayman Islands, with its principal place of business in Central, Hong Kong[89](index=89&type=chunk) - Its direct and ultimate holding company is Glorious Holdings Limited, a company incorporated in the British Virgin Islands[110](index=110&type=chunk) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared under HKAS 34, using historical cost in HKD, consistent with annual policies, and incorporates new HFRS standards - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34, using the historical cost convention and presented in Hong Kong dollars[66](index=66&type=chunk)[67](index=67&type=chunk) - Accounting policies are consistent with those in the annual consolidated financial statements for the year ended March 31, 2023, with the initial adoption of new and revised Hong Kong Financial Reporting Standards[68](index=68&type=chunk) [Changes in Accounting Policies and Disclosures](index=5&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) New and revised HFRS standards were adopted, primarily impacting accounting policy disclosures, with no significant effect on the Group's financial position or performance - Amendments to HKAS 1 require entities to disclose material accounting policy information rather than significant accounting policies, expected to impact accounting policy disclosures in the annual consolidated financial statements[70](index=70&type=chunk) - Amendments to HKAS 8 clarify the distinction between changes in accounting estimates and changes in accounting policies, with no impact on the Group's financial position or performance[3](index=3&type=chunk) - Amendments to HKAS 12 narrow the scope of initial recognition exemption, requiring recognition of deferred tax arising from transactions such as leases and decommissioning liabilities, with no impact on the Group's financial position or performance[71](index=71&type=chunk) - Amendments to HKAS 12 International Tax Reform (Pillar Two Model Rules) introduce a mandatory temporary exemption, but these amendments have no impact on the Group as it is not within the scope of the Pillar Two Model Rules[74](index=74&type=chunk) [Operating Segment Information](index=7&type=section&id=Operating%20Segment%20Information) The Group operates as a single reportable segment for medical aesthetic services and skincare products, with decisions based on overall operating results due to unified resource management - The Group has one reportable operating segment, the non-surgical medical aesthetic services segment, primarily providing medical aesthetic services and selling skincare products in Hong Kong and mainland China[72](index=72&type=chunk) [Geographical Information](index=7&type=section&id=Geographical%20Information) Revenue primarily from Hong Kong (**HKD 215 million**) and mainland China (**HKD 21.941 million**), with significant year-on-year growth in mainland China Revenue from External Customers (by Geographical Location) | Region | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Hong Kong | 215,069 | 203,124 | | Mainland China | 21,941 | 8,776 | | **Total** | **237,010** | **211,900** | Non-current Assets (by Geographical Location) | Region | September 30, 2023 (Thousand HKD) | March 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | | Hong Kong | 198,800 | 210,051 | | Mainland China | 3,509 | 2,935 | | **Total** | **202,309** | **212,986** | [Major Customers Information](index=7&type=section&id=Major%20Customers%20Information) No single customer contributed 10% or more to total revenue for the periods ended September 30, 2023 and 2022, so no major customer data is disclosed - No single customer's sales revenue accounted for **10%** or more of the Group's total revenue[58](index=58&type=chunk) [Revenue and Other Income](index=8&type=section&id=Revenue%20and%20Other%20Income) Total revenue was **HKD 237 million**, driven by treatment services and skincare product sales, while other income of **HKD 2.724 million** was mainly bank interest, with reduced government subsidies Revenue Analysis | Revenue Source | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Treatment services | 176,335 | 153,569 | | Skincare products | 60,631 | 58,120 | | Medical consultation services | 6 | 4 | | Prescription and dispensing of medical products | 38 | 207 | | **Total Revenue** | **237,010** | **211,900** | Other Income Analysis | Other Income Source | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Bank interest income | 2,437 | 204 | | Government subsidies | – | 6,678 | | Others | 287 | 120 | | **Total Other Income** | **2,724** | **7,002** | - Government subsidies primarily refer to those under the HKSAR Government's Anti-epidemic Fund, with no such income recorded in the current period[60](index=60&type=chunk) [Profit/(Loss) Before Tax](index=8&type=section&id=Profit%2F%28Loss%29%20Before%20Tax) The Group reported a **HKD 16.634 million** loss before tax, a reversal from prior year's profit, mainly due to increased depreciation, lease payments, exchange differences, and trade receivables impairment Adjustments to Profit/(Loss) Before Tax | Item | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 20,868 | 21,702 | | Depreciation of right-of-use assets | 25,095 | 22,513 | | Lease payments not included in the measurement of lease liabilities | 4,528 | 7,881 | | Exchange differences, net | (601) | (258) | | Impairment loss on trade receivables, net | 39 | 67 | [Income Tax](index=9&type=section&id=Income%20Tax) The Group recorded a **HKD 3.584 million** income tax credit, a shift from last year's **HKD 0.9 million** expense, with Hong Kong profits tax at 16.5% under the two-tiered system Total Income Tax Expense/(Credit) | Item | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Current — Hong Kong | 13 | 923 | | Deferred | (3,597) | (23) | | **Total tax expense/(credit) for the period** | **(3,584)** | **900** | - Hong Kong profits tax is provided at a rate of **16.5%**, in line with the two-tiered tax rate policy, with the first **HKD 2 million** of assessable profits taxed at **8.25%**[63](index=63&type=chunk) [Dividends](index=9&type=section&id=Dividends) The Board decided against declaring an interim dividend for the six months ended September 30, 2023, consistent with the prior year - The Board of Directors did not declare an interim dividend for the six months ended September 30, 2023 (for the six months ended September 30, 2022: nil)[9](index=9&type=chunk) [Basic Earnings/(Loss) Per Share Attributable to Owners of the Company](index=9&type=section&id=Basic%20Earnings%2F%28Loss%29%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic loss per share was **3.26 HK cents**, driven by a **HKD 13.05 million** loss, based on **400 million** weighted average shares and no dilutive shares - Basic loss per share was **3.26 HK cents**, calculated based on a loss of **HKD 13.05 million** for the period and a weighted average of **400 million** ordinary shares in issue[12](index=12&type=chunk) - For the six months ended September 30, 2023 and 2022, the Group had no potential dilutive ordinary shares in issue[26](index=26&type=chunk) [Trade Receivables](index=9&type=section&id=Trade%20Receivables) Net trade receivables increased to **HKD 19.271 million**, primarily settled by cash/credit card with a **60-day** credit limit for corporate clients, and are strictly monitored for credit risk Trade Receivables | Indicator | September 30, 2023 (Thousand HKD) | March 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | | Trade receivables | 19,907 | 18,674 | | Impairment | (636) | (597) | | **Net** | **19,271** | **18,077** | Aging Analysis of Trade Receivables (Net of Loss Allowance) | Aging | September 30, 2023 (Thousand HKD) | March 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | | Within 1 month | 12,817 | 13,331 | | 1 to 3 months | 5,589 | 4,032 | | Over 3 months | 865 | 714 | | **Total** | **19,271** | **18,077** | - Terms of transactions with individual customers are primarily cash and/or credit card settlement, while corporate customers are granted a maximum credit period of **60 days**[30](index=30&type=chunk) [Trade Payables](index=10&type=section&id=Trade%20Payables) Trade payables increased to **HKD 12.965 million**, are interest-free, and typically have a **30-day** average settlement period Aging Analysis of Trade Payables | Aging | September 30, 2023 (Thousand HKD) | March 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | | Within 1 month | 12,965 | 10,544 | - Trade payables are interest-free, with an average settlement period typically of **30 days**[54](index=54&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business performance, financial position, capital structure, liquidity, employee policies, and future strategies, highlighting steady growth amid challenges [Business Review](index=11&type=section&id=Business%20Review) The Group achieved 11.8% revenue growth despite global economic complexities, with CosMax+ expanding, VITAE growing, and XOVĒ entering mainland China with high initial marketing costs - During the review period, the Group's revenue was approximately **HKD 237 million**, an increase of approximately **HKD 25.1 million** or **11.8%** compared to the prior period, primarily due to increased revenue from treatment services[56](index=56&type=chunk)[37](index=37&type=chunk) - The Group recorded a loss of approximately **HKD 13.1 million** (prior period: profit of HKD 3.4 million), primarily due to increased marketing and other expenses from the full entry of high-end skincare brand XOVĒ into the mainland China market[57](index=57&type=chunk) [Core Brand "CosMax+"](index=11&type=section&id=Core%20Brand%20%22CosMax%2B%22) CosMax+, with three Hong Kong centers, expanded by **4,000 sq ft** to enhance customer experience and maintain its leading position in high-end medical aesthetics - CosMax+ operates three medical aesthetic centers in Hong Kong, expanding its operating area by approximately **4,000 square feet** during the review period[57](index=57&type=chunk) - Leveraging its reputation and word-of-mouth, CosMax+ holds a leading position in Hong Kong's high-end medical aesthetic industry, with steady business growth[57](index=57&type=chunk) [Beauty Brand "VITAE"](index=11&type=section&id=Beauty%20Brand%20%22VITAE%22) VITAE, operating three Hong Kong centers with a "beauty and health balance" concept, has quickly built a stable customer base and synergizes with CosMax+ for market expansion - The VITAE brand operates three treatment centers in prime locations in Hong Kong, with a service concept of 'maintaining a perfect balance between beauty and health'[15](index=15&type=chunk) - VITAE has quickly established a stable and loyal customer base, achieving high market recognition[15](index=15&type=chunk) - The CosMax+ and VITAE brands have significant synergy potential, offering full-cycle beauty services to enhance customer loyalty and expand market coverage[15](index=15&type=chunk) [High-End Skincare Product "XOVĒ"](index=12&type=section&id=High-End%20Skincare%20Product%20%22XOV%C4%92%22) XOVĒ launched in over **300 Sephora stores** in mainland China, boosting awareness and sales, despite high initial marketing costs during its incubation period - XOVĒ officially entered over **300 Sephora stores** in mainland China in January 2023, enhancing its brand awareness, sales, and market share in the region[16](index=16&type=chunk) - Sales in mainland China increased during the period, but marketing and other expenses were relatively high due to its incubation phase[16](index=16&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) This section analyzes the Group's financial performance, detailing revenue growth, cost structure changes, and the resulting loss, identifying key financial drivers [Revenue](index=12&type=section&id=Revenue) Revenue increased by **HKD 25.1 million**, or **11.8%**, to **HKD 237 million**, primarily due to growth in treatment services revenue Revenue Changes | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 237,000 | 211,900 | +11.8% | | Increase Amount | 25,100 | - | - | - The increase in revenue was primarily due to growth in revenue from treatment services during the review period[37](index=37&type=chunk) [Cost of Inventories and Consumables](index=12&type=section&id=Cost%20of%20Inventories%20and%20Consumables) Cost of inventories and consumables increased to **HKD 27 million**, representing **11.4%** of total revenue, up from **9.0%** in the prior period Cost of Inventories and Consumables | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Cost of inventories and consumables | 27,000 | 19,000 | | Percentage of total revenue | 11.4% | 9.0% | [Staff Costs](index=13&type=section&id=Staff%20Costs) Staff costs rose by **HKD 9.1 million**, or **11.0%**, to **HKD 91.5 million**, driven by an increase in employee headcount from **377** to **413** Changes in Staff Costs and Headcount | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Staff costs | 91,500 | 82,400 | +11.0% | | Total employees | 413 | 377 | +36 people | [Property Rental and Related Expenses](index=13&type=section&id=Property%20Rental%20and%20Related%20Expenses) Property rental and related expenses decreased by **HKD 1 million**, or **2.8%**, to **HKD 34.9 million**, mainly due to retail store closures Changes in Property Rental and Related Expenses | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Property rental and related expenses | 34,900 | 35,900 | -2.8% | | Decrease Amount | 1,000 | - | - | - The decrease in rental expenses was primarily due to the closure of retail stores[19](index=19&type=chunk) [Depreciation of Property, Plant and Equipment](index=13&type=section&id=Depreciation%20of%20Property%2C%20Plant%20and%20Equipment) Depreciation of property, plant and equipment was **HKD 20.9 million**, **8.8%** of total revenue, a slight decrease from **10.2%** in the prior period Depreciation of Property, Plant and Equipment Expenses | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Depreciation expenses | 20,900 | 21,700 | | Percentage of total revenue | 8.8% | 10.2% | [Other Expenses, Net](index=13&type=section&id=Other%20Expenses%2C%20Net) Other expenses, net, increased by **HKD 25.6 million**, or **47.5%**, to **HKD 79.5 million**, driven by increased promotional activities aligned with sales growth Changes in Other Expenses, Net | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Other expenses, net | 79,500 | 53,900 | +47.5% | | Increase Amount | 25,600 | - | - | - The increase in expenses was primarily due to increased promotional activities, consistent with sales growth[96](index=96&type=chunk) [Finance Costs](index=13&type=section&id=Finance%20Costs) Finance costs increased to **HKD 2.6 million** from **HKD 1.7 million** in the prior period Changes in Finance Costs | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Finance costs | 2,600 | 1,700 | [Income Tax](index=13&type=section&id=Income%20Tax) Income tax shifted from an **HKD 0.9 million** expense to an **HKD 3.6 million** credit during the review period Changes in Income Tax Expense/(Credit) | Indicator | September 30, 2023 (Thousand HKD) | September 30, 2022 (Thousand HKD) | | :--- | :--- | :--- | | Income tax | (3,600) (Credit) | 900 (Expense) | [Loss for the Period](index=13&type=section&id=Loss%20for%20the%20Period) The loss attributable to owners of the Company for the review period was approximately **HKD 13.1 million** Loss for the Period | Indicator | September 30, 2023 (Thousand HKD) | | :--- | :--- | | Loss attributable to owners of the Company | 13,100 | [Capital Structure, Liquidity and Financial Resources](index=14&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) Total equity was **HKD 137.5 million**, with **HKD 97.8 million** in cash, a gearing ratio of **11.5%**, and no significant foreign exchange or interest rate risks or hedging - As of September 30, 2023, the Group's total equity was approximately **HKD 137.5 million**, with cash and cash equivalents of approximately **HKD 97.8 million**[91](index=91&type=chunk) - The Group's working capital (excluding lease liabilities related to self-occupied properties) was **HKD 18.6 million**, providing sufficient liquidity to meet operational needs and planned expansion[91](index=91&type=chunk) [Interim Dividend](index=14&type=section&id=Interim%20Dividend) The Board did not declare an interim dividend for the review period, consistent with the prior period - The Board of Directors did not declare an interim dividend for the review period (prior period: nil)[41](index=41&type=chunk) [Indebtedness](index=14&type=section&id=Indebtedness) Outstanding interest-bearing bank borrowings decreased to **HKD 15.8 million** from **HKD 19.2 million** as of September 30, 2023 Interest-Bearing Bank Borrowings | Indicator | September 30, 2023 (Thousand HKD) | March 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | | Outstanding interest-bearing bank borrowings | 15,800 | 19,200 | [Lease Liabilities](index=14&type=section&id=Lease%20Liabilities) The Group's lease liabilities amounted to approximately **HKD 105.5 million** as of September 30, 2023 Lease Liabilities | Indicator | September 30, 2023 (Thousand HKD) | | :--- | :--- | | Lease liabilities | 105,500 | [Pledge of Assets](index=14&type=section&id=Pledge%20of%20Assets) **HKD 62.4 million** in fixed deposits were pledged as security for credit card installment plans, with no other assets pledged Pledged Assets | Indicator | September 30, 2023 (Thousand HKD) | March 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | | Pledged fixed deposits | 62,400 | 62,400 | [Contingent Liabilities and Guarantees](index=14&type=section&id=Contingent%20Liabilities%20and%20Guarantees) The Group had no significant contingent liabilities or guarantees as of September 30, 2023 - As of September 30, 2023, the Group had no significant contingent liabilities or guarantees (March 31, 2023: nil)[43](index=43&type=chunk) [Gearing Ratio](index=15&type=section&id=Gearing%20Ratio) The Group's gearing ratio decreased to **11.5%** as of September 30, 2023, from **12.7%** on March 31, 2023 Gearing Ratio | Indicator | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Gearing ratio | 11.5% | 12.7% | [Foreign Exchange Risk](index=15&type=section&id=Foreign%20Exchange%20Risk) Most transactions are HKD-denominated, unaffected by exchange rate fluctuations, with no hedging or forward contracts in place - Most of the Group's transactions are denominated in Hong Kong dollars, which have not been significantly affected by exchange rate fluctuations[119](index=119&type=chunk) - The Group has not entered into any hedging transactions or forward contracts[119](index=119&type=chunk) [Interest Rate Risk](index=15&type=section&id=Interest%20Rate%20Risk) The Group has no significant interest rate risk, lacks a specific management policy or swap transactions, but will closely monitor future risks - The Group has no significant interest rate risk, has not formulated specific policies to manage interest rate risk, nor has it entered into interest rate swap transactions[120](index=120&type=chunk) - The Group will closely monitor future related risks[120](index=120&type=chunk) [Employees and Remuneration Policy](index=15&type=section&id=Employees%20and%20Remuneration%20Policy) The Group employed **413** staff with **HKD 91.5 million** in costs; remuneration is based on market, performance, and responsibility, with bonuses and training for talent retention Employee Headcount and Costs | Indicator | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Total employees | 413 | 334 | | Staff costs (Thousand HKD) | 91,500 | 82,400 (September 30, 2022) | - Remuneration policy is determined by reference to market salaries, individual work performance, time commitment, and responsibilities[121](index=121&type=chunk) - High-performing employees receive year-end bonuses, and relevant internal and/or external training is provided[121](index=121&type=chunk) [Material Investments, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures and Future Plans for Material Investments or Capital Assets](index=15&type=section&id=Material%20Investments%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Group made no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures, and has no authorized plans for future material investments or capital asset increases - For the six months ended September 30, 2023, the Group held no material investments, nor did it undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[100](index=100&type=chunk) - The Board currently has no authorized plans for other material investments or increases in capital assets[100](index=100&type=chunk) [Outlook](index=16&type=section&id=Outlook) The Group maintains a cautiously optimistic outlook, focusing on optimizing operations, enhancing customer experience, expanding in Hong Kong and mainland China, and leveraging IT for scalability and market share - The global economic situation is complex, with an unstable foundation for economic recovery, a challenging business environment, and consumers becoming more rational in their choices[27](index=27&type=chunk)[17](index=17&type=chunk) - The Group will continue to optimize management and operational efficiency, strictly control product quality and services, enhance customer experience, and adopt a prudent operating strategy to improve overall profitability[17](index=17&type=chunk) - CosMax+ and VITAE will continue to optimize their environments and services, introduce new treatments, strengthen marketing, consolidate their leading positions in high-end medical aesthetics, and enhance brand synergy to offer full-cycle beauty services[47](index=47&type=chunk) - XOVĒ will continue to invest in product research and development, focusing on establishing diversified sales channels in both Hong Kong and mainland China to accelerate penetration into the high-end skincare market[136](index=136&type=chunk) - The Group will continue to develop and optimize its information technology and digital management systems to enhance scalability, improve management and operational efficiency, and leverage big data analytics to increase customer satisfaction, optimize service offerings, and expand market share[123](index=123&type=chunk)[137](index=137&type=chunk) - The Group maintains a cautiously optimistic outlook for the future, will continue to leverage its strengths, adapt its business as appropriate, actively explore market opportunities in both Hong Kong and mainland China, and deliver long-term returns to shareholders[124](index=124&type=chunk) [Events After Reporting Period](index=16&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period - No significant events occurred after the reporting period[92](index=92&type=chunk) [Share Option Scheme](index=17&type=section&id=Share%20Option%20Scheme) The Company's ten-year share option scheme, adopted in 2016, had no grants, exercises, cancellations, lapses, or outstanding options for the period - The Company's share option scheme was approved and adopted on **December 19, 2016**, for a period of **ten years**[49](index=49&type=chunk) - For the six months ended September 30, 2023, no share options were granted, exercised, cancelled, or lapsed, and there were no outstanding share options[138](index=138&type=chunk) - During the period, the Company did not grant any rights to any directors or their close associates to benefit from share options[138](index=138&type=chunk) [Purchase, Sale or Redemption of Securities](index=17&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended September 30, 2023 - For the six months ended September 30, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[93](index=93&type=chunk) [Corporate Governance](index=17&type=section&id=Corporate%20Governance) This section details the Group's commitment to high corporate governance standards, covering director securities trading, Corporate Governance Code compliance, non-competition undertakings, competing interests, and Audit Committee functions [Compliance with the Model Code for Securities Transactions by Directors](index=17&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) All Directors confirmed compliance with the Model Code for Securities Transactions as per Listing Rules Appendix 10 for the six months ended September 30, 2023 - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors as set out in Appendix 10 of the Listing Rules of the Stock Exchange for the six months ended September 30, 2023[32](index=32&type=chunk) [Corporate Governance Code](index=18&type=section&id=Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code, except for the combined Chairman and CEO role held by Ms. Gigi Ma, which the Board deems in the Group's best interest - The Company has adopted the Corporate Governance Code set out in Appendix 14 of the Listing Rules and complied with all applicable code provisions for the six months ended September 30, 2023[52](index=52&type=chunk) - A deviation from code provision C.2.1 exists where the roles of Chairman and Chief Executive Officer are held by Ms. Gigi Ma, which the Board believes is in the best interests of the Group[142](index=142&type=chunk) [Compliance with Non-Competition Undertaking](index=18&type=section&id=Compliance%20with%20Non-Competition%20Undertaking) Controlling shareholders committed to non-competition, and independent non-executive Directors confirmed their compliance with the undertaking during the review period - The controlling shareholders (Glorious Holdings Limited, Ms. Gigi Ma, and Mr. Ma Ting Keung) have undertaken not to directly or indirectly conduct, participate in, or engage in any business that competes with or is similar to the Group's business[33](index=33&type=chunk) - The independent non-executive Directors have reviewed and confirmed that the controlling shareholders have complied with their undertakings under the non-competition deed for the six months ended September 30, 2023[128](index=128&type=chunk) [Competing Interests](index=18&type=section&id=Competing%20Interests) As of September 30, 2023, no Directors, controlling shareholders, or their associates had any competing interests with the Group's business - As of September 30, 2023, no Directors, controlling shareholders, or substantial shareholders, or their respective associates, had any competing interests with the Group's business[141](index=141&type=chunk) [Audit Committee](index=19&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive Directors chaired by Mr. Cheng Yuk Wo, reviewed the Group's unaudited interim financial information and report - The Audit Committee comprises three independent non-executive Directors, with Mr. Cheng Yuk Wo as Chairman, and Mr. Cheng Fu Kwok and Mr. Li Wai Kwan as members[130](index=130&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial information, the 2023/2024 interim report, and this announcement for the six months ended September 30, 2023[130](index=130&type=chunk) [Board of Directors](index=19&type=section&id=Board%20of%20Directors) The Board of Directors consists of three executive Directors (Ms. Gigi Ma, Mr. Ho Tsz Leung, Dr. Lam Ping Yan) and three independent non-executive Directors - The Board of Directors includes three executive Directors: Ms. Gigi Ma, Mr. Ho Tsz Leung, and Dr. Lam Ping Yan[36](index=36&type=chunk) - The Board of Directors includes three independent non-executive Directors: Mr. Cheng Fu Kwok, Mr. Cheng Yuk Wo, and Mr. Li Wai Kwan[36](index=36&type=chunk)

Financial Performance - The Group's revenue for FY2023 reached a record high of HK$463.1 million, showing significant growth in customer numbers and revenue across all treatment centers and skincare retail stores [45]. - Despite the growth, the Group recorded a net loss of approximately HK$20.5 million for FY2023, compared to a net profit of approximately HK$25.4 million in the previous year, primarily due to increased marketing and operational expenses in Mainland China [49]. - The financial condition remains robust with significant revenue growth and ample cash reserves to support future development despite increased marketing expenses [79]. - The Group's financial position remained healthy, with a significant increase in revenue compared to the Previous Year, supported by ample cash for future development [110]. - Marketing expenses and other expenses increased during the year due to the development of the Mainland market [110]. Brand Development and Market Expansion - The core brand CosMax+ maintained a leading position in the high-end medical aesthetic industry, contributing to the overall revenue growth [45]. - The VITAE treatment centers demonstrated increasing revenue and profit potential, indicating a positive trend for the brand [45]. - The high-end skincare brand XOVE launched in Mainland China stores of Sephora, ranking among the best-selling beauty brands within the first three months [49]. - The Group anticipates that the entry into the Mainland China market will yield positive contributions to revenue and profit as economies of scale are achieved in the future [49]. - The Group aims to leverage the growth of its three brands—CosMax+, VITAE, and XOVE—to capitalize on economic recovery in 2024 [45]. - The Group's proactive planning for future growth includes enhancing brand awareness and market presence in Mainland China through partnerships with established retailers like Sephora [49]. - The high-end skincare brand XOVE officially entered the Chinese market through Sephora, which has over 360 stores in mainland China, enhancing brand visibility [50]. - XOVE's sales performance in the first three months at Sephora was encouraging, ranking among the top beauty brands in the region [50]. Operational Efficiency and Cost Management - Staff costs increased by approximately HK$52.2 million, or 41.7%, from approximately HK$125.3 million to approximately HK$177.5 million, attributed to the opening of 6 new retail stores [57]. - Depreciation related to property, plant, and equipment rose by approximately HK$19.6 million, or 79.0%, from approximately HK$24.8 million to approximately HK$44.4 million [58]. - Other net expenses increased from approximately HK$103.2 million to approximately HK$135.5 million, mainly due to expanded operations and increased advertising and promotional expenses [62]. - The company aims to optimize operations and management to maintain a competitive advantage and improve revenue and profit for shareholders [53]. - The Group implemented standard operating procedures and a clear division of labor at its medical aesthetic centers to enhance operational efficiency and service quality [170]. Governance and Compliance - The Board is committed to high standards of corporate governance to manage business risks and enhance transparency [91]. - The Company has complied with the Listing Rules, maintaining at least 3 independent non-executive directors, representing over one-third of the Board [96]. - The Company has adopted the Model Code for Securities Transactions, ensuring all directors confirmed compliance during the review year [95]. - The Group's directors acknowledged their responsibility for preparing all information in the financial statements for the year ended 31 March 2023 [154]. - The Board oversees risk management and internal control systems, aiming to identify and mitigate risks to achieve business objectives [182]. - The Group's internal control processes are reviewed periodically to ensure effectiveness and compliance with applicable laws and regulations [184]. - The Group strictly complies with the Prevention of Bribery Ordinance, with no legal cases regarding corrupt practices reported during the reporting period [149]. - An anti-corruption policy has been established to ensure integrity and ethical conduct in business operations, with specific behavioral guidelines for employees and partners [189]. - The Group has adopted a whistleblowing policy to promote compliance and ethical behavior across its operations [188]. Community Engagement and Social Responsibility - The Company is committed to community investment and social responsibility initiatives [106]. - The Group made charitable donations amounting to HK$129,000 during the reporting period, a significant increase from HK$29,000 in 2022 [156]. - The Group's community investment policy aims to establish a comprehensive system to oversee activities related to community investment, fostering long-term relationships with stakeholders [155]. - The Group's charitable contributions reflect its commitment to community development and support for the underprivileged [156]. Research and Development - The company plans to continue investing in R&D and new projects to enhance customer experience and explore potential business opportunities in both Hong Kong and mainland China [51]. - The research and development department is responsible for managing intellectual property rights, including acquisition, modification, and monitoring across all units [172]. - The Group conducts regular training on intellectual property rights to enhance employee awareness and compliance [172]. Remuneration and Management Structure - The Remuneration Committee held one meeting during the year ended 31 March 2023, assessing the performance of executive Directors and making recommendations regarding remuneration packages [139]. - The Group's remuneration policy for directors is reviewed annually, considering experience, responsibilities, and time commitment [141]. - The current management structure allows the same individual to serve as both Chairperson and CEO, which the Board believes is in the best interest of the Company [93].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 Miricor Enterprises Holdings Limited 卓 珈 控 股 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1827） 截 至2023年3月31日 止 年 度 之 年 度 業 績 公 告 摘要 • 截至2023年3月31日止年度，本集團的收益約為463.1百萬港元，較截 至2022年3月31日 止 年 度 的 約363.9百 萬 港 元 增 加 約99.2百 萬 港 元 或 27.3%。 • 截至2023年3月31日止年度，本公司擁有人應佔虧損約為20.5百萬港元， 而截至2022年3月31日止年度則錄得溢利約25.4百萬港元。 • 截 至2023年3月31日 止 年 度，每 股 基 本 虧 損 為5.13港 仙（2022年：每 股 盈利6.35港仙）。 • 董事會並不建議或宣派截至2023年3月31日止年度的任何股息。 ...

Financial Performance - The Group's revenue for the six months ended September 30, 2022, was approximately HK$211.9 million, an increase of approximately HK$12.2 million or 6.1% compared to HK$199.7 million for the same period in 2021[11]. - Profit attributable to the owners of the Company was approximately HK$3.4 million for the six months ended September 30, 2022, a significant decrease from approximately HK$53.9 million for the same period in 2021[11]. - Total comprehensive income for the period was HK$3.3 million, down from HK$54.0 million in the previous year[13]. - Basic and diluted earnings per share attributable to ordinary equity holders of the Company were HK$0.85 cents, a decrease from HK$13.48 cents in the same period last year[13]. - The Group reported a profit before tax of HK$4.3 million, a decrease from HK$60.6 million for the same period in 2021[13]. - The Group received government subsidies of HK$6,678,000 during the six months ended September 30, 2022, primarily under the Employment Support Scheme[79]. - The total tax charge for the period was HK$900,000, a decrease of 86.5% compared to HK$6,648,000 in the same period last year[89]. - Profit for the period was approximately HK$3.4 million, down by HK$50.5 million, or 94%, from HK$53.9 million in the previous period[123][126]. Revenue Breakdown - Revenue from external customers for the six months ended September 30, 2022, was HK$211,900,000, an increase of 6.6% from HK$199,730,000 in 2021[51]. - Revenue from treatment services decreased to HK$153,569,000, down 13.0% from HK$176,594,000 in the previous year[62]. - Revenue from skin care products significantly increased to HK$58,120,000, up 154.5% from HK$22,775,000 in 2021[62]. - The geographical breakdown of revenue showed HK$203,124,000 from Hong Kong and HK$8,776,000 from Mainland China for the six months ended September 30, 2022[51]. Expenses and Costs - The cost of inventories and consumables was HK$18.99 million for the period[13]. - Staff costs amounted to HK$13.3 million during the six months ended September 30, 2022[13]. - Property rentals and related expenses totaled HK$82.4 million, an increase from HK$56.4 million in the previous year[13]. - Depreciation charge for property, plant and equipment amounted to approximately HK$21.7 million, representing 10.2% of total revenue for the Period Under Review, compared to approximately HK$7.3 million or 3.7% for the Previous Period[141]. - Other expenses, net increased by approximately HK$10.0 million or 22.8%, from approximately HK$43.9 million for the Previous Period to approximately HK$53.9 million for the Period Under Review[141]. Assets and Liabilities - Total non-current assets decreased from HK$276,708,000 to HK$264,837,000, a decline of approximately 4.0%[16]. - Current assets increased from HK$200,106,000 to HK$235,951,000, representing a growth of about 17.9%[16]. - Total current liabilities increased from HK$202,994,000 to HK$235,656,000, reflecting a rise of about 16.0%[16]. - Net assets increased from HK$171,270,000 to HK$174,579,000, a growth of approximately 1.8%[19]. - Cash and cash equivalents increased from HK$65,680,000 to HK$80,802,000, a rise of about 22.9%[16]. - Inventories increased from HK$37,969,000 to HK$45,160,000, representing a growth of approximately 19.0%[16]. - Lease liabilities decreased from HK$89,587,000 to HK$76,877,000, a reduction of approximately 14.2%[19]. Operational Insights - The Group is primarily engaged in providing medical aesthetic services and selling skin care products[30]. - The Group's reportable operating segment is the non-surgical medical aesthetic services segment, primarily engaged in providing medical aesthetic services and selling skin care products in Hong Kong and Mainland China[45]. - The Group's strategy focuses on customer needs, aiming to enhance brand reputation and service quality in the high-end medical aesthetics sector[164]. - The Group aims to maintain high service quality and competitiveness by continuing to invest in staff training[164]. - The Group will keep optimizing the environment and services of its medical aesthetic and beauty treatment centers to reinforce its market position[163]. Future Outlook - The Group is cautiously optimistic about its prospects as the pandemic stabilizes and the government eases anti-pandemic measures[163]. - The Group plans to launch new XOVE product lines in 2023 and has entered into an agreement with an international beauty retail group to establish a presence in over 300 offline retail outlets in Mainland China[169]. - The Group expects the operating environment to improve as the number of visitors to Hong Kong is anticipated to increase steadily[170]. Shareholding and Governance - As of September 30, 2022, Ms. Lai Ka Yee Gigi holds 275,000,000 shares, representing 68.75% of the company's issued share capital[189]. - Mrs. Gigi Ma is deemed to be interested in 100% of the issued share capital of Sunny Bright, due to her spouse's ownership of the remaining shares[198]. - No other directors or chief executives registered any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations as of September 30, 2022[199].

Financial Performance - The Group achieved record-high revenue of over HK$360 million for FY2022 despite a nearly three-month business suspension due to COVID-19[44]. - The profit margin for FY2022 was lower than previous years due to the impact of the pandemic on operations[44]. - The Group's revenue for the year ended 31 March 2022 increased by approximately HK$235.0 million, or 182.3%, reaching HK$363.9 million compared to HK$128.9 million in the previous year[56][69]. - The Group returned to profitability with a profit of approximately HK$25.4 million for the year, compared to a net loss of approximately HK$12.7 million in the previous year[56][58]. - Total revenue for the year was approximately HK$363.9 million, an increase of approximately HK$235.5 million or 182.3% compared to HK$128.9 million in the previous year[70]. - Revenue from treatment services amounted to approximately HK$289.1 million, representing 79.4% of total revenue, an increase of approximately HK$180.7 million or 166.7% from HK$108.4 million in the previous year[72]. - Revenue from skin care products reached approximately HK$74.3 million, accounting for 20.5% of total revenue, an increase of approximately HK$54.4 million or 273.4% from HK$19.9 million in the previous year[77]. - Revenue from prescription and dispensing of medical products remained stable at approximately HK$0.5 million, representing 0.1% of total revenue, compared to 0.4% in the previous year[78]. Business Expansion and Development - New medical aesthetic centres and retail stores were opened, contributing to higher rental expenses and depreciation compared to the previous year[49]. - The ongoing COVID-19 pandemic affected the revenue and profit potential of new stores, which were not fully realized in FY2022[49]. - The Group plans to continue investing in research and development to introduce new treatment services and products in FY2023[51]. - The expansion of three brands is expected to enhance overall business performance and achieve stronger economies of scale[49]. - The Group aims to explore local and overseas business opportunities to diversify its presence and customer base[51]. - The Group continues to invest in research and development, introducing new treatment services and products to enhance business growth[56]. - The launch of the new beauty brand VITAE focuses on the principle of "inner health realises external beauty," with three treatment centres currently operating in prime locations[63][65]. - XOVĒ, a premium skincare product line developed by Swiss specialists, is marketed through five retail stores in first-tier shopping malls and online platforms[64][66]. - The medical aesthetics industry is experiencing rapid growth, and the Group aims to expand its business and retail network to reach a wider consumer base[64][66]. - The Group's effective market promotions have significantly increased public awareness of its brands, leading to higher revenue from both treatment services and skincare product sales[69]. - The Group expanded its CosMax+ medical aesthetic centres, increasing the total service floor area to serve more customers and enhance service quality[138][141]. - The Group launched a new treatment brand, VITAE, and currently operates three treatment centres, expecting high growth in the coming years[146]. - The skincare brand XOVĒ introduced five retail stores in first-tier shopping malls in Hong Kong and is promoting products online in Mainland China and Hong Kong[146]. - The Group plans to deepen its presence in Mainland China and explore business opportunities in both Mainland China and Hong Kong[146]. - The demand for medical aesthetic services is expected to grow at a higher rate in the coming years, supported by the steady recovery of the local economy post-COVID-19[149]. - The Group is actively exploring local and overseas business opportunities to expand its network and retail stores, aiming for a wider and more diversified customer base[152]. Operational and Financial Management - Regular reviews of operational strategies will be conducted to maintain reasonable profit growth while capitalizing on industry expansion[44]. - The management is committed to maximizing returns for shareholders while ensuring steady business growth[51]. - Staff costs increased by approximately HK$54.4 million or 76.7%, from approximately HK$70.9 million in the previous year to approximately HK$125.3 million due to the opening of new treatment centres and retail stores[89]. - Property rentals and related expenses increased by approximately HK$27.4 million or 129.2%, from approximately HK$21.2 million in the previous year to HK$48.6 million due to new treatment centres and retail stores[90]. - Cost of inventories and consumables amounted to approximately HK$29.0 million, representing 8.0% of total revenue, compared to 10.1% in the previous year[80]. - Other income decreased by approximately HK$11.5 million or 89.8%, from approximately HK$12.8 million in the previous year to approximately HK$1.3 million due to reduced government subsidies[79]. - Credit card commission increased by 139.8% to approximately HK$8.7 million in 2022 from HK$3.6 million in 2021[96]. - Advertising and promotion expenses surged by 288.8% to approximately HK$47.8 million in 2022 from HK$12.3 million in 2021, primarily due to new promotional campaigns[96]. - Net cash flows from operating activities rose by approximately HK$19.5 million to HK$44.0 million in 2022 compared to the previous year[118]. - Finance costs increased by approximately HK$1.2 million to HK$3.0 million in 2022 from HK$1.8 million in 2021[98]. - Income tax expenses amounted to approximately HK$5.8 million for the Year Under Review, compared to a tax credit of HK$3.6 million in the previous year[99]. - The Group's cash and cash equivalents decreased to approximately HK$65.7 million as of March 31, 2022, from HK$161.8 million in 2021[109]. - Net cash flows used in investing activities were approximately HK$97.5 million, primarily due to capital expenditures for new treatment centres and retail stores[118]. - Lease liabilities increased to approximately HK$127.6 million as of March 31, 2022, compared to HK$42.5 million in 2021[118]. - The Board did not recommend or declare any dividend for the Year Under Review, consistent with the previous year[108]. - The total number of employees increased to 366 as of March 31, 2022, up from 195 in 2021, with staff costs amounting to approximately HK$125.3 million, compared to HK$70.9 million in the previous year[135][139]. - The Group did not have any interest-bearing bank borrowings as of March 31, 2022, maintaining a gearing ratio of zero[125][129]. Corporate Governance and Management - The Company has complied with all applicable code provisions of the Corporate Governance Code during the year ended March 31, 2022, except for one deviation regarding the separation of roles of chairman and chief executive officer[189]. - The current management structure has the same individual serving as both chairlady and chief executive officer, which the Board believes is in the best interest of the Group for effective management[190]. - Amendments to the Corporate Governance Code took effect on January 1, 2022, and the Board will continue to enhance corporate governance practices to ensure compliance with the revised code[191]. - The Company has adopted the Model Code for Securities Transactions for Directors, and all Directors confirmed compliance with the required standards during the review year[196]. - The company has complied with Rule 3.10 of the Listing Rules by appointing at least three independent non-executive directors, representing more than one-third of the Board[198]. - At least one of the independent non-executive directors possesses appropriate professional qualifications or expertise in accounting or related financial management[198]. - All independent non-executive directors meet the independence guidelines set out in Rule 3.13 of the Listing Rules[199]. - Each independent non-executive director provides an annual confirmation of independence as required by the Listing Rules[199]. - The company believes that all independent non-executive directors are independent according to the relevant guidelines of the Listing Rules[199]. Management Team Background - Dr. Lam Ping Yan joined the Group as an executive Director in July 2020, bringing extensive public health experience[167]. - Dr. Lam has served in various significant roles, including Deputy Director of Health and Chief Port Health Officer, contributing to public health policy in Hong Kong[167]. - He has been involved in the prevention and control of diseases such as SARS and swine flu during his tenure as a public officer[167]. - Dr. Lam has been an Honorary Professor at the Chinese University of Hong Kong since 2004, indicating a strong academic background[167]. - He received the Silver Bauhinia Star in 2012 for his contributions to public health in Hong Kong[167]. - Dr. Lam holds a Bachelor of Medicine and Bachelor of Surgery from the University of Hong Kong and a Master of Medicine in Public Health from the National University of Singapore[169]. - He has served as a temporary advisor to the World Health Organization on traditional medicine and non-communicable diseases[167]. - Dr. Lam was awarded the Cross-Strait Contribution Award for Chinese in Tobacco Control in 2012, highlighting his commitment to health initiatives[167]. - He has held leadership positions in various health committees, including the Cancer Coordinating Committee and the Working Group on Diet and Physical Activity[167]. - Dr. Lam is a fellow of the Hong Kong Academy of Medicine and a registered specialist in community medicine, underscoring his professional qualifications[169]. - Mr. Cheng has over 30 years of experience in auditing, finance, and business management[174]. - Mr. Li is the chief financial officer of Crystal International Group Limited, responsible for finance matters since November 2018[178]. - Mr. Li previously served as vice president of operational finance at Esprit Holdings Limited, overseeing finance and operational matters[178]. - Mr. Li was a managing director at COFCO Agricultural Industrial Investment Fund Management Company Limited, managing overall business and investment matters[178]. - Mr. Li was the chief financial officer of Zhuhai Dahengqin Company Limited, responsible for finance, investment, and fund management from August 2013 to October 2018[178]. - Mr. Cheng has been an independent non-executive director of multiple companies listed on the Stock Exchange, including CSI Properties Limited and Top Spring International Holdings Limited[175]. - Mr. Cheng has been the sole proprietor of Erik Cheng & Co., Certified Public Accountants in Hong Kong since 1999[174]. - Mr. Cheng graduated with a Bachelor's degree in Accounting from the University of Kent and a Master's degree in Accounting and Finance from the London School of Economics[174]. - Mr. Cheng was conferred the distinction of "Chevalier de l'Ordre National du Mérite" by the French Government in May 2015[175]. - Mr. Cheng has served as an independent non-executive director for various companies, including those that have been privatized or delisted[175]. - Mr. Li has extensive experience in accounting, finance, and investment management, serving as CFO of Crystal International Group since November 2018[179]. - He held various senior financial roles in publicly listed companies, including Vice President of Finance at Esprit Holdings and Vice President at COFCO Corporation[179]. - Mr. Li has been involved in asset management and investment work, including as Managing Director at COFCO Agricultural Fund Management[179]. - He graduated with a Bachelor of Commerce degree with distinction from the University of Toronto in November 1995 and an MBA from Schulich School of Business in November 1996[184]. - Mr. Li has served on multiple committees and associations, including as Chairman of the Institute of Public Accountants – Hong Kong Branch since 2019[182]. - He was a member of the Finance Committee of the Hong Kong Housing Authority from 2010 to 2012[183]. - Mr. Li has been actively involved in investor relations and public awareness initiatives within the financial community[182]. - He has held leadership positions in various professional organizations, enhancing his influence in the finance sector[183]. - His career spans over two decades, focusing on financial management and strategic investment across different industries[179]. - Mr. Li's diverse background equips him with a comprehensive understanding of market trends and corporate finance strategies[179].

Financial Performance - The Group's revenue for the six months ended September 30, 2021, was approximately HK$199.7 million, an increase of approximately HK$145.2 million or 266.4% compared to HK$54.5 million for the same period in 2020[9]. - Profit attributable to the owners of the Company was approximately HK$53.9 million for the six months ended September 30, 2021, compared to a loss of approximately HK$6.2 million for the same period in 2020[9]. - The profit before tax for the six months ended September 30, 2021, was HK$60.6 million, compared to a loss of HK$7.6 million for the same period in 2020[11]. - The total comprehensive income attributable to owners of the Company for the period was HK$126,000, compared to HK$30,000 in the same period of 2020[11]. - Earnings per share attributable to ordinary equity holders of the Company was HK$13.48 cents for the six months ended September 30, 2021, compared to a loss of HK$1.55 cents for the same period in 2020[11]. - The company reported a total comprehensive loss of HK$6,189,000 for the period[21]. - The Group reported record-high revenue of HK$199.7 million for the six months ended 30 September 2021, an increase of HK$145.2 million or 266.4% compared to the previous period[182]. - The Group achieved a profit of approximately HK$53.9 million for the period under review, reversing a net loss of approximately HK$6.2 million in the previous period[182]. Revenue Breakdown - Revenue from treatment services increased significantly to HK$176,594,000 for the six months ended September 30, 2021, compared to HK$50,566,000 in the same period of 2020, representing a growth of 248%[66]. - Revenue from skin care products rose to HK$22,775,000, up from HK$3,657,000, marking an increase of 523% year-over-year[66]. - Total revenue from contracts with customers reached HK$199,730,000, a substantial increase from HK$54,500,000, reflecting a growth of 267%[66]. - The Group recognized revenue of HK$112,550,000 from treatment services that was included in contract liabilities at the beginning of the reporting period, compared to HK$27,821,000 in the previous year, indicating a growth of 304%[72]. - The Group's revenue from Hong Kong was HK$195,358,000, while revenue from the PRC was HK$4,372,000, indicating a strong performance in the Hong Kong market[71]. Cost and Expenses - Staff costs increased to HK$56.4 million for the six months ended September 30, 2021, from HK$32.7 million in the same period of 2020[11]. - The cost of inventories and consumables was HK$13.3 million for the six months ended September 30, 2021, compared to HK$5.6 million in the same period of 2020[11]. - Property rentals and related expenses rose by approximately HK$7.1 million or 68.3%, from approximately HK$10.4 million in the previous period to approximately HK$17.5 million in the review period[198]. - Other expenses increased by approximately HK$30.5 million or 227.6%, from approximately HK$13.4 million in the previous period to approximately HK$43.9 million in the review period[200]. Assets and Liabilities - Total non-current assets increased to HK$195,567,000 as of September 30, 2021, up from HK$94,157,000 as of March 31, 2021, representing a growth of 107%[14]. - Current assets totaled HK$286,852,000, an increase from HK$277,978,000, reflecting a growth of 3.14%[14]. - Net current assets rose to HK$95,428,000, compared to HK$83,673,000, indicating an increase of 14.5%[17]. - Total liabilities decreased slightly to HK$282,800,000 from HK$286,561,000, a reduction of 1%[17]. - Total equity increased to HK$199,619,000, up from HK$145,574,000, marking a growth of 37%[17]. - Inventories surged to HK$33,142,000, compared to HK$14,154,000, representing an increase of 134%[14]. - Trade receivables increased significantly to HK$37,810,000 from HK$16,263,000, a growth of 132%[14]. - Credit card receivables increased to HK$37,748,000 from HK$16,344,000, indicating a growth of 130.5%[120]. Cash Flow - Cash generated from operations was a net outflow of HK$25,597,000, compared to a positive cash flow of HK$17,489,000 in the prior year[40]. - Net cash flows used in investing activities amounted to HK$4,087,000, a decrease from cash inflow of HK$14,656,000 in the previous period[45]. - Total cash and cash equivalents at the end of the period were HK$102,338,000, down from HK$109,453,000 at the end of the previous period[45]. - Cash and cash equivalents decreased to HK$112,338,000 from HK$161,773,000, a decline of 30.5%[14]. Strategic Developments - The Group operates three "CosMax" brand medical aesthetic centres located in Causeway Bay, Central District, and Tsim Sha Tsui, with a total of 30 treatment rooms in the Causeway Bay centre alone[183]. - The Group launched a new beauty brand "VITAE" with a focus on "Healthy Beauty," emphasizing the balance between beauty and health[184]. - The Group signed two new lease agreements for new centres in prime locations, including New World Tower II and Peninsula Office Tower, to expand its business[184]. - The Group plans to open new medical aesthetic service centers and skincare product retail stores in Hong Kong in FY2022 to deepen market penetration[192]. Accounting and Compliance - The company adopted revised accounting standards, including amendments related to interest rate benchmark reform and Covid-19-related rent concessions[56]. - The Group early adopted amendments to HKFRS 16, allowing for rent concessions due to the COVID-19 pandemic, which will apply to concessions affecting payments due on or before June 30, 2022[61]. - The amendments related to interest rate benchmark reform did not impact the Group's financial position or performance[59]. - The Group's financial reporting includes additional disclosures to help users understand the effects of interest rate benchmark reform on financial instruments and risk management strategies[59].

Business Expansion - The company signed two new lease agreements to expand its business in Central and Tsim Sha Tsui, increasing the capacity of its medical aesthetic service center[39] - The Group has entered into two lease agreements that will increase its total service floor area by over 98% to more than 42,000 sq ft, enhancing its capacity for medical aesthetic services in prime locations in Hong Kong[132][133] - The company is actively exploring opportunities to open additional medical aesthetic service centers and retail stores for skincare products in FY 2022[47] - The Group plans to open new medical aesthetic service centers and retail stores in Hong Kong and the PRC during FY2022 to expand its market presence[59] Financial Performance - The Group's revenue for the year ended March 31, 2021, decreased by HK$47.6 million, or 27.0%, to HK$128.9 million compared to HK$176.5 million for the previous year[54][61] - The loss for the year amounted to approximately HK$12.7 million, contrasting with a net profit of approximately HK$13.6 million in the previous year[54][61] - Revenue from treatment services amounted to approximately HK$108.4 million for the Year Under Review, representing 84.1% of total revenue[69] - Revenue from the sale of skin care products increased by approximately HK$1.3 million, or 7.0%, to HK$19.9 million, representing 15.5% of total revenue[72] - Revenue from consultation services decreased to approximately HK$31,000 for the Year Under Review from approximately HK$138,000 for the Previous Year[78] - Revenue from prescription and dispensing of medical products was approximately HK$0.5 million, representing 0.4% of total revenue[80] - Other income increased by approximately HK$8.7 million, or 212.2%, to HK$12.8 million, primarily due to government subsidies[81] Operational Challenges - The company closed all treatment centers during specific periods due to COVID-19, including from April 10 to May 7, 2020, July 15 to August 28, 2020, and December 10, 2020, to February 17, 2021[40] - The COVID-19 pandemic significantly impacted the Group's operations, leading to the compulsory closure of beauty parlors and social distancing measures[61][62] - The Group closed all treatment centers during several periods due to COVID-19, which significantly impacted consumer sentiment and is expected to continue affecting business until the pandemic is contained[128][131] Product Development - Over the past decade, the company has focused on medical innovations and expanded its product variety, introducing new treatment devices and premium services[45] - A new beauty brand "VITAE by CosMax" was launched, focusing on the principle of "Inner health realizes external beauty," aiming to capture the growing health-conscious market[56] - The Group has launched a new skin care product line "XOVE," featuring the exclusive "White Truffles W-TruComplex" for enhanced skin rejuvenation[57][58] - E-commerce efforts were intensified with the establishment of XOVE's online shop in July 2020, targeting customers in the PRC through platforms like T-mall and Xiaohongshu[57][58] Cost Management - Cost of inventories and consumables decreased to approximately HK$13.0 million, representing 10.1% of total revenue[82] - Staff costs decreased by approximately HK$10.9 million, or 13.3%, to approximately HK$70.9 million for the Year Under Review[88] - Property rentals and related expenses decreased by approximately HK$1.3 million, or 5.8%, to HK$21.2 million[89] - Other expenses increased by approximately HK$9.3 million to approximately HK$38.0 million, primarily due to higher advertising expenses for new promotions[97] - Finance costs decreased from approximately HK$2.2 million to HK$1.8 million, a reduction of about 18.2%[99] Leadership and Governance - The Group's overall management and brand strategy are overseen by Ms. Lai, who has been with the Group since 2009[145] - The Group is focused on expanding its market presence and enhancing its brand strategies under the leadership of its executive team[145] - The executive team includes members with significant experience in marketing, public health, and community medicine, enhancing the Group's strategic capabilities[149][152] - The management team is committed to developing new strategies for market expansion and product innovation[145] - The Group's leadership includes professionals with a strong track record in both the medical and marketing fields, positioning it for future success[149][152] Compliance and Corporate Governance - The Group has complied with all applicable code provisions of the Corporate Governance Code during the year ended March 31, 2021, except for one deviation regarding the separation of roles of chairman and chief executive officer[173] - The current management structure has Ms. Lai Ka Yee Gigi serving as both chairlady and chief executive officer, which the Board believes is in the best interest of the Group for effective management[173] - The Board consists of 3 independent non-executive directors, representing more than one-third of the Board, complying with Listing Rules[178] - The Board's governance practices are regularly reviewed to ensure compliance with statutory and regulatory requirements[183]

Financial Performance - The Group's revenue for the six months ended September 30, 2020, was approximately HK$54.5 million, a decrease of approximately HK$36.0 million or 39.8% compared to HK$90.5 million for the same period in 2019[11]. - Loss attributable to the owners of the Company was approximately HK$6.2 million for the six months ended September 30, 2020, compared to a profit of approximately HK$11.5 million in 2019[11]. - The total comprehensive loss for the period attributable to owners of the Company was HK$6.16 million, compared to a total comprehensive income of HK$11.54 million in 2019[13]. - Basic and diluted loss per share attributable to ordinary equity holders of the Company was HK(1.55) cents for the six months ended September 30, 2020, compared to HK2.88 cents in 2019[13]. - The Group reported a loss before tax of HK$7.65 million for the six months ended September 30, 2020, compared to a profit before tax of HK$14.04 million in 2019[13]. - The company reported a loss before tax of HK$7,647,000 for the six months ended September 30, 2020, compared to a profit of HK$14,035,000 in the same period of the previous year[26]. - For the six months ended 30 September 2020, the company reported a loss attributable to ordinary equity holders of HK$6,189,000, compared to a profit of HK$11,536,000 in 2019, representing a significant decline[102]. Revenue Breakdown - Total revenue from contracts with customers for the six months ended September 30, 2020, was HK$54,500,000, a decrease of 39.7% compared to HK$90,483,000 for the same period in 2019[61]. - Revenue from treatment services was HK$45,984,000, down 41.0% from HK$77,766,000 in the previous year[61]. - Revenue from skin care products decreased to HK$3,657,000, a decline of 34.1% from HK$5,552,000 in 2019[61]. - Government grants recognized during the period amounted to HK$5,596,000, compared to no grants in the same period last year[80]. Expenses and Costs - Staff costs decreased to HK$32.7 million for the six months ended September 30, 2020, from HK$36.98 million in 2019[13]. - Employee benefit expenses, excluding directors' remuneration, were HK$29,222,000, down 15.5% from HK$34,408,000 in 2019[86]. - Other expenses decreased by approximately HK$1.1 million or 7.6%, from approximately HK$14.5 million to approximately HK$13.4 million, primarily due to reduced recruitment expenses[173]. - Finance costs amounted to approximately HK$1.0 million for the Period Under Review, down from approximately HK$1.2 million in the Previous Period[179]. Assets and Liabilities - Total non-current assets decreased from HK$106,825,000 as of March 31, 2020, to HK$97,244,000 as of September 30, 2020, representing a decline of approximately 8.5%[17]. - Total current assets rose from HK$250,426,000 to HK$263,079,000, an increase of about 5.0%[17]. - Total liabilities increased from HK$196,723,000 to HK$208,251,000, reflecting a rise of about 5.8%[20]. - Total equity decreased from HK$158,231,000 to HK$152,072,000, representing a reduction of about 3.9%[20]. Cash Flow and Liquidity - Cash generated from operations decreased from HK$32,487,000 to HK$17,489,000, a decline of approximately 46.1%[26]. - The company’s cash and cash equivalents increased from HK$157,327,000 to HK$163,488,000, an increase of approximately 3.7%[17]. - Cash and cash equivalents at the end of the period were HK$109,453, significantly up from HK$17,882 at the end of the same period in 2019[42]. - The net increase in cash and cash equivalents during the period was HK$23,849, compared to HK$6,563 in the previous year, showing a positive cash flow trend[42]. Operational Highlights - The company is primarily engaged in providing medical aesthetic services and selling skincare products in Hong Kong, focusing on market expansion in these sectors[47]. - The Group operates three medical aesthetic centres in prime locations, with a total area of 12,156 sq ft in Causeway Bay, 6,050 sq ft in Tsim Sha Tsui, and 3,092 sq ft in Central, offering a total of 56 treatment rooms[154][157]. - A new beauty brand "VITAE by CosMax" has been launched, focusing on the principle of "Inner health realizes external beauty" to cater to the growing health awareness trend[155][158]. - The Group has launched a new skincare product line "XOVÉ" and established an online platform for sales, including e-commerce efforts targeting customers in the PRC[156][159]. Corporate Governance - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[11]. - The financial statements have been prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with local regulations[49]. - The company adopted several amendments to accounting standards, including HKFRS 16 related to Covid-19 rent concessions, which may impact financial reporting[52]. Market Conditions - The Group's medical aesthetic centres were closed from April 10 to May 7, 2020, and July 15 to August 28, 2020, due to COVID-19, impacting consumer sentiment and creating a challenging business environment[189]. - Sales of products and services and the utilization rate of medical aesthetic centres are highly dependent on the recovery of the overall business environment, with increased uncertainty in future operating performance due to COVID-19[190].

Financial Performance - Revenue for the year ended March 31, 2020, increased by 14.1% to approximately HK$176.5 million compared to the previous year[13] - For the year ended March 31, 2020, the Group's revenue increased by HK$21.8 million, or 14.1%, to HK$176.5 million compared to the previous year[30] - Profit for the year amounted to HK$13.6 million, a decrease from HK$21.8 million in 2019, primarily due to an increase in staff costs[30] - Revenue from treatment services amounted to HK$146.2 million for the year ended March 31, 2020, representing 82.8% of total revenue, compared to HK$139.0 million or 89.8% for the previous year[48] - Revenue from skin care products increased to HK$18.6 million for the year ended March 31, 2020, representing 10.6% of total revenue, up from HK$10.5 million or 6.8% in the prior year, marking a growth of approximately HK$8.1 million or 77.1%[52] - Other income accounted for approximately HK$4.1 million for the year ended March 31, 2020, representing 2.3% of total revenue, an increase from HK$2.6 million or 1.7% in the prior year[55] Business Operations - The company operates three medical aesthetic centers in trendy locations across Hong Kong, enhancing customer accessibility and strengthening the customer base[14] - The Group operates three "CosMax" brand medical aesthetic centers located in prime areas, with the Causeway Bay center having 30 treatment rooms across 12,156 sq ft[30] - A partnership agreement was signed with We Doctor Holdings Limited, allowing the company to launch products on WeDoctor's platform and reach millions of potential customers in mainland China[14] - The Group signed a partnership with WeDoctor Holdings Limited, allowing customers from mainland China to book treatment services through its platform, marking a significant expansion into the mainland market[33] - The Group has over 140 treatment devices as of March 31, 2020, to offer diverse treatment procedures[33] - The company plans to continue expanding its store network and acquiring new clientele to increase market share[14] Product Development - A new anti-aging skincare product line, XOV, was launched in collaboration with a Swiss skincare research team, aiming to expand market share in skincare products[21] - A new skincare product line, XOV, was launched, utilizing the active ingredient "W-TruComplex" for anti-aging effects[33] - The new brand "VITAE by CosMax" was introduced, focusing on the balance between beauty and health, and aims to provide a series of skincare solutions[30] - The Group plans to continue expanding its product lines and promotional activities to further increase brand awareness and customer acquisition[52] COVID-19 Impact and Response - The COVID-19 pandemic led to the closure of all treatment centers for 28 days from April 10 to May 7, 2020, prioritizing health and safety[21] - Stringent hygiene policies and procedures were implemented at treatment centers to ensure safety and strengthen customer confidence[21] - The Group has implemented strict hygiene policies and procedures to ensure the safety of customers and staff during the COVID-19 pandemic[30] - The Group remains optimistic about the industry outlook despite challenges posed by the COVID-19 pandemic[30] - The Group's proactive management strategy is expected to help navigate uncertainties arising from the COVID-19 pandemic[100] Management and Governance - The Group's overall management and strategic planning are overseen by Ms. Li, who has been with the Group since July 2009 and became an executive director in December 2016[109] - The management team has a diverse background, with experience in multinational companies and various sectors, including technology, marketing, and public health[110][115][119] - The leadership team is committed to driving growth through innovative marketing strategies and operational improvements[114][118] - The Board is committed to achieving the highest standards of corporate governance consistent with the needs of its businesses[150] - The Company has complied with all applicable code provisions of the Corporate Governance Code during the year ended March 31, 2020, with some deviations noted[151] Financial Position and Cash Flow - Cash and cash equivalents stood at HK$157.3 million as of March 31, 2020, with net current assets representing working capital of HK$89.9 million[71] - Cash and cash equivalents at the end of the year were approximately HK$85.6 million, compared to HK$11.3 million at the end of the previous year, reflecting an increase of 656.0%[76] - The current ratio as of March 31, 2020 was 1.56, indicating a healthy liquidity position for the Group[100] - Net cash flows from operating activities for the year ended 31 March 2020 were HK$63.5 million, an increase of approximately HK$16.9 million compared to the previous year[77] - Net cash flows from investing activities amounted to HK$26.1 million, primarily due to a decrease in purchases of property, plant, and equipment[81] Employee and Cost Management - Staff costs increased by approximately HK$28.1 million, or 52.3%, from HK$53.7 million in 2019 to HK$81.8 million in 2020, driven by increased commissions and headcount[60] - Other expenses decreased by approximately HK$1.4 million from HK$30.1 million in 2019 to HK$28.7 million in 2020, primarily due to a one-off write-off of leasehold improvements[66] - Employee costs, including Directors' remuneration, were approximately HK$81.8 million for the year ended March 31, 2020, up from approximately HK$53.7 million in the previous year[89] Audit and Compliance - The Audit Committee, comprising three independent non-executive directors, held three meetings during the year, attended by the external auditor to discuss financial reporting[194] - The Company has established an Audit Committee with specific terms of reference to oversee financial reporting processes[194] - The Audit Committee reviewed the risk management and internal control systems of the Company and its subsidiaries[198] - The Company Secretary maintains minutes of meetings, which are available for inspection by directors upon reasonable notice[173]