股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 卓珈控股集團有限公司 (「本公司」)(於開曼群島註冊成立之有限公司) 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01827 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | 本月底法 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 卓珈控股集團有限公司 (「本公司」)(於開曼群島註冊成立之有限公司) 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01827 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | 本月底法 ...

Financial Performance - The Group achieved a revenue of HK$403.2 million for FY2025, a decrease of 18.4% compared to HK$494.3 million in FY2024[11]. - Earnings before interest, taxes, and depreciation for FY2025 was HK$58.6 million, representing an increase of 84.9% year-on-year from HK$31.7 million in FY2024[11]. - The Group reported a net profit of HK$10.6 million for FY2025, a turnaround from a net loss of HK$12.6 million in FY2024[11]. - The Group's revenue for FY2025 was approximately HK$403.2 million, a decrease of about HK$91.1 million or 18.4% compared to HK$494.3 million in FY2024[66]. - Revenue from treatment services amounted to approximately HK$350.3 million in FY2025, representing 86.9% of total revenue, down by approximately HK$24.2 million or 6.5% from FY2024[69]. - Revenue from skincare products decreased to approximately HK$52.8 million in FY2025, representing 13.1% of total revenue, a decline of approximately HK$66.8 million or 55.9% from FY2024[71]. - Other income and gain, net increased to approximately HK$6.4 million in FY2025, up by approximately HK$0.6 million or 10.3% from FY2024[76]. Cost Management - Operating expenses were reduced by 24.5% year-on-year through supply chain optimisation and other measures[26]. - Operating expenses decreased by 24.5% year-on-year, significantly lowering the expense-to-revenue ratio[28]. - Staff costs decreased by approximately HK$42.2 million or 23.0%, from approximately HK$183.8 million in FY2024 to approximately HK$141.6 million in FY2025[78]. - Property rentals and related expenses decreased by approximately HK$13.7 million or 20.2%, from approximately HK$67.9 million in FY2024 to approximately HK$54.2 million in FY2025[79]. - Other expenses, net decreased by approximately HK$59.5 million from approximately HK$159.6 million in FY2024 to HK$100.1 million in FY2025, a reduction of 37.3%[87]. Market Trends - The medical aesthetic and wellness beauty market in Hong Kong is expected to grow steadily, driven by rising demand for personalised services[20]. - The medical aesthetics market in Hong Kong is experiencing steady growth, driven by increased consumer demand and technological advancements[34]. - Non-surgical aesthetic services are dominating the market, particularly Botox and hyaluronic acid injections, due to their less invasive nature[36]. - The consumer base is becoming younger, with the 20-40 age group now representing the majority of medical aesthetics consumers[36]. - Skincare retail revenue faced a temporary adjustment due to subdued retail market conditions and consumer sentiment[65]. Customer Engagement - Customer satisfaction and customer bases continued to improve, reflecting the Group's efforts in service quality and customer experience[26]. - The Group revamped its loyalty programme to improve customer retention, which has shown effectiveness in strengthening business performance[17]. - The Group is focusing on enhancing customer retention through strategies based on customer spending patterns[30]. Strategic Direction - The Group's future strategies focus on enhancing branding, customer focus, professionalism, and management optimisation for sustainable growth[21]. - The introduction of innovative aesthetic treatments and continuous service portfolio improvement are key strategies to meet market demands[47]. - The Group aims to enhance brand value and adopt prudent financial strategies to achieve sustainable growth in the medical aesthetics and wellness beauty industry[60]. - The Group plans to accelerate the introduction of innovative treatments and product portfolios to enhance brand influence and market penetration in response to improving local consumer conditions[118]. Financial Health - Cash flow remained healthy, and gearing ratios were kept at a low level, resulting in a stable financial structure[18]. - Cash and cash equivalents rose to HK$182.3 million as of March 31, 2025, compared to HK$119.8 million in 2024, indicating improved liquidity[95]. - Interest-bearing bank borrowings decreased to approximately HK$5.9 million in FY2025 from HK$12.5 million in FY2024, reflecting reduced debt levels[97]. - The gearing ratio improved to approximately 4.0% as of March 31, 2025, down from 9.1% in 2024, demonstrating a stronger capital structure[100]. Management and Governance - Ms. LAI Ka Yee Gigi has been leading the Group since 2009, focusing on the medical aesthetic service industry after her career in film and television[123]. - The Group has a strong management team with diverse backgrounds in marketing, public health, and creative industries, enhancing its strategic capabilities[125]. - The Company aims to become a renowned enterprise in non-surgical medical aesthetic and wellness beauty services, targeting the creation of value for shareholders[156]. - The Company has complied with all applicable code provisions of the Corporate Governance Code for the year ended 31 March 2025, with one exception regarding the separation of roles of chairman and chief executive officer[154][155]. - The Board is composed of 3 executive directors and 3 independent non-executive directors, complying with the Listing Rules regarding board composition[160]. - The Company maintains a system of internal controls and risk management procedures as part of its governance responsibilities[175]. Corporate Governance - The company is committed to high standards of corporate governance, having complied with applicable codes and principles[171]. - The Company has established a corporate governance function to review and monitor policies, including compliance with legal and regulatory requirements[186]. - The Company encourages Directors to participate in continuous professional development to enhance their knowledge and skills[182]. - The Board held four regular meetings during the year ended March 31, 2025, with full attendance from all Executive Directors[176]. - The Audit Committee, comprising three Independent Non-Executive Directors, held three meetings during the year, attended by the Company's external auditor[189].

Financial Performance - For the fiscal year ending March 31, 2025, the group's revenue was approximately HKD 403.15 million, a decrease of about HKD 91.11 million or 18.4% compared to HKD 494.26 million for the fiscal year ending March 31, 2024[3]. - The company reported a profit attributable to equity holders of approximately HKD 10.6 million for the fiscal year ending March 31, 2025, reversing from a loss of HKD 12.6 million for the fiscal year ending March 31, 2024[3]. - Basic earnings per share for the fiscal year ending March 31, 2025, was HKD 0.0265, compared to a basic loss per share of HKD 0.0315 for the previous year[3]. - The group reported a net loss of HKD 10,590,000 for the year, with no potential dilutive ordinary shares issued[24]. - The group reported revenue of HKD 403.2 million for the fiscal year 2025, a decrease of 18.4% compared to HKD 494.3 million in fiscal year 2024[29]. - The group incurred income tax expenses of HKD 12,427,000 in 2025, compared to HKD 836,000 in 2024[21]. - The company expects to report a profit attributable to shareholders of approximately HKD 10.6 million in FY2025, compared to a loss of HKD 12.6 million in FY2024[47]. Assets and Liabilities - Total non-current assets decreased to HKD 156.29 million in 2025 from HKD 196.88 million in 2024[5]. - Current assets increased to HKD 314.99 million in 2025 from HKD 282.56 million in 2024, with cash and cash equivalents rising to HKD 182.32 million from HKD 119.83 million[5]. - Total current liabilities decreased to HKD 263.85 million in 2025 from HKD 277.98 million in 2024[5]. - The company's total assets less current liabilities increased to HKD 207.43 million in 2025 from HKD 201.47 million in 2024[5]. - The company reported a net cash position of HKD 51.14 million in 2025, compared to HKD 4.59 million in 2024[5]. - Non-current assets total HKD 168,997,000 in 2025, an increase from HKD 128,839,000 in 2024[15]. - Total non-current liabilities amount to HKD 59,866,000 in 2025, down from HKD 64,703,000 in 2024, indicating a decrease of 7.1%[6]. Revenue Breakdown - Revenue from treatment services was approximately HKD 350.3 million, accounting for 86.9% of total revenue, a decrease of about HKD 24.2 million or 6.5% due to a relatively weak economic environment[37]. - Revenue from skincare products dropped significantly to HKD 52,804,000 in 2025 from HKD 119,641,000 in 2024, representing a decline of 55.9%[17]. - Revenue from Hong Kong for 2025 is expected to be HKD 400,318,000, down 11.2% from HKD 450,819,000 in 2024[15]. Operational Efficiency - The company is focusing on improving operational efficiency and exploring new market opportunities to drive future growth[4]. - Operating profit before interest, tax, and depreciation increased to HKD 58.6 million, up 84.9% from HKD 31.7 million in the previous fiscal year[29]. - Operating expenses were reduced by 24.5% year-on-year, significantly lowering the expense-to-revenue ratio[30]. - Employee costs decreased by approximately HKD 42.2 million or 23.0% to about HKD 141.6 million in fiscal year 2025, mainly due to the optimization of operational structure and systems[41]. - Property rental and related expenses are expected to decrease from approximately HKD 67.9 million in FY2024 to HKD 54.2 million in FY2025, a reduction of about HKD 13.7 million or 20.2% due to network optimization and better lease terms negotiations[42]. - Other expenses are expected to decrease from approximately HKD 159.6 million in FY2024 to HKD 100.1 million in FY2025, a reduction of about HKD 59.5 million or 37.3%[44]. Market and Strategic Focus - The company operates primarily in the medical beauty and lifestyle beauty services sector, focusing on Hong Kong and mainland China markets[13]. - The market for medical beauty and lifestyle beauty in Hong Kong is expected to continue growing, driven by increasing consumer demand and technological advancements[28]. - The company is focusing on innovation in medical beauty services and expanding its diverse customer base in prime commercial areas of Hong Kong[29]. - The skincare retail segment faced challenges but implemented multi-faceted strategies to optimize product mix and enhance customer experience[30]. - Customer satisfaction continued to improve, with a growing customer base reflecting the company's commitment to service quality and customer experience[30]. Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable provisions as of March 31, 2025, except for specific deviations noted[59]. - The board believes that the current structure, with the same individual serving as both Chairperson and CEO, is in the best interest of the company, thus accepting the deviation from the corporate governance code[60]. - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year ending March 31, 2025[63]. - The auditors confirmed that the financial figures in the preliminary announcement are consistent with the draft consolidated financial statements for the year ending March 31, 2025[64]. Other Financial Information - The provision for restoration costs increased to HKD 11,056,000 in 2025 from HKD 8,800,000 in 2024, representing a rise of 25.5%[6]. - Deferred tax liabilities decreased to HKD 2,754,000 in 2025 from HKD 4,395,000 in 2024, a reduction of 37.3%[6]. - The company had outstanding interest-bearing bank borrowings of approximately HKD 5.9 million as of March 31, 2025, down from HKD 12.5 million in FY2024[51]. - The company has no supplier financing arrangements, thus recent accounting standard amendments do not impact its financial statements[12]. - No significant events occurred after the reporting period[62].

Financial Performance - Loss attributable to the owners of the Company was approximately HK$0.6 million for the six months ended 30 September 2024, a significant improvement from a loss of HK$13.1 million for the same period in 2023[8]. - Revenue for the six months ended 30 September 2024 was HK$200.1 million, down from HK$237.0 million in the previous year, representing a decrease of approximately 15.6%[10]. - The Company reported a profit before tax of HK$1.8 million for the six months ended 30 September 2024, compared to a loss before tax of HK$16.6 million for the same period in 2023[10]. - Total comprehensive loss for the period was HK$156,000, a notable reduction from HK$13.2 million in the prior year[10]. - Basic and diluted loss per share attributable to ordinary equity holders of the Company was HK(0.16) cents, compared to HK(3.26) cents for the same period in 2023[10]. - The company reported a loss for the period of HK$630,000 for the six months ended September 30, 2024, compared to a loss of HK$13,050,000 for the same period last year[21]. - The Group's profit before tax for the six months ended September 30, 2024, was a loss of HK$630,000, significantly improved from a loss of HK$13,050,000 in the same period of 2023[89]. - Total tax charge for the period was HK$2,393,000, compared to a tax credit of HK$3,584,000 in the previous year[83]. Revenue Breakdown - Revenue from contracts with customers for the six months ended September 30, 2024, was HK$200,076,000, a decrease of 15.6% compared to HK$237,010,000 for the same period in 2023[68]. - Revenue from Hong Kong was HK$195,040,000, down from HK$215,069,000, representing a decline of 9.3%[41]. - Revenue from the Chinese Mainland significantly decreased to HK$5,036,000 from HK$21,941,000, a decline of 77%[41]. - Treatment services generated revenue of HK$170,722,000, while skincare products revenue dropped to HK$29,336,000, down 51.7% from HK$60,631,000 in the previous year[68]. Cost Management - Staff costs decreased to HK$25.4 million from HK$27.0 million year-on-year, reflecting a reduction of approximately 5.8%[10]. - Property rentals and related expenses decreased to HK$74.2 million from HK$91.5 million, a reduction of approximately 18.9%[10]. - Finance costs decreased significantly to HK$51.4 million from HK$79.5 million, indicating a reduction of approximately 35.4%[10]. - Other expenses, net decreased by approximately HK$28.1 million or 35.3%, from approximately HK$79.5 million in the previous period to approximately HK$51.4 million in the current period[141]. - Cost of inventories and consumables amounted to approximately HK$25.4 million for the period under review, representing 12.7% of total revenue[134]. Asset and Liability Management - Total non-current assets decreased slightly to HK$195,688,000 as of September 30, 2024, from HK$196,881,000 as of March 31, 2024[14]. - Current assets totaled HK$272,981,000, a decrease from HK$282,562,000 as of March 31, 2024, primarily due to a reduction in trade receivables[14]. - Net current assets improved to HK$19,046,000 compared to HK$4,585,000 as of March 31, 2024, indicating better liquidity[14]. - Total current liabilities decreased to HK$253,935,000 from HK$277,977,000, reflecting a reduction in other payables and accruals[14]. - Non-current liabilities increased to HK$78,127,000 as of September 30, 2024, up from HK$64,703,000 as of March 31, 2024, mainly due to higher lease liabilities[17]. - Total equity remained stable at HK$136,607,000 as of September 30, 2024, compared to HK$136,763,000 as of March 31, 2024[17]. - Cash and cash equivalents increased to HK$128,561,000 from HK$119,829,000, indicating improved cash flow management[14]. - Cash and cash equivalents at the end of the period were HK$89,092,000, an increase from HK$77,329,000[26]. - The company reported a net increase in cash and cash equivalents of HK$13,278,000, contrasting with a decrease of HK$28,199,000 in the prior period[26]. - The Group's non-current assets as of September 30, 2024, totaled HK$164,461,000, a decrease from HK$168,997,000 as of March 31, 2024[60]. - Trade receivables as of September 30, 2024, amounted to HK$3,803,000, a significant decrease of 71.7% from HK$13,402,000 as of March 31, 2024[98][103]. - Trade payables totaled HK$9,189,000 as of September 30, 2024, a decrease from HK$10,561,000 as of March 31, 2024[107]. Employee and Management - The Group had a total of 242 employees, a decrease from 413 employees as of September 30, 2023[151]. - Key management personnel compensation for the six months ended September 30, 2024, totaled HK$4,847,000, slightly down from HK$4,996,000 in the same period of 2023[117]. - Employee costs for the six months ended September 30, 2024, were approximately HKD 74.2 million, down from approximately HKD 91.5 million for the same period in 2023[155]. Strategic Focus and Future Outlook - The Group plans to adopt a cautious and prudent operating strategy in the second half of the year, focusing on optimizing operational strategies and cost to maintain competitiveness[132]. - The Group remains committed to high-quality service delivery to strengthen customer confidence and loyalty to its brand[130]. - The Group's strategic focus will prioritize resources towards core businesses with competitive advantages to enhance overall profitability and shareholder value[132]. - The company plans to introduce new treatments and products to enhance brand visibility and market presence in response to evolving market demands[161]. - The group recognizes the structural transition in the consumer market and will continue to adopt cautious and prudent operating strategies[159]. - The group has implemented strategic measures to diversify revenue streams and reduce expenses, including optimizing its sales network and launching promotional activities[160]. Compliance and Governance - The company has confirmed compliance with the Model Code for Securities Transactions by Directors, with all directors affirming adherence to the required standards during the six months ended September 30, 2024[195]. - The company has adopted a non-competition undertaking to ensure compliance with relevant regulations[199]. - The Company aims to ensure that its business operations remain free from direct competition from its Controlling Shareholders[200]. - The non-competition undertakings are designed to protect the Company's market position and strategic interests[200]. - The Controlling Shareholders have committed to non-competition undertakings as per the deed dated December 19, 2016[200].

Financial Performance - For the six months ended September 30, 2024, the group's revenue was approximately HKD 200.08 million, a decrease of about HKD 36.93 million or 15.6% compared to HKD 237.01 million for the same period in 2023[1]. - The company reported a loss attributable to equity holders of approximately HKD 630,000, compared to a loss of HKD 13.31 million for the same period in 2023[1]. - Total comprehensive loss for the period amounted to HKD 156,000, compared to HKD 13.19 million in the previous period[4]. - Basic and diluted loss per share was HKD 0.16, compared to HKD 3.26 for the same period last year[4]. - The group reported a pre-tax profit of HKD 19,259 thousand for the six months ended September 30, 2024, compared to HKD 20,868 thousand for the same period in 2023, reflecting a decrease of 7.7%[23]. - The company recorded a revenue of HKD 201 million for the six months ended September 30, 2024, a decrease of 15.6% compared to HKD 237 million for the same period in 2023[37]. - The net loss for the current period was approximately HKD 630,000, significantly reduced from a net loss of HKD 13.1 million in the previous period[37]. - The group’s total tax expense for the period was HKD 2,393 thousand, compared to a tax benefit of HKD 3,584 thousand in the same period last year[26]. Revenue Breakdown - Revenue for the six months ended September 30, 2024, was HKD 200,076 thousand, a decrease of 15.6% compared to HKD 237,010 thousand for the same period in 2023[17]. - Revenue from non-surgical medical beauty services was HKD 170,722 thousand, down from HKD 176,335 thousand year-on-year, representing a decline of 3.5%[22]. - Revenue from skincare products significantly decreased to HKD 29,336 thousand from HKD 60,631 thousand, a drop of 51.6%[22]. - The revenue from mainland China dropped significantly to HKD 5,036 thousand from HKD 21,941 thousand, a decline of 77.0%[17]. Assets and Liabilities - Non-current assets as of September 30, 2024, totaled HKD 195.69 million, slightly down from HKD 196.88 million as of March 31, 2024[7]. - Current assets amounted to HKD 272.98 million, a decrease from HKD 282.56 million as of March 31, 2024[7]. - Current liabilities were HKD 253.94 million, down from HKD 277.98 million as of March 31, 2024[8]. - The total equity value as of September 30, 2024, was HKD 136.61 million, unchanged from HKD 136.76 million as of March 31, 2024[9]. - Trade receivables as of September 30, 2024, amounted to HKD 3,803,000, down from HKD 13,402,000 as of March 31, 2024[33]. - Trade payables as of September 30, 2024, totaled HKD 9,189,000, compared to HKD 10,561,000 as of March 31, 2024[34]. - The company's lease liabilities amounted to approximately HKD 107 million as of September 30, 2024[55]. - The debt-to-equity ratio was approximately 6.7% as of September 30, 2024, down from 9.1% on March 31, 2024[60]. Operational Efficiency - The company has implemented targeted advertising strategies and improved internal management systems to enhance operational efficiency and reduce costs[36]. - Other net expenses decreased by approximately HKD 28.1 million or 35.3% to about HKD 51.4 million, attributed to improved operational efficiency and effective cost control[48]. - Employee costs decreased by approximately HKD 17.3 million or 18.9% to about HKD 74.2 million, with the number of employees reduced from 413 to 242[45]. - Property rental and related expenses decreased by approximately HKD 6 million or 17.2% to about HKD 28.9 million, primarily due to the closure of retail stores[46]. Corporate Governance - The company has adhered to all applicable corporate governance rules during the six-month period ended September 30, 2024, with one exception regarding the separation of the roles of Chairman and CEO[71]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the financial information for the six months ended September 30, 2024[74]. - The company believes that maintaining high standards of corporate governance is essential for managing business risks and enhancing transparency[71]. Future Outlook - The company plans to introduce new therapies and products to increase brand awareness and market coverage, responding to changing market demands[67]. - The company has adopted a cautious and prudent operational strategy to adapt to structural changes in the consumer market[66]. - The economic environment remains challenging, impacting market sentiment and business operations[36]. - The company has maintained a low debt ratio over the years, ensuring a stable financial position despite a relatively high interest rate environment[66]. Dividends and Shareholder Returns - The board of directors did not declare an interim dividend for the six months ended September 30, 2024, consistent with the previous year[1]. - The group did not declare any interim dividend for the six months ended September 30, 2024, consistent with the same period in 2023[27]. - The company has not engaged in any purchases, sales, or redemptions of its own shares during the six-month period ended September 30, 2024[68]. Employment and Workforce - As of September 30, 2024, the group employed 242 employees, a decrease from 413 employees as of September 30, 2023[64]. - Employee costs for the six months ended September 30, 2024, were approximately HKD 74.2 million, down from HKD 91.5 million for the same period in 2023[64]. Business Operations - The company operates three CosMax+ medical beauty centers in Hong Kong, enhancing its customer base and service offerings[38]. - The XOVĒ skincare product line, developed by a Swiss research team, is marketed through various platforms, including retail stores and e-commerce, despite a challenging retail environment[40].

Financial Performance - For the fiscal year ending March 31, 2024, the group's revenue was approximately HKD 449.43 million, an increase of about HKD 31.21 million or 6.7% compared to HKD 463.31 million for the fiscal year ending March 31, 2023[17] - The company reported a loss attributable to shareholders of approximately HKD 12.61 million, a reduction of about HKD 7.90 million or 38.5% compared to a loss of HKD 20.50 million for the previous year[17] - Basic loss per share for the fiscal year was HKD 0.0315, compared to HKD 0.0513 for the previous year[17] - Total comprehensive loss for the year was HKD 13.95 million, down from HKD 20.56 million in the previous year[5] - The company recorded a net loss of approximately HKD 12.6 million for 2024, compared to a net loss of HKD 20.5 million in 2023, primarily due to increased marketing and other expenses in the mainland market[42] - The company reported a basic loss per share of HKD 12.6 million for the year, compared to a loss of HKD 20.5 million in 2023[56] - Total revenue for the fiscal year 2024 was HKD 494,260,000, an increase from HKD 463,117,000 in 2023, representing a growth of approximately 6.1%[66] - Total revenue for the fiscal year 2024 reached HKD 494,260,000, an increase of 6.0% from HKD 463,117,000 in 2023[122] Asset and Liability Management - The total value of non-current assets decreased to HKD 196.88 million from HKD 243.48 million, reflecting a decline of approximately 19.1%[6] - Current assets increased to HKD 282.56 million from HKD 273.33 million, representing a growth of about 3.4%[6] - Current liabilities decreased to HKD 277.98 million from HKD 286.57 million, a reduction of approximately 3.0%[6] - Non-current liabilities decreased to HKD 64.70 million in 2024 from HKD 79.53 million in 2023, reflecting a reduction in lease liabilities and provisions[24] - Total assets decreased to HKD 136.76 million in 2024 from HKD 150.71 million in 2023, indicating a decline in net asset value[24] - The company’s total equity remained unchanged at HKD 136.76 million for both 2024 and 2023, with no potential dilution from issued ordinary shares[36] - As of March 31, 2024, cash and cash equivalents were approximately HKD 119,800,000, up from HKD 116,900,000 in 2023[97] - The company had operating funds of HKD 40,300,000 as of March 31, 2024, compared to HKD 31,200,000 in 2023[97] - As of March 31, 2024, the company had outstanding interest-bearing bank loans of approximately HKD 12,500,000, down from HKD 19,200,000 in 2023[112] Revenue Breakdown - The company generated other income of HKD 5.76 million in 2024, down from HKD 9.45 million in 2023, largely due to the absence of government subsidies received in the previous year[33] - Revenue from treatment services increased significantly to HKD 374.54 million in 2024, up from HKD 333.21 million in 2023[33] - Revenue from skincare products decreased to HKD 119,641,000, representing 24.2% of total revenue, down from HKD 129,573,000 or 28.0% in 2023, a decline of 7.7%[89] - Revenue from Hong Kong was HKD 450,819,000, up 4.4% from HKD 431,976,000 in the previous year[122] - Revenue from mainland China increased significantly to HKD 43,441,000, a rise of 39.5% compared to HKD 31,141,000 in 2023[122] Operational Highlights - The company’s operations are primarily focused on providing medical beauty services and selling skincare products in Hong Kong and mainland China[29] - The company operates six treatment centers and has retail stores in online shopping centers, contributing to the overall revenue increase due to effective sales and marketing activities[46] - The company has upgraded its customer relationship management system to enhance core competitiveness in the medical beauty, lifestyle beauty, and skincare industries[61] - The VITAE brand has met expectations in both customer base and revenue, with positive contributions anticipated for the group's operations and finances in the medium to long term[62] - The company has participated in various advertising and promotional activities during the fiscal year 2024 to improve brand image and attract new customers[64] - The company has organized various customer workshops and events to strengthen and solidify customer relationships despite lower consumer confidence compared to pre-pandemic levels[44] - The company plans to enhance its service offerings by introducing diversified treatments to meet varying customer needs and improve brand recognition[83] - XOVĒ's sales performance through various online platforms met expectations, although it is anticipated to take longer to reach profitability due to high advertising costs[84] Cost Management - Employee costs increased by HKD 630,000 or 3.5% to HKD 183,800,000 in 2024, primarily due to an increase in headcount and commissions paid to frontline staff[71] - Other expenses rose to HKD 159,600,000 in 2024, an increase of HKD 610,000, attributed mainly to increased spending on brand building and advertising in mainland China[75] - Cost of goods sold increased to HKD 52,800,000, up by HKD 540,000 or 11.4%, driven by the increase in revenue for the fiscal year 2024[91] - Advertising and promotion expenses increased by 5.0% to HKD 65,346,000 from HKD 62,229,000[94] - Professional fees rose by 14.1% to HKD 9,069,000 from HKD 7,947,000[94] - Charity donations surged by 235.7% to HKD 433,000 from HKD 129,000[94] Governance and Compliance - The company confirmed compliance with the standards for directors' securities trading for the fiscal year 2024[117] - The company has maintained its governance structure with the same individual serving as both Chairperson and CEO, which the board believes is in the best interest of the group[116] - The company does not have any single customer contributing more than 10% of total revenue[127] Future Outlook - The company anticipates a slow economic recovery, focusing on optimizing operational strategies for sustainable growth[99] - The company plans to continue researching, developing, and launching new products and services to enhance customer experience[114] - The company does not recommend or declare any dividends for the 2024 fiscal year[109] - No significant events occurred after the reporting period[118] - The estimated taxable profit in Hong Kong is subject to a tax rate of 16.5%[128]

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].