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佈的內容概不負責，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佈全部或任何部份內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 PERFECT MEDICAL HEALTH MANAGEMENT LIMITED 完美醫療健康管理有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1830） 於二零二五年八月八日舉行的 股東週年大會投票結果 – 2 – 於股東週年大會日期： 由於超過50%票數贊成上述提呈的普通決議案，於股東週年大會上提呈的所有決議案已獲 正式通過為本公司決議案。 本公司香港股份過戶登記分處卓佳證券登記有限公司已獲委任為股東週年大會的監票員， 以監督點票工作。 承董事會命 完美醫療健康管理有限公司（「本公司」）欣然宣佈，於二零二五年八月八日中午十二時正舉 行的本公司股東週年大會（「股東週年大會」）上，於日期為二零二五年七月十六日包含股東 週年大會通告在內的通函（「通函」）所載的提呈決議案已獲本公司股東以投票方式表決。除 另有界定者外，本公佈所用詞彙與通函所界定者具有相同涵義。 於股東週年大會上提呈的決議案的投票結 ...

[Company and Financial Overview](index=3&type=section&id=Company%20and%20Financial%20Overview) This section presents the company's core information and key financial performance, highlighting the significant decline in FY2025 results [Company Information](index=3&type=section&id=Company%20Information) This chapter provides core company information for Perfect Medical Health Management Limited, including board members, key officers, and basic share details - The company's Board of Directors comprises Executive Directors Dr. Au Yeung Kong (Chairman and CEO), Ms. Au Yeung Wai, Ms. Au Yeung Hung, Mr. So Hin Lung, and four Independent Non-executive Directors[6](index=6&type=chunk) - The company's auditor is PricewaterhouseCoopers, with stock code **1830** and board lot size of **1,000 shares**[7](index=7&type=chunk) [Financial Overview](index=5&type=section&id=Financial%20Overview) This chapter presents the company's key performance and financial position for the past five fiscal years, showing a significant decline in revenue and profit in FY2025 Five-Year Performance Overview (As of March 31) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | 2023 (HKD thousands) | 2022 (HKD thousands) | 2021 (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 1,127,863 | 1,393,339 | 1,389,261 | 1,349,971 | 1,089,768 | | **Operating Profit** | 251,636 | 382,381 | 396,064 | 392,502 | 365,892 | | **Profit attributable to equity holders** | 206,895 | 315,800 | 315,638 | 305,245 | 284,634 | Five-Year Financial Position Overview (As of March 31) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | 2023 (HKD thousands) | 2022 (HKD thousands) | 2021 (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 935,908 | 1,221,812 | 1,296,294 | 1,281,199 | 1,480,368 | | **Total Liabilities** | 557,180 | 725,004 | 684,021 | 786,933 | 795,521 | [Financial Highlights](index=7&type=section&id=Financial%20Highlights) This chapter details the significant year-on-year decline in the company's FY2025 financial performance, with double-digit percentage drops in key metrics and weakening profitability ratios FY2025 vs FY2024 Financial Data Comparison | Financial Highlights (HKD thousands) | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | 1,127,863 | 1,393,339 | (19.1%) | | **Operating Profit** | 251,636 | 382,381 | (34.2%) | | **Profit for the year attributable to equity holders of the Company** | 206,895 | 315,800 | (34.5%) | | **EBITDA** | 319,127 | 461,280 | (30.8%) | | **Basic Earnings Per Share (HK cents)** | 16.5 | 25.1 | - | | **Operating Profit Margin** | 22.3% | 27.4% | - | | **Net Profit Margin** | 18.3% | 22.7% | - | | **Return on Equity** | 54.6% | 63.6% | - | [Chairman's Statement](index=11&type=section&id=Chairman%27s%20Statement) Chairman Dr. Au Yeung Kong highlights a challenging FY2025 due to economic slowdown and changing consumer patterns, outlining strategies like international partnerships, M&A, and technology investment to build long-term competitiveness while maintaining a high dividend payout and zero debt - The company faced severe challenges from global economic slowdown and weak consumer confidence, particularly in Hong Kong and mainland China, leading to cautious and cross-border consumer spending for value-for-money services[29](index=29&type=chunk) - Despite declining profits, the Group is committed to maintaining a stable dividend culture with a payout ratio exceeding **100%** for ten consecutive years and upholding a **zero-debt** financial discipline[31](index=31&type=chunk) - Future innovation strategies include an exclusive partnership with Korean aesthetic medical chain 'Oracle' in Hong Kong to introduce Korean medical aesthetic technology, and actively seeking strategic M&A opportunities for aesthetic clinics in Shenzhen to capture cross-border consumption opportunities[32](index=32&type=chunk) - The Group will accelerate digital transformation, leveraging AI for personalized marketing, operational automation, and data-driven decision-making to enhance efficiency and customer experience[33](index=33&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's financial performance, operational highlights across different regions, and future strategies, emphasizing cost optimization and strategic expansion amidst challenging market conditions [Overview and Financial Performance](index=15&type=section&id=Overview%20and%20Financial%20Performance) Amid global economic uncertainty and weak local consumption, the company's FY2025 revenue declined **19.1%** to **HKD 1.128 billion** and net profit fell **34.5%** to **HKD 207 million**, prompting significant cost optimization measures while maintaining a high dividend payout ratio - Hong Kong's economy faced severe challenges with low consumer sentiment and increased cross-border spending in Shenzhen, contributing to a **7.3% year-on-year decline** in total retail sales in 2024[36](index=36&type=chunk) Revenue by Geographical Region | Region | 2025 (HKD millions) | % of Total | 2024 (HKD millions) | % of Total | | :--- | :--- | :--- | :--- | :--- | | **Hong Kong** | 893.8 | 79.2 | 1,081.4 | 77.6 | | **Outside Hong Kong** | 234.1 | 20.8 | 311.9 | 22.4 | | **Total** | **1,127.9** | **100.0** | **1,393.3** | **100.0** | Changes in Key Cost Components | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Employee Benefit Expenses** | 408,885 | 471,650 | (13.3%) | | **Marketing Expenses** | 140,305 | 159,596 | (12.1%) | | **Rental and Lease-related Expenses** | 147,891 | 165,072 | (10.4%) | - The Board recommended a final dividend of **HK 5.3 cents per share**, bringing the total annual dividend to **HK 16.6 cents per share** with an aggregate payout ratio of **100.6%**, including interim and special dividends[46](index=46&type=chunk) [Business Overview](index=19&type=section&id=Business%20Overview) This chapter reviews business performance across key markets, noting a **17.3% revenue decline** in Hong Kong, while non-medical aesthetic services like 'Goku Spa' showed improved performance, and the company cautiously expanded in strategic cities outside Hong Kong - Hong Kong operations were impacted by intensified market competition, consumption downgrade, and increased outbound travel, prompting the company to strengthen core products, enhance operational efficiency, and optimize its product portfolio[48](index=48&type=chunk)[50](index=50&type=chunk) - Within non-medical aesthetic services, the 'Goku Spa' sleep treatment service, a collaboration with a Japanese brand, received positive market response and significantly narrowed its operating loss during the year, demonstrating its commercial potential[53](index=53&type=chunk) - Operations outside Hong Kong saw slow recovery in mainland China, where the company cautiously expanded in strategically valuable cities (Greater Bay Area, East China), while Australia and Singapore businesses continued to be affected by high inflation and weak consumer sentiment[56](index=56&type=chunk) [Financial Review, Human Resources and Outlook](index=24&type=section&id=Financial%20Review%2C%20Human%20Resources%20and%20Outlook) This section outlines the company's robust financial position with **zero external debt** and ample cash flow, a reduced workforce of **971 employees**, and a future outlook focused on optimizing Hong Kong operations, cautious mainland expansion, and growth driven by technology innovation and international partnerships - The company maintained a robust financial position with **HKD 395 million** in bank and cash balances as of March 31, 2025, **no external bank borrowings**, and a **zero debt-to-asset ratio**[58](index=58&type=chunk) - As of March 31, 2025, the Group employed **971 employees**, a significant reduction from **1,273** in the prior year, reflecting the company's cost optimization measures[65](index=65&type=chunk) - Key future growth strategies include international cooperation and M&A: an exclusive partnership agreement signed with Korean aesthetic medical brand 'Oracle' for Hong Kong, and active pursuit of M&A opportunities for aesthetic clinics in Shenzhen to capture cross-border consumption[69](index=69&type=chunk) [Significant Investments](index=27&type=section&id=Significant%20Investments) This section discloses the company's significant listed equity securities investments, totaling approximately **HKD 95.51 million** in fair value, including Hong Kong blue-chip stocks and technology giants like Tencent, Meituan, and NVIDIA Listed Equity Securities Investment Portfolio (As of March 31, 2025) | Investment Name | Number of Shares | Investment Cost (HKD thousands) | Fair Value (HKD thousands) | % of Group's Total Assets | | :--- | :--- | :--- | :--- | :--- | | **Hang Seng Bank** | 50,000 | 8,113 | 5,270 | 0.56% | | **MTR Corporation** | 200,000 | 9,172 | 5,090 | 0.54% | | **HKEX** | 40,000 | 19,053 | 13,792 | 1.47% | | **Tencent Holdings** | 110,000 | 53,607 | 54,670 | 5.84% | | **Meituan** | 80,000 | 21,301 | 12,464 | 1.33% | | **NVIDIA** | 5,000 | 5,216 | 4,227 | 0.45% | | **Total** | - | **116,462** | **95,513** | - | [Directors, Governance and Reports](index=29&type=section&id=Directors%2C%20Governance%20and%20Reports) This section details the company's board of directors and senior management, outlines its corporate governance framework, and provides the statutory directors' report, including dividend policy, share option scheme, and major shareholder interests [Biographies of Directors and Senior Management](index=29&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) This chapter introduces the backgrounds and experiences of the company's executive and independent non-executive directors, highlighting the core management team's extensive experience in the medical aesthetic industry - Key members of the Executive Director team include: Founder Dr. Au Yeung Kong (Chairman and CEO), responsible for overall management and strategy; Ms. Au Yeung Wai, responsible for daily operations; Ms. Au Yeung Hung, responsible for service center operations management; and Mr. So Hin Lung, serving as Chief Financial Officer and Company Secretary[78](index=78&type=chunk)[79](index=79&type=chunk) [Corporate Governance Report](index=31&type=section&id=Corporate%20Governance%20Report) This report outlines the company's corporate governance structure, confirming compliance with most code provisions, detailing the board and its committees, risk management, internal controls, and shareholder communication, while noting the combined roles of Chairman and CEO - The company reported compliance with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are combined and held by Dr. Au Yeung Kong, which the Board believes provides strong leadership[85](index=85&type=chunk) - The company has three Board Committees: Audit, Remuneration, and Nomination, all chaired by Independent Non-executive Directors, which regularly convene to fulfill their duties[105](index=105&type=chunk)[108](index=108&type=chunk)[112](index=112&type=chunk) - The company has established an enterprise risk management framework, adopting a 'three lines of defense model,' and appointed an external independent professional (Zhihui Enterprise Management Professionals Limited) to conduct annual reviews of its risk management and internal control systems[126](index=126&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - During the year, the company held **130 meetings** with over **398 institutional investors** and research analysts to maintain effective communication with the investment community[139](index=139&type=chunk) [Directors' Report](index=47&type=section&id=Directors%27%20Report) This statutory report covers the company's principal business, annual results, dividend policy, key risks, share capital changes, and directors' and major shareholders' interests, reiterating the proposed final dividend of **HK 5.3 cents per share** - The Directors recommended a final dividend of **HK 5.3 cents per share**, bringing the total annual dividend to **HK 16.6 cents per share**, including interim and special dividends[145](index=145&type=chunk) - As of the year-end, the top five suppliers accounted for **46.9%** of total purchases, with the largest supplier at **23.6%**, indicating high supplier concentration, while the top five customers accounted for only **0.78%** of total sales, indicating a diversified customer base[160](index=160&type=chunk) Changes in Directors' Interests Under Share Option Scheme (As of March 31, 2025) | Director Name | Balance at Beginning of Year | Granted During Year | Exercised During Year | Balance at End of Year | | :--- | :--- | :--- | :--- | :--- | | **Dr. Au Yeung Kong** | 1,256,000 | 1,256,000 | — | 2,512,000 | | **Ms. Au Yeung Wai** | 1,256,000 | 1,256,000 | — | 2,512,000 | | **Ms. Au Yeung Hung** | 1,256,000 | 1,256,000 | — | 2,512,000 | | **Total** | **3,768,000** | **3,768,000** | **—** | **7,536,000** | - Major shareholder Sure Sino Investments Limited and its concert parties (Dr. Au Yeung Kong, Ms. Au Yeung Wai, Ms. Au Yeung Hung) collectively hold approximately **75.18%** of the company's shares, indicating high equity concentration[188](index=188&type=chunk)[191](index=191&type=chunk)[193](index=193&type=chunk) [Audit and Financial Statements](index=62&type=section&id=Audit%20and%20Financial%20Statements) This section includes the independent auditor's report, which provides an unqualified opinion on the consolidated financial statements, and presents the core financial statements along with detailed notes, highlighting the significant decline in FY2025 performance [Independent Auditor's Report](index=62&type=section&id=Independent%20Auditor%27s%20Report) The auditor, PricewaterhouseCoopers, issued an unqualified opinion on the consolidated financial statements, identifying 'revenue recognition from sales of treatment services' as a key audit matter due to significant management judgment in estimating unused entitlements - The auditor issued an **unqualified opinion** on the consolidated financial statements, deeming them to present a true and fair view of the Group's financial position and performance[213](index=213&type=chunk) - A key audit matter identified in the report is 'revenue recognition from sales of treatment services,' which the auditor focused on due to the subjectivity and significant management judgment involved in estimating customers' unused treatment entitlements (unused rights), and the substantial amount of related revenue[219](index=219&type=chunk)[222](index=222&type=chunk) [Consolidated Financial Statements](index=68&type=section&id=Consolidated%20Financial%20Statements) This section contains the core financial statements, including the consolidated statement of comprehensive income, statement of financial position, statement of changes in equity, and cash flow statement, along with detailed notes, reflecting a significant decline in FY2025 revenue and profit [Consolidated Statement of Comprehensive Income](index=69&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) In FY2025, the company's revenue was **HKD 1.128 billion**, a **19.1% decrease** from **HKD 1.393 billion** last year, with profit attributable to equity holders falling **34.5%** to **HKD 207 million** and basic earnings per share at **HK 16.5 cents** Consolidated Statement of Comprehensive Income Summary | Metric (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Revenue** | 1,127,863 | 1,393,339 | | **Operating Profit** | 251,636 | 382,381 | | **Profit before income tax** | 252,549 | 383,723 | | **Profit for the year** | 206,370 | 310,399 | | **Profit attributable to equity holders of the Company** | 206,895 | 315,800 | [Consolidated Statement of Financial Position](index=71&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, total assets were **HKD 936 million**, a decrease from **HKD 1.222 billion** last year, with total liabilities at **HKD 557 million** and total equity at **HKD 379 million**, maintaining a stable financial position despite asset reduction Consolidated Statement of Financial Position Summary | Metric (HKD thousands) | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | **Non-current assets** | 464,300 | 524,667 | | **Current assets** | 471,608 | 697,145 | | **Total assets** | 935,908 | 1,221,812 | | **Total equity** | 378,728 | 496,808 | | **Non-current liabilities** | 157,938 | 208,184 | | **Current liabilities** | 399,242 | 516,820 | | **Total liabilities** | 557,180 | 725,004 | [Consolidated Statement of Cash Flows](index=74&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In FY2025, net cash from operating activities was **HKD 333 million**, but significant cash outflows from investing (**HKD 172 million**) and financing (**HKD 478 million**, mainly dividends) led to a net decrease of **HKD 317 million** in cash and cash equivalents, with an ending balance of **HKD 249 million** Consolidated Statement of Cash Flows Summary | Metric (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash generated from operating activities** | 332,878 | 497,123 | | **Net cash (used in) / generated from investing activities** | (171,928) | 162,564 | | **Net cash used in financing activities** | (477,951) | (520,970) | | **Net (decrease) / increase in cash and cash equivalents** | (317,001) | 138,717 | | **Cash and cash equivalents at March 31** | 249,074 | 567,401 | [Notes to the Consolidated Financial Statements](index=75&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed supplementary information to the financial statements, highlighting that revenue primarily originates from Hong Kong (**79.2%**) and treatment services, with significant dividend payments totaling **HKD 359 million** and deferred revenue of **HKD 200 million** representing a key future income source - Revenue recognition policy: Revenue from medical aesthetic services is recognized when services are rendered; advance payments for treatment packages are recorded as deferred revenue, with management estimating customers' unused entitlements (unused rights) based on historical data and recognizing revenue proportionally[289](index=289&type=chunk) - Segment information indicates that the Hong Kong market contributed **79.2%** of revenue (**HKD 894 million**), while regions outside Hong Kong contributed **20.8%** (**HKD 234 million**)[331](index=331&type=chunk) - Total dividends paid during the year amounted to **HKD 359 million**, comprising final and special dividends for FY2024 and interim and special dividends for FY2025[343](index=343&type=chunk)[428](index=428&type=chunk)

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) [Full-Year Performance Summary](index=1&type=section&id=Full-Year%20Performance%20Summary) Amidst a weak economy, the Group's FY2025 full-year performance declined, with revenue down 19.1% and profit attributable to owners down 34.5%, yet maintaining an 18.3% net profit margin and proposing a final dividend for over 100% annual payout ratio, continuing a decade-long high dividend record Full-Year Performance Summary (HKD millions) | Metric | FY2025 (HKD millions) | FY2024 (HKD millions) | YoY Change | | :--- | :--- | :--- | :--- | | Full-Year Revenue | 1,127.9 | 1,393.3 | -19.1% | | Profit Attributable to Owners | 206.9 | 315.8 | -34.5% | | Net Profit Margin | 18.3% | 22.7% | -4.4pp | - Performance decline primarily due to weak Hong Kong economy, outbound consumer spending, and intense price competition in mainland China market[2](index=2&type=chunk) - Proposed final dividend of **5.3 HK cents per share**, with total annual dividend of **16.6 HK cents**, achieving an annual payout ratio of **100.6%**[2](index=2&type=chunk) - Since its 2012 listing, the Group has maintained an over **100% payout ratio** for ten consecutive years, with cumulative dividends exceeding **HKD 3.28 billion**[2](index=2&type=chunk)[38](index=38&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For FY2025, Group revenue was HKD 1.128 billion, a 19.1% decrease year-on-year, with operating profit declining 34.2% to HKD 252 million as expense reductions could not fully offset the revenue drop, resulting in a 33.5% decrease in profit for the year to HKD 206 million and basic earnings per share of 16.5 HK cents Consolidated Statement of Comprehensive Income (HKD thousands) | Financial Metric | FY2025 (HKD thousands) | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,127,863 | 1,393,339 | -19.1% | | Operating Profit | 251,636 | 382,381 | -34.2% | | Profit Before Income Tax | 252,549 | 383,723 | -34.2% | | Profit for the Year | 206,370 | 310,399 | -33.5% | | Profit Attributable to Owners of the Company | 206,895 | 315,800 | -34.5% | | Basic Earnings Per Share | 16.5 HK cents | 25.1 HK cents | -34.3% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's total assets decreased to HKD 936 million from HKD 1.222 billion, and total equity declined to HKD 379 million from HKD 497 million, reflecting lower annual profit and dividend payouts, while maintaining a zero bank borrowing position Consolidated Statement of Financial Position (HKD thousands) | Balance Sheet Item | As of March 31, 2025 (HKD thousands) | As of March 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 464,300 | 524,667 | | Current Assets | 471,608 | 697,145 | | **Total Assets** | **935,908** | **1,221,812** | | **Equity and Liabilities** | | | | Total Equity | 378,728 | 496,808 | | Non-current Liabilities | 157,938 | 208,184 | | Current Liabilities | 399,242 | 516,820 | | **Total Liabilities** | **557,180** | **725,004** | | **Total Equity and Liabilities** | **935,908** | **1,221,812** | - Cash and cash equivalents within current assets significantly decreased from **HKD 567 million** to **HKD 249 million**, primarily due to dividend payments and reduced operating cash flow[5](index=5&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [Segment Information](index=7&type=section&id=Segment%20Information) The Group operates primarily in Hong Kong and non-Hong Kong regions, with Hong Kong remaining the main revenue source at 79.2% of total revenue, though both regions experienced declines in revenue and profit, with non-Hong Kong revenue down 25.0% and Hong Kong revenue down 17.3% Revenue by Region (HKD thousands) | Revenue by Region | FY2025 (HKD thousands) | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Hong Kong | 893,804 | 1,081,377 | -17.3% | | Non-Hong Kong Regions | 234,059 | 311,962 | -25.0% | | **Total** | **1,127,863** | **1,393,339** | **-19.1%** | Profit Before Tax by Region (HKD thousands) | Profit Before Tax by Region | FY2025 (HKD thousands) | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Hong Kong | 179,188 | 256,664 | -30.2% | | Non-Hong Kong Regions | 73,361 | 127,059 | -42.3% | | **Total** | **252,549** | **383,723** | **-34.2%** | [Dividends](index=12&type=section&id=Dividends) The Board proposed a final dividend of 5.3 HK cents per share, bringing the total FY2025 dividend to 16.6 HK cents per share, approximately HKD 209 million, representing a 100.6% payout ratio Dividend Details (Per Share) | Dividend Details (Per Share) | FY2025 (HK cents) | FY2024 (HK cents) | | :--- | :--- | :--- | | Interim Dividend | 11.2 | 13.2 | | Special Dividend | 0.1 | 1.0 | | Proposed Final Dividend | 5.3 | 11.9 | | **Total Annual Dividend** | **16.6** | **26.1** | - The proposed final dividend of approximately **HKD 66.58 million** is subject to approval at the Annual General Meeting[30](index=30&type=chunk) [Trade Receivables](index=13&type=section&id=Trade%20Receivables) At fiscal year-end, the Group's trade receivables significantly decreased by 54.8% to HKD 28.36 million from HKD 62.78 million, with most receivables aged within 60 days, and the Group identifies no significant credit concentration risk or impairment - Total trade receivables decreased from **HKD 62.78 million** to **HKD 28.36 million**, a **54.8% year-on-year reduction**[29](index=29&type=chunk) - Trade receivables aged within **60 days** accounted for **79.6%** of the total (**HKD 22.57 million**)[29](index=29&type=chunk) - The Group considers overdue but not impaired trade receivables (approximately **HKD 0.385 million**) to be low risk, primarily from counterparties with high credit ratings and no default history[31](index=31&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Overview and Financial Performance](index=15&type=section&id=Overview%20and%20Financial%20Performance) In FY2025, the Group faced a challenging macroeconomic environment, including global trade tensions and weak consumer confidence, particularly in Hong Kong, leading to significant cost optimization measures like a reduction of 302 employees and store consolidation, which partially mitigated the 34.5% profit decline - Macroeconomic challenges include trade tensions, inflationary pressures, and insufficient consumer confidence, particularly impacting consumer-oriented industries[36](index=36&type=chunk) - To counter adversity, the Group implemented significant cost optimization measures in H2 FY2025, reducing total staff by **302 employees** and consolidating stores to lower operating costs[37](index=37&type=chunk) Key Cost Items (HKD thousands) | Key Cost Items | FY2025 (HKD thousands) | FY2024 (HKD thousands) | Change % | | :--- | :--- | :--- | :--- | | Employee Benefit Expenses | 408,885 | 471,650 | (13.3%) | | Marketing and Promotion Expenses | 140,305 | 159,596 | (12.1%) | | Rental and Lease-related Expenses | 147,891 | 165,072 | (10.4%) | Key Performance Indicators (HKD millions) | Key Performance Indicators | FY2025 (HKD millions) | FY2024 (HKD millions) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,127.9 | 1,393.3 | -19.1% | | EBITDA | 319.1 | 461.3 | -30.8% | | Operating Profit | 251.6 | 382.4 | -34.2% | | Profit Attributable to Owners | 206.9 | 315.8 | -34.5% | [Business Overview](index=18&type=section&id=Business%20Overview) The Group's business is divided into Hong Kong and non-Hong Kong regions, with Hong Kong revenue down 17.3% due to consumer downgrading and cross-border competition, while non-Hong Kong operations also faced challenges, yet the Group strategically expanded in key cities and introduced 'Goku Spa' to the China market [Hong Kong Operations](index=18&type=section&id=Hong%20Kong%20Operations) Hong Kong operations faced intensified market competition, consumer downgrading, and increased outbound tourism, leading to a 17.3% year-on-year revenue decline, prompting the Group to enhance value-for-money services, strategically expand community stores, and significantly narrow losses in 'Goku Spa' sleep therapy services - Overall Hong Kong revenue decreased by **17.3% year-on-year**, primarily due to consumers seeking higher value-for-money beauty services in Shenzhen and Korea[46](index=46&type=chunk) - The Group reduced costs by integrating operations, renegotiating leases, and optimizing human resources, while expanding its community store network to enhance customer loyalty[46](index=46&type=chunk) - Non-medical beauty service 'Goku Spa' significantly narrowed its operating loss during the year, indicating gradual business model improvement and growth potential[48](index=48&type=chunk) [Non-Hong Kong Operations](index=19&type=section&id=Non-Hong%20Kong%20Operations) Non-Hong Kong operations in mainland China, Macau, Singapore, and Australia faced distinct macroeconomic challenges, with slow recovery in mainland China where the Group cautiously expanded and introduced 'Goku Spa', while Australia and Singapore struggled with high inflation, prompting a focus on operational efficiency - In the mainland China market, the Group adopted a cautious expansion strategy, introducing the 'Goku Spa' brand to southern and eastern markets in H2 FY2025[50](index=50&type=chunk) - Australia and Singapore operations experienced slow recovery due to high inflation and weak consumption, leading the Group to focus on enhancing operational efficiency[50](index=50&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) The Group maintains a robust financial position with HKD 395 million in cash and bank balances, zero external bank borrowings, and a zero debt-to-asset ratio, generating HKD 333 million in net cash from operating activities, with sufficient internal funds for future expansion and operations - The Group's financial position is robust, with cash and bank balances of **HKD 395 million**, no external bank borrowings, and a **zero debt-to-asset ratio**[51](index=51&type=chunk) - Net cash generated from operating activities during the year was **HKD 333 million**, a decrease year-on-year (FY2024: **HKD 497 million**)[51](index=51&type=chunk) - Capital expenditure during the year amounted to **HKD 33.5 million**, primarily for leasehold improvements and equipment[52](index=52&type=chunk) [Outlook and Strategy](index=22&type=section&id=Outlook%20and%20Strategy) The Group anticipates a volatile economic environment and plans to implement key strategies including digital transformation with AI, strengthening international partnerships like the exclusive agreement with Korean aesthetic brand 'Oracle' for Hong Kong, and actively pursuing strategic M&A in Shenzhen to capture cross-border consumption opportunities, aiming to lay a solid foundation for future profit growth - A core strategy is to drive digital transformation, introducing AI and data-driven management tools to analyze vast customer data for personalized services and optimized marketing strategies[63](index=63&type=chunk) - The Group signed an exclusive cooperation agreement for the Hong Kong market with Korean aesthetic brand 'Oracle' in Q1 FY2026, aiming to introduce high-safety and high-repurchase Korean aesthetic technologies to accelerate sales growth[64](index=64&type=chunk) - The Group is actively seeking strategic M&A opportunities for aesthetic clinics with development potential in Shenzhen to capture the structural growth opportunity of cross-border aesthetic consumption by Hong Kong residents[64](index=64&type=chunk) - The Group will continue to uphold prudent financial management, leverage its zero-borrowing advantage, and maintain an attractive shareholder return policy[65](index=65&type=chunk) [Dividends and Corporate Governance](index=24&type=section&id=Dividends%20and%20Corporate%20Governance) [Dividend Policy](index=24&type=section&id=Dividend%20Policy) The Board proposed a final dividend of 5.3 HK cents per share, bringing the total annual dividend to 16.6 HK cents per share, continuing the company's commitment to high shareholder returns - Proposed final dividend of **5.3 HK cents per share**, with a total annual dividend of **16.6 HK cents per share**[66](index=66&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance%20Practices) The Group complied with the Corporate Governance Code, with one deviation where the roles of Chairman and CEO are combined under Dr. Ouyang Jiang, which the Board believes provides strong and consistent leadership beneficial to the Group's business, and the Audit Committee has reviewed the full-year results - A deviation from the Corporate Governance Code exists: the roles of Chairman and Chief Executive Officer are not separated, both held by Dr. Ouyang Jiang[69](index=69&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer provides strong and consistent leadership for effective planning and execution of business decisions[69](index=69&type=chunk) - The Audit Committee, comprising four independent non-executive directors, has reviewed the Group's financial statements and full-year results[71](index=71&type=chunk)

Core Viewpoint - The article highlights significant movements in the Hong Kong and US stock markets, focusing on various companies' performances and the impact of regulatory changes on specific sectors. Group 1: Hong Kong Stock Market Highlights - Haitian Flavoring (03288) debuted with over a 3% increase, raising HKD 10 billion and holding a 6.2% global market share in soy sauce, leading the Chinese seasoning market with a 4.8% share [1] - Stablecoin concept stocks surged, with Lianlian Digital up 11%, Yika up 9%, and Zhong An Online up 8%, driven by the implementation of Hong Kong's stablecoin regulations [1] - Hezhima Intelligent (02533) rose over 3% as it plans to acquire an AI chip company to expand its automotive and edge AI product lines [1] - Delin Holdings (01709) increased over 3% with an expected annual profit growth of 10%-30% (to HKD 110-130 million) and its subsidiary Synaptic Technology securing tens of millions in A-round financing [1] - Jingtai Technology (02228) saw over a 4% rise, producing its first clinical candidate drug, PRMT5 inhibitor PE-0260, with clinical trials set to start in the second half of 2025 [1] - Gold stocks collectively fell, with Lingbao Gold and Zhu Feng Gold both down 4%, affected by a pullback in spot gold prices [1] - Innovent Biologics (01801) rose over 4% after obtaining global rights for GlycoT's ADC technology, with positive outlooks for IBI363/343's international potential [1] - Longpan Technology (02465) increased over 6% due to policy support accelerating solid-state battery industrialization, with the Ministry of Industry and Information Technology allocating HKD 6 billion for special research [1] Group 2: Other Notable Movements - Simor International (06969) fell over 5% as shareholder Yiwei Lithium Energy announced a third reduction of 3.5% in its stake, dropping to 27% and losing control [2] - Fubo Group (03738) rose over 4% due to favorable policies for data asset REITs, with the company targeting annual AI business revenue in the million-dollar range [2] - Yadea Holdings (01585) increased over 4% with a projected 55% rise in H1 net profit to HKD 1.6 billion, driven by new national standards enhancing industry concentration [2] - Perfect Medical (01830) fell over 6% as medical beauty consumption shifted to Shenzhen and South Korea, with an expected 35% decline in annual profit [2] - Yunbai International (00030) surged over 15% after acquiring global distribution rights from its parent company Yunnan Baiyao, covering a full range of products including medicines and personal care [2] - Luk Fook Holdings (00590) dropped over 4% due to increased gold hedging losses from rising gold prices and high base effects from last year's acquisition of King of Gold [2] Group 3: US Stock Market Highlights - Brain Regen Technologies (RGC.US) fell over 18% after a 400% increase in the previous two days, as profit-taking occurred; the company focuses on liquid formulations for ADHD and autism [3] - Marvell Technology (MRVL.US) rose over 7% after announcing a collaboration to develop AI power solutions and launching a 2nm custom SRAM chip with leading bandwidth and energy efficiency [3] - Circle (CRCL.US) surged over 33% after the US Senate passed a stablecoin bill, boosting the stock's value by 410% since its listing [3] - The rare earth sector continued to rise, with MP Materials up 4.9% and USA Rare Earth up 5.58%, driven by policy support for strategic resource demand [3] - Wolfspeed (WOLF.US) fell over 30% amid reports of a potential bankruptcy agreement, despite the silicon carbide market projected to reach USD 29 billion by 2030 [3] - Odyssey Marine (OMEX.US) rose over 11% after Trump signed an executive order to expedite deep-sea mining permits, with a 93% increase year-to-date [3] - Huya (HUYA.US) increased over 3% as the "HYPER eSports Carnival" is set to open in Chengdu, boosting platform traffic and commercialization expectations [3] Group 4: Additional Notable Movements - AST SpaceMobile (ASTS.US) rose over 10%, with an 85% increase in June, partnering with Vodafone India to provide satellite connectivity to unconnected areas [4] - Arqit Quantum (ARQQ.US) surged over 22% after being selected for Oracle's defense ecosystem, highlighting the strategic value of quantum encryption technology [4] - Aptevo (APVO.US) skyrocketed over 81% due to a new leukemia drug showing an 85% response rate in frontline treatment [4] - Upstart (UPST.US) rose over 10% after Bank of America raised its target price to USD 56, maintaining a "hold" rating as the credit tech platform's valuation recovers [4] - Coinbase (COIN.US) increased over 16% as it plans to apply to the SEC for "tokenized stocks," opening new growth opportunities in traditional equity on-chain [5]

Core Viewpoint - Perfect Medical Holdings (01830.HK) experienced a significant stock price drop of 18.7% on June 18, resulting in a market capitalization of HKD 23.49 billion, following a profit warning indicating a projected net profit decline of up to 35% for the fiscal year ending March 31, 2025 [1][2]. Group 1: Financial Performance - The company expects a net profit of HKD 205 million to HKD 210 million for the fiscal year ending March 31, 2025, down from HKD 316 million in the previous year, representing a potential decline of approximately 35% [1][2]. - The primary business operations of Perfect Medical are concentrated in Hong Kong, with over 80% of revenue generated from this region as of September 2024 [2]. Group 2: Market Conditions and Competition - The decline in performance is attributed to the sluggish Hong Kong economy and low consumer sentiment, leading to reduced spending on non-essential services like medical aesthetics [2]. - Increasing competition from Shenzhen and South Korea is impacting Perfect Medical, as local consumers are seeking more cost-effective options, with a notable shift towards these regions for medical aesthetic services [2][3]. Group 3: Strategic Responses - In response to the challenging market conditions, the company is launching high-value Korean medical aesthetic services and enhancing customer loyalty programs to stimulate consumption and improve customer experience [2][3]. - Perfect Medical has signed an exclusive partnership with the Korean medical aesthetic brand Oracle to introduce Korean medical techniques in Hong Kong, while also exploring potential acquisitions of promising medical aesthetic clinics in Shenzhen to capitalize on cross-border consumption opportunities [3].

Group 1: Hong Kong Stocks - Lehua Entertainment (02306) surged over 24% due to strong market performance of its toy IP "WUKUKU," with multiple new products setting sales records and the theme song exceeding 1 billion views [1] - United Energy Group (00467) rose over 7% after signing a 15-year production increase contract with Uzbekistan's UNG, involving 57.8 billion cubic meters of oil and gas production, with an initial investment of $100 million to expand into Central Asia [1] - Smoore International (06969) fell over 3% as shareholder Yiwei Lithium Energy plans to reduce its stake by 3.5% (216 million shares), resulting in a decrease of its holding to 27.23%, no longer being the controlling shareholder [1] - New World Development (00200) dropped over 5% after completing a "2 for 1" rights issue, issuing 758 million shares and raising HKD 771 million, with oversubscription of 13 times [1] - Fourth Paradigm (06682) increased over 7% after launching AI solutions for the manufacturing industry, covering production optimization to supply chain intelligence upgrades [1] - Shandong High-Tech Holdings (00412) rose over 4% as Zhongtai Securities highlighted significant synergy between its new energy and digital infrastructure, with a data center PUE value of 1.15, enhancing financial integration [1] - KANAT Optical (02276) increased over 4% due to an explosion in the smart glasses market (e-commerce transactions up 8 times), with Meta collaborating with Oakley to launch AI glasses, positioning the company with leading 3C enterprises [1] Group 2: Other Notable Stocks - Sipai Health (00314) rose over 7% after partnering with Anruijiaer to develop customized insurance, planning to sell 6 pharmacies for 5.89 million to focus on core medical insurance business [2] - SF Express (09699) increased over 5% after raising its delivery service revenue cap for 2025/26 to HKD 12.8 billion / HKD 20.5 billion, with demand growth exceeding expectations [2] - Liufu Group (00590) fell over 3% as it projected a 40% decline in profits for the 2025 fiscal year, primarily due to gold hedging losses and high base effects from acquisition gains [2] - Zhenjiu Lidu (06979) rose over 4% after announcing Yao Annan as the "Cultural Heritage Ambassador" for liquor, leveraging Huawei-related topics to boost brand visibility [2] - Ideal Auto-W (02015) dropped over 4% as Meituan's Wang Xing sold 5.73 million shares for HKD 600 million, reducing his stake to 20.61% [2] - Health Road (02587) surged over 7% as its liver disease AI management platform was selected for Beijing's digital medical verification program, supporting WHO's "2030 Hepatitis Elimination" goal [2] - Gilead Sciences-B (01672) rose over 5% after its psoriasis oral drug ASC50 completed the first dosing in Phase I clinical trials in the U.S., targeting the IL-17 pathway [2] - China Silver Group (00815) increased over 10% after partnering with Zefeng Gold to acquire a 55% stake in a lead-zinc exploration company, gaining exploration rights over 50.8 square kilometers in Tibet [2] Group 3: U.S. Stocks - Verve Therapeutics (VERV.US) skyrocketed over 80% as Eli Lilly prepares to acquire the gene-editing company for up to $1.3 billion, with $1 billion as an upfront payment and $300 million contingent on specific clinical milestones [4] - Solar energy stocks plummeted, with Sunrun (RUN.US) down over 40%, Solaredge Technologies (SEDG.US) down over 41%, and First Solar (FSLR.US) down over 22%, following a Republican proposal in the U.S. Senate to terminate wind and solar tax credits by 2028, raising concerns about the industry's outlook [4] - Reddit (RDDT.US) rose over 6% after launching the AI advertising tool Reddit Insights, enhancing ad targeting through real-time user trend analysis [4] - Bitcoin-related stocks fell, with CleanSpark (CLSK.US) down over 7% and Riot Platforms (RIOT.US) down over 5%, as Bitcoin prices dropped nearly 2% to $105,580 amid escalating tensions in the Middle East and high leverage positions in the derivatives market [4] - AMD (AMD.US) continued to rise 0.56% after officially launching the Zen5 architecture Ryzen Threadripper processors, covering the workstation and desktop markets, with a market share close to 50% in China for Q1, although there are concerns about its cost-performance ratio [5] - Brain Regen Technologies (RGC.US) surged over 30% after announcing a 38-for-1 stock split, coupled with FDA clinical trial approval news, although its actual business has no revenue and a very small float, indicating significant retail speculation [6] - Jabil (JBL.US) rose over 8%, reaching a new all-time high of $202.5, with Q3 revenue increasing 15% year-on-year to $7.83 billion, raising its full-year revenue forecast to $29 billion and planning a $500 million investment to support AI data center infrastructure [6] - Niu Technologies (NIU.US) increased over 11% after launching its new NX Play electric motorcycle on Douyin, integrating a smart riding system to enhance user experience [6] - T-Mobile US (TMUS.US) fell nearly 4% as SoftBank sold 21.5 million shares at $224 each, a 3% discount, triggering market sell-off [6] - The pharmaceutical sector saw widespread declines, with Eli Lilly (LLY.US) down over 2% and Novo Nordisk (NVO.US) down over 3%, as concerns grew over the potential impact of the U.S. Senate tax bill on the industry, coupled with profit-taking ahead of some companies' earnings reports [6] - The gold sector declined, with Gold Fields (GFI.US) down over 2.1%, and spot gold fell 0.27% to $3,375.53, as easing tensions in the Middle East reduced safe-haven demand, alongside Citigroup's bearish long-term gold price forecast [7]

Revenue Performance - Revenue decreased by 13.6% to HKD 620.3 million compared to HKD 718.1 million in the same period last year, primarily due to reduced demand in Hong Kong and mainland China, as well as increased outbound travel affecting local retail consumption[13] - Revenue from Hong Kong accounted for 80.3% of total revenue, while revenue from outside Hong Kong accounted for 19.7%[17] - Revenue in mainland China decreased by 19.3% due to challenging business conditions, including a downturn in the real estate sector and weak consumer confidence[34] - The company's revenue for the six months ended September 30, 2024, was HK$620.27 million, a decrease from HK$718.15 million in the same period last year[56] - Revenue from Hong Kong decreased to HKD 497.8 million in the six months ended September 30, 2024, compared to HKD 549.6 million in the same period last year[111] - Revenue from regions outside Hong Kong (including China, Macau, Australia, and Singapore) decreased to HKD 122.5 million in the six months ended September 30, 2024, compared to HKD 168.5 million in the same period last year[111] - Total revenue for the six months ended September 30, 2024, was HKD 620.3 million, down from HKD 718.1 million in the same period last year[111] Business Segments and Strategy - Medical aesthetics business contributed 73.3% of total sales, while non-medical aesthetics accounted for the remaining 26.7%[13] - The company implemented a multi-format store strategy, including flagship stores and smaller community stores, to better serve customers in their local areas[11] - The company's "integrated service approach" strategy combines non-invasive medical aesthetics services with non-medical aesthetics services, such as hair loss treatment, pain management, and sleep therapy, to meet a broader range of consumer needs[11] - The company's "dual-cycle" strategy, focusing on both medical and non-medical aesthetic services, is expected to drive sustainable growth[49] - The company aims to expand its high-end service portfolio and network in key regions, including the introduction of VIP lounges in major centers to attract affluent clients[49] Cost Management and Expenses - Employee benefits expenses decreased by 8.6% to HKD 217.6 million, reflecting efforts to maintain efficiency and reduce indirect costs[22] - Marketing expenses decreased by 9.6% to HKD 77.2 million due to strategic reductions in promotional spending[22] - Rental and leasing-related expenses decreased by 8.4% to HKD 76.2 million, driven by favorable renegotiations and optimized use of store space[22] - Key cost components decreased by 10.7% to 470,473 thousand HKD compared to 526,841 thousand HKD in the previous period[25] - Inventory and consumables costs decreased by 20.8% to 10,492 thousand HKD from 13,248 thousand HKD[26] - Employee benefits expenses decreased by 8.6% to 217,604 thousand HKD from 238,149 thousand HKD[26] - Government subsidies decreased to 832 thousand HKD in 2024 from 3,549 thousand HKD in 2023[116] - Current tax expense in Hong Kong was 19,743 thousand HKD in 2024, down from 21,494 thousand HKD in 2023[123] - Depreciation expenses for right-of-use assets (properties) were HKD 56,088 thousand for the six months ended September 30, 2024, compared to HKD 62,511 thousand for the same period in 2023[156] - Total lease cash outflows were HKD 57,800 thousand for the six months ended September 30, 2024, down from HKD 63,457 thousand for the same period in 2023[158] Profitability and Financial Performance - EBITDA decreased by 19.9% to 193.9 million HKD, with an EBITDA margin of 31.3% compared to 33.7% in the previous period[27] - Operating profit decreased by 21.5% to 158.5 million HKD, with an operating profit margin of 25.6% compared to 28.1% in the previous period[27] - Net profit attributable to shareholders decreased by 15.4% to 140.8 million HKD, with a net profit margin of 22.7% compared to 23.2% in the previous period[27] - The company's operating profit for the six months ended September 30, 2024, was HK$158.48 million, down from HK$201.93 million in the previous year[55] - The company's net profit attributable to equity holders for the six months ended September 30, 2024, was HK$140.84 million, compared to HK$166.39 million in the same period last year[56] - Net profit for the six months ended September 30, 2024, was HK$131.34 million, compared to HK$166.39 million in the same period last year, representing a decrease of 21.1%[58] - Total comprehensive income for the period was HK$160.35 million, up from HK$142.50 million in the previous year, an increase of 12.5%[58] - Profit attributable to equity holders of the company was 140,844 thousand HKD in 2024, compared to 166,393 thousand HKD in 2023[125] Cash Flow and Financial Position - The company maintained a strong financial position with bank and cash balances of 479.6 million HKD as of September 30, 2024, and no external bank borrowings[35] - Capital expenditures for the six months ended September 30, 2024, totaled 26.1 million HKD, primarily used for leasehold improvements and equipment for service network expansion[36] - Cash and cash equivalents dropped significantly to HK$289.81 million from HK$567.40 million, a decrease of 48.9%[70] - Net cash generated from operating activities was HK$203.38 million, down from HK$288.02 million in the previous year, a decrease of 29.4%[81] - Net cash used in investing activities was HK$210.25 million, compared to net cash generated of HK$188.29 million in the prior year[81] - Net cash used in financing activities was HK$275.12 million, slightly lower than the HK$278.40 million used in the previous year[81] - Cash and cash equivalents totaled HKD 289,808 thousand as of September 30, 2024, a decrease from HKD 567,401 thousand as of March 31, 2024[141] Assets and Liabilities - Total assets decreased to HK$1,076.88 million from HK$1,221.81 million, a reduction of 11.8%[69] - Property, plant, and equipment decreased to HK$136.55 million from HK$146.98 million, a reduction of 7.1%[63] - Right-of-use assets declined to HK$227.17 million from HK$260.75 million, a decrease of 12.9%[64] - Non-current assets in Hong Kong decreased to HKD 329.0 million as of September 30, 2024, compared to HKD 397.5 million as of March 31, 2024[115] - Non-current assets in regions outside Hong Kong increased to HKD 73.2 million as of September 30, 2024, compared to HKD 50.9 million as of March 31, 2024[115] - Total non-current assets decreased to HKD 402.3 million as of September 30, 2024, compared to HKD 448.5 million as of March 31, 2024[115] - Lease liabilities decreased to HKD 238,697 thousand as of September 30, 2024, from HKD 268,726 thousand as of March 31, 2024[153] - Trade payables increased to HKD 1,541 thousand as of September 30, 2024, from HKD 1,070 thousand as of March 31, 2024[161] - Capital commitments for property, plant, and equipment decreased to HKD 954 thousand as of September 30, 2024, from HKD 2,312 thousand as of March 31, 2024[162] Shareholder Information and Dividends - The company's basic earnings per share for the six months ended September 30, 2024, was 11.2 HK cents, down from 13.2 HK cents in the previous year[56] - The company declared an interim dividend of 11.2 HK cents per share and a special dividend of 0.1 HK cents per share for 2024[129] - The company proposed an interim dividend of 11.2 HK cents per share and a special dividend of 0.1 HK cents per share for the six months ended September 30, 2024[168] - The company will suspend share registration from December 16, 2024, to December 17, 2024, and shareholders must submit transfer documents by December 13, 2024, to be eligible for the interim dividend[170] - Basic earnings per share were 11.2 HK cents in 2024, down from 13.2 HK cents in 2023[125] Investments and Financial Instruments - The company held significant investments in listed equity securities, including an 80,000-share investment in a consumer-to-business platform, representing 0.0015% of the total equity, with a fair value of HK$13.76 million as of September 30, 2024[43] - Dividend income from financial assets at fair value through other comprehensive income was 1,160 thousand HKD in 2024, down from 1,247 thousand HKD in 2023[116] - Net exchange gain was 669 thousand HKD in 2024, compared to a net exchange loss of 289 thousand HKD in 2023[119] - Net financial income decreased to 1,442 thousand HKD in 2024 from 1,834 thousand HKD in 2023[120] - The weighted average effective interest rate for time deposits with original maturities exceeding three months was 3.48% as of September 30, 2024[135] - The weighted average effective interest rate for pledged bank deposits was 2.93% as of September 30, 2024, compared to 2.66% as of March 31, 2024[140] Employee and Operational Metrics - The company employed a total of 1,161 employees as of September 30, 2024, a decrease from 1,273 employees as of March 31, 2024[45] - The company plans to integrate AI-driven customer service tools into its operations to provide 24/7 automated customer support, aiming to enhance customer engagement and satisfaction[50] - The company is committed to sustainability, with efforts to reduce carbon emissions and implement sustainable practices in its facilities[52] - Total service area across Hong Kong and other regions reached 318,000 square feet as of September 30, 2024[16] - The company expanded its community store network in Hong Kong, increasing total service area to approximately 202,000 square feet, despite a 9.4% decline in overall revenue[30] Shareholder Structure and Governance - As of September 30, 2024, Dr. Ouyang Jiang holds 114,834,747 ordinary shares, representing 75.08% of the company's total shares[177] - Sure Sino Investments Limited holds 459,739,481 ordinary shares, representing 36.59% of the company's total shares[187] - Earlson Holdings Limited holds 208,306,511 ordinary shares, representing 16.58% of the company's total shares[187] - Perfect Medical Charity Foundation Limited holds 159,123,029 ordinary shares, representing 12.66% of the company's total shares[187] - Dr. Ouyang Jiang holds a 54.65% beneficial interest in Sure Sino Investments Limited[180] - Ms. Ouyang Hong holds a 22.68% beneficial interest in Sure Sino Investments Limited[180] - Ms. Ouyang Hui holds a 22.67% beneficial interest in Sure Sino Investments Limited[180] - The total number of shares issued by the company as of September 30, 2024, is 1,256,197,771[188] - No other major shareholders hold more than 5% of the company's shares or related interests as of September 30, 2024[190] - The total number of share options available for issuance under the Share Option Plan as of April 1, 2024, and September 30, 2024, is 114,090,339[191] - The closing price of the shares immediately before the grant date (December 11, 2023) was HKD 3.260[196] - The share options granted on December 12, 2023, will vest on the first anniversary of the grant date (December 12, 2024) with no performance targets attached[197] - The total number of share options held by key individuals as of September 30, 2024, is 3,768,000[193] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended September 30, 2024[198] - The company's Articles of Association and Cayman Islands law do not contain provisions regarding pre-emptive rights[199] - The company has not separated the roles of Chairman and CEO, with Dr. Ouyang Jiang holding both positions, which the board believes is beneficial for the company's business prospects and management[200]

Financial Performance - Revenue decreased by 13.6% to HKD 620.3 million[3] - Profit attributable to equity holders decreased by 15.4% to HKD 140.8 million[3] - Basic earnings per share were HKD 11.2 cents[3] - Operating profit was HKD 158.5 million, down from HKD 201.9 million[5] - Total comprehensive income for the period was HKD 160.3 million, compared to HKD 142.5 million in the previous year[7] - EBITDA decreased by 19.9% to HKD 193.9 million, with an EBITDA margin of 31.3%, down from 33.7% in the previous year[69] - The net financial income for the six months ended September 30, 2024, was HKD 1,442,000, compared to HKD 1,834,000 in the same period of 2023[28] - The total income tax expense for the six months ended September 30, 2024, was HKD 28,576,000, a decrease of 23.5% from HKD 37,374,000 in the same period of 2023[30] - Basic earnings per share for the six months ended September 30, 2024, was HKD 11.2, down from HKD 13.2 in the same period of 2023, reflecting a decrease of 15.2%[33] Dividends - Proposed interim dividend and special dividend of HKD 11.2 cents and HKD 0.1 cents, total dividend of HKD 11.3 cents[3] - Dividend payout ratio was 100.9%, maintaining over 100% for ten consecutive years[3] - The company proposed a mid-term dividend of HKD 13.2 per share, totaling HKD 165,810,000, and a special dividend of HKD 1.0 per share, totaling HKD 12,513,000[35] - The group plans to pay an interim dividend of HKD 0.112 per share and a special dividend of HKD 0.001 per share[70] - The board proposed an interim dividend of HKD 0.112 per share and a special dividend of HKD 0.001 per share, to be paid on or around December 31, 2024[93] Assets and Liabilities - Total assets decreased to HKD 1,076.9 million from HKD 1,221.8 million[9] - Cash and cash equivalents decreased to HKD 289.8 million from HKD 567.4 million[9] - Non-controlling interests decreased to HKD 452.2 million from HKD 497.5 million[11] - Non-current assets in Hong Kong totaled HKD 329,040,000, down from HKD 397,502,000 as of March 31, 2024[24] - Non-current assets outside Hong Kong amounted to HKD 73,224,000, an increase from HKD 50,974,000[24] - As of September 30, 2024, the total equity amounted to HKD 321,246 thousand, down from HKD 389,081 thousand on April 1, 2024, reflecting a decrease of approximately 17.4%[46] - The company's net book value of property, plant, and equipment as of September 30, 2024, was HKD 136,550,000, down from HKD 151,275,000 as of September 30, 2023[38] - Trade payables as of September 30, 2024, totaled HKD 1,541 thousand, an increase from HKD 1,070 thousand as of March 31, 2024, reflecting a rise of about 43.8%[52] Revenue Breakdown - Revenue from Hong Kong was HKD 497,803,000, down 9.4% from HKD 549,616,000 in the previous year[21] - Revenue from regions outside Hong Kong was HKD 122,469,000, a decrease of 27.3% from HKD 168,533,000 in the prior year[21] - Revenue from mainland China decreased by 19.3%, impacted by a sluggish business environment and weak consumer confidence[76] - The medical beauty business contributed 73.3% of total sales, while non-medical beauty accounted for the remaining portion[66] - Average spending per medical beauty service customer dropped by 36.6% to HKD 17,243, reflecting a shift towards more value-for-money options[66] - The overall average spending per individual customer decreased by 26.2% to HKD 20,311[66] Operational Highlights - The group expanded its service area in Hong Kong to approximately 202,000 square feet by adding two new locations in strategic areas[72] - Employee benefits expenses fell by 8.6% to HKD 217.6 million, indicating efforts to maintain efficiency and reduce indirect costs[68] - The group continues to focus on optimizing its market presence in Australia and Singapore despite facing challenges from high inflation and reduced consumer spending[76] - The company is adopting a cautious approach to market fluctuations by implementing various store formats, including flagship and small community stores, to better serve customers[60] - The integrated service approach combines non-invasive medical beauty services with non-medical beauty services, aiming to meet a broader range of consumer needs and preferences[61] Cash Flow and Financial Position - As of September 30, 2024, the group's cash and bank balance was HKD 479.6 million, down from HKD 575.3 million as of March 31, 2024, with no external bank borrowings[77] - The net cash generated from operating activities during the period was HKD 203.4 million, compared to HKD 288.0 million in the previous fiscal year[77] - Capital expenditures for the six months ended September 30, 2024, totaled HKD 26.1 million, primarily for lease renovations and equipment to expand the service network[78] - The company maintains a strong financial position with a debt-to-equity ratio of zero as of September 30, 2024[77] Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the reporting period, except for the separation of roles between the Chairman and CEO[116] - The Audit Committee, established on December 5, 2011, reviewed the unaudited interim results for the six months ended September 30, 2024[118] - The Remuneration Committee is responsible for recommending remuneration policies for all directors and senior management, including compensation for loss of office[119] - The Nomination Committee evaluates the independence of independent non-executive directors and reviews board diversity policies[121] - The company emphasizes strong leadership by having the same individual serve as both Chairman and CEO, which is believed to benefit business management[116] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[122] Future Outlook - The management highlighted the ongoing economic challenges, including high interest rates and inflation, impacting consumer confidence and retail performance in Hong Kong[59] - The group anticipates gradual improvement in business fundamentals and customer spending in the coming months, barring unforeseen external factors[89] - The company is committed to sustainability and aims to create a positive environmental and social impact while enhancing brand reputation[92] - The company plans to integrate AI-driven customer service tools into operations to enhance customer engagement and satisfaction[90]

Financial Performance - The company reported a revenue of HKD 1,393.3 million for the fiscal year ending March 31, 2024, representing a 0.3% increase from HKD 1,389.3 million in the previous year[11]. - Operating profit decreased by 3.5% to HKD 382.4 million compared to HKD 396.1 million in the prior year[11]. - The profit attributable to equity holders was HKD 315.8 million, a slight increase of 0.1% from HKD 315.6 million in the previous year, with a net profit margin of 22.7%[11][16]. - The company reported a sales contract price of HKD 1,446.4 million, a year-on-year decrease of 0.3%, while revenue increased by 0.3% to HKD 1,393.3 million[29]. - The company’s revenue for the fiscal year 2024 reached HKD 1,393.3 million, a slight increase from HKD 1,389.3 million in the previous year, driven by a recovery in consumer spending and contributions from new stores in Hong Kong and mainland China[30]. - Revenue from Hong Kong operations increased by 4.0% to HKD 1,081.4 million, accounting for 77.6% of total revenue, compared to 74.9% in the previous year[38]. - Revenue from regions outside Hong Kong decreased by 10.7% year-on-year to HKD 311.9 million, accounting for 22.4% of total revenue[43]. - The company reported a total comprehensive income of HKD 271,861,000 for the year, down from HKD 300,585,000 in 2023, a decrease of 9.6%[173]. - The company incurred a net other comprehensive loss of HKD 38,538,000 for the year, compared to a loss of HKD 15,053,000 in the previous year[173]. Assets and Liabilities - Total assets as of March 31, 2024, were HKD 1,221.8 million, down from HKD 1,296.3 million in the previous year[9]. - The total liabilities increased to HKD 725.0 million from HKD 684.0 million in the previous year, indicating a rise in financial obligations[9]. - Total equity decreased to HKD 496,808,000 in 2024 from HKD 612,273,000 in 2023, a decline of 19%[175]. - Total liabilities increased to HKD 725,004,000 in 2024 from HKD 684,021,000 in 2023, representing a growth of 6.1%[176]. - The total equity and liabilities decreased to HKD 1,221,812,000 in 2024 from HKD 1,296,294,000 in 2023, a decline of 5.8%[176]. Store Expansion and Market Presence - The company opened 11 new stores in Hong Kong, including two flagship stores and nine community stores, to expand its market presence[18]. - The company opened a total of 11 new stores in Hong Kong, including 2 flagship stores and 9 community stores, to expand its market presence and enhance customer convenience[26]. - The company successfully opened four new stores in mainland China and Macau, contributing to revenue growth driven by post-pandemic consumer recovery[44]. - The company aims to enhance brand awareness and market share in the fragmented beauty market in mainland China through strategic store deployments[44]. Operational Efficiency and Strategy - The company aims to enhance operational efficiency and customer engagement through AI-driven marketing initiatives[15]. - The company is focused on enhancing operational efficiency and promoting innovation as part of its future growth strategy[24]. - The group plans to implement a "dual circulation" strategy to enhance growth and profitability in the medical and non-medical beauty services sectors[51]. - The group is strategically expanding into profitable new locations based on geographic data and consumer behavior analysis[52]. - The group aims to achieve sustainable growth through key initiatives focused on increasing revenue and profitability, including targeted marketing campaigns[54]. Dividends and Shareholder Returns - The company proposed a total dividend of HKD 31.5 cents per share for the year, representing a total payout ratio of 125.5%[36]. - The board proposed a final and special dividend of HKD 11.9 cents and HKD 5.4 cents per share, respectively, subject to shareholder approval[56]. - The total annual dividend for the year ending March 31, 2024, will amount to HKD 31.5 cents per share[56]. - The company paid dividends totaling HKD 391,934,000 in 2024, up from HKD 191,785,000 in 2023, indicating an increase of 104.5%[179]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors as of March 31, 2024[71]. - Dr. Ouyang Jiang serves as both the Chairman and CEO, which the board believes provides strong and consistent leadership[69]. - The company has established an audit committee, remuneration committee, and nomination committee in compliance with corporate governance codes[69]. - The company has adhered to the corporate governance code for the year ending March 31, 2024, with one exception regarding the separation of roles between the Chairman and CEO[69]. - The company has a clear structure for delegating authority to management while retaining approval rights for significant strategic decisions[80]. Risk Management and Internal Controls - The company has implemented a risk management framework since 2016, following the COSO model to effectively manage various risks[102]. - The audit committee conducted an annual review of the risk management and internal control systems, confirming their effectiveness[100]. - The company has established internal controls for handling and disclosing inside information in compliance with regulations[101]. - The company’s risk management activities are continuously conducted by management, with at least one annual assessment of the effectiveness of the risk management framework[103]. Employee and Management Information - As of March 31, 2024, the group employed a total of 1,273 employees, a decrease from 1,317 employees as of March 31, 2023[50]. - The board emphasizes the importance of employee development and competitive compensation to retain high-quality staff[118]. - The company has established a share option plan, allowing participants to acquire equity, aligning their interests with the group's benefits[126]. Environmental and Social Responsibility - The company has deposited HKD 265.9 million in green deposits to support environmentally friendly projects, reflecting its commitment to sustainable development[49]. - The company has implemented environmental policies and measures to promote sustainability in its operations[117]. - The group emphasizes the importance of sustainable development and social responsibility in its operations[55]. Financial Reporting and Compliance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[181]. - The company adopted new accounting standards without significant impact on its financial policies and statements[182]. - The company has changed its accounting policy regarding long service payments, which may lead to adjustments in past service costs[184]. - The company recognizes financial assets on the trade date, which is when the company commits to purchase or sell the asset[196].

Summary of Perfect Medical Conference Call Company Overview - **Company**: Perfect Medical - **Industry**: Medical Aesthetics - **Date of Call**: July 3, 2024 Key Points Financial Performance - The company reported a net profit of **316 million HKD** for the fiscal year 2022-2023, which remained stable compared to the previous year despite challenging market conditions in Hong Kong and mainland China [3][18]. - Excluding a **20 million HKD** government subsidy received in the previous fiscal year, the net profit would have increased by **6.8%** [3][17]. - The company achieved a **4% revenue growth** in Hong Kong, primarily driven by the opening of **11 new stores** [7][8]. Market Conditions - The overall market environment in Hong Kong and mainland China is described as difficult, with a **10% revenue decline** in regions outside Hong Kong, influenced by Singapore and Australia [2][11]. - The company maintains a strong customer base, with an average customer spending of over **28,000 HKD** [11][41]. Business Strategy - The company plans to continue expanding its footprint by opening **10 to 15 new stores** in the current fiscal year, focusing on smaller community stores to enhance customer accessibility [22][24]. - The shift from larger stores to smaller community stores is a strategic response to changing consumer behavior post-pandemic [21][50]. - The company is also diversifying its service offerings, including new non-aesthetic services such as sleep therapy and head massages [12][30]. Cost Management - The cost structure has improved, with total costs as a percentage of revenue decreasing by **0.6%** year-over-year [13][35]. - Rent costs are expected to decrease due to favorable market conditions in Hong Kong, allowing for cheaper lease agreements for new stores [14][36]. Customer Insights - The target demographic in mainland China is primarily individuals aged **25 to 35**, contrasting with a broader age range in Hong Kong [60]. - The company focuses on high-income customers, with a strategy that avoids discounting services [61]. Future Outlook - The management expresses a positive outlook for future growth, emphasizing the importance of customer acquisition and retention as key drivers of profitability [19][24]. - The company aims to leverage its established brand and market position to capture more market share in the medical aesthetics sector [34][61]. Additional Insights - The company has a unique position in the market, claiming to be one of the strongest players in the medical aesthetics industry in Hong Kong and mainland China [34]. - The management believes that the current stock price is undervalued, suggesting potential for future appreciation [34]. This summary encapsulates the essential insights from the conference call, highlighting the company's financial performance, market conditions, strategic initiatives, and future outlook.