Summary of Perfect Medical's Earnings Call Company Overview - **Company**: Perfect Medical - **Date of Call**: July 2, 2024 - **Industry**: Medical Aesthetics Key Financial Highlights - **Revenue**: Approximately HKD 1.4 billion for the previous fiscal year, with a slight increase in revenue from Hong Kong and mainland China despite challenges in other regions [2][3] - **Net Profit**: Maintained at HKD 316 million, with a 6.8% increase when excluding a government subsidy of HKD 20 million received in the previous fiscal year [3][18] - **Payout Ratio**: The company has maintained a high payout ratio, distributing 125% of profits [4] Regional Performance - **Hong Kong**: - Revenue growth of 4% to approximately HKD 1.08 billion, driven by the opening of 11 new stores [6][7] - The majority of revenue (78%) comes from Hong Kong, with a focus on expanding smaller stores to improve customer accessibility [6][10] - **Mainland China and Macau**: Positive performance noted, with expectations for continued growth despite concerns about the overall economic environment [11][19] - **Other Regions**: Revenue declined by 10% due to challenges in Singapore and Australia [2][10] Strategic Initiatives - **Store Expansion**: - Plans to open 10 new stores in the current fiscal year, with a focus on smaller community stores to attract local customers [23][24] - The company has shifted from large flagship stores to smaller formats to adapt to changing consumer behavior post-pandemic [22][25] - **Service Diversification**: Introduction of new services, including sleep therapy and non-invasive treatments, to attract a broader customer base [12][29] - **Cost Management**: - Cost of goods sold (COGS) is approximately 73.8% of revenue, with a slight decrease in costs compared to the previous year [13] - Rent and promotional expenses are being managed effectively, with a focus on reducing costs in a challenging economic environment [15][37] Market Position and Competitive Landscape - **Market Share**: The company positions itself as a leader in the medical aesthetics sector in Hong Kong, with a focus on high-quality services rather than competing on price [64][68] - **Customer Demographics**: The primary customer base in mainland China is aged 25-35, while in Hong Kong, it spans a wider age range [60][61] - **Brand Loyalty**: High customer retention rates are attributed to the quality of services and brand reputation, with a significant portion of revenue coming from repeat customers [68][69] Future Outlook - **Growth Potential**: The company anticipates continued growth in Hong Kong and mainland China, with plans to enhance service offerings and expand store locations [24][25] - **Economic Challenges**: While the overall economic environment poses challenges, the company remains optimistic about its ability to attract and retain customers through quality service [19][46] Additional Insights - **Promotional Strategies**: Increased marketing efforts to promote new services and smaller stores, particularly in community settings [16][17] - **Customer Experience Focus**: Emphasis on enhancing customer experience and engagement to drive repeat business and referrals [68][69] This summary encapsulates the key points discussed during the earnings call, highlighting the company's performance, strategic initiatives, and outlook in the medical aesthetics industry.

我是华音乐团队的分析师沈嘉蔚又一同三星的还有我们的首席团队乔老师首先的话还是希望说公司的老公司在整体消费跟经济还能够比较全然的情况下还能够取得在开明一个稳定增长的业绩包括我们看到的是RCMA经济率以及超百分之百的一个排斥比率整体的无论是经营还是财务指标都非常的亮眼 那我们其实今天也是很荣幸请到了公司的高管团队然后去跟我们做交流那首先我还是想把时间交还给公司的这个LG Peter来帮我们去对R&D的一些包括对R&D的一个展望做一个回顾Peter好的 谢谢陈总谢谢各位投资者我是完美技能的投资官Peter今天跟我一起来的有我们的老板欧阳总跟我们的CFOMarco总 首先我们上周五的时候公布了我们全面的业绩刚才陈总也说过了我们业绩应该是还可以吧特别是香港跟国内的大环境又不是太好的时候很多人就以为我们中内院有可能有一点压力有可能派出比例也有一点压力都没有啊 我先分开两个部分说一下,今天有可能,今天华安那边也好,投资人也好,有可能想问一下我们对整个香港跟国内的社会市场怎么去看,我们之后会说这个事情。不过,首先让我过一下去年的页字,因为有些事情在页字里面不能说太多,也不能写太多出来,所以我自己说一下。 最后的一个部分,就是 ...

今天跟我一起来的有我们的老板欧阳总跟我们的CFO马口总首先我们上周五的时候公布了我们全面的业绩刚才陈总也说过了我们业绩应该是还可以吧特别是香港跟国内的大环境又不是太好的时候很多人就以为我们中内院有可能有一点压力有可能派出比例也有一点压力都没有啊 我先分开栏的部分说一下今天有可能今天华安那边也好投资人也好有可能想问一下我们对整个香港跟国内的社会市场怎么去看我们之后会说这个事情不过首先让我过一下去年的业绩因为有些事情在业绩里面不能说太多吧你不能写太多出来所以我自己说一下 最後的一個部分就是往後一兩年二五二六財年到底我們會怎麼去做去應對這個香港啊國內這麼困難的環境啊我們到底要做什麼有些事情是今年會新的所以也要特別跟國內的投資者說明一下這個事情好過一下去年的業績你們都已經看過了所以我不會說太多 不過去年我哋差唔多做咗14億港幣嘅收益。其實拆開嚟睇嘅話,我哋無論喺香港,無論喺整個大中華地區,包括國內,包括澳門,其實我哋嘅收益也能做到一個單位數字嘅提升。一個單位數字。其實我哋香港以外嘅地區有一點下跌嘅壓力,去年下跌10%, 只是因为新加坡跟欧大利亚的影响,两边都挺困难的。如果没有这两个地区的话,其实我们整个香港跟中国内地 ...

Financial Performance - Revenue increased by 0.3% to HKD 1,393.3 million[2] - Profit attributable to equity holders (excluding government grants) rose by 6.8% to HKD 315.8 million[2] - Basic earnings per share remained at HKD 0.251[5] - Operating profit decreased by 3.4% to HKD 382.4 million[4] - EBITDA decreased by 4.4% to HKD 461.3 million, resulting in an EBITDA margin of 33.1%[47] - Financial income for 2024 was HKD 1,342,000, a recovery from a loss of HKD 4,608,000 in 2023[20] - The current tax expense for the group was HKD 72,138,000 in 2024, slightly down from HKD 72,238,000 in 2023, showing a decrease of around 0.1%[26] - The total tax expense for the year was HKD 73,324,000 in 2024, down from HKD 75,818,000 in 2023, indicating a decrease of about 3.3%[26] Dividends - Proposed final and special dividends are HKD 0.119 and HKD 0.054 per share, totaling HKD 0.173 per share, with an annual dividend of HKD 0.315 per share[2] - The annual dividend payout ratio is 125.5%, maintaining over 100% for nine consecutive years[2] - The interim dividend paid was HKD 165,810,000 in 2024, compared to HKD 163,545,000 in 2023, an increase of about 1.4%[31] - The proposed final dividend for 2024 is HKD 149,488,000, down from HKD 154,554,000 in 2023, reflecting a decrease of approximately 3.3%[32] - The board proposed a final and special dividend of HKD 0.119 and HKD 0.054 per share, respectively, with a total annual dividend of HKD 0.315 per share for the fiscal year ending March 31, 2024[70] Assets and Liabilities - Non-current assets decreased from HKD 544.0 million to HKD 524.7 million[6] - Total assets decreased from HKD 1,296.3 million to HKD 1,221.8 million[6] - Total equity decreased from HKD 612.3 million to HKD 496.8 million[7] - Cash and cash equivalents increased from HKD 439.2 million to HKD 567.4 million[6] - The right-of-use assets increased to HKD 260,748,000 in 2024 from HKD 231,573,000 in 2023, representing an increase of approximately 12.6%[22] - The total lease liabilities rose to HKD 268,726,000 in 2024, up from HKD 240,353,000 in 2023, indicating an increase of about 11.8%[23] - Cash outflows related to short-term leases amounted to HKD 8,160,000 in 2024, compared to HKD 6,383,000 in 2023, reflecting a rise of approximately 27.8%[24] - Interest expenses on lease liabilities decreased to HKD 11,224,000 in 2024 from HKD 12,523,000 in 2023, a decline of about 10.4%[24] Revenue Breakdown - Revenue from Hong Kong was HKD 1,081,377,000, up from HKD 1,040,119,000 in the previous year, while revenue from regions outside Hong Kong decreased to HKD 311,962,000 from HKD 349,142,000[13] - Revenue from Hong Kong operations increased by 4.0% to HKD 1,081.4 million, up from HKD 1,040.1 million in the previous fiscal year[49] - Revenue from Hong Kong operations accounted for 77.6% of the group's total revenue, compared to 74.9% in the previous fiscal year[50] - Revenue from operations outside Hong Kong decreased by 10.7% to HKD 311.9 million, down from HKD 349.2 million in the previous fiscal year[53] Employee and Operational Metrics - Employee benefits expenses totaled HKD 471,650,000, slightly increasing from HKD 470,570,000 in the previous year[16] - Employee benefits expenses increased slightly by 0.2% to HKD 471.7 million, consistent with revenue growth[45] - The group employed a total of 1,273 employees as of March 31, 2024, down from 1,317 employees a year earlier[63] Strategic Initiatives - The company’s strategic expansion includes the introduction of sleep therapy services, enhancing its portfolio in both medical and non-medical beauty services[39] - The company aims to enhance customer convenience and attract new customers through geographical expansion via flagship and community stores[39] - The company has strategically deployed resources in Hong Kong and mainland China to regain growth momentum post-pandemic[39] - The group strategically diversified into non-medical beauty services, launching "Goku Spa" in January 2024, with a focus on sleep therapy[51] - The group successfully opened "Goku Spa" locations in seven sites across Hong Kong, enhancing cross-selling opportunities[52] - The group aims to strengthen its presence in the high-end medical beauty market in mainland China, focusing on non-invasive beauty services[55] Compliance and Governance - The company has complied with the corporate governance code, except for the combined roles of the Chairman and CEO held by Dr. Ouyang Jiang[74] - The audit committee reviewed the financial statements for the year ending March 31, 2024, and discussed risk management and internal controls[77] - The company’s auditor, PwC, confirmed that the figures in the preliminary announcement align with the audited financial statements[78] - The annual report for the year ending March 31, 2024, will be sent to shareholders and available on the company’s website[80] Market Conditions - Hong Kong's GDP showed positive growth of 3.2% in 2023, with retail sales surging by 16.2%, although a slight decline of 1.3% was noted in Q1 2024 due to high base effects[39] - The group will closely monitor the business environment in Australia and Singapore due to inflationary pressures affecting operations[56] Capital Expenditures - Capital expenditures for 2024 were HKD 50,073,000, significantly higher than HKD 20,151,000 in 2023[16] - The group has committed capital expenditures of HKD 2.312 million for the acquisition of properties, plants, and equipment, an increase from HKD 1.474 million in the previous year[59]

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers in Southeast Asia to enhance market penetration [6]. Topic 3: Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D spending increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new product line has been overwhelmingly positive, with a 90% satisfaction rate [9]. Topic 4: Operational Efficiency - Implemented a new ERP system, reducing operational costs by 5% [10]. - Streamlined supply chain processes, resulting in a 15% reduction in delivery times [11]. - Employee training programs were expanded, leading to a 20% improvement in productivity [12]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [13]. - Launched a recycling program that has successfully recycled 50% of the company's waste [14]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [15]. Topic 6: Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [16]. - Implemented a new whistleblower policy to ensure ethical practices across the organization [17]. - Conducted annual audits with no material findings, reinforcing the company's commitment to transparency [18].

Financial Performance - Revenue increased by 7.5% to HKD 718.1 million[2] - Profit after tax rose by 10.4% to HKD 166.4 million; adjusted profit increased by 27.1% excluding government subsidies[2] - Basic earnings per share increased by 9.1% to HKD 0.132[2] - Operating profit for the six months ended September 30, 2023, was HKD 201.9 million, compared to HKD 187.0 million in the previous year[4] - Total revenue for the six months ended September 30, 2023, was HKD 718,149,000, representing an increase of 7.5% compared to HKD 668,300,000 for the same period in 2022[17] - Revenue from Hong Kong was HKD 549,616,000, up 11.6% from HKD 492,426,000 in the previous year[17] - Revenue from regions outside Hong Kong was HKD 168,533,000, down 4.3% from HKD 175,874,000 in the previous year[17] - The EBITDA increased by 5.4% to HKD 242.1 million, with an EBITDA margin of 33.7%[54] - The operating profit grew by 8.0% to HKD 201.9 million, maintaining an operating profit margin of 28.1%[54] - The medical beauty segment contributed approximately 80.7% to total revenue, up from 76.7% in the previous year[50] Dividends and Shareholder Returns - Proposed interim and special dividends of HKD 0.132 and HKD 0.010 per share, totaling a dividend payout of HKD 0.142 with a payout ratio of 107.6%[2] - The company proposed a final dividend of HKD 12.3 per share, totaling HKD 154,513,000, along with a special dividend of HKD 4.7 per share, totaling HKD 59,041,000 for the six months ended September 30, 2023[25] - The board has proposed an interim dividend of HKD 0.132 per share and a special dividend of HKD 0.01 per share, to be paid on December 29, 2023[69] - The company will suspend the registration of share transfers on December 11, 2023, to facilitate the payment of the interim dividend[71] Cash Flow and Assets - Cash generated from operating activities was HKD 288.0 million, down from HKD 298.8 million in the previous year[8] - Total assets as of September 30, 2023, amounted to HKD 1,239.7 million, a decrease from HKD 1,296.3 million[7] - Cash and cash equivalents at the end of the period were HKD 624.5 million, up from HKD 439.2 million at the beginning of the period[8] - The company's cash and cash equivalents as of September 30, 2023, amounted to HKD 624,514,000, an increase of 42% from HKD 439,193,000 as of March 31, 2023[33] - Operating cash flow for the period was HKD 288.0 million, compared to HKD 298.8 million in the same period last year[63] Expenses and Liabilities - Employee benefits expenses increased by 3.3% to HKD 238.1 million, in line with revenue growth[53] - The total current tax expense for the six months ended September 30, 2023, was HKD 35,754,000, an increase of 26% from HKD 28,384,000 in the same period of 2022[22] - Trade payables as of September 30, 2023, amounted to HKD 1,049,000, compared to HKD 838,000 as of March 31, 2023, representing an increase of approximately 25.2%[40] Strategic Developments - The company operates primarily in Hong Kong, China, Macau, Australia, and Singapore, providing medical and health services[9] - The company plans to adopt new accounting standards that may affect its financial reporting starting January 1, 2024[13] - The company is focusing on adapting its business operations to meet changing consumer demands amid ongoing economic uncertainties in mainland China[46] - The company plans to accelerate expansion in Hong Kong through a dual model of large stores and community shops, aiming to strengthen its market leadership in the region[68] - The company is preparing for international expansion, leveraging its experience in Australia and Singapore while maintaining a cautious approach to business development[68] Market and Economic Context - Management discussed the ongoing economic recovery post-pandemic, highlighting improvements in consumer activity in Hong Kong, although spending has not yet returned to pre-pandemic levels[46] - The company anticipates an increase in cross-border customers due to the rebound in visitor numbers to Hong Kong, further solidifying its position as a leading medical beauty service center in the Greater Bay Area[68] - The group is cautiously optimistic about future operations, maintaining a core strategy of "healthcare + medical beauty" to meet consumer needs[67] Shareholder Information - As of September 30, 2023, Dr. Ouyang Jiang holds a beneficial interest in 114,834,747 shares and a controlled corporation interest in 827,169,021 shares, representing 74.98% of the company[73] - Sure Sino Investments Limited holds 36.59% of the total issued shares, with 459,739,481 shares[79] - The total number of shares outstanding as of September 30, 2023, is 1,256,197,771[80] Corporate Governance - The company has adopted the standard code of conduct for securities transactions as per the Hong Kong Stock Exchange rules, with all directors confirming compliance[70] - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting standards[87] - The remuneration committee includes three independent non-executive directors and three executive directors, overseeing compensation policies[89] - The nomination committee is responsible for recommending director appointments and assessing board diversity[90] - The company is committed to good corporate governance practices and has adhered to all relevant codes during the reporting period[85]

Financial Performance - Revenue for the fiscal year ended March 31, 2023, was HKD 1,389,261, representing a 2.9% increase from HKD 1,349,971 in 2022[13] - Operating profit for the same period was HKD 396,064, a slight increase of 0.9% compared to HKD 392,502 in 2022[15] - Profit attributable to equity holders for the year was HKD 315,638, up 3.4% from HKD 305,245 in the previous year[15] - The company reported a current ratio of 1.44, an improvement from 0.97 in the previous year, indicating better liquidity[16] - The return on equity for 2023 was 51.6%, down from 61.8% in 2022, reflecting changes in profitability[16] - The company maintained a total dividend of HKD 30.0 per share for the year, with a total payout ratio of 118.6%[26] - EBITDA increased by 2.7% to HKD 482.3 million, with an EBITDA margin of 34.7% for the fiscal year[41] - Net profit attributable to equity holders increased by 3.4% to HKD 315.6 million, resulting in a net profit margin of 22.7%[41] - Revenue from Hong Kong operations rose by 6.7% to HKD 1,040.1 million, recovering from a 21.5% decline in the first half of the fiscal year[45] - Revenue from regions outside Hong Kong decreased by 6.9% to HKD 349.2 million, accounting for 25.1% of total group revenue[50] Business Strategy and Expansion - Future strategies include enhancing customer loyalty and leveraging word-of-mouth referrals[23] - The company plans to enhance its penetration in the Greater Bay Area and East China region as part of its future expansion strategy[28] - The company aims to further penetrate existing and new international markets in the long term[28] - The company has adopted a cautious approach to business expansion in response to the changing operating environment[31] - The group is committed to diversifying its sales network and tightening cost control measures to mitigate financial impacts from economic downturns[138] - The group has established long-term cooperative relationships with suppliers, with the top five suppliers accounting for approximately 57.7% of total procurement for the year ending March 31, 2023[146] Corporate Governance - The company has adopted the corporate governance code as per the Listing Rules and has established an audit committee, remuneration committee, and nomination committee[72] - The attendance rate for the board meetings was 100% for all executive directors, with eight meetings held during the year[78] - The chairman and CEO roles are held by the same individual, Dr. Ouyang Jiang, which the board believes provides strong and consistent leadership[72] - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO[72] - The board's main functions include considering and approving the overall business plans and strategies of the group[77] - The company has received confirmations of independence from all independent non-executive directors[82] - The board currently consists of 7 members, with 4 being female, reflecting a commitment to gender diversity[106] - The company has adopted a nomination policy to ensure a transparent process for selecting board candidates[105] Risk Management - The company confirmed its responsibility for ongoing monitoring of the group's risk management and internal control systems[114] - An annual review of the risk management and internal control systems was conducted, covering all major monitoring areas including financial, strategic, operational, and compliance[116] - The company has established a corporate risk management framework since 2016, following the COSO framework for effective risk management[117] - The company employs a "three lines of defense" governance structure for risk management, with operational management, financial and compliance teams, and independent internal audit teams involved[119] Shareholder Engagement and Communication - The company engaged with over 520 institutional investors and conducted 172 meetings during the fiscal year, compared to 240 investors and 88 meetings in the previous fiscal year[126] - The board has established a shareholder communication policy to ensure effective communication with shareholders and stakeholders, which is regularly reviewed for effectiveness[122] - The company’s annual general meeting serves as a primary platform for communication with shareholders, encouraging their participation[124] Employee and Social Responsibility - The group emphasizes the importance of employee development and competitive compensation to attract and retain high-quality staff[140] - The group has implemented environmental strategies and measures in its offices and beauty centers to promote sustainable development[139] - The company is committed to becoming a socially responsible enterprise, aligning with its vision and mission[21] Investments and Financial Position - As of March 31, 2023, the company held significant investments in listed securities, with a total investment cost of HKD 126,829,000 and a fair value of HKD 92,531,000, reflecting an unrealized loss of HKD 34,298,000[64] - The company did not engage in any major acquisitions or disposals during the fiscal year 2023, nor does it have future plans for significant investments or capital assets[65] - Cash and bank balances increased to HKD 656.8 million, up from HKD 454.4 million in the previous fiscal year, with no external bank borrowings[54] - The group has a distributable reserve of approximately HKD 1,160,608,000 as of March 31, 2023, and has proposed a final and special dividend of HKD 0.123 and HKD 0.047 per share, respectively[147] Revenue Recognition and Accounting - The company recognizes revenue when services are provided, with any remaining deferred revenue recognized at the end of the relevant service period[195] - The estimation of unused rights is subjective and requires significant management judgment, leading to substantial audit resources allocated to this area[197] - The audit found sufficient evidence to support the revenue recognition for service sales[197] - The company is responsible for preparing financial statements in accordance with Hong Kong Financial Reporting Standards and ensuring internal controls to prevent material misstatements[200]

Financial Performance - Revenue increased by 2.9% to HKD 1,389.3 million[2] - Profit before interest, tax, depreciation, and amortization (EBITDA) rose by 2.7% to HKD 482.3 million[2] - Net profit increased by 3.4% to HKD 315.6 million, with a 9.5% increase in the second half of the fiscal year compared to the first half[2] - Operating cash flow increased by 9.1% to HKD 560.6 million[2] - Basic earnings per share rose by 2.0% to HKD 0.253[2] - Profit before tax for the year 2023 was HKD 391,456 thousand, compared to HKD 378,153 thousand in 2022, reflecting an increase of about 3.5%[15] - The company's profit attributable to equity holders increased from HKD 305,245,000 in 2022 to HKD 315,638,000 in 2023, an increase of approximately 3.9%[31] - The total tax expense for 2023 was HKD 75,818,000, compared to HKD 72,908,000 in 2022, reflecting an increase of about 3.9%[28] - The weighted average applicable tax rate for 2023 was 17.5%, slightly down from 18.2% in 2022[29] Dividends - Proposed final and special dividends are HKD 0.123 and HKD 0.047 per share, totaling HKD 0.170 per share, with an annual dividend of HKD 0.300 and a payout ratio of 118.6%[2] - The group has maintained a dividend payout ratio of at least 100% for eight consecutive years[2] - The proposed final dividend per share for 2023 is 12.3 HKD cents, up from 7.1 HKD cents in 2022, indicating an increase of approximately 73.2%[33] - The company plans to issue a special dividend of 4.7 HKD cents per share for 2023, which was not offered in 2022[35] - The company proposed a total dividend of HKD 30.0 cents per share, representing a payout ratio of 118.6%[52] Assets and Equity - Total assets increased to HKD 1,296.3 million from HKD 1,281.2 million year-on-year[6] - Total equity rose to HKD 612.3 million from HKD 494.3 million year-on-year[7] - Total non-current assets as of 2023 were HKD 446,513 thousand, down from HKD 606,233 thousand in 2022, indicating a decrease of approximately 26.4%[16] - The company's right-of-use assets decreased to HKD 231,573 thousand as of March 31, 2023, from HKD 302,411 thousand in 2022, representing a decline of approximately 23.4%[23] - The company's property usage rights asset decreased from HKD 302,411,000 in 2022 to HKD 231,573,000 in 2023, representing a decline of approximately 23.4%[24] Employee Expenses - Employee benefits expenses totaled HKD 470,570 thousand in 2023, up from HKD 412,677 thousand in 2022, marking an increase of around 14.0%[17] - The company’s employee salaries and wages increased to HKD 429,289 thousand in 2023 from HKD 377,920 thousand in 2022, reflecting an increase of about 13.5%[17] - The group employed a total of 1,317 employees as of March 31, 2023, down from 1,414 in the previous fiscal year[65] Revenue Breakdown - The company’s revenue from Hong Kong was HKD 1,040,119 thousand in 2023, compared to HKD 975,146 thousand in 2022, showing an increase of about 6.7%[14] - The company’s revenue from regions outside Hong Kong was HKD 349,142 thousand in 2023, down from HKD 374,825 thousand in 2022, indicating a decrease of approximately 6.9%[14] - Revenue from Hong Kong rose by 6.7% to HKD 1,040.1 million, while revenue from outside Hong Kong decreased by 6.9% to HKD 349.2 million[47] Cash Flow and Financing - The group reported a net cash inflow from operating activities of HKD 560.6 million, an increase from HKD 513.9 million in the previous fiscal year[60] - The company reported a net finance cost of HKD (4,608) thousand in 2023, a significant improvement from HKD (14,349) thousand in 2022[21] - The company’s capital expenditures for 2023 were HKD 20,151 thousand, a decrease from HKD 165,578 thousand in 2022, representing a decline of approximately 87.8%[16] Business Expansion and Strategy - The company expanded its business footprint by opening one new store in Hong Kong and three new stores in strategic locations in mainland China during the year[44] - The company adopted a cautious approach to business expansion in response to the volatile operating environment, focusing on strategic investments[44] - The group plans to further enhance market penetration in Hong Kong through various store formats[68] - The group aims to replicate its efficient business model in the Greater Bay Area and East China regions for future expansion[68] - Strong performance in Singapore and Australia has bolstered the group's confidence in expanding into other overseas markets[68] Accounts Receivable - Accounts receivable increased significantly to HKD 49,741,000 in 2023 from HKD 14,841,000 in 2022, representing a growth of 234%[36] - The aging analysis of accounts receivable shows that HKD 42,966,000 (86.4%) is within 60 days, compared to HKD 4,499,000 (30.3%) in 2022[37] - As of March 31, 2023, overdue accounts receivable amounted to HKD 2,998,000, up from HKD 914,000 in 2022, indicating a significant increase in overdue amounts[38] - The company has maintained a stable credit quality for accounts receivable, with no impairments reported for both 2023 and 2022[40] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, although the roles of Chairman and CEO are held by the same individual, Dr. Ouyang Jiang[75] - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the year ending March 31, 2023, ensuring compliance with accounting standards and internal controls[78] - The company’s auditor, PwC, confirmed that the figures in the preliminary announcement align with the audited financial statements for the year ending March 31, 2023[79] - The annual report for the fiscal year ending March 31, 2023, will be sent to shareholders and is available on the company's website[80]