Performance Overview - The Group's performance improved during the review year, maintaining a cautious approach towards the unpredictable business environment and economy[6] - The overall productivity level remained sluggish during the year, with local retail sales primarily driven by local customers[46] - The economic environment remains uncertain, affecting overall business operations and economic activities[46] - The Group's management remains cautious due to macroeconomic pressures, including rising interest rates and ongoing strain on Mainland China's real estate sector[72] Financial Performance - The overall revenue for the year decreased by approximately 11.3%, from HK$1,231,548,000 in 2023 to HK$1,092,735,000 in 2024[77] - Gross profit increased to approximately HK$104,568,000, up by HK$5,444,000 compared to HK$99,124,000 in the previous year[75] - Loss attributable to the owners of the Company increased from approximately HK$13,933,000 to HK$14,297,000[76] - Current assets decreased from HK$730,673,000 in 2023 to HK$668,577,000 in 2024[68] - Non-current assets increased from HK$170,671,000 in 2023 to HK$174,779,000 in 2024[68] - The revenue from the distribution of cosmetic and skincare products in China dropped by approximately HK$157,432,000 due to sluggish economic conditions[116] - Interest income from lending decreased from approximately HK$11,164,000 to HK$8,094,000, attributed to more cautious loan approvals[124] Business Strategy and Development - The Group is committed to developing advanced and efficient health and beauty products and professional treatments to meet the demands of women in Hong Kong and mainland China[6] - The Group's strategy includes expanding its product distribution and franchise cooperation businesses to enhance service offerings[36] - The Group aims to enhance brand visibility and secure a wider business coverage in the high-end market by leveraging its professional beauty and slimming technologies[157] - The Group's strategy focuses on providing quality products and services to regain consumer trust amid increasing market competition and declining customer confidence[157] Corporate Social Responsibility - The Group has been recognized as a "Caring Company" for ten consecutive years, reflecting its commitment to corporate social responsibility[9] - The Group emphasizes corporate governance, risk management, and community service as part of its long-term sustainable development strategy[48] New Products and Services - The Group launched a new anti-aging product, iPRO NMN Deluxe 3 in 1, which contributed to a remarkable increase in sales of healthy beauty and related products[121] - The Group introduced several new beauty, slimming, and anti-aging treatments and machinery during the Year Under Review to strengthen its market position[155] - The newly launched product NMN Deluxe was successfully marketed during the Year Under Review, contributing to the stable performance of the health and beauty products distribution segment[163] Investment and Lending Activities - The Group commenced a new business segment of investment in securities in March 2015 to diversify income streams and improve capital usage efficiency[61] - In May 2016, the Group started providing money lending services, targeting small to medium-sized corporations and individuals, enhancing its revenue base[61] - The Group's money lending business generated revenue of approximately HK$8,094,000, down from HK$11,164,000 in the previous year[170] - The total loan and interest receivables from the money lending business amounted to approximately HK$69,644,000 as of March 31, 2024, compared to HK$63,156,000 in 2023[170] - The Group's due diligence process for loan applications includes assessing creditworthiness and financial ability for loan repayments[173] Market Conditions and Challenges - The geopolitical tensions and trade frictions have contributed to high inflation and tightening global financing conditions, impacting the Group's operations[45] - The economic recovery in Hong Kong remains uncertain, influenced by external challenges and tightening monetary policy[72] - The overall economic slowdown in China has led to more cautious consumer spending, impacting retail sales in the Group's distribution business[130][131] Talent Development - The Group actively trains talent, particularly designing training programs for franchise store employees in the mainland market to ensure consistent service quality across beauty, slimming, and spa centers[6]

Financial Performance - For the three months ended September 30, 2023, the total revenue was HKD 365,220,000, a decrease of 7.3% compared to HKD 394,663,000 in the same period of 2022[3] - The revenue from the distribution of cosmetics and skincare products was HKD 352,005,000, down 10.5% from HKD 393,384,000 year-on-year[3] - The operating loss for the six months ended September 30, 2023, was HKD 6,898,000, a significant improvement from a loss of HKD 23,511,000 in the same period of 2022[5] - The net loss attributable to the owners of the company for the six months ended September 30, 2023, was HKD 12,690,000, compared to HKD 27,697,000 in the previous year, reflecting a reduction of 54.1%[5] - The total comprehensive loss for the six months ended September 30, 2023, was HKD 6,709,000, compared to HKD 25,394,000 in the same period of 2022[7] - Total revenue for the six months ended September 30, 2023, was HKD 640,566,000, a rise from HKD 577,536,000 in the same period of 2022, representing an increase of approximately 10.9%[19][21] - The company reported a loss before tax of HKD 7,306,000 for the six months ended September 30, 2023, compared to a loss of HKD 23,736,000 in the same period of 2022, showing an improvement in financial performance[19][23] - The company reported a total comprehensive loss of HKD 9,571,000 for the six months ended September 30, 2023, compared to a loss of HKD 25,753,000 in the same period of 2022, indicating a reduction in losses[19][21] - The company’s operating loss for the six months ended September 30, 2023, was HKD 6,898,000, an improvement from an operating loss of HKD 23,511,000 in the prior year[19][21] - The group reported a loss of HKD 9,852,000 for the three months ending September 30, 2023, compared to a loss of HKD 23,181,000 for the same period in 2022, indicating a 57.5% improvement[28] - The group recorded a loss attributable to owners of the company of approximately HKD 12,690,000, compared to a loss of about HKD 27,697,000 in the same period last year[44] Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 189,339,000 as of September 30, 2023, down from HKD 416,179,000 as of March 31, 2023[9] - For the six months ended September 30, 2023, the company reported a net cash outflow from operating activities of HKD 59,313,000, compared to HKD 28,901,000 for the same period in 2022, indicating a significant increase in cash burn[14] - The company experienced a net cash outflow from investing activities of HKD 158,130,000 for the six months ended September 30, 2023, compared to HKD 17,260,000 in the prior year, reflecting increased investment activities[14] - The company's current liabilities decreased to approximately HKD 102,259,000 from approximately HKD 125,404,000 as of March 31, 2023[56] - The company's net assets were approximately HKD 768,998,000 as of September 30, 2023, compared to approximately HKD 775,706,000 as of March 31, 2023[59] Equity and Liabilities - The total equity attributable to owners of the company decreased to HKD 780,669,000 as of September 30, 2023, from HKD 807,443,000 as of April 1, 2022, reflecting a decline of approximately 3.3%[12] - The company's equity attributable to owners was HKD 780,669,000 as of September 30, 2023, a slight decrease from HKD 789,647,000 as of March 31, 2023[10] - The company has utilized approximately HKD 213.3 million of the net proceeds from a rights issue of HKD 352 million, with HKD 135.8 million remaining unutilized as of September 30, 2023[63] Revenue Sources - Revenue from beauty and body services increased by approximately 63%, reaching about HKD 29,366,000, up from HKD 18,020,000 in the previous year[43][46] - Distribution sales of cosmetics and skincare products in China increased to approximately HKD 608,967,000, up from HKD 557,513,000 in 2022, primarily due to the lifting of strict lockdown measures in early 2023[49] Taxation - Hong Kong profits tax for the first HKD 2,000,000 is set at 8.25%, while profits exceeding this amount are taxed at 16.5%[25] - For the six months ending September 30, 2023, Hong Kong profits tax expense was HKD 126,000, a decrease of 76.5% from HKD 537,000 in the same period of 2022[26] Corporate Governance - The company has complied with the GEM Listing Rules regarding the establishment of an audit committee, which consists of three independent non-executive directors[75] - The company has adopted the trading standards set out in GEM Listing Rules for directors' securities transactions and confirmed compliance by all directors[76] - The company has established formal procedures to protect shareholders' interests and has applied the corporate governance code principles[72] Staff and Operations - The company employed 218 staff members as of September 30, 2023, with total employee costs amounting to approximately HKD 26,524,000, slightly down from HKD 26,776,000 in the previous year[61] - The company did not recommend an interim dividend for the six months ended September 30, 2023, compared to no dividend in the previous year[42] Market Conditions and Future Outlook - The government of Hong Kong has lifted COVID-19 restrictions, which is expected to positively impact consumer sentiment and the beauty and body industry[46] - The new brand MIZU beauty and body center commenced operations in the first quarter of 2023, contributing to revenue growth[46] - The company aims to maintain its leadership position in the beauty and body industry by continuously introducing innovative treatments and equipment[48] Financial Instruments - The company recorded a net loss of approximately HKD 4,703,000 from financial assets measured at fair value through profit or loss, compared to a net loss of approximately HKD 4,646,000 in the same period last year[54] - Interest income from the lending business decreased by 37% to approximately HKD 3,721,000, down from approximately HKD 5,862,000 in the same period last year[55]

Financial Performance - For the three months ended June 30, 2023, the total revenue was HKD 275,346,000, representing a 50.5% increase from HKD 182,873,000 in the same period of 2022[3] - The revenue from the distribution of cosmetic and skincare products was HKD 256,962,000, up 56.5% from HKD 164,129,000 year-on-year[8] - The company reported a net loss of HKD 1,629,000 for the quarter, an improvement from a loss of HKD 5,016,000 in the previous year[6] - Basic and diluted loss per share for the quarter was HKD 3.6, compared to HKD 6.02 in the same period last year[4] - The gross profit for the quarter was HKD 26,568,000, which is a 9.0% increase from HKD 24,349,000 in the prior year[3] - The total comprehensive loss for the quarter was HKD 2,585,000, compared to HKD 5,270,000 in the previous year, showing a reduction in overall losses[6] - The company recorded a loss attributable to equity holders of approximately HKD 2,838,000, an improvement from a loss of HKD 4,516,000 in the same period last year[19] - The beauty and body services generated revenue of approximately HKD 13,489,000, an increase of about 8% from HKD 12,472,000 year-on-year[21] Income and Expenses - The company incurred financing costs of HKD 161,000, compared to HKD 75,000 in the previous year, indicating an increase in financing expenses[3] - Other comprehensive loss for the quarter totaled HKD 956,000 due to foreign exchange differences, compared to HKD 254,000 in the previous year[6] - The company recognized other income of HKD 1,668,000, a significant recovery from a loss of HKD 4,844,000 in the same period last year[8] - The company experienced a net loss of approximately HKD 803,000 from investments in the Hong Kong stock market and non-listed equity funds, compared to a net gain of HKD 2,913,000 in the previous year[18] - Interest income from the lending business was approximately HKD 3,517,000, an increase of about 16% compared to approximately HKD 3,040,000 in the same period last year[29] Business Developments - The company launched a new anti-aging product named "iPRO NMN Deluxe 3 in 1," which has been successfully marketed[25] - The beauty and body industry is recovering, with positive consumer sentiment following the lifting of COVID-19 restrictions in Hong Kong[21] - The group is focused on expanding its securities investment business and has allocated HKD 30 million for this purpose, with the full amount already utilized[31] Shareholder Information - The company did not declare an interim dividend for the three months ended June 30, 2023, compared to no dividend in the same period last year[17] - As of June 30, 2023, major shareholder Qiu Zhongzong holds 11,707,000 shares, representing 14.85% of the issued share capital[39] - The weighted average exercise price for the share option plan is HKD 0.87, with a total of 5,253,458 options granted[37] - The group has not disclosed any competitive interests held by directors or major shareholders in businesses that compete with the group[41] Governance and Compliance - The company has established formal and transparent procedures to protect shareholder rights, adhering to GEM listing rules and corporate governance codes, with some exceptions noted[43] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial performance for the three months ending June 30, 2023[44] - The company confirmed that all directors have complied with the trading standards set out in GEM listing rules regarding securities transactions[45] - There were no purchases, redemptions, or sales of the company's listed securities by the company or its subsidiaries during the three months ending June 30, 2023[47] - The board of directors includes two executive directors and three independent non-executive directors, with no chairman currently appointed[48] Future Plans - The group plans to control the pace, scale, and scope of property acquisitions due to current market volatility and uncertainties in the global economy and financial markets[31] - The group allocated HKD 116 million for acquiring commercial, industrial, and residential properties in China and Hong Kong, with HKD 95.6 million remaining unutilized as of June 30, 2023[31] - The group has utilized HKD 78 million for the development of its lending business, with the full amount already used[31]

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之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 截至二零二三年六月三十日止三個月之 季度業績公佈 修身堂控股有限公司（「本公司」）董事（「董事」）會欣然宣佈本公司及其附屬公司截 至二零二三年六月三十日止三個月之第一季度業績。本公佈列載本公司二零二 三年第一季度報告全文，並符合香港聯合交易所有限公司（「聯交所」）GEM的證 劵上市規則（「GEM上市規則」）中有關第一季度業績初步公佈附載資料之要求。 承董事會命 修身堂控股有限公司 執行董事 梅偉琛 香港，二零二三年八月十一日 於本公佈日期，董事會成員包括執行董事：梅偉琛先生及李錦晉先生；非執行董 事：東鄉孝士先生；獨立非執行董事：曾芷諾女士、劉偉樑先生及區兆倫先生。 ...

Company Overview - Sau San Tong Holdings Limited was listed on GEM of the Stock Exchange of Hong Kong Limited in November 2003, becoming the first listed beauty and slimming company in Hong Kong[9]. - The Group currently operates six beauty and slimming centers in Hong Kong under three brand names: "Sau San Tong," "IPRO," and "Mizu"[10]. - The Group has been recognized as a "Caring Company" for 10 consecutive years, reflecting its commitment to quality service[11]. - The introduction of innovative health and beauty treatments has positioned the Group as a leading provider in Hong Kong and Mainland China[9]. - The Group has established a strong brand presence in the slimming and beauty industry in China, with a significant number of franchise co-operation contracts since December 2010, positioning itself as a leader in the market[71][72]. Business Segments - In 2015, the Group commenced a new business segment of investment in securities to diversify its income stream and improve capital usage efficiency[17]. - The Group started providing money lending services in May 2016, offering both secured and unsecured loans with terms ranging from several months to 3 years[18]. - The distribution business in Mainland China, established in 2005, includes products from P&G, SK-II, and Olay, enhancing the Group's revenue base[12]. - The Group's distribution network has developed well over the years, adding international famous brands to its portfolio[12]. - The Group launched a new anti-aging product called iPRO NMN Deluxe 3in1, which was promoted through various marketing channels[52]. Financial Performance - The Group's revenue decreased by 21.1% from approximately HK$1,561,356,000 in the previous year to approximately HK$1,231,548,000 in 2023[34]. - Gross profit for 2023 was HK$99,124,000, down from HK$137,171,000 in 2022, reflecting a decline of 27.8%[1]. - The Group reported a loss for the year of HK$14,668,000 compared to a profit of HK$13,892,000 in 2022[1]. - Current assets decreased to HK$730,673,000 in 2023 from HK$826,032,000 in 2022, a reduction of 11.6%[1]. - The net current assets stood at HK$605,269,000 in 2023, down from HK$685,999,000 in 2022, indicating a decline of 11.7%[1]. Investment and Financing - The Group aims to fully utilize idle funds by expanding into new business segments in recent years[16]. - The Group is actively seeking acquisition opportunities to diversify its business amidst ongoing market challenges[27]. - The securities investments segment commenced in March 2015 has contributed positively to revenue, although a net loss of approximately HK$6,149,000 was recorded in the Year Under Review compared to a net gain of approximately HK$14,882,000 in the previous year[73][74]. - The money lending business generated revenue of approximately HK$11,164,000 in the Year Under Review, up from HK$8,239,000 in 2022[78][81]. - The Group's investment portfolio includes various industries such as construction, real estate, internet services, and finance, aimed at minimizing risks while maximizing returns[73][74]. Risk Management and Governance - The management emphasized the importance of corporate governance and risk management alongside business expansion strategies[29]. - The Company has complied with the Corporate Governance Code throughout the year ended March 31, 2023, except for the absence of a chairman of the Board[188]. - The Company has two executive directors performing part of the chairman's functions, which deviates from Code provision C.2[188]. - The Group conducts thorough due diligence, and if findings raise concerns, interest rates may be adjusted to between 14% and 30% based on the assessed risk level[92][97][101]. Market Outlook - The economic environment is expected to improve in late 2023, with the Group aiming to capture new business opportunities[30]. - The company anticipates continued growth in demand for quality beauty and slimming products and services due to the "necessitization" of these services, driven by the expanding middle class[164]. - The Group intends to increase promotional efforts on social media to enhance brand awareness among the younger generation[161]. - The Group plans to utilize available funds for new investment opportunities, including securities and properties, to generate additional returns[128]. Operational Efficiency - General and administrative expenses amounted to HK$72,242,000, representing a decrease of approximately 12.3% from approximately HK$82,331,000 last year[39]. - The average outstanding days of trade receivables was maintained at below 90 days, reflecting effective credit risk management[139]. - The average collection period for trade receivables was maintained below 90 days, reflecting prudent treasury policies[142]. - Training programs have been developed for employees in franchise cooperation shops to ensure consistent service quality across locations[127].

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之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 二零二三年全年業績公佈 修身堂控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其 附屬公司截至二零二三年三月三十一日止年度之經審核業績。本公佈列載本公 司二零二三年年報全文，並符合香港聯合交易所有限公司（「聯交所」）GEM證券 上市規則（「GEM上市規則」）中有關全年業績初步公佈附載資料之要求。本公司 之二零二三年年報將於二零二三年六月二十七日在聯交所網站www.hkexnews.hk 及本公司網站www.sst-holding.com可供閱覽。 承董事會命 修身堂控股有限公司 執行董事 梅偉琛 香港，二零二三年六月二十七日 於本公佈發表日期，董事會成員包括執行董事：梅偉琛先生及陳家健先生；非執 行董事：東鄉孝士先生；獨立非執行董事：劉偉樑先生、區兆倫先生及曾芷諾女士。 ...

Financial Performance - For the three months ended December 31, 2022, the total revenue was HKD 340,416,000, a decrease of 19.2% compared to HKD 421,442,000 for the same period in 2021[3] - The revenue from the distribution of cosmetic and skincare products was HKD 319,349,000, down 19.7% from HKD 397,706,000 year-on-year[3] - The operating loss for the nine months ended December 31, 2022, was HKD 18,908,000, compared to an operating profit of HKD 32,325,000 for the same period in 2021[5] - The net loss attributable to the owners of the company for the nine months ended December 31, 2022, was HKD 27,970,000, compared to a profit of HKD 19,101,000 in the previous year[5] - The company reported a total comprehensive loss of HKD 22,829,000 for the nine months ended December 31, 2022, compared to a comprehensive income of HKD 29,484,000 for the same period in 2021[7] - The company recorded a gross profit of HKD 71,396,000 for the nine months ended December 31, 2022, down 40.0% from HKD 118,829,000 in the same period of 2021[3] - The company's total revenue for the nine months ended December 31, 2022, was HKD 917,952,000, a decrease of 26.4% from HKD 1,246,596,000 in the previous year[10] - The group's revenue for the nine months ended December 31, 2022, was approximately HKD 917,952,000, a decrease of about 26% from HKD 1,246,596,000 in the same period last year[20] - The gross profit for the same period was approximately HKD 71,396,000, down 40% from HKD 118,829,000 year-on-year[21] - The group recorded a loss attributable to the owners of the company of approximately HKD 27,970,000, compared to a profit of HKD 19,101,000 in the previous year[21] - The sales of beauty and body services generated revenue of approximately HKD 31,493,000, a decrease of 40% from HKD 52,472,000 in the same period last year[21] Income and Expenses - The interest income from lending services increased to HKD 8,828,000 for the nine months ended December 31, 2022, compared to HKD 5,618,000 in the previous year, reflecting a growth of 57.5%[10] - The total other income for the nine months ended December 31, 2022, was HKD 5,387,000, significantly higher than HKD 1,879,000 in the previous year[12] - The basic loss per share for the nine months ended December 31, 2022, was HKD (36.32), compared to earnings of HKD 25.45 in the same period of 2021[5] - The group experienced a net loss of approximately HKD 796,000 from investments in the Hong Kong stock market and unlisted equity funds, compared to a net gain of approximately HKD 16,856,000 in the previous year[20] - The company recorded a net loss of approximately HKD 796,000 from financial assets measured at fair value, compared to a net gain of HKD 16,856,000 in the previous year[30] Market Conditions - The economic slowdown in Hong Kong and China, along with the impact of the COVID-19 pandemic, has negatively affected consumer confidence and the group's overall performance[23] - The distribution revenue in China decreased to approximately HKD 876,862,000, down from HKD 1,170,328,000 in the previous year, reflecting the ongoing impact of COVID-19 on the economy[26] - The company anticipates a rebound in sales performance in the foreseeable future as COVID-19 restrictions are eased[26] Strategic Initiatives - The company aims to introduce advanced and high-quality services and products to enhance customer loyalty and brand image in the beauty and wellness sector[23] - The company plans to continue launching safe and effective products to meet diverse customer needs, enhancing the attractiveness of the "修身堂" brand[27] - The company is focusing on prudent management of property acquisitions and renovations due to current market uncertainties[35] - The company aims to leverage its brand strength and professional services to capture a larger share of the high-end market[24] - The company is committed to investing in advanced technology and safe ingredients for its health and beauty product offerings[27] Shareholder Information - As of December 31, 2022, the company has granted stock options totaling 5,253,458 shares under its stock option plan, with a weighted average exercise price of HKD 0.87 per share[38] - Major shareholder Qiu Zhongzong holds 10,979,000 shares, representing 13.93% of the company's issued share capital as of December 31, 2022[40] - The stock options granted to directors and key executives include a total of 2,251,482 shares for directors and 750,494 shares for the CEO, all with an exercise price of HKD 0.87[38] - The average remaining contractual life of the stock options is approximately 3.87 years[38] - The company has established a formal and transparent procedure to protect shareholder interests, adhering to the GEM Listing Rules[44] - No directors or major shareholders have any interests in businesses that compete or may compete with the company's operations[43] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial performance for the three and nine months ending December 31, 2022[46] - The company has confirmed that all directors have complied with the trading standards set out in the GEM Listing Rules[48] - The board did not recommend an interim dividend for the nine months ended December 31, 2022, compared to no dividend in the previous year[19] - The company has not purchased, redeemed, or sold any of its listed securities during the nine months ending December 31, 2022[49] - The company has not disclosed any new strategies related to market expansion or mergers and acquisitions in the provided documents[39]

Financial Performance - For the three months ended September 30, 2022, the total revenue was HKD 394,663,000, a decrease of 17.1% compared to HKD 475,915,000 for the same period in 2021[4] - The revenue from the distribution of cosmetics and skincare products was HKD 393,384,000, down 13.8% from HKD 456,512,000 year-on-year[4] - The group reported a net loss of HKD 20,737,000 for the six months ended September 30, 2022, compared to a profit of HKD 18,495,000 for the same period in 2021[6] - The basic loss per share for the six months ended September 30, 2022, was HKD 36.4, compared to earnings of HKD 18.98 per share in the previous year[6] - Total revenue for the six months ended September 30, 2022, was HKD 577,536,000, down from HKD 825,154,000 in the previous year, indicating a decrease of approximately 30%[20][22] - The company reported a significant increase in other comprehensive income of HKD 3,899,000 for the period, compared to a gain of HKD 100,000 in the previous year[20] - The group recorded a loss attributable to equity holders of approximately HKD 27,697,000, compared to a profit of HKD 14,248,000 in the same period last year[45] Assets and Liabilities - Total assets decreased to HKD 749,817,000 as of September 30, 2022, from HKD 826,032,000 as of March 31, 2022[10] - The company’s total liabilities decreased to HKD 114,691,000 from HKD 140,033,000 over the same period[10] - The company’s total equity as of September 30, 2022, was HKD 786,184,000, a decrease from HKD 808,284,000 as of September 30, 2021[13] - The group's net assets were approximately HKD 786,184,000 as of September 30, 2022, compared to approximately HKD 820,010,000 as of March 31, 2022[60] Cash Flow and Financial Position - The cash and cash equivalents decreased to HKD 361,601,000 from HKD 432,054,000 over the same period[10] - Cash and cash equivalents decreased by HKD 62,748,000 during the period, resulting in a balance of HKD 361,601,000 as of September 30, 2022, compared to HKD 473,355,000 at the same time last year[15] - The company’s cash flow from operating activities was negative at HKD 28,901,000 for the six months ended September 30, 2022, compared to positive cash flow of HKD 25,039,000 in the previous year[15] - The company’s investment activities resulted in a cash outflow of HKD 17,260,000, compared to HKD 4,034,000 in the previous year, indicating increased investment expenditures[15] Operating Performance - The company incurred a gross profit of HKD 40,816,000 for the six months ended September 30, 2022, down 50.1% from HKD 81,988,000 in the previous year[4] - The company incurred a total operating loss of HKD 23,511,000 for the six months ended September 30, 2022, compared to an operating profit of HKD 22,642,000 in the previous year[20][22] - The distribution sales of cosmetics and skincare products by Dongfang during the review period decreased to approximately HKD 557,513,000 from HKD 772,622,000 in the previous year[44] - Revenue from beauty, body, and spa centers in Hong Kong and China decreased by approximately 42% to about HKD 18,020,000 from HKD 30,812,000 in the previous year[47] Taxation - Hong Kong profits tax for the first HKD 2,000,000 is set at 8.25%, while profits exceeding this amount are taxed at 16.5%[26] - For the six months ending September 30, 2022, Hong Kong profits tax amounted to HKD 537,000, compared to HKD 27,000 in the same period of 2021, representing a significant increase[27] - The company reported a total tax expense of HKD 2,017,000 for the six months ending September 30, 2022, down from HKD 3,873,000 in the same period of 2021[27] Shareholder Information - As of September 30, 2022, major shareholder Qiu Zhongzong holds 10,979,000 shares, representing 13.93% of the company's issued share capital[68] - The company has a total of 5,253,458 share options granted under its share option scheme, with a weighted average exercise price of HKD 0.87[67] - The weighted average remaining contractual life of the share options is 3.87 years[67] Corporate Governance - The company has adhered to the corporate governance code principles as per GEM Listing Rules, with regular updates provided to the board on business conditions[72] - The board has emphasized the importance of prudent management in light of market volatility and uncertainties affecting future business operations[64] - The company has established an audit committee in accordance with GEM listing rules, consisting of three independent non-executive directors[75] - The company has adopted the trading standards outlined in GEM listing rules as the code of conduct for directors' securities transactions[76] Strategic Initiatives - The group aims to maintain its leadership position in the industry by continuously introducing advanced and high-quality services and products[47] - The group aims to continue launching safe and effective health and beauty products to enhance the attractiveness of the "修身堂" brand and maintain market leadership[52] - The group has established a strong presence in the Chinese beauty and slimming industry through franchise agreements since 2010, leveraging its brand recognition[53] - The company has set a cautious approach towards property acquisitions and lending business development due to uncertainties from the COVID-19 pandemic and global economic conditions[64]

Financial Performance - Total revenue for the three months ended June 30, 2022, was HKD 182,873,000, a decrease of 47.5% compared to HKD 349,239,000 in the same period of 2021[4] - Revenue from the distribution of cosmetics and skincare products was HKD 164,129,000, down 48.0% from HKD 316,110,000 year-on-year[10] - The company reported a net loss of HKD 5,016,000 for the quarter, compared to a profit of HKD 17,195,000 in the same quarter of the previous year[6] - Basic and diluted loss per share was HKD 6.02, compared to earnings of HKD 21.05 and HKD 19.67 respectively in the prior year[6] - Gross profit for the quarter was HKD 24,349,000, representing a gross margin of 13.3%, down from HKD 44,523,000 and a margin of 12.8% in the previous year[4] - The company incurred operating losses of HKD 4,941,000, a significant decline from an operating profit of HKD 18,969,000 in the same quarter last year[4] - The total comprehensive loss for the period was HKD 5,270,000, compared to a comprehensive income of HKD 18,224,000 in the same quarter of the previous year[8] - The net income from investment securities dropped to approximately HKD 2.91 million, compared to HKD 14.72 million in the previous year, reflecting a significant decline[19] - The securities investment business generated a net revenue of HKD 2,913,000, a decrease of approximately 80% from the previous year's net revenue of HKD 14,718,000[29] Revenue Sources - Revenue from beauty and body services was approximately HKD 12.47 million, down about 20% from HKD 15.63 million year-on-year[22] - The distribution sales from Shanghai Dongfang Daily Chemical Co., Ltd. decreased to approximately HKD 164.13 million, down from HKD 316.11 million year-on-year[19] - The distribution sales of cosmetics and skincare products in China recorded revenue of approximately HKD 164,129,000, a decrease of about 48% compared to approximately HKD 316,110,000, primarily due to strict lockdown measures from the COVID-19 pandemic[25] Tax and Financial Management - The company did not incur any Hong Kong profits tax for the quarter, while it recorded a tax expense of HKD 1,649,000 in the previous year[13] - The company raised approximately HKD 352,000,000 from a rights issue, with HKD 208.3 million already utilized and HKD 143.7 million remaining unutilized[32] - The company plans to control the pace and scale of property acquisitions due to market uncertainties caused by the COVID-19 pandemic and global economic conditions[32] Strategic Plans and Market Position - The company aims to strengthen its market position by continuously introducing advanced beauty and body services and products[22] - The company plans to leverage its brand strength and professional services to capture a larger share of the high-end market and achieve sustainable growth[23] - The health and beauty product distribution segment is expected to continue contributing steadily to the company's performance in the future, despite not being a major revenue driver currently[26] - The company aims to enhance its product offerings by investing in the development and introduction of advanced technology and safe ingredients in health and beauty products[26] - The company has established a strong brand presence in the Chinese beauty and slimming industry through its successful franchise operations since 2004[28] - The company is focused on expanding its lending business and developing its securities investment business to diversify revenue sources and reduce overall risk[29][30] Shareholder Information - The company has a total of 750,494 shares held by each of its directors and key executives, representing approximately 1% of the company's issued share capital[35] - Major shareholder Qiu Zhongzong holds 10,979,000 shares, representing 13.93% of the company's issued share capital as of June 30, 2022[40] - The weighted average exercise price for the stock options granted is HKD 0.87, with a total of 5,253,458 options granted[38] - The average remaining contractual life of the stock options is 3.87 years[38] Governance and Compliance - The company has established a formal and transparent procedure to protect shareholders' rights, adhering to the GEM Listing Rules[44] - The audit committee consists of three independent non-executive directors who reviewed the unaudited financial performance for the three months ending June 30, 2022[45] - The company has adopted the trading standards as per GEM Listing Rules for directors' securities transactions[46] - There are no competitive interests held by directors or major shareholders that could conflict with the company's business[42] - The company has not authorized any rights for directors or their family members to benefit from acquiring the company's shares or bonds during the review period[41] - The company has provided quarterly updates and regular information to the board, rather than monthly updates, to ensure effective governance[44] Other Financial Activities - Interest income from lending was HKD 3,040,000, an increase of 27.2% from HKD 2,394,000 year-on-year[10] - Other comprehensive loss for the period included a foreign exchange loss of HKD 254,000, compared to a gain of HKD 1,029,000 in the previous year[8] - The company recorded a loss attributable to shareholders of approximately HKD 4.52 million, compared to a loss of HKD 15.80 million in the same period last year[20] - The company did not recommend an interim dividend for the three months ended June 30, 2022, compared to no dividend in the previous year[18] - No purchases, redemptions, or sales of the company's listed securities occurred during the three months ending June 30, 2022[48]

Company Overview - Sau San Tong Holdings Limited was established in July 2000 and listed on GEM of the Stock Exchange of Hong Kong in November 2003, becoming the first listed beauty and slimming company in Hong Kong[14][9]. - The Group currently operates five beauty and slimming centers in Hong Kong under the brand names "Sau San Tong" and "IPRO"[15][14]. - In 2005, the Group acquired a distribution business in Mainland China, distributing P&G's personal care products and other renowned brands like SK-II and Olay[17][19]. - The franchise cooperation business in the PRC has expanded significantly since December 2010, with multiple franchise contracts established, positioning the brand as a leader in the beauty and slimming industry in China[78]. Business Segments and Services - The Group commenced a new business segment of investment in securities in March 2015 to diversify its income stream and improve capital usage efficiency[22][21]. - In May 2016, the Group started providing money lending services, targeting small to medium-sized corporations and individuals with both secured and unsecured loans[23][21]. - The beauty and slimming services provided by the Group include personalized health management and anti-aging treatment programs[15][14]. - The Group aims to enhance its revenue base through diversification into new business segments[21][22]. Financial Performance - The Group's revenue decreased by 13.0% from approximately HK$1,793,826,000 in the previous year to approximately HK$1,561,356,000 in the Year Under Review[43]. - Gross profit for the Year Under Review was approximately HK$137,171,000, a decrease of approximately HK$7,315,000 compared to HK$144,486,000 in the previous year[43]. - Revenue from the distribution sale of cosmetic and skin care products decreased from approximately HK$1,715,144,000 to approximately HK$1,476,008,000[44]. - Revenue from the provision of beauty and slimming services increased from approximately HK$53,771,000 to approximately HK$60,695,000[44]. - The Group's profit from operations was HK$19,489,000, a recovery from a loss of HK$5,503,000 in the previous year[43]. - The net profit for the year was HK$13,892,000, compared to a loss of HK$16,585,000 in the previous year[43]. - Current assets amounted to HK$826,032,000, a slight decrease from HK$845,408,000 in the previous year[43]. - The Group's net assets increased to HK$820,010,000 from HK$808,284,000 in the previous year[43]. Cost Management and Efficiency - General and administrative expenses amounted to HK$82,331,000, representing a decrease of approximately 22.5% from approximately HK$106,279,000 for the same period last year[48]. - Selling and distribution costs decreased by 13.6% from approximately HK$53,908,000 last year to approximately HK$46,578,000 in the Year Under Review[48]. - The Group reported a profit of approximately HK$13,892,000 for the year, compared to a loss of approximately HK$16,585,000 in the previous year, reflecting effective cost control measures that reduced total sales and distribution costs and general administrative expenses from approximately HK$160,187,000 to approximately HK$128,909,000, a decrease of about 19.5%[67]. Market Challenges and Outlook - Looking ahead, the Group anticipates challenges in the Hong Kong and PRC economy and retail business due to the ongoing impact of COVID-19[38]. - The Group's beauty and slimming centres experienced a shorter suspension period, driving revenue up by 12.0% compared to last year[65]. - The demand for quality beauty and slimming products and services is expected to continue its upward momentum due to the growth of the middle class[138][142]. Investment and Growth Strategy - The Group aims to enhance its portfolio of health and beauty products by investing in advanced technologies and safe ingredients, targeting a wider array of sophisticated product choices for customers[76]. - The Group plans to continue launching safe and effective products that cater to diverse customer needs, contributing to stable results in the health and beauty product distribution segment[77]. - The Group plans to utilize its abundant funds to identify new investment opportunities, including securities, money lending, and properties, to generate additional returns and broaden its revenue base[106]. - The Group will focus on selecting sound investments with high return potentials to enhance capital efficiency and overall performance[106]. Corporate Governance - The management emphasized the importance of corporate governance and risk management for sustainable development[37]. - The company has adopted a code of conduct for Directors' securities transactions that meets the standards set out in the GEM Listing Rules, with all Directors confirming compliance throughout the year ended March 31, 2022[174]. - The Board has reviewed corporate governance practices and is satisfied with compliance with the Corporate Governance Code, except for the absence of a chairman of the Board, which is a deviation from code provision A.2[162]. - The Board of Directors consists of six members, including two Executive Directors, one Non-executive Director, and three Independent Non-executive Directors as of March 31, 2022[175]. - The Company has three Independent Non-executive Directors, with at least one possessing appropriate professional qualifications or financial management expertise[187]. Social Responsibility - The Group has been recognized as a "Caring Company" for 10 consecutive years, reflecting its commitment to outstanding products and services[16][14]. - The Group actively participates in charity initiatives and has established the "Sau San Tong Volunteer Team" to support various charitable causes[111].