Financial Performance - Revenue for the three months ended December 31, 2021, was HKD 421,442,000, a decrease of 23.4% compared to HKD 550,731,000 for the same period in 2020[3] - Revenue for the nine months ended December 31, 2021, was HKD 1,246,596,000, down 5.4% from HKD 1,317,376,000 in the previous year[3] - Gross profit for the three months ended December 31, 2021, was HKD 36,841,000, representing a gross margin of 8.7%[3] - Operating profit for the three months ended December 31, 2021, was HKD 9,683,000, a decline of 34.5% from HKD 14,769,000 in the same quarter of 2020[5] - Net profit for the three months ended December 31, 2021, was HKD 7,405,000, compared to HKD 10,413,000 for the same period in 2020, reflecting a decrease of 29.0%[5] - Basic earnings per share for the three months ended December 31, 2021, was HKD 6.47, an increase from HKD 5.66 in the previous year[5] - The company reported a total comprehensive income of HKD 9,968,000 for the three months ended December 31, 2021, compared to HKD 20,364,000 in the same period of 2020[7] Revenue Sources - The company’s revenue from beauty and body services increased to HKD 52,472,000 for the nine months ended December 31, 2021, up 17.7% from HKD 44,539,000 in the previous year[10] - The company’s securities investment performance improved significantly, with revenue of HKD 16,856,000 for the nine months ended December 31, 2021, compared to HKD 6,924,000 in the same period of 2020, representing a growth of 143.5%[10] - The distribution revenue for the group decreased to approximately HKD 1,170,328,000, down from HKD 1,254,455,000 in the previous year, reflecting a decline of about 6.7%[27] Cost and Profitability - The gross profit for the period was approximately HKD 118,829,000, an increase of 8% from HKD 110,287,000 in the previous year[22] - The company recorded a profit attributable to owners of approximately HKD 19,101,000, compared to a loss of HKD 5,359,000 in the same period last year[22] - The sales cost decreased from approximately HKD 1,207,089,000 to HKD 1,127,767,000, reflecting effective cost control measures[22] - Interest income from lending decreased by 42% to approximately HKD 5,618,000 from HKD 9,724,000 in the previous year[21] Dividends and Shareholder Information - The company did not recommend an interim dividend for the nine months ended December 31, 2021, compared to no dividend in the previous year[20] - As of December 31, 2021, the company’s directors and key executives hold a total of 2,251,482 shares under the share option plan, representing approximately 3% of the issued share capital[39] - Major shareholder Qiu Zhongzong holds 10,111,000 shares, accounting for 13.47% of the company's issued share capital as of December 31, 2021[41] - The total number of share options granted to employees is 1,500,988, which is part of the overall 5,253,458 options granted under the share option plan[39] Corporate Governance - The company has established a formal and transparent procedure to protect shareholder interests, adhering to the GEM Listing Rules[45] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial performance for the three and nine months ended December 31, 2021[47] - The company has adopted the trading standards outlined in GEM Listing Rules for directors' securities transactions, ensuring compliance[49] - No directors or their immediate family members have been authorized to acquire shares or bonds of the company during the review period[42] - The company has not disclosed any competitive interests held by its directors or major shareholders in businesses that may compete with the group[44] Future Plans and Market Position - The company plans to introduce advanced and high-quality services and products to enhance customer loyalty and brand image[24] - The overall economic improvement in Hong Kong is expected to positively impact the company's operations in the beauty and wellness sector[24] - The company aims to maintain its leadership position in the industry by continuously innovating and introducing new beauty and anti-aging treatments[24] - The group aims to continue developing and introducing advanced health and beauty products to enhance the attractiveness of the "修身堂" brand and maintain market leadership[28] - The group has established a strong presence in the Chinese market since 2004, leveraging its brand recognition to capture a significant market share in the beauty and body care industry[30] - The group plans to control the pace and scale of property acquisitions due to uncertainties arising from the COVID-19 pandemic and global economic conditions[34] - The net proceeds from the rights issue amounted to approximately HKD 352,000,000, with various allocations including HKD 116,000,000 for property acquisitions and HKD 78,000,000 for developing the lending business[34] - The group is committed to expanding its distribution network across various channels, including e-commerce and modern retail outlets, to enhance customer reach[27] - The group will continue to focus on high-quality beauty and body care services to meet the increasing demand from customers for premium offerings[26] - The group has recorded a significant number of franchise stores under the "張玉珊修身堂" brand, establishing itself as a leader in the Chinese beauty and body care industry[30] Share Options - The exercise price for the share options granted to directors and key executives is set at HKD 0.87 per share, with an exercise period from February 10, 2021, to February 9, 2026[39] - The weighted average remaining contractual life of the share options is 4.87 years as of April 1, 2021[39] Securities Transactions - The company did not purchase, redeem, or sell any of its listed securities during the nine months ended December 31, 2021[50] - The board of directors includes executive directors Mr. Mei Wai Chan and Mr. Chan Ka Kin, and independent non-executive directors[50]

香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM之定位，乃為中小型公司提供一個上市之市場，此等公司相比起其他在聯交所主板上市之 公司帶有較高投資風險。有意投資之人士應了解投資於該等公司之潛在風險，並應經過審慎周 詳之考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交所主板買賣之證券 承受較大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 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報告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 本報告（修身堂控股有限公司（「本公司」）董事（「董事」）願共同及個別對此負全責）乃遵照聯交所 GEM證券上市規則（「GEM上市規則」）之規定而提供有關本公司之資料。本公司董事經作出一切 合理查詢後，確認就彼等所深知及所確信：(1)本報告所載資料在各重大方面均屬準確及完整， 且無誤導或欺詐成份；及(2)並無遺漏任何其他事項，致使本報告或其所載任何陳述產生誤導。 業績 本公司董事會（「董事會」）宣佈本公司及 ...

本公司董事會公佈本公司及其附屬公司（「本集團」）截至二零二一年六月三十日止三個月之未經 審核綜合財務業績，連同二零二零年同期之比較數字如下： 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM之定位，乃為中小型公司提供一個上市之市場，此等公司相比起其他在聯交所主板上市之 公司帶有較高投資風險。有意投資之人士應了解投資於該等公司之潛在風險，並應經過審慎周 詳之考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交所主板買賣之證券 承受較大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 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報告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 本報告（修身堂控股有限公司（「本公司」）董事（「董事」）願共同及個別對此負全責）乃遵照聯交所 GEM證券上市規則（「GEM上市規則」）之規定而提供有關本公司之資料。本公司董事經作出一切 合理查詢後，確認就彼等所深知及所確信：(1)本報告所載資料在各重大方面均屬準確 ...

2021 Annual report Cover_14_mm_cs5.pdf 1 18/6/2021 18:14:17 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due a ...

Financial Performance - Revenue for the three months ended December 31, 2020, was HKD 550,731,000, an increase of 27.1% compared to HKD 433,066,000 for the same period in 2019[4] - Revenue from the distribution of cosmetics and skincare products reached HKD 526,593,000, up 30.1% from HKD 404,581,000 year-on-year[4] - The company reported a net profit of HKD 10,413,000 for the three months ended December 31, 2020, compared to a profit of HKD 956,000 in the same period of 2019[6] - Basic earnings per share for the three months ended December 31, 2020, was HKD 5.66, compared to a loss of HKD 1.70 per share in the same period of 2019[6] - The operating profit for the nine months ended December 31, 2020, was HKD 12,731,000, a significant recovery from an operating loss of HKD 19,763,000 in the same period of 2019[6] - Total comprehensive income for the three months ended December 31, 2020, was HKD 20,364,000, compared to a loss of HKD 5,139,000 in the same period of 2019[8] - The total revenue for the nine months ended December 31, 2020, was HKD 1,317,376,000, representing a 24.0% increase from HKD 1,062,221,000 in the same period of 2019[11] - For the nine months ended December 31, 2020, the company reported a loss attributable to owners of the company of HKD 5,359,000 compared to a loss of HKD 28,535,000 for the same period in 2019, representing a significant improvement[17] - The gross profit for the review period was approximately HKD 110,287,000, a 12% increase from HKD 98,274,000 in the previous year[37] - The company recorded a loss attributable to owners of approximately HKD 5,359,000, an 81% reduction from HKD 28,535,000 in the same period last year[37] Government Support and Subsidies - The company received government subsidies amounting to HKD 5,332,000 to alleviate the impact of COVID-19 on its operations[13] Shareholder Information - As of December 31, 2020, major shareholder Qiu Zhongzong held 10,111,000 shares, representing approximately 13.47% of the total issued share capital[56] - The weighted average number of ordinary shares for calculating basic and diluted loss per share was 75,049,354 for the three months ended December 31, 2020, unchanged from the previous year[18] Subsidiary Sales - The company completed the sale of its subsidiary, Earth Limited, for a total consideration of HKD 23,000,000, resulting in a gain of HKD 216,000 after accounting for the net assets sold[27] - The net assets sold for Earth Limited included investment properties valued at HKD 22,000,000 and liabilities of HKD 18,319,000, resulting in a net asset value of HKD 4,465,000[26] - The company also sold its subsidiary, Victory Sky Investments Limited, for HKD 1,500,000, resulting in a gain of HKD 501,000 after accounting for the net liabilities sold[29] - The net assets sold for Victory Sky included intangible assets valued at HKD 985,000 and liabilities of HKD 2,250,000, leading to a net liability of HKD 1,251,000[32] Equity and Capital Structure - The company's total equity as of December 31, 2020, was HKD 828,034,000, compared to HKD 875,754,000 as of December 31, 2019, reflecting a decrease of approximately 5.4%[22] - The company has implemented a capital restructuring to offset accumulated losses and enhance flexibility for future capital raising[34] Business Development and Strategy - The company plans to continue introducing innovative beauty and anti-aging treatments to strengthen its market leadership[39] - The company aims to enhance its brand appeal by developing advanced health and beauty products that meet customer needs[43] - The franchise business in China has expanded significantly, leveraging the brand's strong recognition and establishing flagship stores[45] Governance and Compliance - The company has established a formal and transparent procedure to protect shareholders' interests, adhering to the GEM listing rules' corporate governance code principles, with some exceptions noted[60] - 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, 2020[62] - The company confirmed that all directors have complied with the trading standards set out in the GEM listing rules[64] - The company has not established a chairman of the board, thus not complying with the relevant governance code[61] - There are no competitive interests held by directors, major shareholders, or their associates in businesses that may compete with the group[59] Financial Assets and Investments - The group recorded a net gain of approximately HKD 6,924,000 from financial assets measured at fair value through profit or loss, compared to a net loss of approximately HKD 17,258,000 in the same period last year[46] - Interest income from lending services was approximately HKD 9,724,000, a decrease of 20% compared to approximately HKD 12,127,000 in the same period last year[47] Future Allocations and Utilization - The group plans to utilize approximately HKD 16 million for acquiring commercial, industrial, and residential properties in China and Hong Kong by June 30, 2021[49] - Approximately HKD 40 million is allocated for the development of the group's lending business, with HKD 38 million already utilized by June 30, 2021[49] - The group intends to allocate approximately HKD 30 million for the development of its securities investment business[49] - The group aims to renovate offices and stores in China and Hong Kong, with an allocation of approximately HKD 7 million, of which HKD 53 million has been utilized by September 30, 2021[49] Share Options and Director Interests - The weighted average exercise price of the share options is HKD 3.87, with a weighted average remaining contractual life of 3.14 years[53] - The group has not recorded any shareholding interests from directors or key executives in the company's shares as of December 31, 2020[51] - The company did not grant any rights to directors or their immediate family members to acquire shares or bonds during the review period[57] - The company has not engaged in any arrangements that would allow directors to gain rights from other entities during the review period[57]

Revenue Performance - Revenue for the three months ended September 30, 2020, was HKD 478,158,000, an increase of 26% compared to HKD 379,495,000 for the same period in 2019[4] - Revenue for the six months ended September 30, 2020, was HKD 766,645,000, up 22% from HKD 629,155,000 in the previous year[4] - Revenue from the distribution of cosmetics and skincare products was HKD 727,862,000, contributing to a total reported revenue of HKD 766,645,000 for the six months ended September 30, 2020[21] - Sales from Shanghai Dongfang Daily Chemical Co., Ltd. increased to approximately HKD 727,862,000 during the reporting period, up from HKD 595,175,000 in the previous year[49] - Revenue from beauty and body services decreased by 38% to approximately HKD 26,934,000, down from HKD 43,251,000 in the previous year[49] - Revenue from the sale of health, beauty, and related products decreased by 62% to approximately HKD 716,000, down from HKD 1,867,000 in the previous year[49] Profit and Loss - Gross profit for the three months ended September 30, 2020, was HKD 39,319,000, representing a 74% increase from HKD 22,586,000 in 2019[4] - The company reported a net loss of HKD 4,148,000 for the three months ended September 30, 2020, compared to a net loss of HKD 18,554,000 for the same period in 2019[6] - Basic loss per share for the three months ended September 30, 2020, was HKD 0.88, improving from HKD 2.7 in the previous year[6] - The company experienced a total loss of HKD 5,800,000 for the six months ended September 30, 2020, compared to a loss of HKD 25,018,000 in the same period of 2019, indicating a significant improvement[21] - For the six months ended September 30, 2020, the company reported a loss attributable to owners of the company of HKD 9,609,000, compared to a loss of HKD 27,287,000 for the same period in 2019, representing a 64.7% improvement[29] - The loss attributable to the company's owners was approximately HKD 9,609,000, a reduction of about 62% compared to HKD 27,287,000 in the same period last year[61] Assets and Liabilities - Total assets as of September 30, 2020, amounted to HKD 866,108,000, compared to HKD 854,060,000 as of March 31, 2020[10] - Current assets net amount was HKD 674,860,000 as of September 30, 2020, an increase from HKD 633,916,000 as of March 31, 2020[12] - The company’s cash and cash equivalents were HKD 441,310,000 as of September 30, 2020, compared to HKD 402,023,000 as of March 31, 2020[10] - Non-current assets decreased to HKD 143,054,000 as of September 30, 2020, from HKD 194,973,000 as of March 31, 2020[10] - Current liabilities decreased to approximately HKD 191,248,000 from HKD 220,144,000 as of March 31, 2020[62] - The current ratio improved to 4.53:1 from 3.88:1 as of March 31, 2020, indicating sufficient financial resources[62] Cash Flow - The company reported a net cash inflow from operating activities of HKD 28,357,000 for the six months ended September 30, 2020, compared to a net outflow of HKD 4,442,000 in the same period of 2019[16] - The total cash and cash equivalents increased by HKD 43,439,000, reaching HKD 441,310,000 as of September 30, 2020, up from HKD 374,527,000 a year earlier[16] - The company’s financing activities resulted in a net cash outflow of HKD 7,344,000 for the six months ended September 30, 2020, compared to HKD 11,961,000 in the same period of 2019[16] - The company reported a significant increase in cash generated from investment activities, with a net inflow of HKD 22,426,000 compared to HKD 2,795,000 in the previous year[16] Government Support and Expenses - The company received government subsidies amounting to HKD 4,020,000 to mitigate the impact of COVID-19, which were based on the number of employees in its beauty salons and massage parlors[25] - The company's tax expenses for the six months ended September 30, 2020, included HKD 3,313,000 in China corporate income tax, an increase from HKD 2,331,000 in the same period of 2019, reflecting a 42.1% rise[28] - The company reported no Hong Kong profits tax for the six months ended September 30, 2020, compared to HKD 85,000 for the same period in 2019[28] Strategic Actions - The company completed the sale of its entire equity interest in Earth Limited for HKD 23,000,000, marking a strategic divestment from its investment property[32] - The company recognized an impairment loss of HKD 6,408,000 on goodwill related to its cash-generating unit in China, reflecting the adverse economic environment and business performance decline[35] - The company issued 67,567,567 shares at HKD 0.296 per share as part of the acquisition of an investment property valued at HKD 20,000,000[32] - The group aims to continue introducing innovative beauty and anti-aging treatments and equipment to strengthen its market position[52] - The group plans to expand its brand presence in China through flagship stores and the new "Dr. Zhang Yushan" brand to enhance brand recognition[58] Shareholder Information - Major shareholder Qiu Zhongzong holds 80,550,000 shares, representing 10.73% of the company's issued share capital as of September 30, 2020[75] - The weighted average exercise price of the share option plan is HKD 0.387, with a weighted average remaining contractual life of 3.14 years[73] - The total number of share options granted under the plan is 40,975,339[73] Corporate Governance - The company has established formal and transparent procedures to protect shareholder rights, adhering to GEM listing rules, except for providing monthly updates to the board, which management believes is unnecessary[79] - The audit committee has been formed in accordance with GEM listing rules, consisting of three independent non-executive directors, and has reviewed the unaudited financial performance for the six months ending September 30, 2020[81] - The company has adopted the trading standards outlined in GEM listing rules for directors' securities transactions, confirming compliance by all directors[82] - There were no purchases, redemptions, or sales of the company's listed securities by the company or its subsidiaries during the six months ending September 30, 2020[84]

Financial Performance - The company's revenue for the three months ended June 30, 2020, was HKD 288,487,000, an increase of 15.5% compared to HKD 249,660,000 in the same period of 2019[3] - Gross profit for the same period was HKD 25,983,000, down 18.9% from HKD 32,007,000 year-on-year[3] - The operating loss for the quarter was HKD 82,000, a significant improvement from a loss of HKD 5,767,000 in the previous year[3] - The net loss attributable to the company's owners was HKD 3,026,000, compared to a loss of HKD 6,850,000 in the same quarter of 2019[3] - Basic and diluted loss per share for the quarter was HKD 0.40, improved from HKD 1.00 in the previous year[3] - The total comprehensive loss for the quarter was HKD 1,976,000, compared to a loss of HKD 9,007,000 in the previous year[4] - The company incurred a tax expense of HKD 1,283,000 for the quarter, compared to HKD 697,000 in the same period of 2019[9] Revenue Breakdown - Revenue from the distribution of cosmetics and skincare products was HKD 270,645,000, up 20.2% from HKD 225,011,000 in 2019[6] - Revenue from beauty and body services decreased to HKD 11,768,000, down 46.8% from HKD 22,115,000 year-on-year[6] - Distribution sales from Shanghai Dongfang reached approximately HKD 270,645,000, up about 20% from HKD 225,011,000 year-on-year[20] - Revenue from beauty, body shaping, and spa centers in Hong Kong and China decreased by approximately 47% to HKD 11,768,000 from HKD 22,115,000 year-on-year[17] Other Income and Investments - The company reported other income of HKD 3,507,000, a significant increase from HKD 265,000 in the same period last year[3] - The company invested in the Hong Kong stock market and recorded a net gain of approximately HKD 1,716,000, compared to a net loss of HKD 2,278,000 in the previous year[16] - The group recorded a net income of HKD 1,716,000 from its securities investment business, compared to a net loss of HKD 2,278,000 in the same period last year, indicating a significant turnaround[25] - Interest income from the lending business increased by approximately 20% to about HKD 4,062,000, up from approximately HKD 3,398,000 in the previous year[26] Strategic Plans and Market Position - The company plans to sell a wholly-owned subsidiary for HKD 23,000,000, which is expected to enhance liquidity and profitability[13] - The company aims to maintain its leadership position in the beauty and body shaping industry by introducing innovative treatments and equipment[17] - The group aims to enhance its health and beauty product offerings by investing in advanced technologies and safe ingredients, although the health and beauty distribution segment has not yet generated significant revenue[22] - The group plans to maintain product quality and meet diverse customer needs while expanding its brand appeal in the health and beauty sector[22] - The group has established a strong presence in the Chinese market since 2004, leveraging its brand recognition to capture a larger market share in the beauty and slimming industry[23] - The group has opened multiple flagship stores in China to strengthen brand identity and protect consumer rights against counterfeit products[23] Shareholder Information - Major shareholder Qiu Zhongzong holds 80,550,000 shares, representing 10.73% of the company's issued share capital[33] - The company has established a formal and transparent procedure to protect shareholders' rights, adhering to GEM listing rules[37] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial performance for the three months ending June 30, 2020[38] Rights Issue and Fund Utilization - The group raised approximately HKD 352,000,000 from a rights issue, with allocations including HKD 40,000,000 for the lending business and HKD 30,000,000 for developing the securities trading business[27] - The remaining unutilized funds from the rights issue amount to approximately HKD 227,115,000[28] Market Challenges - The economic slowdown and COVID-19 pandemic have negatively impacted consumer confidence and business performance in the beauty and wellness sector[17] Corporate Governance - No purchases, redemptions, or sales of the company's listed securities occurred during the three months ending June 30, 2020[41] - The weighted average exercise price of the share options is HKD 0.387, with a weighted average remaining contractual life of 3.14 years[32] Diversification and Risk Management - The group continues to explore diversification opportunities to reduce overall risk and enhance capital utilization through its various business segments[25]

Company Overview - Sau San Tong Holdings Limited was established in July 2000 and became the first listed beauty and slimming company in Hong Kong on GEM in November 2003[10]. - The Group currently operates eight beauty and slimming centers, with five located in Hong Kong and three in Mainland China[11]. - In 2015, the Group expanded its business by acquiring a distribution business in Mainland China, distributing P&G's personal care products and other renowned brands[13]. - The Group commenced a new business segment of investment in securities in March 2015 to diversify its income stream and improve capital usage efficiency[18]. - In May 2016, the Group started providing money lending services, targeting small to medium-sized corporations and individuals with loan terms ranging from several months to 2 years[19]. Business Performance - The Group's revenue decreased by 43.9% from approximately HK$2,423,176,000 in the previous year to approximately HK$1,359,223,000 in the Year Under Review[36]. - Revenue from the distribution sale of cosmetic and skin care products dropped from approximately HK$2,365,690,000 to approximately HK$1,291,980,000[36]. - Gross profit for the Year Under Review was approximately HK$106,405,000, a decrease of approximately HK$20,057,000 compared to HK$126,462,000 from the previous year[37]. - General and administrative expenses decreased by approximately 19.1% to HK$94,669,000 from HK$116,980,000[37]. - Selling and distribution costs decreased by 32.4% from approximately HK$84,978,000 to approximately HK$57,473,000[37]. - The loss attributable to the owners of the Company narrowed from approximately HK$95,376,000 to HK$56,489,000[38]. Economic Environment - The economic environment in Hong Kong and the PRC is expected to remain challenging in 2020 due to the impact of COVID-19[32]. - The economic downturn in Hong Kong and China was marked by negative growth rates of 8.9% and 6.8%, respectively, impacting the beauty and slimming industry[46]. Strategic Initiatives - The Group aims to fully utilize idle funds by expanding into several new business segments in recent years[17]. - The Group will continue to explore acquisition opportunities and adjust its development and investment strategies[27][32]. - The Group's product distribution business in China performed satisfactorily despite overall challenges[26]. - The Group's strategy focuses on maintaining quality products and professional services to enhance customer trust and expand its presence in the high-end market[64]. - The Group aims to continue launching safe and effective health and beauty products to meet diverse customer needs, ensuring stable contributions to future results[71]. Financial Position - As of 31 March 2020, cash and bank balances increased to approximately HK$402,023,000 from approximately HK$391,743,000 in 2019[53]. - The liquidity ratio was 3.88:1, down from 4.67:1 in 2019, indicating a decrease in financial resource adequacy[53]. - The Group's net assets decreased to approximately HK$814,154,000 as of March 31, 2020, compared to approximately HK$875,754,000 as of March 31, 2019[102]. - The Group's total liabilities amounted to approximately HK$234,879,000 as of March 31, 2020, up from approximately HK$200,761,000 in 2019[91]. - The average outstanding days of the Group's accounts receivable was maintained at below 90 days, indicating effective credit management[92]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the year ended March 31, 2020, except for the absence of a chairman of the Board[135]. - The Board consists of six Directors, including two Executive Directors, one Non-Executive Director, and three Independent Non-executive Directors as of March 31, 2020[146]. - The company has adopted a code of conduct regarding Directors' securities transactions, confirming compliance by all Directors throughout the year[145]. - The Audit Committee, comprising all Independent Non-executive Directors, was established to oversee financial reporting and internal control systems[188]. - The Company encourages continuous professional development for Directors to enhance their knowledge and skills[177]. Social Responsibility - The Group has received the Diamond Prize from the Guangdong-Hong Kong-Macao-Bay Area Top 100 Brands Festival and has been recognized as a "Caring Company" for 10 consecutive years[12]. - The Group's charity initiatives continued, with regular donations made during the year, reflecting its commitment to social responsibility[89]. Future Outlook - The Group is optimistic about future performance improvements due to its industry leadership and established customer confidence in Hong Kong and China[47]. - 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[82]. - The Group aims to enhance brand visibility through increased promotional efforts on social media platforms, targeting the younger generation to broaden its customer base[114][116].

由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交所主板買賣 之證券承受較大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市 場。 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報告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 T H I R D Q U A R T E R L Y REPORT 第三季度業績報告 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM之定位，乃為中小型公司提供一個上市之市場，此等公司相比起其他在聯交所主板 上市之公司帶有較高投資風險。有意投資之人士應了解投資於該等公司之潛在風險，並 應經過審慎周詳之考慮後方作出投資決定。 本報告（修身堂控股有限公司（「本公司」）董事（「董事」）願共同及個別對此負全責）乃遵照 聯交所GEM證券上市規則（「GEM上市規則」）之規定而提供有關本公司之資料。本公司董 事經作出一切合理查詢後，確認就彼等所知及所信：(1)本報告所載資料在各重大方面均 屬準確及完整，且無誤導或欺詐成份；及(2)並無遺漏任何其他事 ...

Financial Performance - For the three months ended September 30, 2019, the company's revenue was HKD 379,495,000, a decrease of 29.6% compared to HKD 538,875,000 in the same period of 2018[3]. - The gross profit for the six months ended September 30, 2019, was HKD 54,593,000, representing an increase of 22.7% from HKD 44,522,000 in the same period of 2018[3]. - The net loss for the six months ended September 30, 2019, was HKD 25,018,000, a reduction of 63.8% compared to HKD 69,262,000 in the same period of 2018[5]. - The company's basic loss per share for the six months ended September 30, 2019, was HKD 3.8, compared to HKD 11.0 for the same period in 2018[3]. - The company reported a comprehensive loss of HKD 24,412,000 for the six months ended September 30, 2019, compared to HKD 86,696,000 in the same period of 2018[5]. - The company experienced a total loss of HKD 25,018,000 for the six months ended September 30, 2019, compared to a loss of HKD 69,262,000 for the same period in 2018, indicating a significant reduction in losses[18]. - The group recorded a net loss of approximately HKD 19,165,000 from financial assets measured at fair value through profit or loss, compared to a net loss of approximately HKD 51,066,000 in the same period last year[53]. - The group's net loss attributable to shareholders decreased by approximately 64% to about HKD 27,287,000, compared to HKD 75,059,000 in the previous year[44]. Assets and Liabilities - Total assets as of September 30, 2019, were HKD 835,450,000, down from HKD 919,924,000 as of March 31, 2019[7]. - The company's cash and cash equivalents as of September 30, 2019, were HKD 374,527,000, a decrease from HKD 391,743,000 as of March 31, 2019[7]. - The total liabilities as of September 30, 2019, were HKD 145,217,000, compared to HKD 196,873,000 as of March 31, 2019[7]. - The company's equity attributable to owners as of September 30, 2019, was HKD 857,473,000, slightly down from HKD 860,960,000 as of March 31, 2019[8]. - The group's net asset value was approximately HKD 859,981,000 as of September 30, 2019, compared to approximately HKD 875,754,000 as of March 31, 2019[58]. - The group had no bank loans as of September 30, 2019, and reported total liabilities of approximately HKD 149,105,000[56]. Cash Flow and Operating Activities - The net cash used in operating activities for the six months ended September 30, 2019, was HKD (4,442,000), an improvement from HKD (49,269,000) in the same period of 2018[13]. - The company’s financing activities resulted in a net cash outflow of HKD (11,961,000) for the six months ended September 30, 2019, compared to HKD (54,385,000) in the same period of 2018[13]. - Cash and cash equivalents decreased by HKD 13,608,000 during the six months ended September 30, 2019, compared to a decrease of HKD 77,860,000 in the same period of 2018[13]. Revenue and Sales - The reported revenue from the distribution of skincare products was HKD 595,175,000 for the six months ended September 30, 2019, down from HKD 1,322,878,000 in the same period of 2018[18]. - The group's revenue for the six months ended September 30, 2019, was approximately HKD 629,155,000, a decrease of 53% compared to HKD 1,324,848,000 in the same period last year[42]. - Distribution sales from Dongfang decreased to approximately HKD 595,175,000, down from HKD 1,322,878,000 in the previous year[42][49]. - Revenue from the franchise business contributed approximately HKD 629,000, a decrease from HKD 773,000 in the previous year, representing a decline of about 18.6%[44]. - The lending business revenue increased by 16% to approximately HKD 7,398,000, compared to HKD 6,375,000 in the previous year[44]. Corporate Governance and Compliance - The company has confirmed that the information provided in the report is accurate and complete, with no misleading or fraudulent elements[1]. - The company has established an audit committee consisting of three independent non-executive directors to review financial performance[77]. - The company has adopted the GEM Listing Rules as a code of conduct for securities trading by directors, ensuring compliance[78]. - The company has implemented corporate governance practices in accordance with GEM Listing Rules, with some exceptions noted[74]. Strategic Initiatives and Market Position - The group plans to continue introducing advanced and high-quality services and products to strengthen its market position in the beauty and wellness industry[46][50]. - The group aims to expand its presence in the Chinese market through the establishment of flagship stores and the introduction of the new brand "Zhang Yushan Xiu Shen Tang" to enhance brand recognition[52]. - The group has been recognized for its brand strength and has received numerous awards, enhancing its reputation in Hong Kong, Macau, and China[47]. - The group will continue to invest in the development and introduction of innovative health and beauty products to meet customer needs and ensure market leadership[50]. Shareholder Information - Major shareholders include Qiu Zhongzong with 80,550,000 shares (10.73%) and He Wanwei with 67,567,567 shares (9.0%) as of September 30, 2019[70]. - The company has a total of 40,975,339 stock options granted with a weighted average exercise price of HKD 0.387[68]. - The average remaining contractual life of stock options is 4.14 years[68]. Employee Costs - Total employee costs during the review period were approximately HKD 36,807,000, down from approximately HKD 47,707,000 in the previous year[61].