Financial Performance - The company reported unaudited revenue of HKD 10,467,000 for the three months ended June 30, 2022, a decrease of 23.8% compared to HKD 13,646,000 for the same period in 2021[5]. - The loss before tax for the period was HKD 799,000, compared to a profit of HKD 1,571,000 in the previous year[5]. - The company experienced a significant decline in revenue from treatment services, which amounted to HKD 8,165,000, down 25.4% from HKD 10,949,000 in the prior year[14]. - Revenue from prescription and dispensing services decreased to HKD 2,077,000, a decline of 11.7% from HKD 2,354,000 in the same quarter of 2021[14]. - The company reported a basic and diluted loss per share of HKD 0.20 for the quarter, compared to earnings of HKD 0.38 per share in the previous year[5]. - The total comprehensive loss attributable to owners of the company was HKD 792,000, compared to a comprehensive income of HKD 1,529,000 in the same period last year[5]. - For the three months ended June 30, 2022, the company's revenue decreased by HKD 3.1 million or 22.8% to HKD 10.5 million compared to the same period in 2021[34]. - The company recorded a loss attributable to owners of HKD 0.8 million for the three months ended June 30, 2022, compared to a profit of HKD 1.5 million for the same period in 2021[36]. - The group's revenue decreased by HKD 3.1 million or 22.8% from HKD 13.6 million for the three months ended June 30, 2021, to HKD 10.5 million for the three months ended June 30, 2022, primarily due to the negative impact of the fifth wave of the COVID-19 pandemic and intense market competition[39]. - Other income, gains, and losses netted a loss of HKD 0.043 million for the three months ended June 30, 2022, a decrease of HKD 0.4 million or 66.7% from a net income of HKD 0.3 million for the same period in 2021, mainly due to unrealized exchange losses and the net impact of government subsidies[40]. Assets and Liabilities - The company’s total assets as of June 30, 2022, were HKD 16,657,000, a decrease from HKD 23,445,000 as of June 30, 2021[7]. - The cost of used inventory for the three months ended June 30, 2022, was HKD 2.0 million, representing 18.7% of the revenue, compared to HKD 2.2 million or 16.3% of the revenue for the same period in 2021[41]. - Employee costs decreased by HKD 0.7 million or 12.5% from HKD 5.6 million for the three months ended June 30, 2021, to HKD 4.9 million for the same period in 2022, primarily due to reduced salaries and bonuses linked to decreased revenue[42]. - Other expenses decreased by HKD 0.3 million or 14.3% from HKD 2.1 million for the three months ended June 30, 2021, to HKD 1.8 million for the same period in 2022, primarily due to reduced revenue[46]. Business Strategy and Operations - The company is focused on providing medical consultation services, prescription and dispensing services, and treatment services as its main business segments[12]. - The company has implemented measures to enhance online consultation services and e-commerce platforms for its skincare products[34]. - The board believes that introducing new services and products is one of the key drivers for business growth and maintaining competitiveness in the industry[37]. - The group will continue to adopt a cautious approach to business strategy due to uncertainties and challenges posed by the COVID-19 pandemic[37]. - The company aims to leverage its solid customer base and good reputation in the industry to provide high-quality medical skin care services and products, thereby solidifying its market position and seeking new business opportunities[37]. Governance and Compliance - The board of directors confirmed that the financial statements are accurate and complete, with no misleading or fraudulent elements[3]. - The company adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied with it for the three months ending June 30, 2022[59]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the three months ending June 30, 2022, ensuring compliance with applicable accounting standards and GEM Listing Rules[66]. - The roles of the chairman and CEO are held by the same individual, Dr. Jiang, to enhance business strategy implementation and operational efficiency[61]. - The board of directors is committed to maintaining a positive relationship between executive and non-executive directors, ensuring collective responsibility for business strategy[61]. - The company encourages active participation from all directors in board affairs to align with the best interests of the company[61]. - The company has not reported any violations of the securities trading rules for directors during the three months ending June 30, 2022[62]. Dividends and Share Options - The company did not declare an interim dividend for the three months ended June 30, 2022, compared to a special dividend of HKD 9,918,000 declared in 2021[26][25]. - As of June 30, 2022, there were 4,000,000 unexercised share options outstanding, unchanged from the previous year[65]. - The company has established a share option scheme to reward eligible individuals for their contributions, in line with GEM Listing Rules[65]. Market Conditions - The company faced significant competition in the market and was impacted by strict social distancing measures due to the fifth wave of COVID-19 in Hong Kong[34]. - The company received government subsidies of HKD 576,000 under the "Employment Support Scheme" to alleviate the impact of the COVID-19 pandemic[20][21]. - There were no significant events occurring after the reporting period[30]. - The depreciation of right-of-use assets remained stable at HKD 1.8 million for the three months ended June 30, 2022, compared to HKD 1.9 million for the same period in 2021[44]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[63]. - No securities transactions were conducted by the company or its subsidiaries during the three months ending June 30, 2022[63].

Financial Performance - The group's revenue for the fiscal year ended March 31, 2022, was HKD 49.1 million, an increase of 17.8% compared to HKD 41.7 million in the previous fiscal year[9]. - The profit attributable to owners of the company was HKD 3.9 million, a significant increase of 311.5% from HKD 1.0 million for the year ended March 31, 2021[9]. - Basic earnings per share for the year were HKD 0.99, representing an increase of 330.4% from HKD 0.23 in the previous year[9]. - The group's revenue increased by HKD 7.4 million or 17.8% from HKD 41.7 million for the year ended March 31, 2021, to HKD 49.1 million for the year ended March 31, 2022[16]. - The profit attributable to the company's owners increased by HKD 3.9 million, a 311.5% increase compared to HKD 1.0 million for the year ended March 31, 2021[18]. Operational Challenges - The company faced challenges due to the COVID-19 pandemic, which affected local economic activities and consumer sentiment[8]. - The group has adopted stricter operational cost controls to mitigate the negative impact of the pandemic on business operations[8]. - The company did not recognize revenue of HKD 0.7 million from the sale of a subsidiary and did not receive government subsidies of HKD 2.3 million during the year[9]. - The group will adopt a cautious approach to business strategy due to uncertainties related to the COVID-19 pandemic[19]. Employee and Cost Management - Employee costs rose by HKD 1.3 million or 6.8% from HKD 19.2 million to HKD 20.5 million due to increased salaries and performance bonuses[23]. - Other expenses increased by HKD 0.5 million or 7.3% from HKD 7.7 million to HKD 8.2 million, attributed to professional fees related to potential business collaborations or acquisitions[26]. - Employee costs for the year ended March 31, 2022, amounted to HKD 20.5 million, an increase from HKD 19.2 million in 2021[51]. Business Strategy and Development - The company aims to explore and launch various new services and products to increase market share and identify new business opportunities[10]. - The group plans to continue market research on new products and technologies to drive business growth and maintain competitiveness[19]. - The company continues to focus on maintaining high-quality service standards and prioritizing customer safety and well-being[10]. Financial Position - As of March 31, 2022, the total equity of the group was HKD 14.2 million, down from HKD 20.0 million in 2021, indicating a decrease of 29%[30]. - The group's cash and bank balances as of March 31, 2022, were HKD 14.2 million, a decrease from HKD 29.4 million in 2021, representing a decline of 52%[30]. - Operating cash generated for the year ended March 31, 2022, was HKD 4.3 million, down from HKD 9.0 million in 2021, reflecting a decrease of 52%[30]. - The group's lease liabilities as of March 31, 2022, amounted to HKD 18.7 million, an increase from HKD 6.4 million in 2021, showing a rise of 192%[30]. Corporate Governance - The company has established an audit committee in compliance with GEM listing rules, which reviewed the audited consolidated financial statements for the year ending March 31, 2022, ensuring compliance with applicable accounting standards[100]. - The board consists of four executive directors and three independent non-executive directors as of March 31, 2022[111]. - The company has adopted corporate governance practices in line with GEM listing rules and has not identified any deviations during the reporting period[109]. - The board is collectively responsible for corporate governance duties, including reviewing and monitoring compliance with laws and regulations[122]. Shareholder Communication - The company has established a shareholder communication policy to ensure timely and comprehensive information dissemination to shareholders and investors, which is reviewed at least annually[157]. - The company holds annual general meetings to provide opportunities for shareholders to communicate with the board and management, with voting procedures clearly outlined[160]. - The company allows shareholders holding at least 10% of the paid-up capital to request the board to convene a special general meeting[164]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of corporate social responsibility and aims to fulfill its responsibilities towards individuals, communities, and the environment[178]. - The board reviews the company's environmental, social, and governance (ESG) performance annually and identifies related risks[178]. - The company aims to integrate sustainable development into its core business values moving forward[181]. - The company has identified six key stakeholder groups, including shareholders, government, business partners, customers, employees, and the public, and maintains ongoing communication with them[185].

第 季度 報告 2021/2022 MEDIC · SKIN MEDICSKIN HOLDINGS LIMITED 密迪斯肌控股有限公司 (於開曼群島註冊成立之有限公司) 股份代號：8307 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所 上市的公司帶有較高投資風險。有意投資者應了解投資於該等公司的潛在風險，並 應經過審慎周詳的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買賣的證券可能會較於主板買賣之 證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市 場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不會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的任何損失承擔任何責任。 本報告由密迪斯肌控股有限公司（「本公司」）董事（「董事」）共同及個別負全責，其中 載有遵照聯交所GEM證券上巿規則（「GEM上巿規則」）所規定有關本公司的資料。董 事在作出一切合理查詢後確認，就彼等所深知及確信，本報告所載資料在各重大方 面 ...

中期 報告 2021/2022 ■ MEDIC SKIN MEDICSKIN HOLDINGS LIMITED 密迪斯肌控股有限公司 (於開曼群島註冊成立之有限公司) 股份代號：8307 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所 上市的公司帶有較高投資風險。有意投資者應了解投資於該等公司的潛在風險，並 應經過審慎周詳的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買賣的證券可能會較於主板買賣之 證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的 市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不會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的任何損失承擔任何責任。 本報告由密迪斯肌控股有限公司（「本公司」）董事（「董事」）共同及個別負全責，其中 載有遵照聯交所GEM證券上巿規則（「GEM上巿規則」）所規定有關本公司的資料。董 事在作出一切合理查詢後確認，就彼等所深知及確信，本報告所載資料在各重大方 面均屬 ...

Financial Performance - For the three months ended June 30, 2021, the company reported total revenue of HKD 13,646,000, an increase of 31.8% compared to HKD 10,372,000 for the same period in 2020[4] - The profit attributable to the owners of the company for the first quarter was HKD 1,509,000, representing a 72.8% increase from HKD 873,000 in the previous year[4] - Basic and diluted earnings per share for the quarter were both HKD 0.38, up from HKD 0.18 in the same quarter of the previous year[5] - The company recorded a total comprehensive income of HKD 1,494,000 for the quarter, compared to HKD 888,000 in the previous year[4] - The company's revenue for the three months ended June 30, 2021, increased by HKD 3.2 million or 30.8% to HKD 13.6 million compared to the same period in 2020[32] - The profit attributable to the company's owners increased by 66.7% to HKD 1.5 million from HKD 0.9 million in the same period last year[34] - Basic earnings per share for the period were HKD 0.38, compared to HKD 0.18 in the previous year[34] - The net profit attributable to the company's owners rose by HKD 0.6 million or 66.7% from HKD 0.9 million to HKD 1.5 million for the three months ended June 30, 2021[46] Revenue Breakdown - Revenue from medical consultation services was HKD 343,000, an increase of 20.8% from HKD 284,000 in the prior year[12] - Revenue from prescription and dispensing services was HKD 2,354,000, a slight increase of 5.1% compared to HKD 2,240,000 in the previous year[12] - Revenue from treatment services surged to HKD 10,949,000, a significant increase of 39.5% from HKD 7,848,000 in the same quarter of 2020[12] - Revenue from medical consultation services, prescription and dispensing services, and treatment services accounted for 2.5%, 17.3%, and 80.2% of total revenue, respectively[32] Assets and Liabilities - The company’s total assets as of June 30, 2021, were HKD 19,991,000, reflecting a decrease from HKD 30,401,000 as of June 30, 2020[7] - The cost of used inventory for the three months ended June 30, 2021, was HKD 2.2 million, representing 16.3% of the related period's revenue[39] - Employee costs increased by HKD 0.9 million or 19.1% from HKD 4.7 million to HKD 5.6 million, attributed to higher salaries and performance bonuses due to increased revenue[40] Business Strategy and Future Plans - The company plans to continue focusing on expanding its medical consultation and treatment services to drive future growth[10] - The group plans to continue introducing new services and products to drive business growth and maintain competitiveness in the industry[35] - The group aims to maximize revenue and improve operational efficiency despite ongoing challenges from the COVID-19 pandemic[35] - The group will continue to seek new business opportunities to enhance its brand and provide maximum returns to investors[35] Compliance and Governance - The board confirmed that the financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance and accuracy[9] - The audit committee, consisting of three independent non-executive directors, reviewed the group's financial statements and confirmed compliance with applicable accounting standards and regulations[64] Special Events and Other Information - The company declared a special dividend of HKD 0.025 per share, totaling HKD 9,918,000, which was distributed on July 26, 2021[22] - The company has implemented video consultation services and delivery for skincare and certain medications in response to the adverse economic conditions due to the COVID-19 pandemic[31] - The company received government subsidies related to the COVID-19 pandemic, which included commitments to retain employees during the subsidy period[18] - The group has entered into a lease agreement for a property in Hong Kong, with a right-of-use asset recognized at HKD 6.9 million[47] - As of June 30, 2021, Dr. Jiang holds a controlling interest in 274,865,400 shares, representing 69.28% of the issued share capital[49] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended June 30, 2021[61] - As of June 30, 2021, there were a total of 4,000,000 unexercised share options, all of which were vested and could be issued as ordinary shares[63]

Financial Performance - The group's revenue for the year was HKD 41.7 million, a decrease of 13.1% from HKD 48.0 million in the previous year[7]. - The company recorded a profit attributable to owners of HKD 1.0 million, compared to a loss of HKD 3.2 million in the previous year[7]. - Basic earnings per share for the year were HKD 0.23, up from a loss of HKD 0.67 per share in the previous year[7]. - Other income increased by HKD 3.4 million or 485.7% to HKD 4.1 million, primarily due to the gain from the sale of 51% equity in Success Guide and government subsidies totaling HKD 2.3 million[17]. - Employee costs decreased by HKD 4.3 million or 18.3% to HKD 19.2 million, attributed to a reduction in staff numbers and cost-saving measures[20]. - The total equity of the group as of March 31, 2021, was HKD 20.0 million, down from HKD 30.4 million in 2020[29]. - The group's cash and bank balances as of March 31, 2021, were HKD 29.4 million, compared to HKD 42.9 million in 2020[29]. - Operating cash generated for the year ended March 31, 2021, was approximately HKD 9.0 million, a decrease from HKD 14.1 million in 2020[29]. - The group expects to face ongoing adverse impacts from the COVID-19 pandemic but remains cautiously optimistic about future developments[15]. Dividends and Shareholder Matters - A special cash dividend of HKD 0.025 per share was declared for shareholders listed on July 9, 2021[7]. - The board proposed a special dividend of HKD 0.025 per share, totaling approximately HKD 9.9 million based on 396,736,000 shares issued[55]. - The company declared a special dividend of HKD 0.025 per share, amounting to approximately HKD 9.9 million based on 396,736,000 shares issued[105]. Business Strategy and Market Outlook - The company plans to continue exploring and launching various new services and products to increase market share and identify new business opportunities[8]. - The management expresses cautious optimism about the group's future performance, driven by increasing societal focus on appearance[8]. - The group plans to continue introducing new services and products to maintain competitiveness and market leadership[15]. - Despite signs of economic recovery in Hong Kong, the company remains cautious due to unpredictable local pandemic conditions and ongoing social distancing measures[8]. Cost Management and Operational Efficiency - Cost-saving measures were implemented, including staff reallocation and stricter operational cost control, in response to the challenging business environment caused by the pandemic[6]. - The company has adopted online consultation services and delivery for skincare and certain medical products to mitigate the negative impact of the pandemic[6]. - Other expenses decreased by HKD 2.7 million or 26.0% to HKD 7.7 million, mainly due to reduced marketing expenses and cost savings from the sale of assets[23]. Corporate Governance - The company has established an audit committee in compliance with GEM listing rules, which reviewed the audited consolidated financial statements for the year ending March 31, 2021[98]. - The company has maintained good corporate governance practices and has adopted the GEM listing rules' corporate governance code[109]. - The board consists of four executive directors and three independent non-executive directors as of March 31, 2021[111]. - The company has established three committees: audit, remuneration, and nomination, to oversee specific aspects of governance[127]. - The company has not established a corporate governance committee, with the board collectively responsible for governance duties[119]. Risk Management - The group is exposed to economic risks, particularly dependent on consumer spending in the medical skin care services sector[40]. - The group has established monitoring procedures to mitigate credit risk and ensure adequate provisions for bad debts[43]. - The company has established a risk management framework that includes risk identification, analysis, assessment, treatment, and monitoring processes[142]. - The audit committee oversees the audit process and provides independent opinions on the effectiveness of financial reporting and internal controls[142]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainability by minimizing environmental impact through resource conservation and recycling initiatives[51]. - The company has complied with the environmental, social, and governance (ESG) reporting guidelines during the fiscal year ending March 31, 2021[166]. - The company has implemented internal policies to promote sustainability and mitigate environmental impacts[167]. - Total greenhouse gas emissions decreased from 66,538 kg in 2020 to 48,539 kg in 2021, representing a reduction of approximately 27%[182]. - The company aims to reduce greenhouse gas emissions by 5% to 10% over five years compared to 2018 levels[190].

Financial Performance - The company reported a revenue of HKD 11,729,000 for the three months ended December 31, 2020, a decrease of 7.7% compared to HKD 12,704,000 for the same period in 2019[3]. - The net profit for the three months ended December 31, 2020, was HKD 1,518,000, compared to a loss of HKD 728,000 in the same period of 2019, indicating a significant turnaround[3]. - For the nine months ended December 31, 2020, the company achieved a revenue of HKD 32,573,000, down from HKD 38,562,000 in the previous year, reflecting a decline of 15.5%[3]. - The basic and diluted earnings per share for the three months ended December 31, 2020, were HKD 0.35, compared to a loss of HKD 0.05 per share in the same period of 2019[3]. - The total comprehensive income for the nine months ended December 31, 2020, was HKD 3,814,000, compared to a loss of HKD 2,199,000 in the same period of 2019[3]. - The group's profit attributable to owners for the nine months ended December 31, 2020, was HKD 3.3 million, a turnaround from a loss of HKD 0.9 million in the same period of 2019[38]. - The basic earnings per share for the nine months ended December 31, 2020, was HKD 0.76, compared to a basic loss per share of HKD 0.19 for the same period in 2019[38]. Revenue Breakdown - Revenue from diagnostic services for the nine months ended December 31, 2020, was HKD 877,000, down 27.6% from HKD 1,213,000 in 2019[15]. - Revenue from prescription and dispensing services for the nine months ended December 31, 2020, was HKD 7,626,000, a decline of 35.5% compared to HKD 11,821,000 in 2019[15]. - The revenue from consultation services, prescription and dispensing services, and treatment services for the nine months ended December 31, 2020, were HKD 0.9 million, HKD 7.6 million, and HKD 24.1 million, accounting for 2.7%, 23.4%, and 73.9% of total revenue respectively[35]. Expenses and Cost Management - The company experienced a significant reduction in employee costs, which amounted to HKD 4,865,000 for the three months ended December 31, 2020, compared to HKD 5,920,000 in the same period of 2019[3]. - Total operating expenses for the nine months ended December 31, 2020, were HKD 5,753,000, down from HKD 7,860,000 in 2019, reflecting a decrease of 26.7%[23]. - Employee costs decreased by HKD 4.3 million or 23.2% to HKD 14.2 million for the nine months ended December 31, 2020, primarily due to a reduction in staff and cost-saving measures[44]. - The group has implemented stricter cost control measures, resulting in a decrease in operating expenses due to reduced variable costs and marketing expenses[36]. Government Support and Compliance - The company has not confirmed any government grants until reasonable assurance is obtained that the conditions will be met[9]. - The company is focused on maintaining compliance with government grant conditions to ensure financial support[9]. - The company received government subsidies totaling HKD 2,285,000 during the nine months ended December 31, 2020, to mitigate the impact of the COVID-19 pandemic[21]. Shareholder Information - As of December 31, 2020, Dr. Jiang held a controlling interest of 68.43% in the company, with 274,865,400 shares registered under Topline Worldwide Limited[52]. - Topline Worldwide Limited, wholly owned by Dr. Jiang, is considered to have a beneficial ownership of 68.43% of the company's shares[56]. - The company repurchased a total of 80,000,000 ordinary shares for a total consideration of HKD 10,000,000, equivalent to HKD 0.125 per share, completed on June 9, 2020[64]. - During the nine months ended December 31, 2020, the company repurchased a total of 4,708,000 ordinary shares at an aggregate cost of HKD 912,000[65]. Governance and Compliance - The company’s board confirmed that the financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and GEM Listing Rules[8]. - The company has adopted the corporate governance code as per GEM Listing Rules and has complied with it during the nine months ended December 31, 2020[60]. - The board believes that the current structure does not undermine the balance of power and authority between the board and the management[61]. - The company has not identified any violations of the trading rules regarding securities transactions by directors during the nine months ended December 31, 2020[63]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the nine months ended December 31, 2020, and found them compliant with applicable accounting standards and GEM listing rules[69].

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 20,844,000, a decrease of 19.5% compared to HKD 25,858,000 for the same period in 2019[4] - The company reported a profit before tax of HKD 2,232,000 for the six months ended September 30, 2020, compared to a loss of HKD 1,337,000 in the same period last year[4] - Basic earnings per share for the six months ended September 30, 2020, was HKD 0.42, compared to a loss of HKD 0.13 for the same period in 2019[7] - The total comprehensive income for the six months ended September 30, 2020, was HKD 1,850,000, compared to HKD 2,265,000 for the same period in 2019, representing a decrease of approximately 18.3%[11] - The group recorded a total comprehensive loss of HKD (1,490,000) for the period, compared to a loss of HKD (1,426,000) in the previous year[11] - The group reported a cumulative loss of HKD (1,838,000) as of September 30, 2020[11] - The company reported a pre-tax profit of HKD 963,000 for the six months ended September 30, 2020, compared to a loss of HKD 651,000 in the same period of 2019[39] - The group recorded a profit attributable to owners of the company of HKD 1.8 million for the six months ended September 30, 2020, compared to a loss of HKD 0.7 million for the same period in 2019[80] Assets and Equity - Total assets as of September 30, 2020, amounted to HKD 49,147,000, down from HKD 57,424,000 as of March 31, 2020[8] - The company's net asset value decreased to HKD 22,844,000 as of September 30, 2020, from HKD 30,401,000 as of March 31, 2020[8] - The company has a total equity of HKD 22,844,000 as of September 30, 2020, with equity attributable to owners of the company at HKD 26,330,000[8] - Total equity as of September 30, 2020, was HKD 22.8 million, down from HKD 30.4 million as of March 31, 2020[95] Cash Flow and Investments - The net cash generated from operating activities for the six months ended September 30, 2020, was HKD 5,584,000, down from HKD 8,447,000 in the previous year, indicating a decline of about 33.5%[14] - The net cash used in investing activities for the six months ended September 30, 2020, was HKD (1,827,000), a significant decrease from HKD 38,790,000 in the same period last year[14] - The cash and cash equivalents at the end of the period were HKD 31,818,000, down from HKD 40,257,000 at the end of the previous year, reflecting a decrease of approximately 21.0%[14] - The company completed the sale of a 51% stake in Success Guide Limited for HKD 216,000 on June 1, 2020, resulting in a net cash inflow of HKD 213,000 from investing activities[60] - The company sold all interests in Kindi (Hong Kong) Limited for HKD 46,000,000, with the net asset value at the time of sale being HKD 44,771,000[65] Revenue Breakdown - The revenue generated from diagnostic services, prescription and dispensing services, and skincare products is included in the group's total revenue for the period[21] - Revenue from prescription and dispensing services dropped to HKD 4,869,000, down 37.5% from HKD 7,753,000 in 2019[23] - Revenue from consultation services, prescription and dispensing services, and treatment services amounted to HKD 0.5 million, HKD 4.9 million, and HKD 15.4 million, representing 2.7%, 23.4%, and 73.9% of total revenue, respectively[77] Operating Expenses - Employee costs for the six months ended September 30, 2020, were HKD 9,329,000, a decrease of 25.9% from HKD 12,533,000 in the same period last year[4] - Total operating expenses decreased to HKD 3,768,000, down 27.3% from HKD 5,184,000 in the same period of 2019[31] - Other expenses decreased by HKD 1.4 million or 27.3% to HKD 3.8 million for the six months ended September 30, 2020, compared to HKD 5.2 million for the same period in 2019[90] - The cost of used inventory for the six months ended September 30, 2020, was HKD 3.4 million, accounting for 16.3% of the related period's revenue, compared to HKD 3.9 million or 15.0% in the previous year[85] Corporate Governance and Compliance - The audit committee reviewed the unaudited interim financial statements for the six months ended September 30, 2020, confirming compliance with applicable accounting standards and GEM listing rules[123] - The company has adopted the corporate governance code as per GEM listing rules and has complied with it during the reporting period[115] - The company has established a written terms of reference for the audit committee, which includes three independent non-executive directors[123] - The roles of the chairman and CEO are held by the same individual, Dr. Jiang, to enhance business strategy implementation and operational efficiency[116] Market Strategy and Adaptation - The company plans to continue exploring market expansion opportunities and new product development strategies in the upcoming periods[4] - The group has implemented stricter cost control measures, resulting in a decrease in operating expenses due to reduced variable costs and marketing expenses[78] - The group plans to continue market research on the latest products, skills, and medical equipment to maintain competitiveness and industry leadership[81] - The group anticipates ongoing adverse impacts from the COVID-19 pandemic but is prepared to navigate the expected economic downturn[81] - The group has started offering consultation services via video conferencing and delivery of skincare and medical products to adapt to the changing business environment[78] Shareholder Information - The issued share capital as of September 30, 2020, is HKD 4,055,000, with a total of 405,548,000 shares issued after a buyback of 80,188,000 shares[46] - The company completed a share buyback of 80,000,000 ordinary shares for a total consideration of HKD 10,000,000, equivalent to HKD 0.125 per share, on June 9, 2020[119] - An additional buyback of 188,000 shares was executed at HKD 0.145 per share for a total cost of HKD 27,000, which has been cancelled[120] - As of September 30, 2020, Topline holds 274,865,400 shares, representing 67.78% of the issued share capital[111] Employment and Workforce - The group employed 33 full-time and 8 part-time employees as of September 30, 2020, down from 36 full-time and 13 part-time employees as of March 31, 2020[104] - Employee costs decreased by HKD 3.2 million or 25.6% to HKD 9.3 million for the six months ended September 30, 2020, compared to HKD 12.5 million for the same period in 2019[86]

Financial Performance - The company reported a revenue of HKD 10,372,000 for the three months ended June 30, 2020, compared to HKD 13,098,000 for the same period in 2019, representing a decrease of approximately 20.9%[4] - The company achieved a profit of HKD 1,031,000 for the current quarter, a significant improvement from a loss of HKD 754,000 in the same quarter of the previous year[4] - Basic and diluted earnings per share for the current quarter were HKD 0.18, compared to a loss per share of HKD 0.08 in the prior year[4] - The total comprehensive income for the period was HKD 1,083,000, compared to a loss of HKD 782,000 in the same period last year[4] - The group reported a profit attributable to owners of HKD 873,000 for the three months ended June 30, 2020, compared to a loss of HKD 387,000 in the same period of 2019[27] - The company recorded a profit attributable to owners of HKD 0.9 million for the three months ended June 30, 2020, compared to a loss of HKD 0.4 million for the same period in 2019, primarily due to a gain of HKD 0.7 million from the sale of a 51% stake in Success Guide Limited and HKD 0.6 million from government pandemic relief funds[35] Revenue Breakdown - Revenue from medical consultation services, prescription and dispensing services, and treatment services were HKD 0.3 million, HKD 2.2 million, and HKD 7.9 million, accounting for 2.7%, 21.6%, and 75.7% of total revenue respectively[32] - Revenue decreased by HKD 2.7 million or 20.6% to HKD 10.4 million for the three months ended June 30, 2020, down from HKD 13.1 million for the same period in 2019, mainly due to a reduction in customer numbers and visit frequency caused by the COVID-19 outbreak[39] Expenses and Costs - The company incurred employee costs of HKD 4,658,000 during the quarter, which is a decrease from HKD 6,340,000 in the previous year[4] - The group’s operating expenses decreased to HKD 1.83 million from HKD 2.59 million in the previous year[17] - Employee costs decreased by HKD 1.6 million or 25.4% to HKD 4.7 million for the three months ended June 30, 2020, down from HKD 6.3 million for the same period in 2019, due to a decline in performance-related bonuses paid to registered doctors[42] - Operating expenses decreased due to stricter cost control measures, including reduced marketing expenses and variable costs associated with performance-related bonuses and inventory[35] - Other expenses decreased by HKD 0.8 million or 30.8% to HKD 1.8 million for the three months ended June 30, 2020, primarily due to reduced marketing expenses for the anti-aging center and MS Medicspa[46] Equity and Assets - The company’s total equity as of June 30, 2020, was HKD 21,664,000, a decrease from HKD 30,401,000 as of March 31, 2020[5] - The group’s non-current assets are primarily located in Hong Kong, with all revenue from external customers also derived from Hong Kong[13][14] Compliance and Governance - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and GEM Listing Rules, ensuring compliance and transparency[8] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2020[69] - The company has complied with the corporate governance code as per GEM listing rules during the three months ended June 30, 2020[60] Business Strategy and Outlook - The company is focused on expanding its medical consultation services and skincare product offerings as part of its growth strategy[9] - The company plans to continue introducing new services and products as a key driver for business development and maintaining competitiveness in the industry[36] - The group anticipates a challenging business environment in the short term due to government restrictions on public gatherings and the closure of certain venues[28] - The company maintains a cautious optimism regarding future development, supported by a strong balance sheet and a solid customer base[37] Stock Options and Share Capital - As of June 30, 2020, Topline holds 274,865,400 shares, representing 67.74% of the issued share capital[56] - The company has a total of 4,000,000 stock options granted, with 3,300,000 options vested and eligible for issuance of common shares[68] - No stock options were exercised, cancelled, or expired during the three months ended June 30, 2020[68] - The company has adopted a stock option plan to reward and/or incentivize eligible individuals for their contributions to the group[66] - The stock option plan was adopted on December 3, 2014, in compliance with GEM listing rules[66] Other Income - The company reported other income of HKD 1,537,000 for the quarter, compared to HKD 86,000 in the same period last year, indicating a substantial increase[4] - Interest income from bank deposits increased to HKD 208,000 from HKD 36,000 in the previous year[17] - Other income and gains increased by HKD 1.5 million to HKD 1.5 million for the three months ended June 30, 2020, from a net loss of HKD 86,000 for the same period in 2019, driven by the sale of Success Guide and government relief funds[40] Customer Concentration - The group has not identified any customer that contributed more than 10% of total revenue during the periods ended June 30, 2020, and 2019[15] Securities Transactions - The company did not purchase, sell, or redeem any of its listed securities during the three months ended June 30, 2020, except for shares repurchased under a buyback agreement[65] - The company has no record of other interests or short positions in its shares or related securities as of June 30, 2020[57] - The company has not disclosed any direct or indirect business interests that may compete with its operations as of June 30, 2020[59]

Financial Performance - The group's revenue for the year was HKD 48.0 million, a decrease of 6.6% from HKD 51.4 million in the previous year[8]. - The net loss attributable to the company's owners decreased by 41.8% to HKD 3.2 million from HKD 5.5 million in the previous year[8]. - Basic loss per share was HKD 0.67, a reduction of approximately 40.7% from HKD 1.13 in the previous year[8]. - Revenue from treatment services accounted for over 66.5% of total revenue, with approximately HKD 32.0 million generated from these services[17]. - Other income and net gains increased by approximately HKD 0.3 million or 75.0% to about HKD 0.7 million, mainly due to increased bank interest income[18]. - Employee costs decreased by approximately HKD 2.4 million or 9.3% to about HKD 23.5 million, attributed to reduced performance bonuses due to declining revenue[20]. - The group's total equity as of March 31, 2020, was approximately HKD 30.4 million, down from HKD 55.1 million in the previous year[28]. - Cash and bank balances increased to approximately HKD 42.9 million from HKD 15.9 million in the previous year, indicating a strong liquidity position[28]. - The group did not recommend any dividend payment for the year ended March 31, 2020[27]. Impact of COVID-19 - The COVID-19 outbreak further impacted the group's revenue due to reduced customer willingness to undergo medical skin care treatments[9]. - The business environment is expected to be challenging in the short term due to COVID-19 restrictions impacting non-medical beauty services[109]. - The group plans to continue introducing new services and products to maintain competitiveness and market position despite the ongoing impact of COVID-19[16]. Strategic Initiatives - The group has implemented video consultation services and delivery for skin care and medical products in response to the adverse economic conditions[9]. - The company remains cautiously optimistic about future performance despite the challenging economic outlook for Hong Kong, particularly in the retail sector[10]. - The group aims to explore and launch new services and products to increase market share and identify new business opportunities[10]. Operational Challenges - The group continues to face high operating costs, including rent, employee costs, and inventory costs, amid intense industry competition[8]. - The group faces significant business risks related to the retention of skilled registered doctors and skin care professionals, which could adversely affect financial performance if not managed[39]. - The group is exposed to economic risks, as growth in revenue is highly dependent on sustainable consumer spending on medical skin care services and products[42]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules and believes it has complied throughout the reporting period[112]. - The board consists of four executive directors and three independent non-executive directors as of March 31, 2020[114]. - The board of directors is responsible for leading and controlling the group, focusing on overall strategy, approving development plans and budgets, and monitoring financial and operational performance[115]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of its affairs[130]. - The Audit Committee reviewed the consolidated financial statements for the year ended March 31, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[133]. Environmental Sustainability - The company is committed to environmental sustainability and complies with all relevant environmental protection laws and regulations[54]. - The total greenhouse gas emissions for the group in 2020 were 66,538 kg (CO2 equivalent), a decrease of 10.4% from 74,288 kg in 2019[186]. - The direct emissions from the group's owned vehicles were 2,290 kg in 2020, down from 3,263 kg in 2019, representing a reduction of 29.9%[186]. - The group has implemented measures to reduce paper waste, including setting double-sided printing as the default mode for most network printers[190]. - The group encourages employees to hold meetings via phone or video to reduce carbon footprint[185]. Shareholder Relations - The company has set up multiple communication channels with shareholders, including annual and quarterly reports, announcements, and its website[165]. - Shareholders have the right to propose resolutions at special general meetings, provided they follow the specified procedures[160]. - The company will review and reassess its dividend policy regularly or as needed[164].