修身堂(08200) - 2023 - 年度财报

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$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].