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[11]. - The Group currently operates five beauty and slimming centers in Hong Kong under the brand names "Sau San Tong" and "IPRO"[12]. - The Group has acquired a distribution business in Mainland China, distributing P&G's personal care products and other well-known brands like SK-II and Olay[14]. - The distribution network has been well developed over the years, adding international famous brands to its portfolio[14]. - The Group aims to provide best-in-class services through its existing beauty and slimming business, product distribution, and franchise cooperation[18]. Business Strategy - In 2015, the Group commenced a new business segment of investment in securities to diversify its income stream and improve capital usage efficiency[19]. - The Group's business strategy focuses on diversifying income streams to enhance overall shareholder value[20]. - The Group is actively identifying acquisition and development opportunities to enhance its core business[29]. - The Group continues to focus on quality products and services to maintain customer trust and expand its market presence in the high-end segment[70]. - The Group's strategy includes diversifying its revenue base through securities investments and money lending, minimizing overall risks while enhancing capital utilization[83]. Financial Performance - The Group's revenue decreased by 11.3% from approximately HK$1,231,548,000 in the previous year to approximately HK$1,092,735,000 in the Year Under Review[38]. - Gross profit increased by approximately HK$5,444,000 to approximately HK$104,568,000 compared to HK$99,124,000 for the same period last year[39]. - Revenue from the distribution sale of cosmetic and skin care products decreased from approximately HK$1,172,999,000 to HK$1,015,567,000[39]. - Revenue from money lending decreased from approximately HK$11,164,000 to HK$8,094,000[39]. - The Group recorded a revenue of approximately HK$1,092,735,000, representing a decrease of 11.3% from approximately HK$1,231,548,000 last year[53]. Operational Highlights - Revenue from the provision of beauty and slimming services increased from approximately HK$48,939,000 to HK$57,465,000 during the Year Under Review[44]. - Revenue from sales of healthy, beauty, and related products increased from approximately HK$4,562,000 to HK$6,840,000 during the Year Under Review[44]. - The Group launched a new anti-aging product called iPRO NMN Deluxe 3 in 1, which contributed to improved revenue from related product sales[60]. - The introduction of innovative health and beauty treatments has established the Group as a leading provider in the industry[11]. - The overall gross profit increased to approximately HK$104,568,000, up from approximately HK$99,124,000 last year[43]. Economic Environment - The Group will remain cautious and strive to capture business opportunities amid ongoing economic uncertainties[34]. - The sales generated by Shanghai Dong Fang Ri Hua Sales Co. Ltd. dropped by approximately HK$157,432,000 due to sluggish economic conditions[54]. - The distribution sales of cosmetics and skincare products by Dongfang recorded revenue of approximately HK$1,015,567,000, a decrease of 13.4% compared to last year's HK$1,172,999,000 due to a slowdown in the Chinese economy affecting consumer spending[75]. - The Group's management formulated response strategies to adjust business deployment amid challenging economic conditions[52]. - The Group's performance improved in the year under review, but it will remain cautious due to the volatile business environment[140]. Financial Position - Non-current assets increased to HK$174,779,000 in 2024 from HK$170,671,000 in 2023[23]. - Current assets decreased to HK$668,577,000 in 2024 from HK$730,673,000 in 2023[23]. - Total equity decreased to HK$756,007,000 in 2024 from HK$775,706,000 in 2023[23]. - As of March 31, 2024, cash and bank balances were approximately HK$390,265,000, down from approximately HK$416,179,000 the previous year, with a liquidity ratio of 8.03[65]. - The Group's gearing ratio improved to 0.1% in 2024 from 0.2% in 2023, with total loans decreasing to HK$1,009,000 from HK$1,356,000[151]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the year ended March 31, 2024, except for the absence of a chairman of the board[197][199]. - The management believes that direct communication between independent non-executive directors and executive directors is more efficient than holding separate meetings[198]. - The company is focused on enhancing transparency and investor confidence through good corporate governance practices[196][199]. - The board has reviewed its corporate governance practices and is satisfied with the compliance status, aiming to enhance shareholder value[196][197]. - The company has a strong management team with diverse backgrounds in finance, technology, and strategic planning[190][192]. Employee and Training - The Group's total staff costs for the year were approximately HK$56,617,000, down 2.4% from approximately HK$57,976,000 in 2023[164]. - The Group had 213 employees as of March 31, 2024, a reduction from 229 employees in 2023, indicating a decrease of 7%[164]. - The Group is committed to training employees in franchise cooperation shops in mainland China to ensure consistent quality of operations and services across different locations[140]. Investment and Future Plans - The Group plans to utilize available funds to identify new investment opportunities in securities, money lending, and properties to generate additional returns and broaden its revenue base[141]. - The Group intends to invest surplus funds into securities, money lending, properties, and other opportunities to generate additional investment returns[173]. - The Group aims to explore and develop more sophisticated health and beauty products to meet the demands of customers in Hong Kong and China, contributing to stable growth[140]. - The Group will focus on selecting sound investments with high return potentials to enhance overall performance[141]. - The Group plans to increase promotional efforts on social media platforms to enhance brand awareness among the younger generation[172].
修身堂(08200) - 2024 - 年度财报