Business Expansion and Services - The company opened new stores in various locations, including a new beauty center in Sheung Shui Plaza and a new Be Beauty Shop in Lai Chi Kok in May 2019[17]. - As of March 31, 2020, the company operated 32 service centers in Hong Kong, 3 in mainland China, and 10 in Singapore, reflecting its market expansion strategy[14]. - The company aims to expand its product sales through partnerships with various skincare brands, including Malu Wilz and BeYu, to reach a broader customer base[14]. - The company has launched a series of weight control courses designed to stimulate metabolism and promote healthy eating choices among customers[14]. - The company continues to innovate in its service offerings, including aesthetic shaping services and advanced spa treatments, to meet evolving customer demands[14]. Financial Performance - The company's revenue for the fiscal year ending March 31, 2020, was approximately HKD 522.6 million, a decrease of 9.3% compared to HKD 576.0 million for the previous fiscal year[23]. - The operating loss for the fiscal year was HKD 17.3 million, compared to an operating loss of HKD 2.2 million in the previous fiscal year, resulting in an operating loss margin of -3.3%[24]. - Revenue from beauty and facial care services was HKD 372.1 million, accounting for 71.2% of total revenue, a decrease of 18.0% from the previous fiscal year[31]. - Revenue from body slimming services increased by 46.5% to HKD 94.5 million, representing 18.1% of total revenue[31]. - The net loss attributable to equity shareholders for the fiscal year 2020 was approximately HKD 31.6 million, compared to HKD 13.3 million in 2019[40]. Cost Management - Employee benefits expenses decreased by 2.3% to HKD 311.7 million, while rental costs and depreciation of leased properties decreased by 61.7% to HKD 43.8 million[24]. - Rental costs and depreciation for leased properties amounted to approximately HKD 92.2 million, representing 17.7% of revenue, down from 19.9% in 2019[36]. - The company aims to reduce rental costs to a more reasonable level through negotiations with landlords due to the uncertain global and local business environment[47]. Corporate Governance - The company emphasizes the importance of timely and transparent communication with investors to ensure they understand the company's current and future developments[51]. - The company is committed to enhancing business transparency and accountability through continuous and sincere communication with investors and the public[52]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced composition for effective oversight[60]. - The company has adhered to the corporate governance code since April 2012, with no significant non-compliance issues reported during the review period[60]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[66]. Risk Management and Compliance - The company has implemented policies to review compliance with statutory and regulatory requirements[70]. - The audit committee is responsible for overseeing the adequacy and effectiveness of risk management and internal control systems[81]. - The company recognizes the impact of COVID-19 on retail and service industries in Hong Kong and Singapore, leading to temporary store closures during specified periods[47]. - The group faces significant pressure from competition, both from large and small regional competitors, impacting pricing and service aspects[48]. Shareholder Information - The company did not recommend any dividend distribution for the fiscal year 2020, consistent with the previous year[41]. - The company has maintained a sufficient public float of at least 25% of its issued shares as of the report date[106]. - The company confirmed compliance with the disclosure requirements under Chapter 14A of the Listing Rules[105]. Internal Controls and Auditing - The audit committee held two meetings during the review year to oversee financial reporting, risk management, and internal controls[77]. - The company has established an internal audit department that reviews risk management and internal control systems at least once a year[80]. - The group’s financial reporting process is overseen by the audit committee to ensure compliance with accounting standards[130]. Asset Management - The company reported a loss of HKD 31,590,000 for the year 2020 compared to a loss of HKD 13,289,000 in 2019, indicating a worsening financial performance[151]. - Non-current assets increased to HKD 174,834,000 in 2020 from HKD 123,238,000 in 2019, representing a significant increase of approximately 42%[144]. - The company's net asset value decreased to HKD 152,110,000 in 2020 from HKD 186,896,000 in 2019, a decline of approximately 18.6%[145]. Lease Agreements - The total rental payments under the 2020 master lease agreement are confirmed as HKD 115,200,000, HKD 7,100,000, and HKD 3,600,000 for the fiscal years ending March 31, 2021, 2022, and 2023 respectively[102]. - The company must obtain confirmation from an independent property valuer regarding the market rent for the new leases before entering into agreements[102]. - The company adopted HKFRS 16 on April 1, 2019, resulting in a capitalization of operating leases, with a total lease liability recognized at HKD 89,429,000[167].
现代健康科技(00919) - 2020 - 年度财报