Company Overview - The company rebranded from "Modern Beauty Holdings Limited" to "Modern Healthcare Technology Holdings Limited" in June 2020[12]. - The company has been awarded the "Green Office Award" by the World Green Organization for four consecutive years[12]. - As of March 31, 2021, the company operates 30 service centers in Hong Kong, 3 in mainland China, and 10 in Singapore[9]. - The retail network operated under the "be Beauty Shop" brand consists of 8 stores[9]. - The company offers a range of services including beauty and facial care, aesthetic shaping services, and sales of skincare and wellness products[6]. - The company emphasizes the use of natural materials in its products and services, targeting the high-end beauty market[6]. - The company aims to expand its product sales business through a diverse range of high-quality skincare products[9]. - The company closely monitors industry trends and invests in advanced beauty equipment to stay competitive[9]. - The company provides a variety of weight control programs designed to stimulate metabolism and promote healthy dietary choices[9]. - The company has a strong focus on enhancing customer experience through luxurious spa treatments and personalized care[9]. Financial Performance - For the fiscal year ending March 31, 2021, the company's revenue was approximately HKD 431.5 million, a decrease of 17.4% compared to HKD 522.6 million for the previous fiscal year[16]. - The operating profit for the fiscal year was HKD 134 million, a significant improvement from an operating loss of HKD 17.3 million in the previous year, resulting in an operating margin of 31.1%[16]. - The total number of stores decreased from 55 to 51, reflecting a reduction of 4 stores year-over-year[18]. - Employee benefit expenses decreased by 42.0% to HKD 180.8 million, while rental costs dropped by 98.6% to HKD 0.6 million[18]. - The total customer count in Hong Kong increased slightly to approximately 426,000, up 0.5% from 424,000 in the previous year[20]. - Revenue from prepaid beauty packages was HKD 292.2 million, down 41.1% from HKD 496.3 million in the previous fiscal year[26]. - In mainland China, service revenue increased by 12.5% to HKD 12.5 million, and revenue from prepaid beauty packages rose by 24.7% to HKD 13.4 million[22]. - In Singapore, revenue decreased to HKD 45.9 million from HKD 57.6 million, with service revenue and prepaid package sales both declining[25]. - The net profit attributable to equity shareholders for the fiscal year 2021 was approximately HKD 125.7 million, a turnaround from a net loss of HKD 31.6 million in the previous year[36]. - The group maintained a strong financial position with cash and bank balances of approximately HKD 234.3 million, up from HKD 180 million in the previous year, with no bank borrowings[38]. Operational Efficiency - The company plans to continue enhancing operational efficiency and customer satisfaction while ensuring the safety and quality of services and products offered[21]. - The group operated 33 service centers in mainland China and Hong Kong, with a weighted average total floor area of 186,000 square feet, down 11.0% from the previous year[32]. - The group plans to continue reducing rental expenses and explore new rental models to optimize workflows and adapt to upcoming economic recovery[43]. - The group aims to expand its employment agency services, which have the potential to become a new growth driver in the future[43]. - The company has implemented various environmental measures in its operations, including promoting a "paperless office" and advancing electronic information management systems[44]. Corporate Governance - The company emphasizes the importance of transparency and accountability to enhance business understanding among investors and the public[47]. - The investor relations team organized various activities, including the annual general meeting, to improve communication with investors and ensure they receive the latest information about the company's developments[47]. - The company is committed to maintaining high levels of investor relations and continuously improving its investor relations system[46]. - The company recognizes the value of investor feedback in shaping its development strategy to enhance shareholder value[47]. - The company has a dedicated investor relations team responsible for establishing communication bridges with investors[47]. - The company emphasizes strong corporate governance principles to enhance shareholder value, focusing on transparency, accountability, and independence[53]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced composition for effective oversight[53]. - The board held nine meetings during the review year, facilitating communication between the board and senior management[53]. - Independent non-executive directors provide diverse industry expertise, ensuring compliance with financial reporting standards and protecting shareholder interests[55]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange rules, ensuring adherence to best practices[53]. Risk Management - The company has adopted an enterprise risk management framework to identify, assess, and manage significant risks[72]. - The board has reviewed the effectiveness of the risk management and internal control systems, deeming them effective and adequate[70]. - The internal audit department has conducted at least one review of the risk management and internal control systems during the reporting year[70]. - The company’s internal control and risk management systems have been maintained appropriately throughout the reporting year[72]. - The group recognizes the impact of macroeconomic changes on its business, including risks related to consumer credit and regulatory changes in Hong Kong[44]. Revenue Recognition - Revenue is recognized when control of goods or services is transferred to customers, excluding VAT or other sales taxes[180]. - Revenue from the sale of skincare and wellness products is recognized upon delivery to customers[181]. - Revenue from prepaid beauty and wellness service packages is recognized when services are provided, with unused rights accounted for as deferred revenue[183]. - Rental income from operating leases is recognized evenly over the lease term, unless another basis better reflects the benefits derived from the leased asset[185]. - Interest income is recognized using the effective interest method, with no credit impairment for financial assets measured at amortized cost or fair value through other comprehensive income[186]. Audit and Compliance - The independent auditor, KPMG, audited the financial statements for the fiscal year 2021[91]. - The audit committee plays a crucial role in overseeing the financial reporting process and ensuring the integrity of the financial statements[110]. - The auditor's report indicates that reasonable assurance was obtained regarding the absence of material misstatements in the financial statements[110]. - The audit process involved identifying and assessing risks of material misstatement due to fraud or error, and designing appropriate audit procedures[111]. - The independent auditor's report was issued on June 28, 2021, confirming compliance with relevant professional ethical requirements[117].
现代健康科技(00919) - 2021 - 年度财报