Business Operations - Water Oasis Group Limited operates 15 Oasis Beauty centers in Hong Kong and 3 in Beijing, catering to the middle-class demand for quality skincare products and advanced beauty treatments[8]. - The company launched a new Oasis Hair Spa service in 2019, providing advanced hair and scalp care treatments for both men and women[9]. - Water Oasis Group acquired the Water Juicery brand in January 2019, offering fresh cold-pressed juice products available for online ordering[13]. - The company has a strong portfolio of proprietary and licensed brands, including Glycel, which features innovative cell regeneration technology and operates 17 stores in Hong Kong and 1 in Macau[11]. - DermaSynergy and Eurobeauté are key in-house brands that enhance the medical beauty center's offerings, providing advanced skincare systems and products tailored for post-treatment care[12]. - The company continues to expand its market presence with a focus on high-end beauty services and products, appealing to a wide range of consumer demographics[8]. - Oasis Medical Centers are staffed by registered doctors and professional beauty therapists, equipped with advanced technology to address various skin issues[8]. - The company emphasizes a comprehensive beauty service and product offering, creating a competitive advantage in the beauty and health market[8]. Financial Performance - The financial performance and growth strategies will be detailed in the upcoming annual report, highlighting key metrics and future outlook[3]. - The company's revenue increased by 7.9% for the fiscal year ending September 30, 2019, despite challenging macroeconomic conditions[26]. - The gross profit margin improved from 92.4% to 92.6% year-on-year[26]. - Net profit reached HKD 107.4 million, a 12.9% increase compared to the previous year[26]. - The ratio of products to services shifted from 20.8% (products) and 79.2% (services) to 18.2% (products) and 81.8% (services)[26]. - Advertising expenses decreased by 16.0%, with the advertising cost-to-revenue ratio dropping from 3.8% to 2.9%[26]. - Rental costs as a percentage of revenue decreased from 17.8% to 16.6%[27]. - Employee count increased from 764 to 824, with employee costs rising by 7.9% but maintaining 42.5% of revenue[27]. - Depreciation costs rose significantly by 68.4%, accounting for 3.7% of revenue[28]. - The company had cash reserves of approximately HKD 385.6 million as of September 30, 2019[28]. - The board proposed a final dividend of HKD 0.07 per share, totaling HKD 0.15 per share for the year, up from HKD 0.085 the previous year[28]. Market Expansion - The group launched a new service, Oasis Hair Spa, targeting hair and scalp treatments, expanding its customer base[30]. - The group's major brands, including Water House, showed strong year-on-year growth, with Water House performing the best due to high demand and new customer acquisition[30]. - The group opened 2 new Oasis Medical Beauty Centers, increasing the total to 8, with this segment growing steadily by 7.5% year-on-year[33]. - Glycel brand revenue increased by 19.1%, driven by significant investments and the introduction of new treatments and products[36]. - Online cash revenue surged by 156% year-on-year, indicating a strong potential for e-commerce development[44]. - The group plans to enhance e-commerce capabilities for brands like Glycel, Eurobeauté, and Erno Laszlo, focusing on online shopping features[44]. - The group is exploring new locations for Water House services in Beijing and southern China, capitalizing on strong performance in existing centers[44]. Innovation and Technology - The group introduced new technologies and treatments, including V-liner and Thermage FLX, to meet customer demand in the medical beauty segment[33]. - Despite challenges, the group remains confident in its future outlook, focusing on service-oriented strategies and maintaining cost control while investing in new treatments[45]. - The company has successfully expanded its medical beauty services in Hong Kong, contributing to overall business growth[48]. - The acquisition of the Glycel brand and the distribution rights for Erno Laszlo have been pivotal in enhancing the company's product offerings[48]. Corporate Governance - The board is committed to enhancing corporate governance standards to maintain investor confidence and increase shareholder returns[56]. - The company has adhered to the corporate governance code as stipulated by the Hong Kong Stock Exchange during the fiscal year ending September 30, 2019[57]. - The board of directors consists of four executive directors and three independent non-executive directors, ensuring diverse industry and professional backgrounds[60]. - The board held a total of 6 meetings during the fiscal year ending September 30, 2019, with all directors actively participating[74]. - The company has implemented a board diversity policy since August 2013, recognizing its importance for enhancing company performance[66]. - All independent non-executive directors have confirmed their independence in accordance with the listing rules[60]. - The company provides suitable ongoing training and professional development programs for all directors to ensure they are well-informed and capable of contributing effectively[79]. - The chairman and CEO roles are distinct, with the executive director currently fulfilling the chairman's responsibilities[65]. - The company has established procedures for directors to seek independent professional advice at the company's expense when necessary[59]. - The nomination committee monitors the implementation of the board diversity policy and reviews it periodically to ensure its effectiveness[69]. - The company has obtained directors' and officers' liability insurance for its directors and executives[64]. - The board's composition and attendance at meetings are documented, ensuring transparency and accountability[76]. Risk Management and Compliance - The company is committed to maintaining a robust risk management and internal control system to identify and manage significant risks[110]. - The company has adopted a policy for handling and disclosing inside information, ensuring compliance with the Securities and Futures Ordinance and the Listing Rules[113]. - All directors confirmed compliance with the standard code of conduct for securities trading during the fiscal year ending September 30, 2019[114]. - The company secretary has completed no less than 15 hours of relevant professional training, meeting the requirements of the Listing Rules[117]. - The company has complied with all relevant laws and regulations, including the Companies Ordinance and the Securities and Futures Ordinance[185]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the group's performance from October 1, 2018, to September 30, 2019, focusing on core business operations in Hong Kong[125]. - The ESG report adheres to the guidelines set forth by the Hong Kong Stock Exchange, ensuring compliance with the "comply or explain" principle[127]. - Stakeholder engagement is crucial for understanding expectations and concerns, aiding in identifying risks and opportunities related to business strategy and future development[130]. - The company aims to minimize environmental impact while providing high-quality, innovative, and personalized beauty services[132]. - The total greenhouse gas emissions for the group amounted to 1,133.81 tons of CO2 equivalent, a decrease of 22.45% compared to the previous year[136]. - The emission density was recorded at 0.123 tons of CO2 equivalent per square meter, down 30.51% from 0.177 tons per square meter in the previous year[138]. - The total electricity consumption was 1,633,385 kWh, representing a reduction from 1,822,587 kWh in the previous year, with an energy intensity of 176.82 kWh per square meter[147]. - Water consumption totaled 941 cubic meters, an increase from 731 cubic meters in the previous year, with a water intensity of 0.63 cubic meters per square meter[148]. - The group generated 0.21 tons of hazardous waste, a slight decrease from 0.24 tons in the previous year, all disposed of properly[143]. - The group recycled approximately 2.10 tons of paper waste, contributing to a reduction of 10.10 tons of CO2 equivalent emissions[144]. - The total gasoline consumption for the company's vehicle fleet was 22,385.79 liters, with a per capita emission density of 0.07 tons of CO2 equivalent[149]. - The group used 11.29 tons of paper and printed materials, an increase from 5.26 tons in the previous year, contributing to greenhouse gas emissions of approximately 54.20 tons of CO2 equivalent[150]. - The group has implemented various energy-saving measures, including the use of energy-efficient lighting and encouraging public transport usage[140]. - The group aims to enhance employee environmental awareness and promote sustainable resource usage in its operations[145]. - The total amount of packaging materials used for beauty products increased to 40.49 tons in 2019, up 131.77% from 17.47 tons in 2018[153]. - The amount of packaging waste generated, including plastic bottles and containers, rose to 39.60 tons in 2019, representing a 215.79% increase from 12.54 tons in 2018[153]. Employee Development and Safety - The total number of employees increased to 755 in 2019, compared to 707 in 2018, reflecting a growth in workforce[155]. - The total training hours provided to employees reached 10,194 hours in 2019, up from 7,306 hours in 2018, indicating a focus on employee development[164]. - The injury rate increased to 6.62 in 2019 from 4.18 in 2018, highlighting a need for enhanced safety measures[161]. - The employee turnover rate for the age group 18 to 25 years was 9.7% in 2019, down from 11.0% in 2018, showing improvement in retention for younger employees[158]. - The company has implemented measures to reduce packaging waste and promote recycling, aligning with environmental sustainability goals[153]. - The company provided various employee benefits, including medical insurance and discounts on beauty services, to enhance employee satisfaction and retention[156]. - The company conducted regular safety reviews and provided personal protective equipment to ensure a safe working environment[160]. - The company has not faced any violations of health and safety regulations during the reporting period, indicating compliance with industry standards[161]. Supplier Management - The group has established a procurement management system to ensure high-quality service and product safety, overseeing all processes from raw material selection to final product delivery[166]. - The approved supplier list includes 45 strategic suppliers for beauty-related products and services, an increase from 44 in 2018, with suppliers from various countries including France, Germany, and Japan[168]. - The group recorded zero product recalls during the reporting period, indicating a strong commitment to maintaining brand quality[171]. - Significant resources have been invested in upgrading service processes and enhancing customer experience, ensuring professional and attentive service delivery[170]. - The group emphasizes the importance of selecting reputable suppliers to meet customer demands for reliable, high-quality, and technologically advanced products[168]. Customer Service - The company has established a customer service hotline to handle inquiries and feedback, contributing to ongoing training and development[169].
奥思集团(01161) - 2019 - 年度财报