Financial Performance - The group's revenue for the six months ended March 31, 2021, was approximately HKD 314.9 million, a decrease of 14.0% compared to HKD 365.9 million for the same period last year[7]. - Profit for the period was HKD 58.8 million, up from HKD 43.8 million in the previous year[7]. - Total comprehensive income for the period was HKD 60,697,000, up from HKD 43,553,000, marking a 39% increase[33]. - The group reported a profit of HKD 58,800,000 for the period, compared to HKD 43,840,000 in the previous year, representing a 34% increase[30]. - Basic earnings per share increased to 8.7 HK cents from 6.5 HK cents, reflecting a 33% growth[30]. - The company reported a pre-tax profit of HKD 71,421,000 for the period, compared to HKD 56,475,000 in the previous year, indicating improved profitability despite lower revenues[52]. Revenue Breakdown - Revenue from product sales was HKD 72,073,000 in 2021, down from HKD 86,676,000 in 2020, while service revenue was HKD 252,352,000, a decrease from HKD 292,539,000[52]. - Revenue from Hong Kong and Macau was HKD 291,568,000, while revenue from China was HKD 23,289,000, totaling HKD 314,857,000 for the period[55]. Cost Management - Employee costs decreased significantly from 43.7% of total revenue to 34.0%, contributing to a total cost reduction of approximately 17.0%[8]. - Total expenses for the six months ended March 31, 2021, were HKD 59,823,000, a decrease of approximately 11.3% from HKD 67,463,000 in the same period of 2020[62]. - The company incurred a loss of HKD 163,000 from changes in the fair value of investment properties, significantly lower than the loss of HKD 3,440,000 reported in the previous year[68]. Cash Flow and Assets - The group had cash on hand of approximately HKD 437.4 million as of March 31, 2021[7]. - Cash reserves increased to approximately HKD 437.4 million as of March 31, 2021, compared to HKD 418.5 million as of September 30, 2020[23]. - The net cash generated from operating activities for the six months ended March 31, 2021, was HKD 77,636,000, a decrease of 5.5% from HKD 81,917,000 in 2020[41]. - The total cash outflow from investing activities was HKD 16,006,000, compared to HKD 6,183,000 in the previous year, indicating a significant increase in investment spending[41]. Capital Expenditure and Commitments - Capital expenditure increased to HKD 15.6 million, nearly doubling from HKD 8.2 million in the previous year, primarily due to new store equipment and openings[12]. - The company has a capital commitment of approximately HKD 9.2 million for the acquisition of property and equipment as of March 31, 2021[25]. - Capital expenditures for property and equipment amounted to HKD 15,627,000 for the six months ended March 31, 2021, compared to HKD 8,187,000 for the same period in 2020, indicating a substantial increase in investment[68]. Business Expansion - The company plans to open two new stores in the next six months, including a new 6,000 square feet Glycel Skinspa flagship store in Kowloon Tong, set to replace the existing 1,600 square feet store[15]. - The company is expanding its business in Macau, planning to open a new Glycel Skinspa in September 2021, along with a product counter for Glycel and Eurobeauté in a popular department store[16]. - The company plans to continue expanding its beauty services and product offerings in the Hong Kong, Macau, and China markets[43]. Marketing and Customer Engagement - Advertising and promotional expenses increased to 4.0% of total revenue, up from 0.9% in the previous year, reflecting efforts to maintain customer engagement during restrictions[8]. - The company continues to focus on enhancing its online retail experience, expecting significant contributions from e-commerce channels to beauty product sales[16]. - The company's marketing expenses increased significantly to HKD 13,623,000 from HKD 4,235,000 in the previous year, highlighting a strategic push in market expansion[62]. Shareholder Information - The board declared an interim dividend of HKD 0.055 per share, down from HKD 0.060 per share in the previous year[7]. - The company declared an interim dividend of HKD 0.055 per share for the six months ended March 31, 2021, payable to shareholders on June 16, 2021[93]. - Major shareholder Yu Lisi holds 166,113,760 shares, representing approximately 24.41% of the issued share capital[108]. Governance and Compliance - The audit committee is responsible for reviewing the group's financial information and monitoring the financial reporting system, risk management, and internal control systems[94]. - The company has complied with the corporate governance code during the review period, with some specific deviations noted[114]. - The independent auditor for the company is Hong Kong Shinewing Certified Public Accountants Limited[119].
奥思集团(01161) - 2021 - 中期财报