Company Overview - The Group successfully transferred its listing from GEM to the Main Board of The Stock Exchange of Hong Kong Limited, marking a significant milestone in its evolution from a privately-owned enterprise to a prominent listed company in the medical aesthetic industry[13]. - The Group operates three strategically located medical aesthetic centres in prime areas of Hong Kong to capture high pedestrian traffic and attract customers from various regions[14]. - The Group aims to expand its network of stores to further penetrate the market, indicating a strategic focus on market expansion[14]. - The Group's experienced management and professional medical team are seen as key strengths in seizing opportunities within the industry[23]. - The Group acknowledges the continuous support from shareholders, business partners, suppliers, and customers, which is crucial for its ongoing success[25]. Financial Performance - The Group's revenue for the year ended 31 March 2019 increased by HK$27.5 million, or 21.6%, to HK$154.7 million compared to HK$127.2 million for the previous year[49][50]. - Profit for the year amounted to HK$21.8 million, a decrease of HK$4.7 million, or 17.7%, primarily due to one-off professional service fees and write-off of leasehold improvements[49][50]. - Excluding one-off costs, profit attributable to owners would have been approximately HK$27.4 million, representing a slight increase of about 3.4% compared to the previous year[49][50]. - The total revenue for the year ended 31 March 2019 was HK$154.7 million, compared to HK$127.2 million for the previous year[56]. - Cash and cash equivalents at the end of the year were approximately HK$11.3 million as at 31 March 2019, down from approximately HK$77.9 million as at 31 March 2018, a decrease of 85.5%[95]. - Net cash flows from operating activities were approximately HK$46.6 million for the year ended 31 March 2019, compared to a cash outflow of approximately HK$14.3 million in the previous year[95]. - The net cash flows used in investing activities for the same period were HK$113.2 million, primarily due to increased purchases of property, plant, and equipment[99]. Operational Highlights - The Group operates three "CosMax" branded medical aesthetic centres, with a new centre in Tsim Sha Tsui covering 6,050 sq ft and featuring 17 treatment rooms[31][33]. - The integration of two centres in Causeway Bay into a duplex unit has been completed, increasing the total floor area to 12,156 sq ft, enhancing resource allocation and operational synergies[31][33]. - As of 31 March 2019, the Group had 116 treatment devices and introduced new treatments including Magnetic Pulse Therapy and V Lift Tightening[37][38]. - The number of active clients increased by 20.4% to 7,336, while repeat clients rose by 17.6% to 4,413[40][41]. - Revenue from treatment services amounted to HK$139.0 million for the year ended 31 March 2019, representing 89.8% of total revenue[56]. Strategic Initiatives - The Group is committed to procuring new devices and diversifying treatment services to provide premium services to customers, emphasizing the importance of keeping abreast of the latest technologies and medical innovations[15]. - The company plans to expand its network of aesthetic centres in Hong Kong, with a budget of HKD 24,200 million allocated for this initiative[126]. - The company aims to broaden the variety of treatment services and product offerings, with an investment of HKD 14,600 million, up from HKD 8,815 million previously[126]. - Marketing campaigns will be intensified to increase market penetration in Hong Kong[135]. Management and Governance - The Group's management team has over 10 years of experience in their respective fields, ensuring effective leadership and strategic direction[171][172][173]. - The Group has a strong internal control system in place, managed by the Chief Financial Officer[171]. - The Company has complied with all applicable code provisions of the Corporate Governance Code, except for the separation of the roles of chairman and chief executive officer[185]. - The Board composition includes 3 independent non-executive directors, representing more than one-third of the Board, in compliance with GEM Listing Rules[188]. - The Board is responsible for overall management, including resource allocation, strategic decisions, and risk management[198]. Future Outlook - The management team expresses confidence in the prospects of the medical aesthetic services industry, anticipating strong growth momentum driven by increasing demand for these services[23]. - The company remains optimistic about the medical aesthetic industry outlook due to growing public acceptance and market demand[135]. - Strategic expansion and successful listing on the Main Board trading platform position the company to seize significant opportunities[135].
卓珈控股(01827) - 2019 - 年度财报