Financial Performance - The Group's revenue for the six months ended September 30, 2020, was approximately HK$54.5 million, a decrease of approximately HK$36.0 million or 39.8% compared to HK$90.5 million for the same period in 2019[11]. - Loss attributable to the owners of the Company was approximately HK$6.2 million for the six months ended September 30, 2020, compared to a profit of approximately HK$11.5 million in 2019[11]. - The total comprehensive loss for the period attributable to owners of the Company was HK$6.16 million, compared to a total comprehensive income of HK$11.54 million in 2019[13]. - Basic and diluted loss per share attributable to ordinary equity holders of the Company was HK(1.55) cents for the six months ended September 30, 2020, compared to HK2.88 cents in 2019[13]. - The Group reported a loss before tax of HK$7.65 million for the six months ended September 30, 2020, compared to a profit before tax of HK$14.04 million in 2019[13]. - The company reported a loss before tax of HK$7,647,000 for the six months ended September 30, 2020, compared to a profit of HK$14,035,000 in the same period of the previous year[26]. - For the six months ended 30 September 2020, the company reported a loss attributable to ordinary equity holders of HK$6,189,000, compared to a profit of HK$11,536,000 in 2019, representing a significant decline[102]. Revenue Breakdown - Total revenue from contracts with customers for the six months ended September 30, 2020, was HK$54,500,000, a decrease of 39.7% compared to HK$90,483,000 for the same period in 2019[61]. - Revenue from treatment services was HK$45,984,000, down 41.0% from HK$77,766,000 in the previous year[61]. - Revenue from skin care products decreased to HK$3,657,000, a decline of 34.1% from HK$5,552,000 in 2019[61]. - Government grants recognized during the period amounted to HK$5,596,000, compared to no grants in the same period last year[80]. Expenses and Costs - Staff costs decreased to HK$32.7 million for the six months ended September 30, 2020, from HK$36.98 million in 2019[13]. - Employee benefit expenses, excluding directors' remuneration, were HK$29,222,000, down 15.5% from HK$34,408,000 in 2019[86]. - Other expenses decreased by approximately HK$1.1 million or 7.6%, from approximately HK$14.5 million to approximately HK$13.4 million, primarily due to reduced recruitment expenses[173]. - Finance costs amounted to approximately HK$1.0 million for the Period Under Review, down from approximately HK$1.2 million in the Previous Period[179]. Assets and Liabilities - Total non-current assets decreased from HK$106,825,000 as of March 31, 2020, to HK$97,244,000 as of September 30, 2020, representing a decline of approximately 8.5%[17]. - Total current assets rose from HK$250,426,000 to HK$263,079,000, an increase of about 5.0%[17]. - Total liabilities increased from HK$196,723,000 to HK$208,251,000, reflecting a rise of about 5.8%[20]. - Total equity decreased from HK$158,231,000 to HK$152,072,000, representing a reduction of about 3.9%[20]. Cash Flow and Liquidity - Cash generated from operations decreased from HK$32,487,000 to HK$17,489,000, a decline of approximately 46.1%[26]. - The company’s cash and cash equivalents increased from HK$157,327,000 to HK$163,488,000, an increase of approximately 3.7%[17]. - Cash and cash equivalents at the end of the period were HK$109,453, significantly up from HK$17,882 at the end of the same period in 2019[42]. - The net increase in cash and cash equivalents during the period was HK$23,849, compared to HK$6,563 in the previous year, showing a positive cash flow trend[42]. Operational Highlights - The company is primarily engaged in providing medical aesthetic services and selling skincare products in Hong Kong, focusing on market expansion in these sectors[47]. - The Group operates three medical aesthetic centres in prime locations, with a total area of 12,156 sq ft in Causeway Bay, 6,050 sq ft in Tsim Sha Tsui, and 3,092 sq ft in Central, offering a total of 56 treatment rooms[154][157]. - A new beauty brand "VITAE by CosMax" has been launched, focusing on the principle of "Inner health realizes external beauty" to cater to the growing health awareness trend[155][158]. - The Group has launched a new skincare product line "XOVÉ" and established an online platform for sales, including e-commerce efforts targeting customers in the PRC[156][159]. Corporate Governance - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[11]. - The financial statements have been prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with local regulations[49]. - The company adopted several amendments to accounting standards, including HKFRS 16 related to Covid-19 rent concessions, which may impact financial reporting[52]. Market Conditions - The Group's medical aesthetic centres were closed from April 10 to May 7, 2020, and July 15 to August 28, 2020, due to COVID-19, impacting consumer sentiment and creating a challenging business environment[189]. - Sales of products and services and the utilization rate of medical aesthetic centres are highly dependent on the recovery of the overall business environment, with increased uncertainty in future operating performance due to COVID-19[190].
卓珈控股(01827) - 2021 - 中期财报