Business Expansion - The company signed two new lease agreements to expand its business in Central and Tsim Sha Tsui, increasing the capacity of its medical aesthetic service center[39] - The Group has entered into two lease agreements that will increase its total service floor area by over 98% to more than 42,000 sq ft, enhancing its capacity for medical aesthetic services in prime locations in Hong Kong[132][133] - The company is actively exploring opportunities to open additional medical aesthetic service centers and retail stores for skincare products in FY 2022[47] - The Group plans to open new medical aesthetic service centers and retail stores in Hong Kong and the PRC during FY2022 to expand its market presence[59] Financial Performance - The Group's revenue for the year ended March 31, 2021, decreased by HK$47.6 million, or 27.0%, to HK$128.9 million compared to HK$176.5 million for the previous year[54][61] - The loss for the year amounted to approximately HK$12.7 million, contrasting with a net profit of approximately HK$13.6 million in the previous year[54][61] - Revenue from treatment services amounted to approximately HK$108.4 million for the Year Under Review, representing 84.1% of total revenue[69] - Revenue from the sale of skin care products increased by approximately HK$1.3 million, or 7.0%, to HK$19.9 million, representing 15.5% of total revenue[72] - Revenue from consultation services decreased to approximately HK$31,000 for the Year Under Review from approximately HK$138,000 for the Previous Year[78] - Revenue from prescription and dispensing of medical products was approximately HK$0.5 million, representing 0.4% of total revenue[80] - Other income increased by approximately HK$8.7 million, or 212.2%, to HK$12.8 million, primarily due to government subsidies[81] Operational Challenges - The company closed all treatment centers during specific periods due to COVID-19, including from April 10 to May 7, 2020, July 15 to August 28, 2020, and December 10, 2020, to February 17, 2021[40] - The COVID-19 pandemic significantly impacted the Group's operations, leading to the compulsory closure of beauty parlors and social distancing measures[61][62] - The Group closed all treatment centers during several periods due to COVID-19, which significantly impacted consumer sentiment and is expected to continue affecting business until the pandemic is contained[128][131] Product Development - Over the past decade, the company has focused on medical innovations and expanded its product variety, introducing new treatment devices and premium services[45] - A new beauty brand "VITAE by CosMax" was launched, focusing on the principle of "Inner health realizes external beauty," aiming to capture the growing health-conscious market[56] - The Group has launched a new skin care product line "XOVE," featuring the exclusive "White Truffles W-TruComplex" for enhanced skin rejuvenation[57][58] - E-commerce efforts were intensified with the establishment of XOVE's online shop in July 2020, targeting customers in the PRC through platforms like T-mall and Xiaohongshu[57][58] Cost Management - Cost of inventories and consumables decreased to approximately HK$13.0 million, representing 10.1% of total revenue[82] - Staff costs decreased by approximately HK$10.9 million, or 13.3%, to approximately HK$70.9 million for the Year Under Review[88] - Property rentals and related expenses decreased by approximately HK$1.3 million, or 5.8%, to HK$21.2 million[89] - Other expenses increased by approximately HK$9.3 million to approximately HK$38.0 million, primarily due to higher advertising expenses for new promotions[97] - Finance costs decreased from approximately HK$2.2 million to HK$1.8 million, a reduction of about 18.2%[99] Leadership and Governance - The Group's overall management and brand strategy are overseen by Ms. Lai, who has been with the Group since 2009[145] - The Group is focused on expanding its market presence and enhancing its brand strategies under the leadership of its executive team[145] - The executive team includes members with significant experience in marketing, public health, and community medicine, enhancing the Group's strategic capabilities[149][152] - The management team is committed to developing new strategies for market expansion and product innovation[145] - The Group's leadership includes professionals with a strong track record in both the medical and marketing fields, positioning it for future success[149][152] Compliance and Corporate Governance - The Group has complied with all applicable code provisions of the Corporate Governance Code during the year ended March 31, 2021, except for one deviation regarding the separation of roles of chairman and chief executive officer[173] - The current management structure has Ms. Lai Ka Yee Gigi serving as both chairlady and chief executive officer, which the Board believes is in the best interest of the Group for effective management[173] - The Board consists of 3 independent non-executive directors, representing more than one-third of the Board, complying with Listing Rules[178] - The Board's governance practices are regularly reviewed to ensure compliance with statutory and regulatory requirements[183]
卓珈控股(01827) - 2021 - 年度财报