Financial Performance - Loss attributable to the owners of the Company was approximately HK$0.6 million for the six months ended 30 September 2024, a significant improvement from a loss of HK$13.1 million for the same period in 2023[8]. - Revenue for the six months ended 30 September 2024 was HK$200.1 million, down from HK$237.0 million in the previous year, representing a decrease of approximately 15.6%[10]. - The Company reported a profit before tax of HK$1.8 million for the six months ended 30 September 2024, compared to a loss before tax of HK$16.6 million for the same period in 2023[10]. - Total comprehensive loss for the period was HK$156,000, a notable reduction from HK$13.2 million in the prior year[10]. - Basic and diluted loss per share attributable to ordinary equity holders of the Company was HK(0.16) cents, compared to HK(3.26) cents for the same period in 2023[10]. - The company reported a loss for the period of HK$630,000 for the six months ended September 30, 2024, compared to a loss of HK$13,050,000 for the same period last year[21]. - The Group's profit before tax for the six months ended September 30, 2024, was a loss of HK$630,000, significantly improved from a loss of HK$13,050,000 in the same period of 2023[89]. - Total tax charge for the period was HK$2,393,000, compared to a tax credit of HK$3,584,000 in the previous year[83]. Revenue Breakdown - Revenue from contracts with customers for the six months ended September 30, 2024, was HK$200,076,000, a decrease of 15.6% compared to HK$237,010,000 for the same period in 2023[68]. - Revenue from Hong Kong was HK$195,040,000, down from HK$215,069,000, representing a decline of 9.3%[41]. - Revenue from the Chinese Mainland significantly decreased to HK$5,036,000 from HK$21,941,000, a decline of 77%[41]. - Treatment services generated revenue of HK$170,722,000, while skincare products revenue dropped to HK$29,336,000, down 51.7% from HK$60,631,000 in the previous year[68]. Cost Management - Staff costs decreased to HK$25.4 million from HK$27.0 million year-on-year, reflecting a reduction of approximately 5.8%[10]. - Property rentals and related expenses decreased to HK$74.2 million from HK$91.5 million, a reduction of approximately 18.9%[10]. - Finance costs decreased significantly to HK$51.4 million from HK$79.5 million, indicating a reduction of approximately 35.4%[10]. - Other expenses, net decreased by approximately HK$28.1 million or 35.3%, from approximately HK$79.5 million in the previous period to approximately HK$51.4 million in the current period[141]. - Cost of inventories and consumables amounted to approximately HK$25.4 million for the period under review, representing 12.7% of total revenue[134]. Asset and Liability Management - Total non-current assets decreased slightly to HK$195,688,000 as of September 30, 2024, from HK$196,881,000 as of March 31, 2024[14]. - Current assets totaled HK$272,981,000, a decrease from HK$282,562,000 as of March 31, 2024, primarily due to a reduction in trade receivables[14]. - Net current assets improved to HK$19,046,000 compared to HK$4,585,000 as of March 31, 2024, indicating better liquidity[14]. - Total current liabilities decreased to HK$253,935,000 from HK$277,977,000, reflecting a reduction in other payables and accruals[14]. - Non-current liabilities increased to HK$78,127,000 as of September 30, 2024, up from HK$64,703,000 as of March 31, 2024, mainly due to higher lease liabilities[17]. - Total equity remained stable at HK$136,607,000 as of September 30, 2024, compared to HK$136,763,000 as of March 31, 2024[17]. - Cash and cash equivalents increased to HK$128,561,000 from HK$119,829,000, indicating improved cash flow management[14]. - Cash and cash equivalents at the end of the period were HK$89,092,000, an increase from HK$77,329,000[26]. - The company reported a net increase in cash and cash equivalents of HK$13,278,000, contrasting with a decrease of HK$28,199,000 in the prior period[26]. - The Group's non-current assets as of September 30, 2024, totaled HK$164,461,000, a decrease from HK$168,997,000 as of March 31, 2024[60]. - Trade receivables as of September 30, 2024, amounted to HK$3,803,000, a significant decrease of 71.7% from HK$13,402,000 as of March 31, 2024[98][103]. - Trade payables totaled HK$9,189,000 as of September 30, 2024, a decrease from HK$10,561,000 as of March 31, 2024[107]. Employee and Management - The Group had a total of 242 employees, a decrease from 413 employees as of September 30, 2023[151]. - Key management personnel compensation for the six months ended September 30, 2024, totaled HK$4,847,000, slightly down from HK$4,996,000 in the same period of 2023[117]. - Employee costs for the six months ended September 30, 2024, were approximately HKD 74.2 million, down from approximately HKD 91.5 million for the same period in 2023[155]. Strategic Focus and Future Outlook - The Group plans to adopt a cautious and prudent operating strategy in the second half of the year, focusing on optimizing operational strategies and cost to maintain competitiveness[132]. - The Group remains committed to high-quality service delivery to strengthen customer confidence and loyalty to its brand[130]. - The Group's strategic focus will prioritize resources towards core businesses with competitive advantages to enhance overall profitability and shareholder value[132]. - The company plans to introduce new treatments and products to enhance brand visibility and market presence in response to evolving market demands[161]. - The group recognizes the structural transition in the consumer market and will continue to adopt cautious and prudent operating strategies[159]. - The group has implemented strategic measures to diversify revenue streams and reduce expenses, including optimizing its sales network and launching promotional activities[160]. Compliance and Governance - The company has confirmed compliance with the Model Code for Securities Transactions by Directors, with all directors affirming adherence to the required standards during the six months ended September 30, 2024[195]. - The company has adopted a non-competition undertaking to ensure compliance with relevant regulations[199]. - The Company aims to ensure that its business operations remain free from direct competition from its Controlling Shareholders[200]. - The non-competition undertakings are designed to protect the Company's market position and strategic interests[200]. - The Controlling Shareholders have committed to non-competition undertakings as per the deed dated December 19, 2016[200].
卓珈控股(01827) - 2025 - 中期财报