Financial Strategy and Risk Management - The company will focus on reducing risks related to the current situation, closely monitoring store profitability and new customer trends, while maintaining a debt-free financial position[47] - The company remains cautious about the economic outlook, citing ongoing challenges in Hong Kong and US-China trade tensions[73] - The company recognized an impairment loss of HKD 12,006,000 for cash-generating units 1A and 1B, with goodwill fully impaired at HKD 11,429,000[182] - The company's cash-generating unit 1A used a pre-tax discount rate of 15.0% for its value-in-use calculation, down from 21.8% in 2023[179] Marketing and Customer Engagement - The company has increased advertising expenditure as a percentage of revenue to enhance customer engagement, emphasizing its importance in the current environment[48] - Glycel and Eurobeauté brands recorded satisfactory year-on-year sales growth, benefiting from strong performance in the beauty services industry[72] - The company launched new treatments, including the HIFU Gold series in January and plasma exosome rejuvenation therapy in September, to enhance skin tightening and regeneration[69] Corporate Governance and Compliance - The company adheres to the Corporate Governance Code of the Hong Kong Stock Exchange, ensuring compliance with regulatory requirements and maintaining high governance standards[58] - Directors have full access to relevant company information and can seek independent professional advice at the company's expense, subject to approval by the Audit Committee or the Board[59] - The audit committee is responsible for reviewing corporate governance policies and monitoring compliance with legal and regulatory requirements[105] - The board has adopted a policy allowing directors to seek independent professional advice, ensuring access to independent perspectives[85] Operational Efficiency and Cost Management - Core expenses remained similar to last year, with rental expenses decreasing slightly from 16.9% to 16.2% of revenue due to economic weakness and store closures[67] - Depreciation costs for property and equipment were 4.6%, similar to last year's 4.8%, as the company continued its policy of regular equipment upgrades and store renovations[67] - Employee costs increased due to tight labor market conditions in Hong Kong, but the actual number of employees decreased from 1,073 to 914 after some store closures[67] - Total cash outflows for leases during the year ended September 30, 2024, were HKD 122,257,000, down from HKD 127,920,000 in 2023[189] Investment and Asset Management - The company added HKD 16,274,000 worth of property and equipment during the year, including HKD 9,239,000 for leasehold improvements[187] - The carrying value of property and equipment as of September 30, 2024, was HKD 82,460,000, down from HKD 111,219,000 in 2023[187] - Investment properties in Hong Kong were valued at HKD 192,041,000 as of September 30, 2023[184] - The company's trademarks are considered to have an indefinite useful life and are not amortized, but are tested for impairment annually[177] Board and Leadership Structure - The company's board consists of 6 male members and 2 female members, achieving sufficient gender diversity as of September 30, 2024[93] - The board held 5 meetings during the fiscal year ending September 30, 2024, with high attendance rates among directors[97][101] - The nomination committee reviews the board diversity policy periodically, focusing on skills, experience, and potential contributions of candidates[92] - All directors participate in continuous professional development programs to update their knowledge and skills[102] Employee and Workforce Management - The company's workforce is predominantly female, reflecting the nature of the beauty services industry, which primarily serves female clients[95] - The company ensures equal opportunities in recruitment, training, development, and promotion regardless of gender[96] Remuneration and Compensation - Total remuneration for directors and senior executives in 2023 amounted to HKD 14,198,000, with bonuses accounting for HKD 5,544,000[173] - The remuneration committee meets at least annually to review and recommend executive compensation policies[108] Strategic Growth and Innovation - The company plans to continue investing in the latest beauty equipment and technology to maintain its position as a high-end luxury brand[74] - The company aims to provide top-tier services and products, leveraging its reputation and expertise to remain an industry leader[75] Financial Reporting and Judgments - The company's contract liabilities represent obligations to transfer goods or services to customers for which consideration has been received[196] - The company's management made significant judgments in determining the expected unused rights amount for prepaid treatment services[195] Store Operations and Expansion - The company operates 14 Glycel stores in Hong Kong and 1 in Macau as of September 30, 2024[71] - The company has streamlined its organizational structure, with multiple business operations and responsibilities directly managed by executive directors and the CEO[56] Investment Advisory and Portfolio Management - The investment advisory committee provides guidance on investment decisions and monitors the performance of the investment portfolio[110]
奥思集团(01161) - 2024 - 年度财报