Financial Performance - The Group achieved a revenue of HK$403.2 million for FY2025, a decrease of 18.4% compared to HK$494.3 million in FY2024[11]. - Earnings before interest, taxes, and depreciation for FY2025 was HK$58.6 million, representing an increase of 84.9% year-on-year from HK$31.7 million in FY2024[11]. - The Group reported a net profit of HK$10.6 million for FY2025, a turnaround from a net loss of HK$12.6 million in FY2024[11]. - The Group's revenue for FY2025 was approximately HK$403.2 million, a decrease of about HK$91.1 million or 18.4% compared to HK$494.3 million in FY2024[66]. - Revenue from treatment services amounted to approximately HK$350.3 million in FY2025, representing 86.9% of total revenue, down by approximately HK$24.2 million or 6.5% from FY2024[69]. - Revenue from skincare products decreased to approximately HK$52.8 million in FY2025, representing 13.1% of total revenue, a decline of approximately HK$66.8 million or 55.9% from FY2024[71]. - Other income and gain, net increased to approximately HK$6.4 million in FY2025, up by approximately HK$0.6 million or 10.3% from FY2024[76]. Cost Management - Operating expenses were reduced by 24.5% year-on-year through supply chain optimisation and other measures[26]. - Operating expenses decreased by 24.5% year-on-year, significantly lowering the expense-to-revenue ratio[28]. - Staff costs decreased by approximately HK$42.2 million or 23.0%, from approximately HK$183.8 million in FY2024 to approximately HK$141.6 million in FY2025[78]. - Property rentals and related expenses decreased by approximately HK$13.7 million or 20.2%, from approximately HK$67.9 million in FY2024 to approximately HK$54.2 million in FY2025[79]. - Other expenses, net decreased by approximately HK$59.5 million from approximately HK$159.6 million in FY2024 to HK$100.1 million in FY2025, a reduction of 37.3%[87]. Market Trends - The medical aesthetic and wellness beauty market in Hong Kong is expected to grow steadily, driven by rising demand for personalised services[20]. - The medical aesthetics market in Hong Kong is experiencing steady growth, driven by increased consumer demand and technological advancements[34]. - Non-surgical aesthetic services are dominating the market, particularly Botox and hyaluronic acid injections, due to their less invasive nature[36]. - The consumer base is becoming younger, with the 20-40 age group now representing the majority of medical aesthetics consumers[36]. - Skincare retail revenue faced a temporary adjustment due to subdued retail market conditions and consumer sentiment[65]. Customer Engagement - Customer satisfaction and customer bases continued to improve, reflecting the Group's efforts in service quality and customer experience[26]. - The Group revamped its loyalty programme to improve customer retention, which has shown effectiveness in strengthening business performance[17]. - The Group is focusing on enhancing customer retention through strategies based on customer spending patterns[30]. Strategic Direction - The Group's future strategies focus on enhancing branding, customer focus, professionalism, and management optimisation for sustainable growth[21]. - The introduction of innovative aesthetic treatments and continuous service portfolio improvement are key strategies to meet market demands[47]. - The Group aims to enhance brand value and adopt prudent financial strategies to achieve sustainable growth in the medical aesthetics and wellness beauty industry[60]. - The Group plans to accelerate the introduction of innovative treatments and product portfolios to enhance brand influence and market penetration in response to improving local consumer conditions[118]. Financial Health - Cash flow remained healthy, and gearing ratios were kept at a low level, resulting in a stable financial structure[18]. - Cash and cash equivalents rose to HK$182.3 million as of March 31, 2025, compared to HK$119.8 million in 2024, indicating improved liquidity[95]. - Interest-bearing bank borrowings decreased to approximately HK$5.9 million in FY2025 from HK$12.5 million in FY2024, reflecting reduced debt levels[97]. - The gearing ratio improved to approximately 4.0% as of March 31, 2025, down from 9.1% in 2024, demonstrating a stronger capital structure[100]. Management and Governance - Ms. LAI Ka Yee Gigi has been leading the Group since 2009, focusing on the medical aesthetic service industry after her career in film and television[123]. - The Group has a strong management team with diverse backgrounds in marketing, public health, and creative industries, enhancing its strategic capabilities[125]. - The Company aims to become a renowned enterprise in non-surgical medical aesthetic and wellness beauty services, targeting the creation of value for shareholders[156]. - The Company has complied with all applicable code provisions of the Corporate Governance Code for the year ended 31 March 2025, with one exception regarding the separation of roles of chairman and chief executive officer[154][155]. - The Board is composed of 3 executive directors and 3 independent non-executive directors, complying with the Listing Rules regarding board composition[160]. - The Company maintains a system of internal controls and risk management procedures as part of its governance responsibilities[175]. Corporate Governance - The company is committed to high standards of corporate governance, having complied with applicable codes and principles[171]. - The Company has established a corporate governance function to review and monitor policies, including compliance with legal and regulatory requirements[186]. - The Company encourages Directors to participate in continuous professional development to enhance their knowledge and skills[182]. - The Board held four regular meetings during the year ended March 31, 2025, with full attendance from all Executive Directors[176]. - The Audit Committee, comprising three Independent Non-Executive Directors, held three meetings during the year, attended by the Company's external auditor[189].
卓珈控股(01827) - 2025 - 年度财报