Business Operations - The company operates 30 service centers in Hong Kong, 3 in mainland China, and 7 in Singapore as of March 31, 2022[14]. - The retail network under "be Beauty Shop" consists of 8 locations, focusing on high-quality skincare and wellness products[14]. - The company offers a diverse range of services, including beauty and facial care, body shaping, and wellness products[8]. - The group operated a total of 48 stores as of March 31, 2022, down from 51 stores in the previous year[26]. - The group plans to cautiously expand its business in Singapore, where revenue for the fiscal year was HKD 43.9 million, down from HKD 45.9 million in the previous year[31]. Financial Performance - The group's revenue for the fiscal year ended March 31, 2022, was approximately HKD 355.6 million, a decrease of 17.6% compared to HKD 431.5 million for the previous fiscal year[26]. - The operating loss for the fiscal year was HKD 72.3 million, compared to an operating profit of HKD 134 million in the previous fiscal year, reflecting a decline in operating margin by 51.4 percentage points[26]. - Revenue from beauty and health services in Hong Kong decreased by 18.8%, with service revenue of HKD 281 million and prepaid beauty package revenue of HKD 298.4 million, reflecting a decline of 21.7% and an increase of 21.0% respectively[28]. - Revenue from skincare and health product sales increased by 52.5% to HKD 30.1 million, compared to HKD 19.7 million in the previous fiscal year[32]. - The group reported a net revenue of HKD 346.1 million from the sale of new prepaid beauty packages, an increase of 18.5% from HKD 292.2 million in the previous fiscal year[33]. - The net loss attributable to equity shareholders for the fiscal year 2022 was approximately HKD 68,800,000, compared to a net profit of HKD 125,700,000 in the fiscal year 2021[41]. - The company’s basic and diluted loss per share was HKD 7.61, compared to earnings per share of HKD 13.90 in the previous year[195]. Employee and Operational Costs - Employee benefits expenses increased by approximately 38.7% from HKD 180,800,000 in the fiscal year 2021 to about HKD 250,800,000 in the fiscal year 2022, accounting for 70.5% of revenue[37]. - Rental costs and depreciation of leased properties amounted to approximately HKD 75,200,000, representing 21.1% of revenue, a slight decrease from 19.0% in the previous year[38]. - Other operating expenses totaled HKD 46,667,000 for the fiscal year 2022, compared to HKD 41,166,000 in the previous year[40]. Corporate Governance - The company emphasizes strong corporate governance principles to enhance shareholder value, adhering to the corporate governance code since April 1, 2012[79]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced composition for effective oversight[81]. - The company has established a remuneration committee to review and determine the compensation for directors and senior management, ensuring competitive rewards to attract and retain key executives[94]. - The audit committee reviewed the group's financial reporting, risk management, and internal controls, holding four meetings during the review year[99]. Market and Industry Trends - The company closely monitors industry trends to acquire advanced beauty equipment for its services[9]. - The group faces risks from macroeconomic changes, regulatory updates, market competition, and rising operational costs in Hong Kong[60]. - The group expects the Hong Kong retail sector to continue recovering as long as the local pandemic remains stable, supported by government measures like the consumption voucher scheme[52]. Community and Environmental Initiatives - The company has received the "Green Office Award" from the World Green Organization for five consecutive years[22]. - The group has implemented various environmental measures, including promoting a "paperless office" and using LED lighting in retail stores to save energy[53]. - The company has a commitment to community welfare activities, with Dr. Zeng Yu actively participating in various initiatives[70]. Shareholder Information - As of March 31, 2022, the company had issued 904,483,942 ordinary shares with a market capitalization of HKD 121 million[67]. - The company did not declare an interim dividend for the fiscal year, consistent with the previous year where the interim dividend was also zero[130]. - Shareholders can request a special general meeting if they hold at least 10% of the company's paid-up capital[122]. Risk Management - The company has adopted a corporate risk management framework to identify and manage significant risks in daily operations[106]. - The board has reviewed the effectiveness of the risk management and internal control systems, deeming them adequate and effective[105]. Financial Reporting and Audit - KPMG has audited the financial statements for the fiscal year 2022 and is eligible for reappointment at the upcoming annual general meeting[164]. - The external auditor's fees for audit services amounted to HKD 3,000,000, while non-audit services totaled HKD 300,000[101].
现代健康科技(00919) - 2022 - 年度财报