Business Operations - As of March 31, 2023, the company operates 28 service centers in Hong Kong, 3 in mainland China, and 6 in Singapore, with a retail network of 9 "be Beauty Shop" locations[13] - The company has opened several new stores, including Be Beauty Shop in Whampoa and Kwai Fong, and a new modern beauty center in Kwai Fong in December 2022[22] - The group operated a total of 46 stores in Hong Kong, a decrease of 2 stores from the previous year[28] - Revenue from Singapore operations was HKD 45.7 million, an increase from HKD 43.9 million in the previous year, with service revenue of HKD 37.7 million and prepaid beauty package sales of HKD 41.7 million[34] - The group’s main business involves providing beauty and wellness services and selling skincare and wellness products, which are highly competitive sectors[129] - For the fiscal year ending March 31, 2023, the group’s revenue and performance primarily came from beauty and wellness services in Hong Kong, mainland China, and Singapore[131] Financial Performance - The group's revenue for the fiscal year ended March 31, 2023, was approximately HKD 406.3 million, an increase of 14.3% compared to HKD 355.6 million for the fiscal year ended March 31, 2022[28] - The revenue from prepaid beauty packages was HKD 412.1 million, representing a 19.1% increase from HKD 346.1 million in the previous fiscal year[36] - Revenue from beauty and facial care services accounted for 67.6% of total revenue, with a total of HKD 274.6 million, up 14.0% from the previous year[35] - The net loss attributable to equity shareholders for the fiscal year 2023 was approximately HKD 20.6 million, a significant improvement from a net loss of HKD 68.8 million in the previous year[43] - The group maintained a strong financial position with cash and bank balances of approximately HKD 177.5 million, up from HKD 127.5 million in the previous fiscal year, with no bank borrowings[45] - The total deferred revenue at the end of the fiscal year was HKD 242.8 million, up from HKD 204.2 million at the beginning of the year[38] - The group’s revenue primarily comes from beauty and wellness services, contributing approximately 92% of the total revenue for the year ended March 31, 2023[186] Employee and Operational Efficiency - Employee benefits expenses increased by 9.6% to approximately HKD 274.9 million, accounting for 67.7% of total revenue, down from 70.5% in the previous year[39] - The group employed 876 staff as of March 31, 2023, a reduction from 904 staff in the previous year, with total employee benefits expenses increasing by 9.6% to HKD 274.9 million[51] - The group aims to enhance operational efficiency and maintain service quality in its beauty and wellness centers[32] - The company has implemented new operational strategies aimed at improving efficiency, which are expected to reduce costs by 10% over the next year[80] Corporate Governance - The management team emphasized the importance of maintaining strong corporate governance practices to enhance shareholder value[81] - The company has adhered to the corporate governance code, with minor deviations noted in specific areas[81] - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced composition for effective oversight[83] - The board has established a clear division of responsibilities between management and the board, with management accountable for daily operations[90] - The company emphasizes the importance of corporate governance and compliance with statutory and regulatory requirements[88] Environmental and Social Responsibility - The company has been awarded the "Caring Company" logo by the Hong Kong Council of Social Service for 12 consecutive years as of February 2023[25] - The company has been recognized for its green initiatives, receiving the "Green Office" and "Healthy Workplace" labels for six consecutive years from the World Green Organization[25] - The company has implemented various environmental measures, including a "paperless office" initiative and the use of LED lighting in retail stores to save energy[55] - The company will issue a separate Environmental, Social, and Governance report in accordance with the Listing Rules[175] Market Strategy and Future Outlook - The company aims to expand its product sales through various brands, including "Malu Wilz," "Byotea," and its own brands like "p.e.n" and "FERRECARE," enhancing its customer base[12] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% based on new product launches and market expansion strategies[80] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[80] - A strategic acquisition of a local competitor is being considered to enhance the company's product offerings and customer base[80] Risk Management - The company faces risks from macroeconomic changes, regulatory updates, market competition, and rising operational costs in Hong Kong[61] - The company has adopted a corporate risk management framework to identify and manage significant risks to its business objectives[110] Shareholder Information - As of March 31, 2023, the company had 904,483,942 shares issued, with a market value of HKD 148 million[68] - The company did not declare an interim dividend for the fiscal year 2023, consistent with the previous fiscal year where the interim dividend was also zero[132] - The company did not declare a final dividend for the fiscal year 2023, mirroring the previous fiscal year where the final dividend was also zero[132] - Shareholders can request a special general meeting if they hold at least 10% of the company’s paid-up capital[124] Audit and Compliance - The independent auditor has audited the consolidated financial statements for the fiscal year ending March 31, 2023, and found them to be true and fair according to the Hong Kong Financial Reporting Standards[180] - The audit committee reviewed and approved the annual performance before it was approved by the board[173] - The external auditor's fees for audit services amounted to HKD 3,400,000, while non-audit services fees were HKD 300,000[105]
现代健康科技(00919) - 2023 - 年度财报