Financial Performance - The Group achieved record-high revenue of over HK$360 million for FY2022 despite a nearly three-month business suspension due to COVID-19[44]. - The profit margin for FY2022 was lower than previous years due to the impact of the pandemic on operations[44]. - The Group's revenue for the year ended 31 March 2022 increased by approximately HK$235.0 million, or 182.3%, reaching HK$363.9 million compared to HK$128.9 million in the previous year[56][69]. - The Group returned to profitability with a profit of approximately HK$25.4 million for the year, compared to a net loss of approximately HK$12.7 million in the previous year[56][58]. - Total revenue for the year was approximately HK$363.9 million, an increase of approximately HK$235.5 million or 182.3% compared to HK$128.9 million in the previous year[70]. - Revenue from treatment services amounted to approximately HK$289.1 million, representing 79.4% of total revenue, an increase of approximately HK$180.7 million or 166.7% from HK$108.4 million in the previous year[72]. - Revenue from skin care products reached approximately HK$74.3 million, accounting for 20.5% of total revenue, an increase of approximately HK$54.4 million or 273.4% from HK$19.9 million in the previous year[77]. - Revenue from prescription and dispensing of medical products remained stable at approximately HK$0.5 million, representing 0.1% of total revenue, compared to 0.4% in the previous year[78]. Business Expansion and Development - New medical aesthetic centres and retail stores were opened, contributing to higher rental expenses and depreciation compared to the previous year[49]. - The ongoing COVID-19 pandemic affected the revenue and profit potential of new stores, which were not fully realized in FY2022[49]. - The Group plans to continue investing in research and development to introduce new treatment services and products in FY2023[51]. - The expansion of three brands is expected to enhance overall business performance and achieve stronger economies of scale[49]. - The Group aims to explore local and overseas business opportunities to diversify its presence and customer base[51]. - The Group continues to invest in research and development, introducing new treatment services and products to enhance business growth[56]. - The launch of the new beauty brand VITAE focuses on the principle of "inner health realises external beauty," with three treatment centres currently operating in prime locations[63][65]. - XOVĒ, a premium skincare product line developed by Swiss specialists, is marketed through five retail stores in first-tier shopping malls and online platforms[64][66]. - The medical aesthetics industry is experiencing rapid growth, and the Group aims to expand its business and retail network to reach a wider consumer base[64][66]. - The Group's effective market promotions have significantly increased public awareness of its brands, leading to higher revenue from both treatment services and skincare product sales[69]. - The Group expanded its CosMax+ medical aesthetic centres, increasing the total service floor area to serve more customers and enhance service quality[138][141]. - The Group launched a new treatment brand, VITAE, and currently operates three treatment centres, expecting high growth in the coming years[146]. - The skincare brand XOVĒ introduced five retail stores in first-tier shopping malls in Hong Kong and is promoting products online in Mainland China and Hong Kong[146]. - The Group plans to deepen its presence in Mainland China and explore business opportunities in both Mainland China and Hong Kong[146]. - The demand for medical aesthetic services is expected to grow at a higher rate in the coming years, supported by the steady recovery of the local economy post-COVID-19[149]. - The Group is actively exploring local and overseas business opportunities to expand its network and retail stores, aiming for a wider and more diversified customer base[152]. Operational and Financial Management - Regular reviews of operational strategies will be conducted to maintain reasonable profit growth while capitalizing on industry expansion[44]. - The management is committed to maximizing returns for shareholders while ensuring steady business growth[51]. - Staff costs increased by approximately HK$54.4 million or 76.7%, from approximately HK$70.9 million in the previous year to approximately HK$125.3 million due to the opening of new treatment centres and retail stores[89]. - Property rentals and related expenses increased by approximately HK$27.4 million or 129.2%, from approximately HK$21.2 million in the previous year to HK$48.6 million due to new treatment centres and retail stores[90]. - Cost of inventories and consumables amounted to approximately HK$29.0 million, representing 8.0% of total revenue, compared to 10.1% in the previous year[80]. - Other income decreased by approximately HK$11.5 million or 89.8%, from approximately HK$12.8 million in the previous year to approximately HK$1.3 million due to reduced government subsidies[79]. - Credit card commission increased by 139.8% to approximately HK$8.7 million in 2022 from HK$3.6 million in 2021[96]. - Advertising and promotion expenses surged by 288.8% to approximately HK$47.8 million in 2022 from HK$12.3 million in 2021, primarily due to new promotional campaigns[96]. - Net cash flows from operating activities rose by approximately HK$19.5 million to HK$44.0 million in 2022 compared to the previous year[118]. - Finance costs increased by approximately HK$1.2 million to HK$3.0 million in 2022 from HK$1.8 million in 2021[98]. - Income tax expenses amounted to approximately HK$5.8 million for the Year Under Review, compared to a tax credit of HK$3.6 million in the previous year[99]. - The Group's cash and cash equivalents decreased to approximately HK$65.7 million as of March 31, 2022, from HK$161.8 million in 2021[109]. - Net cash flows used in investing activities were approximately HK$97.5 million, primarily due to capital expenditures for new treatment centres and retail stores[118]. - Lease liabilities increased to approximately HK$127.6 million as of March 31, 2022, compared to HK$42.5 million in 2021[118]. - The Board did not recommend or declare any dividend for the Year Under Review, consistent with the previous year[108]. - The total number of employees increased to 366 as of March 31, 2022, up from 195 in 2021, with staff costs amounting to approximately HK$125.3 million, compared to HK$70.9 million in the previous year[135][139]. - The Group did not have any interest-bearing bank borrowings as of March 31, 2022, maintaining a gearing ratio of zero[125][129]. Corporate Governance and Management - The Company has complied with all applicable code provisions of the Corporate Governance Code during the year ended March 31, 2022, except for one deviation regarding the separation of roles of chairman and chief executive officer[189]. - The current management structure has the same individual serving as both chairlady and chief executive officer, which the Board believes is in the best interest of the Group for effective management[190]. - Amendments to the Corporate Governance Code took effect on January 1, 2022, and the Board will continue to enhance corporate governance practices to ensure compliance with the revised code[191]. - The Company has adopted the Model Code for Securities Transactions for Directors, and all Directors confirmed compliance with the required standards during the review year[196]. - The company has complied with Rule 3.10 of the Listing Rules by appointing at least three independent non-executive directors, representing more than one-third of the Board[198]. - At least one of the independent non-executive directors possesses appropriate professional qualifications or expertise in accounting or related financial management[198]. - All independent non-executive directors meet the independence guidelines set out in Rule 3.13 of the Listing Rules[199]. - Each independent non-executive director provides an annual confirmation of independence as required by the Listing Rules[199]. - The company believes that all independent non-executive directors are independent according to the relevant guidelines of the Listing Rules[199]. Management Team Background - Dr. Lam Ping Yan joined the Group as an executive Director in July 2020, bringing extensive public health experience[167]. - Dr. Lam has served in various significant roles, including Deputy Director of Health and Chief Port Health Officer, contributing to public health policy in Hong Kong[167]. - He has been involved in the prevention and control of diseases such as SARS and swine flu during his tenure as a public officer[167]. - Dr. Lam has been an Honorary Professor at the Chinese University of Hong Kong since 2004, indicating a strong academic background[167]. - He received the Silver Bauhinia Star in 2012 for his contributions to public health in Hong Kong[167]. - Dr. Lam holds a Bachelor of Medicine and Bachelor of Surgery from the University of Hong Kong and a Master of Medicine in Public Health from the National University of Singapore[169]. - He has served as a temporary advisor to the World Health Organization on traditional medicine and non-communicable diseases[167]. - Dr. Lam was awarded the Cross-Strait Contribution Award for Chinese in Tobacco Control in 2012, highlighting his commitment to health initiatives[167]. - He has held leadership positions in various health committees, including the Cancer Coordinating Committee and the Working Group on Diet and Physical Activity[167]. - Dr. Lam is a fellow of the Hong Kong Academy of Medicine and a registered specialist in community medicine, underscoring his professional qualifications[169]. - Mr. Cheng has over 30 years of experience in auditing, finance, and business management[174]. - Mr. Li is the chief financial officer of Crystal International Group Limited, responsible for finance matters since November 2018[178]. - Mr. Li previously served as vice president of operational finance at Esprit Holdings Limited, overseeing finance and operational matters[178]. - Mr. Li was a managing director at COFCO Agricultural Industrial Investment Fund Management Company Limited, managing overall business and investment matters[178]. - Mr. Li was the chief financial officer of Zhuhai Dahengqin Company Limited, responsible for finance, investment, and fund management from August 2013 to October 2018[178]. - Mr. Cheng has been an independent non-executive director of multiple companies listed on the Stock Exchange, including CSI Properties Limited and Top Spring International Holdings Limited[175]. - Mr. Cheng has been the sole proprietor of Erik Cheng & Co., Certified Public Accountants in Hong Kong since 1999[174]. - Mr. Cheng graduated with a Bachelor's degree in Accounting from the University of Kent and a Master's degree in Accounting and Finance from the London School of Economics[174]. - Mr. Cheng was conferred the distinction of "Chevalier de l'Ordre National du Mérite" by the French Government in May 2015[175]. - Mr. Cheng has served as an independent non-executive director for various companies, including those that have been privatized or delisted[175]. - Mr. Li has extensive experience in accounting, finance, and investment management, serving as CFO of Crystal International Group since November 2018[179]. - He held various senior financial roles in publicly listed companies, including Vice President of Finance at Esprit Holdings and Vice President at COFCO Corporation[179]. - Mr. Li has been involved in asset management and investment work, including as Managing Director at COFCO Agricultural Fund Management[179]. - He graduated with a Bachelor of Commerce degree with distinction from the University of Toronto in November 1995 and an MBA from Schulich School of Business in November 1996[184]. - Mr. Li has served on multiple committees and associations, including as Chairman of the Institute of Public Accountants – Hong Kong Branch since 2019[182]. - He was a member of the Finance Committee of the Hong Kong Housing Authority from 2010 to 2012[183]. - Mr. Li has been actively involved in investor relations and public awareness initiatives within the financial community[182]. - He has held leadership positions in various professional organizations, enhancing his influence in the finance sector[183]. - His career spans over two decades, focusing on financial management and strategic investment across different industries[179]. - Mr. Li's diverse background equips him with a comprehensive understanding of market trends and corporate finance strategies[179].
卓珈控股(01827) - 2022 - 年度财报