Financial Performance - The Group's revenue for FY2023 reached a record high of HK$463.1 million, showing significant growth in customer numbers and revenue across all treatment centers and skincare retail stores [45]. - Despite the growth, the Group recorded a net loss of approximately HK$20.5 million for FY2023, compared to a net profit of approximately HK$25.4 million in the previous year, primarily due to increased marketing and operational expenses in Mainland China [49]. - The financial condition remains robust with significant revenue growth and ample cash reserves to support future development despite increased marketing expenses [79]. - The Group's financial position remained healthy, with a significant increase in revenue compared to the Previous Year, supported by ample cash for future development [110]. - Marketing expenses and other expenses increased during the year due to the development of the Mainland market [110]. Brand Development and Market Expansion - The core brand CosMax+ maintained a leading position in the high-end medical aesthetic industry, contributing to the overall revenue growth [45]. - The VITAE treatment centers demonstrated increasing revenue and profit potential, indicating a positive trend for the brand [45]. - The high-end skincare brand XOVE launched in Mainland China stores of Sephora, ranking among the best-selling beauty brands within the first three months [49]. - The Group anticipates that the entry into the Mainland China market will yield positive contributions to revenue and profit as economies of scale are achieved in the future [49]. - The Group aims to leverage the growth of its three brands—CosMax+, VITAE, and XOVE—to capitalize on economic recovery in 2024 [45]. - The Group's proactive planning for future growth includes enhancing brand awareness and market presence in Mainland China through partnerships with established retailers like Sephora [49]. - The high-end skincare brand XOVE officially entered the Chinese market through Sephora, which has over 360 stores in mainland China, enhancing brand visibility [50]. - XOVE's sales performance in the first three months at Sephora was encouraging, ranking among the top beauty brands in the region [50]. Operational Efficiency and Cost Management - Staff costs increased by approximately HK$52.2 million, or 41.7%, from approximately HK$125.3 million to approximately HK$177.5 million, attributed to the opening of 6 new retail stores [57]. - Depreciation related to property, plant, and equipment rose by approximately HK$19.6 million, or 79.0%, from approximately HK$24.8 million to approximately HK$44.4 million [58]. - Other net expenses increased from approximately HK$103.2 million to approximately HK$135.5 million, mainly due to expanded operations and increased advertising and promotional expenses [62]. - The company aims to optimize operations and management to maintain a competitive advantage and improve revenue and profit for shareholders [53]. - The Group implemented standard operating procedures and a clear division of labor at its medical aesthetic centers to enhance operational efficiency and service quality [170]. Governance and Compliance - The Board is committed to high standards of corporate governance to manage business risks and enhance transparency [91]. - The Company has complied with the Listing Rules, maintaining at least 3 independent non-executive directors, representing over one-third of the Board [96]. - The Company has adopted the Model Code for Securities Transactions, ensuring all directors confirmed compliance during the review year [95]. - The Group's directors acknowledged their responsibility for preparing all information in the financial statements for the year ended 31 March 2023 [154]. - The Board oversees risk management and internal control systems, aiming to identify and mitigate risks to achieve business objectives [182]. - The Group's internal control processes are reviewed periodically to ensure effectiveness and compliance with applicable laws and regulations [184]. - The Group strictly complies with the Prevention of Bribery Ordinance, with no legal cases regarding corrupt practices reported during the reporting period [149]. - An anti-corruption policy has been established to ensure integrity and ethical conduct in business operations, with specific behavioral guidelines for employees and partners [189]. - The Group has adopted a whistleblowing policy to promote compliance and ethical behavior across its operations [188]. Community Engagement and Social Responsibility - The Company is committed to community investment and social responsibility initiatives [106]. - The Group made charitable donations amounting to HK$129,000 during the reporting period, a significant increase from HK$29,000 in 2022 [156]. - The Group's community investment policy aims to establish a comprehensive system to oversee activities related to community investment, fostering long-term relationships with stakeholders [155]. - The Group's charitable contributions reflect its commitment to community development and support for the underprivileged [156]. Research and Development - The company plans to continue investing in R&D and new projects to enhance customer experience and explore potential business opportunities in both Hong Kong and mainland China [51]. - The research and development department is responsible for managing intellectual property rights, including acquisition, modification, and monitoring across all units [172]. - The Group conducts regular training on intellectual property rights to enhance employee awareness and compliance [172]. Remuneration and Management Structure - The Remuneration Committee held one meeting during the year ended 31 March 2023, assessing the performance of executive Directors and making recommendations regarding remuneration packages [139]. - The Group's remuneration policy for directors is reviewed annually, considering experience, responsibilities, and time commitment [141]. - The current management structure allows the same individual to serve as both Chairperson and CEO, which the Board believes is in the best interest of the Company [93].
卓珈控股(01827) - 2023 - 年度财报