Company Overview - Sau San Tong Holdings Limited was established in July 2000 and listed on GEM of the Stock Exchange of Hong Kong in November 2003, becoming the first listed beauty and slimming company in Hong Kong[14][9]. - The Group currently operates five beauty and slimming centers in Hong Kong under the brand names "Sau San Tong" and "IPRO"[15][14]. - In 2005, the Group acquired a distribution business in Mainland China, distributing P&G's personal care products and other renowned brands like SK-II and Olay[17][19]. - The franchise cooperation business in the PRC has expanded significantly since December 2010, with multiple franchise contracts established, positioning the brand as a leader in the beauty and slimming industry in China[78]. Business Segments and Services - The Group commenced a new business segment of investment in securities in March 2015 to diversify its income stream and improve capital usage efficiency[22][21]. - In May 2016, the Group started providing money lending services, targeting small to medium-sized corporations and individuals with both secured and unsecured loans[23][21]. - The beauty and slimming services provided by the Group include personalized health management and anti-aging treatment programs[15][14]. - The Group aims to enhance its revenue base through diversification into new business segments[21][22]. Financial Performance - The Group's revenue decreased by 13.0% from approximately HK$1,793,826,000 in the previous year to approximately HK$1,561,356,000 in the Year Under Review[43]. - Gross profit for the Year Under Review was approximately HK$137,171,000, a decrease of approximately HK$7,315,000 compared to HK$144,486,000 in the previous year[43]. - Revenue from the distribution sale of cosmetic and skin care products decreased from approximately HK$1,715,144,000 to approximately HK$1,476,008,000[44]. - Revenue from the provision of beauty and slimming services increased from approximately HK$53,771,000 to approximately HK$60,695,000[44]. - The Group's profit from operations was HK$19,489,000, a recovery from a loss of HK$5,503,000 in the previous year[43]. - The net profit for the year was HK$13,892,000, compared to a loss of HK$16,585,000 in the previous year[43]. - Current assets amounted to HK$826,032,000, a slight decrease from HK$845,408,000 in the previous year[43]. - The Group's net assets increased to HK$820,010,000 from HK$808,284,000 in the previous year[43]. Cost Management and Efficiency - General and administrative expenses amounted to HK$82,331,000, representing a decrease of approximately 22.5% from approximately HK$106,279,000 for the same period last year[48]. - Selling and distribution costs decreased by 13.6% from approximately HK$53,908,000 last year to approximately HK$46,578,000 in the Year Under Review[48]. - The Group reported a profit of approximately HK$13,892,000 for the year, compared to a loss of approximately HK$16,585,000 in the previous year, reflecting effective cost control measures that reduced total sales and distribution costs and general administrative expenses from approximately HK$160,187,000 to approximately HK$128,909,000, a decrease of about 19.5%[67]. Market Challenges and Outlook - Looking ahead, the Group anticipates challenges in the Hong Kong and PRC economy and retail business due to the ongoing impact of COVID-19[38]. - The Group's beauty and slimming centres experienced a shorter suspension period, driving revenue up by 12.0% compared to last year[65]. - The demand for quality beauty and slimming products and services is expected to continue its upward momentum due to the growth of the middle class[138][142]. Investment and Growth Strategy - The Group aims to enhance its portfolio of health and beauty products by investing in advanced technologies and safe ingredients, targeting a wider array of sophisticated product choices for customers[76]. - The Group plans to continue launching safe and effective products that cater to diverse customer needs, contributing to stable results in the health and beauty product distribution segment[77]. - The Group plans to utilize its abundant funds to identify new investment opportunities, including securities, money lending, and properties, to generate additional returns and broaden its revenue base[106]. - The Group will focus on selecting sound investments with high return potentials to enhance capital efficiency and overall performance[106]. Corporate Governance - The management emphasized the importance of corporate governance and risk management for sustainable development[37]. - The company has adopted a code of conduct for Directors' securities transactions that meets the standards set out in the GEM Listing Rules, with all Directors confirming compliance throughout the year ended March 31, 2022[174]. - The Board has reviewed corporate governance practices and is satisfied with compliance with the Corporate Governance Code, except for the absence of a chairman of the Board, which is a deviation from code provision A.2[162]. - The Board of Directors consists of six members, including two Executive Directors, one Non-executive Director, and three Independent Non-executive Directors as of March 31, 2022[175]. - The Company has three Independent Non-executive Directors, with at least one possessing appropriate professional qualifications or financial management expertise[187]. Social Responsibility - The Group has been recognized as a "Caring Company" for 10 consecutive years, reflecting its commitment to outstanding products and services[16][14]. - The Group actively participates in charity initiatives and has established the "Sau San Tong Volunteer Team" to support various charitable causes[111].
修身堂(08200) - 2022 - 年度财报