Financial Performance - For the three months ended September 30, 2022, the total revenue was HKD 394,663,000, a decrease of 17.1% compared to HKD 475,915,000 for the same period in 2021[4] - The revenue from the distribution of cosmetics and skincare products was HKD 393,384,000, down 13.8% from HKD 456,512,000 year-on-year[4] - The group reported a net loss of HKD 20,737,000 for the six months ended September 30, 2022, compared to a profit of HKD 18,495,000 for the same period in 2021[6] - The basic loss per share for the six months ended September 30, 2022, was HKD 36.4, compared to earnings of HKD 18.98 per share in the previous year[6] - Total revenue for the six months ended September 30, 2022, was HKD 577,536,000, down from HKD 825,154,000 in the previous year, indicating a decrease of approximately 30%[20][22] - The company reported a significant increase in other comprehensive income of HKD 3,899,000 for the period, compared to a gain of HKD 100,000 in the previous year[20] - The group recorded a loss attributable to equity holders of approximately HKD 27,697,000, compared to a profit of HKD 14,248,000 in the same period last year[45] Assets and Liabilities - Total assets decreased to HKD 749,817,000 as of September 30, 2022, from HKD 826,032,000 as of March 31, 2022[10] - The company’s total liabilities decreased to HKD 114,691,000 from HKD 140,033,000 over the same period[10] - The company’s total equity as of September 30, 2022, was HKD 786,184,000, a decrease from HKD 808,284,000 as of September 30, 2021[13] - The group's net assets were approximately HKD 786,184,000 as of September 30, 2022, compared to approximately HKD 820,010,000 as of March 31, 2022[60] Cash Flow and Financial Position - The cash and cash equivalents decreased to HKD 361,601,000 from HKD 432,054,000 over the same period[10] - Cash and cash equivalents decreased by HKD 62,748,000 during the period, resulting in a balance of HKD 361,601,000 as of September 30, 2022, compared to HKD 473,355,000 at the same time last year[15] - The company’s cash flow from operating activities was negative at HKD 28,901,000 for the six months ended September 30, 2022, compared to positive cash flow of HKD 25,039,000 in the previous year[15] - The company’s investment activities resulted in a cash outflow of HKD 17,260,000, compared to HKD 4,034,000 in the previous year, indicating increased investment expenditures[15] Operating Performance - The company incurred a gross profit of HKD 40,816,000 for the six months ended September 30, 2022, down 50.1% from HKD 81,988,000 in the previous year[4] - The company incurred a total operating loss of HKD 23,511,000 for the six months ended September 30, 2022, compared to an operating profit of HKD 22,642,000 in the previous year[20][22] - The distribution sales of cosmetics and skincare products by Dongfang during the review period decreased to approximately HKD 557,513,000 from HKD 772,622,000 in the previous year[44] - Revenue from beauty, body, and spa centers in Hong Kong and China decreased by approximately 42% to about HKD 18,020,000 from HKD 30,812,000 in the previous year[47] Taxation - Hong Kong profits tax for the first HKD 2,000,000 is set at 8.25%, while profits exceeding this amount are taxed at 16.5%[26] - For the six months ending September 30, 2022, Hong Kong profits tax amounted to HKD 537,000, compared to HKD 27,000 in the same period of 2021, representing a significant increase[27] - The company reported a total tax expense of HKD 2,017,000 for the six months ending September 30, 2022, down from HKD 3,873,000 in the same period of 2021[27] Shareholder Information - As of September 30, 2022, major shareholder Qiu Zhongzong holds 10,979,000 shares, representing 13.93% of the company's issued share capital[68] - The company has a total of 5,253,458 share options granted under its share option scheme, with a weighted average exercise price of HKD 0.87[67] - The weighted average remaining contractual life of the share options is 3.87 years[67] Corporate Governance - The company has adhered to the corporate governance code principles as per GEM Listing Rules, with regular updates provided to the board on business conditions[72] - The board has emphasized the importance of prudent management in light of market volatility and uncertainties affecting future business operations[64] - The company has established an audit committee in accordance with GEM listing rules, consisting of three independent non-executive directors[75] - The company has adopted the trading standards outlined in GEM listing rules as the code of conduct for directors' securities transactions[76] Strategic Initiatives - The group aims to maintain its leadership position in the industry by continuously introducing advanced and high-quality services and products[47] - The group aims to continue launching safe and effective health and beauty products to enhance the attractiveness of the "修身堂" brand and maintain market leadership[52] - The group has established a strong presence in the Chinese beauty and slimming industry through franchise agreements since 2010, leveraging its brand recognition[53] - The company has set a cautious approach towards property acquisitions and lending business development due to uncertainties from the COVID-19 pandemic and global economic conditions[64]
修身堂(08200) - 2023 - 中期财报