Financial Performance - For the three months ended September 30, 2023, the total revenue was HKD 365,220,000, a decrease of 7.3% compared to HKD 394,663,000 in the same period of 2022[3] - The revenue from the distribution of cosmetics and skincare products was HKD 352,005,000, down 10.5% from HKD 393,384,000 year-on-year[3] - The operating loss for the six months ended September 30, 2023, was HKD 6,898,000, a significant improvement from a loss of HKD 23,511,000 in the same period of 2022[5] - The net loss attributable to the owners of the company for the six months ended September 30, 2023, was HKD 12,690,000, compared to HKD 27,697,000 in the previous year, reflecting a reduction of 54.1%[5] - The total comprehensive loss for the six months ended September 30, 2023, was HKD 6,709,000, compared to HKD 25,394,000 in the same period of 2022[7] - Total revenue for the six months ended September 30, 2023, was HKD 640,566,000, a rise from HKD 577,536,000 in the same period of 2022, representing an increase of approximately 10.9%[19][21] - The company reported a loss before tax of HKD 7,306,000 for the six months ended September 30, 2023, compared to a loss of HKD 23,736,000 in the same period of 2022, showing an improvement in financial performance[19][23] - The company reported a total comprehensive loss of HKD 9,571,000 for the six months ended September 30, 2023, compared to a loss of HKD 25,753,000 in the same period of 2022, indicating a reduction in losses[19][21] - The company’s operating loss for the six months ended September 30, 2023, was HKD 6,898,000, an improvement from an operating loss of HKD 23,511,000 in the prior year[19][21] - The group reported a loss of HKD 9,852,000 for the three months ending September 30, 2023, compared to a loss of HKD 23,181,000 for the same period in 2022, indicating a 57.5% improvement[28] - The group recorded a loss attributable to owners of the company of approximately HKD 12,690,000, compared to a loss of about HKD 27,697,000 in the same period last year[44] Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 189,339,000 as of September 30, 2023, down from HKD 416,179,000 as of March 31, 2023[9] - For the six months ended September 30, 2023, the company reported a net cash outflow from operating activities of HKD 59,313,000, compared to HKD 28,901,000 for the same period in 2022, indicating a significant increase in cash burn[14] - The company experienced a net cash outflow from investing activities of HKD 158,130,000 for the six months ended September 30, 2023, compared to HKD 17,260,000 in the prior year, reflecting increased investment activities[14] - The company's current liabilities decreased to approximately HKD 102,259,000 from approximately HKD 125,404,000 as of March 31, 2023[56] - The company's net assets were approximately HKD 768,998,000 as of September 30, 2023, compared to approximately HKD 775,706,000 as of March 31, 2023[59] Equity and Liabilities - The total equity attributable to owners of the company decreased to HKD 780,669,000 as of September 30, 2023, from HKD 807,443,000 as of April 1, 2022, reflecting a decline of approximately 3.3%[12] - The company's equity attributable to owners was HKD 780,669,000 as of September 30, 2023, a slight decrease from HKD 789,647,000 as of March 31, 2023[10] - The company has utilized approximately HKD 213.3 million of the net proceeds from a rights issue of HKD 352 million, with HKD 135.8 million remaining unutilized as of September 30, 2023[63] Revenue Sources - Revenue from beauty and body services increased by approximately 63%, reaching about HKD 29,366,000, up from HKD 18,020,000 in the previous year[43][46] - Distribution sales of cosmetics and skincare products in China increased to approximately HKD 608,967,000, up from HKD 557,513,000 in 2022, primarily due to the lifting of strict lockdown measures in early 2023[49] 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%[25] - For the six months ending September 30, 2023, Hong Kong profits tax expense was HKD 126,000, a decrease of 76.5% from HKD 537,000 in the same period of 2022[26] Corporate Governance - The company has complied with the GEM Listing Rules regarding the establishment of an audit committee, which consists of three independent non-executive directors[75] - The company has adopted the trading standards set out in GEM Listing Rules for directors' securities transactions and confirmed compliance by all directors[76] - The company has established formal procedures to protect shareholders' interests and has applied the corporate governance code principles[72] Staff and Operations - The company employed 218 staff members as of September 30, 2023, with total employee costs amounting to approximately HKD 26,524,000, slightly down from HKD 26,776,000 in the previous year[61] - The company did not recommend an interim dividend for the six months ended September 30, 2023, compared to no dividend in the previous year[42] Market Conditions and Future Outlook - The government of Hong Kong has lifted COVID-19 restrictions, which is expected to positively impact consumer sentiment and the beauty and body industry[46] - The new brand MIZU beauty and body center commenced operations in the first quarter of 2023, contributing to revenue growth[46] - The company aims to maintain its leadership position in the beauty and body industry by continuously introducing innovative treatments and equipment[48] Financial Instruments - The company recorded a net loss of approximately HKD 4,703,000 from financial assets measured at fair value through profit or loss, compared to a net loss of approximately HKD 4,646,000 in the same period last year[54] - Interest income from the lending business decreased by 37% to approximately HKD 3,721,000, down from approximately HKD 5,862,000 in the same period last year[55]
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