On behalf of the Board of Directors (the “Board”) of Perfect Medical Health ManagementLimited (the “Company”), together with its subsidiaries (collectively referred to as the“Group”), I am pleased to present the annual results of the Group for the financial yearended 31 March 2025 (the “Year”).

STABLE PROGRESS AMID A TURBULENT ENVIRONMENT

The Year proved to be challenging across all sectors. Slowing global economic recovery andfluctuating consumer confidence have posed unprecedented challenges to the retail and service industries. The Hong Kong and Mainland China markets in particular faced visible pressure, as consumer behavior became not only cautious but also pragmatic and rational, presenting a new chapter for our traditional business model.

In the second half of the Year, macroeconomic conditions remained challenging as persistent inflation, elevated interest rates, and cautious consumer spending continued to impede global and local economic recovery, significantly undermining consumer confidence in Hong Kong. There is a growing consumer trend of seeking cross-border medical beauty services in cities such as Shenzhen and South Korea, driven by the demand of more cost-effective beauty treatments. In the face of these challenges, the Group has intensified its response measures by focusing on the launch of high value-for-money Korean medical beauty services and strengthening its membership loyalty program to stimulate consumption and boost sales. In addition, the Group is advancing digitalization to enhance customer experience, while optimizing cost control to safeguard profitability. Despite the difficult market environment, the Group’s business has demonstrated resilience and effectively maintained an ultra-high profit margin.

The Group recognizes that the beauty markets in Hong Kong and Mainland China have undergone fundamental changes and are increasingly becoming the new normal. In response to this evolving operating environment, the Group is actively strengthening its business model, with a focus on enhancing operational efficiency, flexibility, and agility to swiftly adapt to changing consumer behavior and market demands. The Group will continue to optimize its store network by seeking development opportunities in high-potential locations and consolidating underperforming outlets. Leveraging its diversified business portfolio to comprehensively meet the needs of various customer segments, along with its solid development platforms in both Hong Kong and Mainland China, the Group is confident in its ability to navigate current challenges and achieve sustainable growth and development under the new normal.

DELIVERING ON SHAREHOLDER COMMITMENT WITH SUSTAINABLE RETURNS

In light of a significantly changed operating environment, the Group has remained steadfast in its commitment to delivering shareholder returns. Since our listing in 2012, the Group has distributed over HK$3.28 billion in cumulative dividends and has achieved a payout ratio above 100% for ten consecutive years. Although profits have declined this year, the Group remains committed to a stable dividend policy, aiming to create long-term and sustainable returns for its shareholders.

As at the end of the Year, the Group continued to uphold a “zero borrowing” financial discipline, with ample cash and bank balances and robust working capital, sufficiently supporting future development and strategic investments, ensuring visible and sustainable shareholder returns. Leveraging a solid financial foundation and prudent resource allocation capabilities, we ensure that every capital deployment creates tangible returns for our shareholders.

ADVANCING INNOVATION STRATEGY TO BUILD LONG-TERM COMPETITIVENESS

The collaboration with Japan’s renowned brand “Goku Spa” further extended our presence in health management. Its rollout in Hong Kong and China has gradually demonstrated its potential, showcasing our ability to rapidly validate and expand new business models. To drive long-term development, in the first quarter of the fiscal year 2026, we entered into an exclusive cooperation agreement with the Korean medical beauty chain brand “Oracle” for the Hong Kong market. This partnership introduces highly popular Korean medical beauty technologies renowned for their safety, high customer retention, and technological leadership. Leveraging the Group’s extensive membership base and robust operational platform, the collaboration is expected to generate immediate synergies. This represents a significant strategic breakthrough in brand development and is anticipated to accelerate sales growth and further enhance profitability.

In parallel, the Group is actively identifying high-potential medical beauty clinics in Shenzhen as part of a strategic M&A initiative. Given Shenzhen’s position as the preferred cross-border consumption destination for Hong Kong residents, medical beauty demand in Shenzhen is undergoing structural growth. These acquisitions are expected to rapidly scale revenue and capture enormous business opportunities arising from the cross-border consumption trend.

We remain firmly committed to achieving sustainable profitability and productivity enhancement. Addressing today’s challenges requires more than cost-cutting, it also calls for concurrent advancement in transformation and innovation. As both the Korean brand collaboration and the strategic M&A pipeline take shape, this dual-track strategy is expected to lay a solid foundation for profit growth over the next five years and drive the shareholder value in the middle and long-term.

INVESTING IN TALENT AND TECHNOLOGY TO FULFILL LONG-TERM VISION

The success of an enterprise does not solely depend on its technology and business model. It also hinges on the care to the employees’ working environments and personal growth, along with building a valuable corporate culture. Therefore, we implement systematic training, performance based compensation, and employee incentive schemes, while optimizing workflows and with the help of artificial intelligence technology to enhance employee efficiency and improve customer experience, thus ensuring the sustained and steady development of the company.

Simultaneously, we are accelerating our digital transformation to enhance service scalability, operational efficiency, and cost-effectiveness, while optimizing customer experience to support ongoing expansion and long-term growth. Through AI-assisted personalized marketing, operational automation, and data-driven decision-making, we are building a more efficient and responsive organizational system. These efforts improve customer satisfaction and retention, while also creating a replicable foundation for business expansion and market reach.

LOOKING AHEAD — CAPTURING RECOVERY OPPORTUNITIES

Looking to FY2026, we will continue to consolidate our competitive advantages in an ever-changing environment, prudently managing risks, while actively expanding our business footprint and seizing every growth opportunity. We will continue to uphold the core values of “prudence, professionalism, and innovation,” maintaining financial discipline while deploying resources flexibly to capture opportunities in high-end aesthetic medical and health management sectors. By enhancing flagship services, growing regional brand alliances and accelerating digital operations, we are confident in our ability to achieve long-term growth and deliver sustained value to shareholders amid an evolving market environment.

Finally, on behalf of the Board, I sincerely thank all shareholders, employees, partners, and customers for your trust and support over the past year. Your steadfast encouragement empowers us to move forward with confidence amidst uncertainty. As always, we will embrace challenges, adapt to change, and strive relentlessly to create sustainable value and fulfill our corporate mission.