Core Viewpoint - Natural Beauty (00157) announced the resignation of Ms. Guo Yanting as the company secretary, effective from August 5, 2025, and she will no longer serve as the authorized representative for legal document delivery in Hong Kong [1] Group 1 - Ms. Li Meiyi has been appointed to replace Ms. Guo as the company secretary and authorized representative under the relevant stock exchange rules and company ordinance, effective from August 5, 2025 [1]

Group 1 - The company Natural Beauty (00157) announced the resignation of Ms. Guo Yanting as the company secretary, effective from August 5, 2025 [1] - Ms. Li Meiyi has been appointed to replace Ms. Guo as the company secretary and authorized representative under the relevant Hong Kong regulations, also effective from August 5, 2025 [1]

（於開曼群島註冊成立之有限公司） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Natural Beauty Bio-Technology Limited 自然美生物科技有限公司 （股份代號：00157） 變更公司秘書及授權代表 自然美生物科技有限公司（「本公司」）董事會（「董事會」）謹此宣佈，郭彥廷女士（「郭 女 士」）已 辭 任 本 公 司 之 公 司 秘 書，並 不 再 擔 任 根 據 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）證 券 上 市 規 則（「上市規則」）第3.05條及香港法例第622章 公 司 條 例（「公 司 條 例」）第16部 所 指 在 香 港 接 受 法 律 程 序 文 件 及 通 知 送 達 之 本 公 司 授 權 代 表，自 二 零 二 五 年 八 月 五 日 起 生 效。郭 女 士 已 確 認 彼 與 董 事 會 並 無 任 何 意 見 分 歧，亦 無任何其他有關彼辭任之事項需敦請本公司股東或聯交所 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 自然美生物科技有限公司（根據開曼群島法例註冊成立的有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00157 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 4,000,000,000 | HKD | | 0.1 HKD | | 400,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 4,000,000,000 | HKD | | 0.1 HKD | | 400,000,000 | 本月底法定/註冊 ...

Group 1 - The core viewpoint of the articles emphasizes a shift in beauty standards among young people in China, advocating for "natural beauty" over the traditional "white, young, and thin" aesthetic [2][3] - A survey conducted by China Youth Daily and Wenjuan.com revealed that 72.4% of young respondents believe "natural beauty" should replace the "white, young, and thin" standard [3][4] - Key characteristics of "healthy beauty" identified by respondents include rosy complexion (63.5%), strong and proportionate body (62.2%), and natural, glowing skin (55.5%) [3][4] Group 2 - The articles highlight the importance of bone health, with experts suggesting that young people should focus on maintaining a healthy lifestyle to prevent conditions like osteoporosis [4][5] - Recommendations from respondents include incorporating bone density, body fat percentage, and muscle mass into health check-ups, with 57.0% supporting this initiative [4][6] - The articles also discuss common misconceptions among young people regarding health and beauty, such as the belief that complete sun protection is necessary and that frequent face masking equates to deep hydration [4][5] Group 3 - Suggestions for promoting a "healthy beauty" lifestyle include organizing outdoor team-building activities by companies, promoting scientific fitness and balanced nutrition in schools and communities, and advocating for diverse beauty standards [6] - The demographic breakdown of the survey respondents shows that 63.7% are female and 36.3% are male, with the majority being born in the 1990s [6]

Core Viewpoint - The 2025 Eastsun Health Natural Beauty AI Technology and Health Industry New Product Strategy Launch Conference emphasizes the integration of AI technology with the beauty industry, aiming to lead a new era of health and beauty through innovative products and strategies [1][2][3]. Group 1: Company Strategy and Vision - Eastsun Health Natural Beauty aims to transition from a beauty industry benchmark to a century-long health ecosystem leader, focusing on the "AI Technology · Beauty Industry · All Health" strategy [3][4]. - The company plans to open 10,000 stores in the next three years as part of its "Centennial Coexistence Plan," emphasizing the importance of both consumer beauty and partner business success [3][4]. Group 2: Product Innovations - The launch of the second-generation NB-1 Diamond Peptide series and exclusive high-end care instruments like INDIBA White Moon reflects the company's commitment to merging beauty services with health management [4][5]. - New product lines include a comprehensive care loop covering facial, body, scalp care, and health foods, aligning with the national "Healthy China 2030" strategy [4][5]. Group 3: Industry Trends and Market Position - The beauty industry is evolving from a "beauty economy" to a "health economy," driven by consumer demand for health management and wellness services [4][6]. - Eastsun Health Natural Beauty is positioned as a leader in the beauty industry, with over 2,000 global stores and a focus on AI and biotechnology to enhance service offerings [3][4]. Group 4: Event Highlights and Engagement - The conference featured expert training sessions aimed at helping over a thousand store operators achieve significant sales milestones, showcasing the company's commitment to partner success [6]. - The event concluded with awards recognizing outstanding contributions within the company, reinforcing a culture of excellence and achievement [7].

Financial Performance - Natural Beauty reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year 2024[3]. - The company achieved a net profit margin of 12%, translating to a net profit of HKD 144 million, up from HKD 120 million in the previous year[3]. - Future guidance indicates expected revenue growth of 10-15% for 2025, with a target revenue of HKD 1.32 billion[3]. - The Group's revenue for 2024 increased by 5.2% to HK$353.7 million compared to HK$336.0 million in 2023, primarily driven by an increase in product sales of HK$18.5 million[25]. - Revenue from the PRC market rose by 7.3% from HK$237.8 million in 2023 to HK$255.2 million in 2024, while revenue from the Taiwan market increased by 8.7% to HK$92.1 million[26]. - The Group reported a loss before tax of approximately HK$105.2 million in 2024, compared to a loss of HK$11.9 million in 2023, reflecting a decrease in pre-tax profit margin[57]. - The Group's net loss increased significantly to approximately HK$103.6 million in 2024, compared to a net loss of approximately HK$15.1 million in 2023[65][70]. - The effective tax rate shifted from 27.3% in 2023 to -1.5% in 2024, with income taxation expenses changing from HK$3.2 million to a credit of HK$1.6 million[64][69]. - The Group's gearing ratio increased from 29.9% in 2023 to 43.0% in 2024, indicating a rise in financial leverage[67][72]. - The Group's projected revenue compound annual growth rate (CAGR) is estimated at 16.4% for the upcoming years, up from 14.7% in the previous year[58]. Market Expansion and Product Development - User engagement metrics showed a 20% increase in active users, totaling 500,000 by the end of 2024[3]. - The company plans to launch three new product lines in 2025, focusing on eco-friendly and sustainable beauty solutions[3]. - Market expansion efforts include entering two new Southeast Asian countries, projected to contribute an additional HKD 200 million in revenue[3]. - The company is investing HKD 50 million in R&D for new technologies aimed at enhancing product efficacy and user experience[3]. - A strategic acquisition of a local beauty brand is anticipated to be finalized in Q2 2025, expected to enhance market share by 5%[3]. - The Group launched 12 skincare products and 9 health supplements in 2024, generating HK$43.0 million in sales[88][91]. - The health food series achieved sales of HK$33.7 million in 2024, marking an 86.2% increase from HK$18.1 million in 2023[89][91]. - The company plans to introduce Exosome Technology into the Taiwan market to meet growing consumer demand, alongside the development of an AI Massage Robot to enhance service precision[99][104]. Sales and Revenue Channels - Product sales accounted for 99.1% of total revenue in 2024, amounting to HK$350.4 million, an increase of 5.6% from HK$331.9 million in 2023[31]. - Sales from e-commerce, TV shopping, and telemarketing channels decreased to HK$37.8 million, down HK$3.7 million from HK$41.5 million in 2023, accounting for 10.7% of total revenue[83][84]. - In 2024, the Group achieved HK$315.8 million in sales from franchised/self-owned spas, an increase of HK$21.3 million from HK$294.5 million in 2023, representing 89.3% of total revenue[82][84]. Corporate Governance - Corporate governance improvements have been made, with the establishment of a new audit committee to enhance financial oversight[3]. - The Board of Directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[136]. - The Board met a total of eight times during 2024, exceeding the minimum requirement of four meetings per year[139]. - The company has adopted a code of conduct for securities transactions by directors, which complies with the Model Code, with no reported incidents of non-compliance for the year ended December 31, 2024[154]. - The Company established a Board Independence Evaluation Mechanism to ensure strong independent judgment, with satisfactory results reported for the year[169]. Operational Challenges and Costs - Distribution and selling expenses as a percentage of revenue increased to 48.4% in 2024 from 42.3% in 2023, with total expenses rising by HK$28.8 million to HK$171.0 million[45][51]. - Total administrative expenses increased by HK$14.4 million to HK$80.4 million in 2024, with significant costs in staff and legal fees[46][51]. - Other income and gains decreased by 46.4% from HK$7.9 million in 2023 to HK$4.2 million in 2024, mainly from rental income, interest income, and government grants[44][50]. - The fair value loss on investment properties increased to HK$19.7 million in 2024 from HK$5.8 million in 2023[55]. Strategic Initiatives - The company is implementing a multi-channel sales strategy in Taiwan, focusing on health food and optimizing online brand exposure through live streaming[115][118]. - The company aims to enhance its international competitiveness by investing in high-end intelligent beauty equipment and driving industry upgrades through technological innovation[113]. - The establishment of operation centers in key provinces in the PRC is part of the strategy to strengthen local market penetration[116]. - The company is combining original store expansion mechanisms with a distributor system to enhance precise targeting and team expansion[116]. - The company is committed to enhancing brand building and expanding its comprehensive healthcare business territory by 2025[117].

Financial Performance - Natural Beauty Bio-Technology Limited reported audited annual results for the year ending December 31, 2024[2]. - Revenue for the Group in 2024 increased by 5.2% to HK$353.7 million compared to HK$336.0 million in 2023, driven by an increase in product sales of HK$18.5 million[30]. - Product sales accounted for 99.1% of total revenue in 2024, amounting to HK$350.4 million, representing a 5.6% increase from HK$331.9 million in 2023[36]. - Revenue from the PRC market increased by 7.3% from HK$237.8 million in 2023 to HK$255.2 million in 2024[31]. - Revenue in the Taiwan market rose by 8.7% to HK$92.1 million in 2024, up from HK$84.7 million in 2023[31]. - Revenue from other regions, including Hong Kong and Malaysia, decreased by 52.9% from HK$13.5 million in 2023 to HK$6.4 million in 2024, contributing only 1.8% to total revenue[31]. - Overall gross profit margin decreased from 59.6% in 2023 to 57.2% in 2024 due to changes in the revenue mix of products in the PRC market[32]. - Service income decreased by 19.9% to HK$3.3 million in 2024 compared to HK$4.0 million in 2023[38]. - The Group's operating loss for 2024 is projected to be HK$97.2 million, a significant decline from the previous year's loss of HK$3.7 million[30]. - Return on Equity (ROE) is projected to decline to (23.1%) in 2024 from (2.6%) in 2023[30]. - The Group reported a loss before tax of approximately HK$105.2 million in 2024, compared to a loss of HK$11.9 million in 2023, reflecting a decrease in pre-tax profit margin[62]. - The Group's net loss increased significantly from approximately HK$15.1 million in 2023 to approximately HK$103.6 million in 2024[70][75]. - Cash used in operating activities was approximately HK$13.7 million in 2024, compared to cash generated of HK$21.7 million in 2023[71][76]. - The Group's cash and cash equivalents decreased to approximately HK$109.0 million as of December 31, 2024, down from HK$158.7 million in 2023[71][76]. - The effective tax rate shifted from 27.3% in 2023 to -1.5% in 2024, with income taxation expenses changing from HK$3.2 million to a credit of HK$1.6 million[69][74]. - The Group's gearing ratio increased from 29.9% in 2023 to 43.0% in 2024, indicating a higher level of debt relative to equity[72][76]. - The Group's net cash position deteriorated to HK$-83.2 million in 2024 from HK$-13.1 million in 2023, indicating increased financial strain[73][77]. Product Development and Sales - The company is focusing on new product development, specifically the NB-1 Target Aqua Radiance Energizing Essence series[17]. - In 2024, the Group achieved HK$315.8 million in sales from franchised/self-owned spas, an increase of HK$21.3 million from HK$294.5 million in 2023, representing 89.3% of total revenue[87][89]. - Sales from e-commerce, TV shopping, and telemarketing channels decreased to HK$37.8 million, down HK$3.7 million from HK$41.5 million in 2023, accounting for 10.7% of total revenue[88][89]. - The company launched 12 skincare products and 9 health supplements in 2024, generating HK$43.0 million in sales[93][96]. - The health food series achieved sales of HK$33.7 million in 2024, marking an 86.2% increase from HK$18.1 million in 2023[94][96]. - Health food sales have nearly doubled year-on-year, injecting strong momentum into the overall business[118]. - The company is implementing a multi-channel sales strategy in Taiwan, focusing on health food sales and enhancing brand exposure through live streaming[120]. Market Expansion and Strategy - Future outlook indicates a commitment to market expansion and potential mergers and acquisitions[4]. - The company plans to deepen market penetration and enhance brand equity in the high-end consumer segment in 2025[98]. - The company plans to introduce Exosome Technology into the Taiwan market to meet growing consumer demand, alongside the development of an AI Massage Robot to enhance service precision[104][109]. - The Group's management revised their marketing strategy in the second half of 2024 to focus on multi-channel and multi-brand approaches in response to intensified competition and changing customer needs[58]. - The company has established a dual-core strategy in the PRC market, successfully attracting ten heavyweight agents for local store expansion[115]. - The establishment of operation centers in key provinces aims to strengthen local market penetration and collaboration with agents[121]. - The brand plans to deepen market penetration and enhance its influence among high-end consumer groups by 2025[101][104]. - Future plans include the proactive deployment of international high-end smart beauty equipment to drive industrial upgrading and enhance market competitiveness[115]. - In 2024, the number of newly opened franchise stores in the PRC is expected to grow by 50% year-on-year[121]. Corporate Governance - Management emphasizes the importance of corporate governance and compliance in their strategic planning[4]. - The company has appointed new representatives and committee members to strengthen its governance structure[6][9]. - The Board of Directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[141]. - The Board met a total of eight times during 2024, exceeding the minimum requirement of four meetings per year[144]. - Attendance records indicate that all executive directors attended 100% of the Board meetings, with Dr. Lei Chien and Mr. Lin Chia-Wei attending all meetings[147]. - The Company has adopted a code of conduct for securities transactions by directors, which complies with the Model Code, with no incidents of non-compliance reported for the year ended December 31, 2024[159]. - The Company allows directors to seek independent professional advice at the Company's expense, ensuring compliance with corporate governance guidelines[157]. - The Board ensures that all directors have access to the Chief Legal Counsel and Company Secretary for governance and compliance matters[152]. - The company has confirmed that all directors complied with the required standards of the Model Code throughout the year[160]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance with the standards set forth in the Listing Rules[163]. - The Board of Directors is collectively responsible for directing and supervising the company's affairs, including operational and financial performance monitoring[165]. - The Board reserves major policy matters, strategies, budgets, and material transactions for its decision, ensuring sound internal control and risk management systems are in place[166]. - The Chairperson and Chief Executive Officer roles are separate, with the Chairperson focusing on strategic issues and the CEO responsible for overall operations[170]. - An annual confirmation of independence was received from all independent non-executive directors, ensuring compliance with independence guidelines[173]. - The company established a Board Independence Evaluation Mechanism to ensure strong independent judgment, with satisfactory results from the review conducted during the year[174]. Human Resources and Training - As of December 31, 2024, the Group employed 542 staff, with total remuneration of approximately HK$148.4 million, up from HK$105.2 million in 2023[107][110]. - The company provides training courses for directors, with attendance recorded for professional development[155]. - New directors will receive comprehensive formal and tailored orientation training to explain their responsibilities and regulatory requirements[195]. - The company encourages all directors to participate in continuous professional development to ensure their contributions remain informed and relevant[197]. - All directors and senior management received compliance manuals outlining their principal continuing obligations due to the company's listing on the Main Board of the Stock Exchange[194].

[Corporate Information](index=4&type=section&id=Corporate%20Information) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section outlines the company's fundamental details, including key personnel, auditors, and listing information - The Chairman of the Board is Executive Director **Dr. Lei Qian**[5](index=5&type=chunk) - The company's auditor is **RSM Hong Kong**[9](index=9&type=chunk) - The company is listed on the Hong Kong Stock Exchange with stock code **00157**[10](index=10&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Review](index=8&type=section&id=FINANCIAL%20REVIEW) The Group's H1 2024 turnover declined by **2.9%** to **HK$157 million**, with net loss expanding to **HK$30.5 million** due to increased expenses, despite a slight gross margin improvement Revenue by Geographical Segment (H1 2024 vs H1 2023) | Region | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 107,833 | 111,485 | -3.3% | | Taiwan | 45,953 | 40,039 | +14.8% | | Other | 2,963 | 9,987 | -70.3% | | **Total** | **156,749** | **161,511** | **-2.9%** | Key Financial Indicators (H1 2024 vs H1 2023) | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 156,749 | 161,511 | -2.9% | | Gross Profit | 93,330 | 94,966 | -1.7% | | Gross Margin | 59.5% | 58.8% | +0.7pp | | Loss for the Period | (30,454) | (9,406) | +223.8% | | Loss Before Tax | (28,673) | (6,310) | +354.4% | - Distribution and selling expenses increased by **HK$13.1 million** year-on-year to **HK$82 million**, with the percentage of turnover rising from **42.6%** to **52.3%**, primarily due to higher salaries and advertising costs. Administrative expenses increased by **HK$5.9 million** year-on-year to **HK$38.9 million**[18](index=18&type=chunk)[19](index=19&type=chunk) - As of June 30, 2024, the Group's gearing ratio (total bank borrowings/shareholders' equity) slightly increased to **30.7%** from **29.9%** at the end of 2023, while the current ratio decreased from **1.21 times** to **1.06 times**[21](index=21&type=chunk) [Business Review](index=13&type=section&id=BUSINESS%20REVIEW) The Group's business review highlights mixed market performance, network expansion, and successful new product launches leveraging AI and health-focused innovations - Mainland China market turnover decreased by **3.3%**, but product sales gross margin improved from **60.6%** to **64.9%**, primarily due to changes in product mix[26](index=26&type=chunk) - Taiwan market turnover increased by **14.8%**, driven mainly by TV shopping, e-commerce, and telemarketing channels, though gross margin decreased from **60.0%** to **57.3%**[27](index=27&type=chunk) Number of Stores by Ownership (As of June 30, 2024) | Region | Franchised Spas | Self-operated Spas | Self-operated Counters | Total | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 1,289 | 2 | 7 | 1,298 | | Taiwan | 323 | 0 | 0 | 323 | | Other | 30 | 2 | 0 | 32 | | **Total** | **1,642** | **4** | **7** | **1,653** | - The Group made R&D progress, upgrading its Resveratrol series products and integrating NMN and stem cell technologies, while also collaborating with Fudan University to launch AI smart massage robots with AI robotics and vision assistance to enhance service quality and address labor shortages[37](index=37&type=chunk) - Upgraded NMN Resveratrol series and new health food products launched in April 2024 contributed **HK$14.3 million** and **HK$6 million** in Q2 revenue respectively, with newly introduced AI smart devices generating **HK$2.7 million** in revenue[40](index=40&type=chunk)[41](index=41&type=chunk) [Outlook for 2024](index=19&type=section&id=OUTLOOK%20FOR%202024) The company's 2024 outlook focuses on a 'dual-core strategy' in Mainland China, accelerating store expansion and health supplement promotion, supported by increased R&D and talent investment - Implementing a 'dual-core strategy' in Mainland China: opening up agent franchises to accelerate store expansion and vigorously promoting health food products to generate additional performance[46](index=46&type=chunk) - In H1 2024, store expansion achieved significant year-on-year growth, primarily driven by newly signed agents, with health food sales also achieving double-digit year-on-year growth[46](index=46&type=chunk)[47](index=47&type=chunk) - The company has completed its strategic layout in key regions including North, Central, South, and East China, signing with four influential agents with over **20 years** of experience in the beauty industry[48](index=48&type=chunk) - To support business expansion, the company heavily invested in R&D, talent acquisition, and expanded its front-end store expansion and back-end operational teams in H1 2024[50](index=50&type=chunk)[51](index=51&type=chunk) [Corporate Governance Highlights](index=21&type=section&id=Corporate%20Governance%20Highlights) [Corporate Governance Practices](index=21&type=section&id=Corporate%20Governance%20Highlights) The company maintains high corporate governance standards, with full compliance to the Corporate Governance Code and established committees, ensuring proper financial oversight and director conduct - The Board believes the company has fully complied with all code provisions of the Corporate Governance Code for the six months ended June 30, 2024[59](index=59&type=chunk) - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, deeming them compliant with applicable accounting standards, legal requirements, and Listing Rules[53](index=53&type=chunk) - The company adopted a code of conduct for directors' securities transactions, with all directors confirming compliance with the Model Code during the reporting period[60](index=60&type=chunk) - Significant personnel changes occurred during the period: Ms. Lam Yin Ling resigned as Group CEO on April 2, 2024, and Mr. Cheng Chi Chung was appointed Group CEO on July 16, 2024[65](index=65&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) [Shareholder and Share Capital Information](index=24&type=section&id=Other%20Information) This section details key information including no interim dividend declaration, no share repurchases, and a breakdown of major shareholder holdings as of June 30, 2024 - No interim dividend was declared for the six months ended June 30, 2024[67](index=67&type=chunk) - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[66](index=66&type=chunk) - No share awards were granted by the company under its share award scheme during the reporting period[74](index=74&type=chunk) Major Shareholders' Shareholdings (As of June 30, 2024) | Major Shareholder Name | Nature of Interest | Number of Shares Held | Approx. % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Eastern Media International Corporation (东森国际) | Controlled corporation interest | 600,630,280 | 30.00% | | CHAO Shih-Heng (赵世亨) | Controlled corporation interest | 455,630,196 | 22.76% | | TSAI Yen-Yu (蔡燕玉) | Controlled corporation interest | 445,315,083 | 22.24% | [Independent Review Report](index=28&type=section&id=Independent%20Review%20Report) [Independent Review Report](index=28&type=section&id=Independent%20Review%20Report) RSM Hong Kong reviewed the interim financial information for H1 2024, concluding no material non-compliance with HKAS 34, noting the review's scope is less than an audit - Auditor RSM Hong Kong conducted a review of the interim financial information, not a full audit[82](index=82&type=chunk) - Conclusion: The auditor found no matters that cause them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[84](index=84&type=chunk) [Condensed Consolidated Financial Statements](index=28&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2024, the company reported a **2.9%** revenue decrease to **HK$157 million**, with net loss widening to **HK$30.5 million** and basic loss per share at **1.52 HK cents** Profit or Loss Statement Summary (For the six months ended June 30) | Item | 2024 (HKD Thousand) | 2023 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 156,749 | 161,511 | | Gross Profit | 93,330 | 94,966 | | Operating Loss | (24,579) | (2,352) | | Loss Before Tax | (28,673) | (6,310) | | Loss for the Period | (30,454) | (9,406) | | Basic Loss Per Share (HK cents) | (1.52) | (0.47) | [Condensed Consolidated Statement of Financial Position](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets were **HK$823 million**, total liabilities **HK$296 million**, and net assets **HK$526 million**, reflecting a decrease from year-end 2023 Statement of Financial Position Summary | Item | As of June 30, 2024 (HKD Thousand) | As of Dec 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | **Non-current Assets** | **522,557** | **529,149** | | **Current Assets** | **300,041** | **343,285** | | **Total Assets** | **822,598** | **872,434** | | **Current Liabilities** | **284,373** | **283,360** | | **Non-current Liabilities** | **11,841** | **14,550** | | **Total Liabilities** | **296,214** | **297,910** | | **Net Assets (Total Equity)** | **526,384** | **574,524** | [Condensed Consolidated Statement of Cash Flows](index=33&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) H1 2024 saw a shift to **HK$26.5 million** net cash outflow from operating activities, with total cash and cash equivalents decreasing to **HK$95.5 million** by period-end Cash Flow Statement Summary (For the six months ended June 30) | Item | 2024 (HKD Thousand) | 2023 (HKD Thousand) | | :--- | :--- | :--- | | Net Cash From Operating Activities | (26,532) | 21,205 | | Net Cash Used in Investing Activities | (16,781) | (69,943) | | Net Cash From Financing Activities | (11,585) | 44,720 | | Net Decrease in Cash and Cash Equivalents | (54,898) | (4,018) | | Cash and Cash Equivalents at End of Period | 95,504 | 151,387 | [Notes to the Condensed Financial Statements](index=37&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) [Segment Information](index=39&type=section&id=4.%20SEGMENT%20INFORMATION) The Group's H1 2024 segment performance shows Mainland China as the largest revenue source but with a **HK$29.4 million** loss, while Taiwan and Other segments were profitable Segment Revenue and (Loss)/Profit (H1 2024) | Segment | Revenue from External Customers (HKD Thousand) | Segment (Loss)/Profit (HKD Thousand) | | :--- | :--- | :--- | | Mainland China | 107,833 | (29,358) | | Taiwan | 45,953 | 1,908 | | Other | 2,963 | 566 | | **Total** | **156,749** | **(26,884)** | [Property, Plant and Equipment and Impairment Assessment](index=47&type=section&id=10.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) The Group acquired **HK$22.3 million** in PPE; impairment assessment for Mainland China CGU showed no impairment, with a **HK$14.48 million** headroom, but is sensitive to key assumptions - Management conducted an impairment assessment for the cash-generating unit (CGU) selling cosmetics in Mainland China, which includes property, plant and equipment, goodwill of **HK$24.6 million**, and right-of-use assets of **HK$28.26 million**[115](index=115&type=chunk) - The impairment test used the value-in-use method, based on 4.5-year cash flow projections, with a **2.20%** terminal growth rate and a **15%** discount rate, concluding no impairment for the CGU[116](index=116&type=chunk) - The impairment assessment's headroom was **HK$14.48 million**; a decrease in gross margin from **59%** to **58.4%** or an increase in discount rate from **15%** to **15.6%** would eliminate all headroom, indicating sensitivity to assumption changes[116](index=116&type=chunk) [Trade and Other Receivables](index=48&type=section&id=12.%20TRADE%20AND%20OTHER%20RECEIVABLES) As of June 30, 2024, net trade receivables increased to **HK$78.7 million**, with a notable rise in overdue accounts over 150 days, potentially indicating higher collection risk Trade Receivables Aging Analysis (Net) | Aging | As of June 30, 2024 (HKD Thousand) | As of Dec 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | Within 30 days | 21,261 | 24,759 | | 31-150 days | 37,808 | 35,749 | | Over 150 days | 19,647 | 16,907 | | **Total** | **78,716** | **77,415** | [Related Party Transactions](index=52&type=section&id=16.%20RELATED%20PARTY%20TRANSACTIONS) The Group's main related party transaction involved **HK$0.616 million** in advertising fees paid to a fellow subsidiary, with a similar amount payable at period-end - The Group paid **HK$0.616 million** in advertising fees to fellow subsidiary Eastern New Media, a significant increase from **HK$0.198 million** in the prior year[127](index=127&type=chunk) - As of June 30, 2024, the amount payable to related party Eastern New Media was **HK$0.616 million**[128](index=128&type=chunk) [Events After the Reporting Period](index=54&type=section&id=19.%20EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) Post-period, the Group successfully refinanced a **RMB110 million** (approx. **HK$118 million**) Mainland China loan with a 5-year term and 2-year principal holiday, enhancing cash flow flexibility - The Group refinanced a matured **RMB110 million** loan, with the new loan also amounting to **RMB110 million**[132](index=132&type=chunk) - The new loan has a **5-year** term with no principal repayment required for the first **2 years**, which will help alleviate the Group's near-term cash flow pressure[132](index=132&type=chunk)

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides an overview of the company's fundamental corporate details and governance structure [Corporate Information](index=2&type=section&id=Corporate%20Information) This section details the company's fundamental information, including board and committee members, registered office, principal place of business, auditors, legal advisors, share registrar, and principal bankers - The Board of Directors comprises Executive Directors Dr. Lei Chien (Chairperson), Mr. Lin Chia-Wei, and Ms. Lin Yen-Ling; Non-Executive Directors Ms. Lin Shu-Hua and Mr. Chen Shou-Huang; and Independent Non-Executive Directors Mr. Chen Ruey-Long, Mr. Lin Tsang-Hsiang, and Mr. Yang Shih-Chien[5](index=5&type=chunk) - The company has established Audit, Executive, Nomination, and Remuneration Committees, chaired by Mr. Chen Ruey-Long, Dr. Lei Chien, Mr. Yang Shih-Chien, and Mr. Lin Tsang-Hsiang, respectively[4](index=4&type=chunk)[9](index=9&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the company's financial performance, business operations, and strategic outlook for the period [Financial Review](index=7&type=section&id=FINANCIAL%20REVIEW) For the six months ended June 30, 2024, the Group's total turnover decreased by **2.9%** to **HKD 156.7 million**, with a **223.8%** increase in loss for the period to **HKD 30.5 million** due to higher expenses Revenue by Geographical Segment (For the Six Months Ended June 30) | Region | 2024 H1 (HKD thousands) | 2023 H1 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 107,833 | 111,485 | -3.3% | | Taiwan | 45,953 | 40,039 | +14.8% | | Other | 2,963 | 9,987 | -70.3% | | **Total** | **156,749** | **161,511** | **-2.9%** | Key Financial Indicators (For the Six Months Ended June 30) | Indicator | 2024 H1 (HKD thousands) | 2023 H1 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 156,749 | 161,511 | -2.9% | | Gross Profit | 93,330 | 94,966 | -1.7% | | Loss Before Tax | (28,673) | (6,310) | +354.4% | | Loss for the Period | (30,454) | (9,406) | +223.8% | - The Group's overall gross profit margin slightly increased from **58.8%** to **59.5%**, primarily due to changes in the product revenue mix in the Mainland China market[13](index=13&type=chunk) - Distribution and selling expenses increased by **HKD 13.1 million** to **HKD 82.0 million**, and administrative expenses rose by **HKD 5.9 million** to **HKD 38.9 million**, mainly driven by higher salaries and advertising costs, contributing to the expanded loss[18](index=18&type=chunk)[19](index=19&type=chunk) - As of June 30, 2024, the Group's debt-to-asset ratio was **30.7%** (29.9% at end of 2023), and its current ratio was **1.06 times** (1.21 times at end of 2023)[21](index=21&type=chunk) [Business Review](index=12&type=section&id=BUSINESS%20REVIEW) The Group is actively adjusting its market strategy, with Mainland China revenue down **3.3%** but improved gross margin, Taiwan sales up **14.8%** driven by e-commerce, and significant R&D investment in AI-integrated products and offline store expansion - Mainland China market turnover decreased by **3.3%** to **HKD 107.8 million**, while product sales gross profit margin improved from **60.6%** to **64.9%**[26](index=26&type=chunk) - Taiwan market turnover grew by **14.8%** to **HKD 46.0 million**, primarily driven by TV shopping, e-commerce, and telemarketing channels[27](index=27&type=chunk) Store Count Changes (As of June 30) | Region | 2024 Total Stores | 2023 Total Stores | Net Change | | :--- | :--- | :--- | :--- | | Mainland China | 1,298 | 1,115 | +183 | | Taiwan | 323 | 326 | -3 | | Other | 32 | 14 | +18 | | **Total** | **1,653** | **1,455** | **+198** | - The Group made R&D progress, upgrading its Resveratrol product series and collaborating with Fudan University to integrate AI visual assistance into massage robots, enhancing service quality and addressing professional labor shortages[37](index=37&type=chunk) - In April 2024, the company launched upgraded NMN Resveratrol series and new health foods, generating **HKD 14.3 million** and **HKD 6.0 million** in Q2 revenue respectively, alongside AI smart health detectors and massage robots which contributed **HKD 2.7 million**[40](index=40&type=chunk)[41](index=41&type=chunk) [Outlook for 2024](index=18&type=section&id=OUTLOOK%20FOR%202024) For 2024, the company will implement a 'dual-core strategy' in Mainland China, focusing on intensified health food promotion and accelerated store expansion through local agent partnerships, supported by increased investment in R&D and talent - The company will implement a 'dual-core strategy' in Mainland China, centered on 'intensified promotion of health foods' and 'joint store expansion with agents'[46](index=46&type=chunk)[48](index=48&type=chunk) - The health food business achieved double-digit year-on-year growth in H1, with the company adopting a strategy of frequent small-scale training and promotional events for deeper market penetration[47](index=47&type=chunk)[49](index=49&type=chunk) - Through partnerships with local agents, the number of newly opened franchised stores achieved double-digit year-on-year growth in H1, laying a foundation for future performance growth[50](index=50&type=chunk) - To support business expansion, the company increased investment in R&D and talent in H1 2024, doubling the size of both front-end store expansion and back-end operations teams[50](index=50&type=chunk)[51](index=51&type=chunk) [Corporate Governance Highlights](index=19&type=section&id=Corporate%20Governance%20Highlights) This section outlines the company's commitment to high corporate governance standards, including committee structures, compliance with codes, and key personnel changes [Corporate Governance Practices](index=19&type=section&id=Corporate%20Governance%20Highlights) The company is committed to high corporate governance standards, having established four committees and confirming full compliance with the Corporate Governance Code and Model Code for securities transactions by directors during the reporting period, alongside disclosing key personnel changes - The company has established Audit, Executive, Remuneration, and Nomination Committees, with terms of reference no less exacting than those required by the Corporate Governance Code[52](index=52&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, deeming them compliant with applicable accounting standards and Listing Rules[53](index=53&type=chunk) - The Board believes the company has fully complied with all code provisions of the Corporate Governance Code for the six months ended June 30, 2024[59](index=59&type=chunk) - All company directors confirmed compliance with the Model Code for securities transactions during the reporting period[60](index=60&type=chunk) - During the reporting period, Ms. Lin Yen-Ling resigned as Group Chief Executive Officer on April 2, while Mr. Cheng Chi-Chung was appointed as the new CEO on July 16[65](index=65&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section provides additional key information regarding the company's securities, dividend policy, share award scheme, and major shareholder holdings [Shareholder and Share-Related Information](index=22&type=section&id=Other%20Information) This section provides key information, including no purchases, sales, or redemptions of listed securities, no interim dividend declarations, no share awards granted under the scheme, and details of major shareholders holding over **5%** of the company's shares - For the six months ended June 30, 2024, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[66](index=66&type=chunk) - The company did not declare any interim dividend for the six months ended June 30, 2024[67](index=67&type=chunk) - No share awards were granted under the company's share award scheme during the reporting period[74](index=74&type=chunk) Major Shareholder Holdings (As of June 30, 2024) | Major Shareholder Name | Nature of Interest | Number of Shares Held (Long Position) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Eastern Media International Corporation (東森國際) | Controlled Corporation Interest | 600,630,280 | 30.00% | | CHAO Shih-Heng (趙世亨) | Controlled Corporation Interest | 455,630,196 | 22.76% | | TSAI Yen-Yu (蔡燕玉) | Controlled Corporation Interest | 445,315,083 | 22.24% | | Next Focus Holdings Limited | Beneficial Owner / Controlled Corporation Interest | 445,315,083 | 22.24% | [Independent Review Report](index=26&type=section&id=Independent%20Review%20Report) This section presents the independent review report from the company's auditor on the interim financial information [Auditor's Independent Review Report](index=26&type=section&id=Independent%20Review%20Report) RSM Hong Kong conducted an independent review of the interim financial information for the six months ended June 30, 2024, concluding that nothing came to their attention suggesting the financial information was not prepared in all material respects in accordance with HKAS 34 - The review was conducted by RSM Hong Kong for the interim financial information for the six months ended June 30, 2024[80](index=80&type=chunk)[86](index=86&type=chunk) - The review concluded that nothing came to the reviewer's attention suggesting the interim financial information was not prepared in all material respects in accordance with HKAS 34[84](index=84&type=chunk)[85](index=85&type=chunk) [Condensed Consolidated Financial Statements](index=28&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, including the statement of profit or loss, financial position, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the company reported turnover of **HKD 156.7 million**, a **2.9%** decrease, with operating loss expanding to **HKD 24.6 million** and loss for the period increasing **223.8%** to **HKD 30.5 million**, resulting in a basic loss per share of **HKD 1.52 cents** Profit or Loss Statement Summary (For the Six Months Ended June 30) | Item (HKD thousands) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Revenue | 156,749 | 161,511 | | Gross Profit | 93,330 | 94,966 | | Operating Loss | (24,579) | (2,352) | | Loss Before Tax | (28,673) | (6,310) | | Loss for the Period | (30,454) | (9,406) | | Basic Loss Per Share (HK cents) | (1.52) | (0.47) | [Condensed Consolidated Statement of Financial Position](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were **HKD 822.6 million**, total liabilities **HKD 296.2 million**, and net assets **HKD 526.4 million**, with a **HKD 48.1 million** decrease in net assets from year-end 2023 primarily due to period loss and exchange differences Financial Position Summary | Item (HKD thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-Current Assets | 522,557 | 529,149 | | Current Assets | 300,041 | 343,285 | | **Total Assets** | **822,598** | **872,434** | | Current Liabilities | 284,373 | 283,360 | | Non-Current Liabilities | 11,841 | 14,550 | | **Total Liabilities** | **296,214** | **297,910** | | **Net Assets** | **526,384** | **574,524** | [Condensed Consolidated Statement of Cash Flows](index=33&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the reporting period, cash from operating activities shifted from a **HKD 21.2 million** net inflow to a **HKD 26.5 million** net outflow, with net cash outflows of **HKD 16.8 million** from investing and **HKD 11.6 million** from financing activities, resulting in a **HKD 54.9 million** decrease in cash and cash equivalents to a period-end balance of **HKD 95.5 million** Cash Flow Summary (For the Six Months Ended June 30) | Item (HKD thousands) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Net Cash from Operating Activities | (26,532) | 21,205 | | Net Cash Used in Investing Activities | (16,781) | (69,943) | | Net Cash from Financing Activities | (11,585) | 44,720 | | Net Decrease in Cash and Cash Equivalents | (54,898) | (4,018) | | Cash and Cash Equivalents at Period End | 95,504 | 151,387 | [Notes to the Condensed Financial Statements](index=35&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) The notes provide detailed explanations of key financial data, including consistent accounting policies, segment information showing Mainland China's loss and Taiwan's profit, revenue primarily from product sales, no impairment found for Mainland China's cash-generating unit, related party transactions, and a significant post-reporting period loan refinancing - Segment results indicate a **HKD 29.4 million** loss in Mainland China, while the Taiwan market achieved a **HKD 1.9 million** profit[103](index=103&type=chunk) - Management assessed the impairment of the cash-generating unit for cosmetics sales in Mainland China, determining no impairment was needed based on value-in-use calculations, though sensitivity analysis showed minor adverse changes in gross margin or discount rate would eliminate the remaining buffer[115](index=115&type=chunk)[116](index=116&type=chunk) - Advertising expenses of **HKD 0.616 million** were incurred with related party Eastern Media International Corporation during the period[127](index=127&type=chunk) - Subsequent to the reporting period, the Group refinanced a **RMB 110 million** loan due on July 18, 2024, with a new 5-year loan[132](index=132&type=chunk)[133](index=133&type=chunk)