Revenue Performance - Natural Beauty Bio-Technology Limited reported a significant increase in revenue, achieving a total of HKD 150 million, representing a 25% growth compared to the previous year[15]. - The Group's turnover decreased by 29.1% to HK$163.6 million for the six months ended 30 June 2022, down from HK$230.9 million in the same period of 2021[20]. - Revenue for the six months ended June 30, 2022, was HK$163,591,000, a decrease of 29% compared to HK$230,878,000 in the same period of 2021[175]. - Revenue from the PRC market was HK$97,767,000, down 25% from HK$131,236,000 year-on-year[175]. - Revenue from Taiwan decreased by 38% to HK$60,004,000 compared to HK$97,414,000 in 2021[175]. Customer Engagement and Market Expansion - The company expanded its user base, reaching 200,000 active customers, which is a 15% increase year-over-year[15]. - The company plans to enter two new markets in Southeast Asia by the end of 2023, aiming to capture an additional 10% market share in the region[15]. - A strategic acquisition of a local beauty brand is anticipated to enhance product offerings and customer reach, expected to be finalized by Q4 2023[15]. - The company is exploring partnerships with e-commerce platforms to enhance online sales, targeting a 50% increase in digital revenue[15]. Financial Performance and Profitability - The overall gross profit margin decreased from 63.1% to 53.5% due to changes in product revenue mix and COVID-related policies[19]. - The profit for the period decreased by 277.6%, resulting in a loss of HK$30.2 million compared to a profit of HK$17.0 million for the six months ended June 30, 2021[44]. - The company reported a loss before tax of HK$25.3 million, a decrease of 200.1% from a profit of HK$25.2 million for the same period in 2021[44]. - The company reported a total comprehensive loss for the period amounted to HK$63,734,000, compared to a comprehensive income of HK$24,507,000 in the prior year[131]. Research and Development - Investment in research and development increased by 20%, focusing on innovative beauty products and sustainable technologies[15]. - The R&D team consists of over ten researchers and collaborates with professional laboratories in Europe, Japan, and Australia to develop new products and technologies[61]. - The Group has obtained several patents, including stem cell patents and a plant extraction patent, and plans to actively deploy patents related to plant extraction in response to market trends[61]. Operational Efficiency and Cost Management - Total administrative expenses decreased by HK$6.4 million or 15.1% to HK$35.9 million for the six months ended 30 June 2022, compared to HK$42.3 million for the same period last year[36]. - Selling expenses decreased by HK$11.5 million to HK$6.5 million for the six months ended 30 June 2022, down from HK$18.0 million for the same period last year[34]. - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[131]. Corporate Governance - The company has established various committees, including the Audit Committee and Remuneration Committee, to ensure high standards of corporate governance[80]. - The company has fully complied with all code provisions set out in the Corporate Governance Code throughout the six months ended June 30, 2022[92]. - The Audit Committee has confirmed that adequate disclosures have been made in the financial statements for the first half of 2022[82]. Shareholder Information - As of June 30, 2022, Eastern Media International Corporation and its subsidiary hold a substantial interest of 600,630,280 ordinary shares, representing approximately 30.00% of the issued share capital of the Company[115]. - CHAO Shih-Heng and associated entities hold 455,630,196 ordinary shares, accounting for approximately 22.76% of the Company's issued share capital[115]. - The Company declared a final dividend of HK$0.003 per share, totaling approximately HK$6,006,000, consistent with the previous year[190].

Financial Performance - Natural Beauty Bio-Technology Limited reported a significant increase in revenue, achieving a total of HKD 500 million for the fiscal year, representing a 20% growth compared to the previous year[6]. - The company reported a net profit of HKD 100 million, a 30% increase from the previous year, showcasing strong financial performance[11]. - The Group's revenue in 2021 increased by 18.8% to HK$487.8 million compared to HK$410.7 million in 2020, primarily driven by a HK$77.0 million increase in product sales, which accounted for 96.7% of total revenue[42]. - Profit for the year increased by 354.6% from HK$7.8 million in 2020 to HK$35.3 million in 2021[67]. - The Group's total revenue from franchised/self-owned spas, medical cosmetology centers, and counters was HK$341.4 million in 2021, an increase of HK$51.6 million from 2020[71]. Revenue Growth Projections - For the upcoming fiscal year, the company projects a revenue growth of 25%, targeting HKD 625 million, driven by new product launches and market expansion strategies[7]. - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to $180 million[110]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $10 million allocated for potential deals[110]. - The company is considering strategic acquisitions to enhance its product portfolio and market presence[179]. Customer Base and Engagement - The company expanded its user base, reaching 1 million active customers, which is a 15% increase year-over-year[7]. - Customer retention rates improved to 85%, reflecting the effectiveness of the company's loyalty programs and customer engagement strategies[7]. - User data showed a 30% increase in active users, reaching 1.2 million by the end of the year[110]. - Market expansion plans include entering two new international markets, projected to increase user base by 15%[110]. Product Development and Innovation - The company is investing in R&D for new products, with a budget allocation of HKD 50 million, focusing on innovative beauty solutions[7]. - New product launches are expected to contribute an additional $20 million in revenue, with a focus on eco-friendly products[110]. - The Group emphasizes research and development, collaborating with overseas skin-care companies and utilizing bio-technology materials imported from Europe, Japan, and Australia[84]. - The Group is developing an anti-aging product line in collaboration with leading researchers in human genome and stem cell technology[84]. Market Expansion and Strategy - Natural Beauty plans to enter two new international markets in the next year, aiming to increase its global footprint and diversify revenue streams[7]. - The Group's strategic focus includes expanding its market presence and exploring potential mergers and acquisitions to drive growth[200]. - The Group aims to interact with customers through a diversified channel strategy to cater to different consumption and age demographics[200]. Operational Efficiency - The gross profit margin increased to 60%, up from 55% in the previous year, indicating improved operational efficiency[11]. - The overall gross profit margin improved from 58.5% in 2020 to 62.7% in 2021, attributed to a higher proportion of higher-margin products[44]. - Selling and administrative expenses increased by HK$31,800,000 to HK$181,600,000 in 2021, accounting for 37.2% of total revenue[64]. Corporate Governance - The board emphasized the importance of corporate governance and compliance, ensuring all procedures align with the latest regulations[112]. - The Company received annual confirmations of independence from all independent non-executive directors in accordance with Rule 3.13 of the Listing Rules[114]. - The Company has adopted a Board Diversity Policy to achieve diversity on the Board reflecting its business strategy[122]. - The Nomination Committee is responsible for determining the policy for the nomination of Directors and reviewing the structure, size, composition, and diversity of the Board annually[129]. Risk Management - The Company has developed and adopted various risk management procedures and guidelines for key business processes, including financial reporting and human resources[147]. - The management confirmed the effectiveness of the risk management and internal control systems for the year ended December 31, 2021[152]. - The Audit Committee assists the Board in overseeing the design, implementation, and monitoring of risk management and internal control systems[147]. Sustainability and Social Responsibility - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 15% over the next three years[179]. - The Group's leadership team includes experienced professionals with extensive backgrounds in marketing, sales, and corporate governance[194][195].

Financial Performance - Natural Beauty Bio-Technology Limited's turnover increased by 47.5% to HK$230.9 million for the six months ended June 30, 2021, compared to HK$156.5 million for the same period in 2020[17]. - Revenue for the six months ended June 30, 2021, was HK$230,878,000, a significant increase of 47.3% compared to HK$156,498,000 for the same period in 2020[163]. - Gross profit for the same period was HK$145,675,000, up 57.4% from HK$92,556,000 in 2020[121]. - Profit before tax for the period was HK$25,242,000, compared to a loss of HK$11,208,000 in the previous year[121]. - Profit for the period attributable to owners of the company was HK$17,033,000, a significant recovery from a loss of HK$6,447,000 in 2020[121]. - Total comprehensive income for the period was HK$24,507,000, compared to a loss of HK$14,059,000 in the same period last year[121]. - Profit for the period increased by 365.6% from a loss of HK$6.4 million for the six months ended June 30, 2020 to a profit of HK$17.0 million for the six months ended June 30, 2021[34]. Revenue Breakdown - Revenue from the PRC segment reached HK$131.1 million, accounting for 56.8% of total turnover, representing a 65.0% increase from HK$79.5 million in the first half of 2020[17]. - Revenue from Taiwan was HK$97.4 million, which is 42.2% of total turnover, showing a growth of 30.1% from HK$74.9 million in the previous year[17]. - Sales from the PRC market for products increased by 58.3% to HK$124.3 million from HK$78.5 million[26]. - Revenue from external customers for the six months ended 30 June 2021 was HK$131,128,000, compared to HK$97,414,000 for the same period in 2020, representing an increase of 34.6%[153]. - Revenue from franchised/self-owned spas and medical cosmetology centers reached HK$164.7 million, representing 71.4% of the Group's total revenue for the six months ended June 30, 2021[46]. Cost and Expenses - Total product sales amounted to HK$223.7 million, representing an increase of 46.3% compared to HK$152.9 million for the same period last year[26]. - Total staff costs for the period amounted to HK$64,582,000, an increase from HK$59,222,000 in the previous year, reflecting a rise of 9.9%[170]. - Total administrative expenses increased by HK$2.7 million or 6.8% to HK$42.3 million for the six months ended June 30, 2021, compared to HK$39.6 million for the same period last year[32]. - The cost of inventories recognized as cost of sales was HK$75,892,000, compared to HK$42,050,000 in 2020, indicating a significant increase of 80.5%[170]. - Distribution and selling expenses as a percentage of turnover decreased to 36.5% for the six months ended June 30, 2021, down from 44.9% for the same period last year[32]. Strategic Initiatives - The company aims to enhance its product offerings and expand its market presence to sustain growth in the future[3]. - Future strategies include focusing on new product development and leveraging technology to improve customer engagement[3]. - The company is committed to cultivating relationships with franchisees and customers to enhance brand loyalty and market penetration[3]. - Management highlighted the importance of adapting to market trends and consumer preferences to drive sales growth[3]. - The company plans to explore potential mergers and acquisitions to accelerate growth and expand its market share[3]. Market Expansion - The Group's strategy includes establishing self-owned spas as model outlets to attract franchisees[27]. - The focus for the year is on online business growth due to the ongoing impact of COVID-19 on physical stores, with an emphasis on revenue diversification through various channels[68]. - In Taiwan, the Group is leveraging media resources to enhance brand awareness and has successfully sold products through all available virtual retail channels[69]. - The Tmall flagship store for Natural Beauty has opened, expected to significantly boost online sales in the second half of the year[69]. - The franchising business in the PRC is being driven forward, with new channels and e-commerce starting to generate revenue[69]. Compliance and Governance - The Company fully complied with all code provisions set out in the CG Code throughout the six months ended 30 June 2021, except for code provision E.1.2[84]. - The Company has adopted a code of conduct regarding directors' securities transactions that is no less exacting than the required standard set out in the Model Code[88]. - The Company has implemented written guidelines for securities transactions by relevant employees who may possess unpublished inside information[88]. - The interim financial information was reviewed and found to be in compliance with HKAS 34, with no significant issues identified[118]. - The review was conducted by RSM Hong Kong, a certified public accountant firm[114]. Cash Flow and Liquidity - Cash generated from operating activities for the six months ended 30 June 2021 was approximately HK$8.7 million, compared to HK$9.0 million for the same period in 2020[37]. - The Group's total cash and cash equivalents as at 30 June 2021 were approximately HK$154.3 million, slightly down from HK$154.5 million as at 31 December 2020[37]. - The company reported a net decrease in cash and cash equivalents of HK$727,000 for the six months ended June 30, 2021, compared to a decrease of HK$10,325,000 in the same period of 2020[130]. - The Group's cash flow management strategies have led to improved liquidity, as evidenced by the increase in cash and cash equivalents year-over-year[130]. Shareholder Information - The Company declared dividends of HK$6,006,000 during the period[128]. - The Group recognized a final dividend of HK$0.003 per share, amounting to approximately HK$6,006,000, payable to the owners of the Company[178]. - Eastern Media International Corporation held 600,630,280 ordinary shares, representing approximately 30.00% of the issued share capital of the Company[106]. - CHAO Shih-Heng and associated entities held 455,630,196 ordinary shares, accounting for approximately 22.76% of the issued share capital[106]. - TSAI Yen-Yu held 445,315,083 ordinary shares, which is about 22.24% of the issued share capital[106].

Financial Performance - Natural Beauty Bio-Technology Limited reported a significant increase in revenue, achieving a total of HKD 200 million, representing a growth of 15% year-over-year[28]. - The Group's revenue in 2020 decreased by 6.3% to HK$410.7 million compared to HK$438.4 million in 2019, primarily due to a HK$28.5 million decrease in product sales, which accounted for 96.1% of total revenue[44]. - Revenue in the PRC market decreased by 32.0% from HK$303.8 million in 2019 to HK$206.5 million in 2020, while revenue in the Taiwan market increased by 48.0% to HK$194.6 million compared to HK$131.6 million in 2019[45]. - Profit before tax decreased by 75.7% from HK$37,000,000 in 2019 to HK$9,000,000 in 2020, with the pre-tax profit margin dropping to 2.2%[75]. - Profit for the year decreased by 64.6% from HK$21.9 million in 2019 to HK$7.8 million in 2020[83]. Customer and Market Expansion - The company expanded its user base, reaching 150,000 active customers, which is a 20% increase compared to the previous year[28]. - The company plans to enter two new markets in Southeast Asia by the end of the next fiscal year, aiming to capture an additional 5% market share[28]. - Sales revenue from TV shopping, e-commerce, and telemarketing channels in Taiwan contributed HK$113,400,000, accounting for 60.5% of product sales in the region[68]. Product Development and Innovation - Investment in research and development increased by 25%, focusing on innovative beauty products and technologies[28]. - The flagship NB-1 series products accounted for 25% of total product sales, generating HK$99.3 million in revenue[104]. - The Group successfully launched probiotic solid drinks, contributing HK$6.2 million to the healthy food category[104]. - The Group has collaborated with leading researchers in human genome and stem cell technology for the development of the anti-aging NB-1 product family[99]. Financial Management and Profitability - The gross profit margin improved to 60%, up from 55% in the previous year, reflecting better cost management and pricing strategies[28]. - Gross profit margin decreased from 60.6% in 2019 to 58.6% in 2020, attributed to a change in the revenue mix and an increase in lower-margin products[46]. - The gross margin on product sales in the PRC decreased from 67.6% in 2019 to 63.7% in 2020 due to changes in the product mix[54]. - The gross profit margin on product sales in Taiwan increased from 65.9% in 2019 to 68.4% in 2020, driven by higher marginal gross profit from existing sales platforms[55]. Strategic Initiatives and Future Outlook - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[28]. - Overall, the management remains optimistic about sustaining growth and enhancing shareholder value through strategic initiatives[28]. - The Group aims to enhance competitiveness and explore new business opportunities for innovation, targeting steady and continuous growth[106]. Corporate Governance and Board Structure - The Board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors, with a total of seven meetings held in 2020[115]. - The Company has adopted a Board Diversity Policy aimed at achieving diversity on the Board, ensuring an appropriate proportion of Directors with direct experience in key markets and different ethnic backgrounds[128]. - The Nomination Committee consists of three Independent Non-executive Directors and two Executive Directors, with Mr. YANG Shih-Chien serving as Chairman[127]. Risk Management and Internal Controls - The Company has developed and adopted various risk management procedures and guidelines to manage key business processes, including financial reporting and human resources[162]. - The Internal Audit Department was established to enhance risk management and internal control systems, performing independent reviews and providing recommendations for improvement[166]. - The Company has adopted a whistle-blowing policy to facilitate employees in raising concerns about possible improprieties in financial reporting[167]. Shareholder Communication and Relations - The Company emphasizes the importance of effective communication with shareholders for good investor relations[195]. - The Company has a dedicated "Shareholder Services" section on its website to provide comprehensive information to shareholders[191]. - The notice for the AGM held on January 15, 2021, was sent to shareholders at least 20 clear business days before the meeting[188].

Revenue Performance - Natural Beauty reported a significant increase in revenue, achieving a total of HKD 150 million, representing a 25% growth compared to the previous period[18]. - The Group's turnover decreased by 23.6% or HK$48.4 million to HK$156.5 million for the six months ended 30 June 2020 compared to HK$204.9 million for the same period in 2019[19]. - Revenue for the six months ended June 30, 2020, was HK$156,498, a decrease of 23.6% compared to HK$204,888 in 2019[126]. - Total sales for the Group in the first half of 2020 amounted to HK$1,161.5 million, down from HK$1,055.0 million in the same period of 2019, reflecting a decrease of 31.1%[55]. - Revenue from the People's Republic of China decreased to HK$79,494,000 from HK$151,595,000, representing a decline of 47.5%[143]. - Revenue from Taiwan increased significantly to HK$74,852,000, up 44.5% from HK$51,729,000[143]. Profitability and Financial Health - The company reported a loss for the period of HK$6,447, compared to a profit of HK$16,550 in 2019, indicating a significant decline in profitability[126]. - Profit before tax decreased by 144.4%, resulting in a loss of HK$11.2 million for the six months ended June 30, 2020, compared to a profit of HK$25.3 million for the same period last year[34]. - The company’s total assets less current liabilities stood at HK$594,850, slightly down from HK$599,184 at the end of 2019[131]. - The company reported a decrease in trade and other receivables to HK$105,941 from HK$124,762 at the end of 2019, a decline of 15.1%[128]. - The company reported a net cash generated from operating activities of HK$9,024,000, a significant improvement from a cash outflow of HK$56,000 in the previous year[135]. Market and Customer Engagement - The company experienced a rise in user engagement, with a 30% increase in active customers, totaling 200,000 users[18]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[18]. - Customer satisfaction ratings improved to 85%, indicating a positive response to recent product enhancements and customer service initiatives[18]. - The Group continues to focus on expanding its product offerings and enhancing its online sales platforms to adapt to market changes[23]. Research and Development - Investment in research and development increased by 20%, focusing on innovative beauty products and sustainable practices[18]. - The Group emphasizes research and development, collaborating with overseas companies to enhance product quality and develop new offerings[60][64]. - The Group's R&D team includes overseas consultants with expertise in cosmetics, medicine, pharmacy, and biochemistry, focusing on high-quality beauty and skincare products[60][64]. - The Group has patented stem cell technology in the United States for its anti-aging NB-1 product family, ensuring product uniqueness[61]. Operational Changes and Strategies - A strategic acquisition of a local beauty brand is under consideration to enhance product offerings and customer base[18]. - The Group opened 31 new stores and closed 22 stores during the six months ended June 30, 2020[57][58]. - The Group's subsidiaries in the PRC adjusted their management team and hired more business management talents to enhance sales management and business development across regions[72]. - The Group plans to attract high-level talents, broaden its multi-channel sales network, and actively create new business opportunities for growth[76]. Corporate Governance and Compliance - The Company recognizes the importance of good corporate governance and believes it has complied with the CG code provisions, except for the noted financial reporting non-compliance[92]. - The Company has breached financial reporting provisions due to delays in publishing the audited 2019 annual results and convening the annual general meeting within the required timeframe[93]. - The Company has adopted a code of conduct for Directors' securities transactions that meets the standards set out in the Model Code[95]. - The Company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2020[104]. Shareholder Information - As of June 30, 2020, Eastern Media International Corporation held a long position of 600,630,280 shares, representing approximately 30.00% of the issued share capital of the Company[121]. - The interim report indicates a stable shareholder structure with significant holdings concentrated among a few major shareholders[124]. - The Group's total issued and fully paid share capital remained unchanged at HK$200,210,000, with 2,002,100,932 shares issued[185].

Financial Performance - Natural Beauty reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a growth of 15% year-over-year[8]. - The Group's turnover increased by 18.6% to HK$438.4 million in 2019, up from HK$369.5 million in 2018, primarily driven by a HK$74.5 million increase in product sales[31]. - Product sales accounted for 96.5% of total revenue in 2019, amounting to HK$423.3 million, representing a 21.4% increase from HK$348.7 million in 2018[38]. - Overall, the company reported a significant decline in service income, impacting total revenue performance[44]. - Profit before tax decreased by 5.5% from HK$39.2 million in 2018 to HK$37.0 million in 2019, with a pre-tax profit margin declining to 8.4% from 10.6%[52]. - Profit for the year decreased by 16.6% from HK$26.3 million in 2018 to HK$21.9 million in 2019[54]. - Cash generated from operating activities was approximately HK$18.9 million in 2019, down from HK$74.0 million in 2018[54]. Market Expansion and Customer Base - The company expanded its customer base, reaching 500,000 active users, which is a 20% increase compared to the previous year[12]. - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[15]. - The company plans to open 30 new retail locations in key markets, aiming for a 30% increase in market presence[17]. - The Taiwan market saw a significant turnover increase of 79.4%, from HK$73.3 million in 2018 to HK$131.6 million in 2019, driven by direct-sale stores and online sales[42]. - Revenue from the China market increased by 3.8% from HK$292,700,000 in 2018 to HK$303,800,000 in 2019, driven by growth in product sales[45]. Product Development and Innovation - Investment in research and development increased by 25%, focusing on innovative beauty products and technologies[18]. - The Group emphasizes research and development, collaborating with overseas skin-care companies and utilizing bio-technology materials imported from Europe, Japan, and Australia[81]. - The flagship NB-1 product series accounted for 19.2% of total product sales, generating HK$80.5 million in 2019[82]. - The resveratrol beverage launched in 2019 contributed HK$15.1 million, increasing its category share by 3.6%[82]. - The resveratrol skincare series achieved sales of HK$38.6 million, representing 9.2% of total product sales[82]. Financial Management and Expenses - Distribution and selling expenses increased by HK$29.5 million from HK$120.2 million in 2018 to HK$149.7 million in 2019, representing 34.1% of the Group's turnover compared to 32.5% in 2018[52]. - Total administrative expenses rose by HK$2.5 million, or 3.6%, to HK$72.5 million in 2019 from HK$70.0 million in 2018[52]. - Taxation expenses increased by HK$2.2 million to HK$15.1 million in 2019, with effective tax rates rising from 32.9% in 2018 to 40.8% in 2019[54]. Corporate Governance - Natural Beauty aims to enhance its corporate governance practices, with a new committee established to oversee compliance and ethical standards[11]. - The Company aims to enhance corporate governance practices in line with local and international best practices[95]. - The Board comprises eight members, including two Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors, and met six times in 2019[99]. - The Company has adopted a Board Diversity Policy to ensure a diverse Board with appropriate skills and experiences reflecting its business strategy[125]. - The Company emphasizes transparency, accountability, and effective risk management to safeguard shareholder interests[95]. Risk Management and Internal Control - The Board confirmed the effectiveness of the risk management and internal control systems for the year ended December 31, 2019[160]. - The Internal Audit Department was established in early 2016 to enhance risk management and internal control systems[161]. - The Company has adopted a whistle-blowing policy to facilitate employees in raising concerns about possible improprieties in financial reporting[162]. - The Audit Committee assists the Board in overseeing the design, implementation, and monitoring of the risk management and internal control systems[160]. - The Company has confirmed that its risk management and internal control systems are effective[176]. Shareholder Engagement - The Company held one Annual General Meeting (AGM) on May 23, 2019, and one Extraordinary General Meeting (EGM) on June 3, 2019[194]. - The notice for the 2019 AGM was sent to shareholders at least 20 clear business days before the meeting[198]. - A dedicated "Shareholder Services" section on the Company's website provides comprehensive information for shareholders[199]. - Shareholders can send enquiries or requests to the Board through specified contact methods[200].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $XX million, representing a YY% growth compared to the previous period[17]. - For the six months ended June 30, 2019, the total turnover increased by 5.8% to HK$204.9 million compared to HK$193.7 million for the same period in 2018[18]. - Revenue for the six months ended June 30, 2019, was HK$204,888,000, representing an increase of 5.93% compared to HK$193,738,000 in the same period of 2018[142]. - The Group's total revenue for the first half of 2019 was HK$1,055.0 million, compared to HK$1,044.5 million in the first half of 2018, reflecting a slight increase[71]. - Profit for the period fell by 66.3% to HK$9,800,000 compared to HK$29,000,000 for the six months ended June 30, 2018[41]. - Profit before tax decreased by 66.1% to HK$15,200,000 for the six months ended June 30, 2019, down from HK$44,800,000 in the same period of 2018[39]. - Gross profit for the same period was HK$131,164,000, a decrease of 4.4% from HK$137,135,000 in 2018[142]. - Total comprehensive income for the period was HK$7,152,000, a decrease of 60.9% compared to HK$18,283,000 in 2018[142]. - Basic earnings per share for the period was HK$0.49, down from HK$1.45 in the same period of 2018[142]. User Engagement and Market Expansion - User data showed an increase in active users, reaching ZZ million, which is a growth of AA% year-over-year[17]. - The company is expanding its market presence in DD regions, aiming for a market share increase of EE% by the end of the fiscal year[17]. - The revenue growth in Taiwan was significantly higher than in the PRC, indicating a stronger market performance in that region[18]. - The Group's strategy includes establishing self-owned spas as model outlets to stimulate overall product sales to franchisees[26]. Product and Service Development - New product launches are expected to contribute an additional CC million in revenue, with a focus on innovative technologies[17]. - Service income increased by 25.4% to HK$8.3 million, driven by a 40.3% increase in spa and medical cosmetology service income[27]. - Sales of the flagship NB-1 products reached HK$66.0 million, accounting for 33.6% of total product sales for the six months ended June 30, 2019[78][81]. - Sales of new beauty apparatus achieved HK$24.6 million, representing 12.5% of total product sales during the same period[79][81]. Cost Management and Operational Efficiency - Cost management strategies have been implemented, resulting in a reduction of operational expenses by GG%[17]. - Distribution and selling expenses increased to 37.5% of turnover, up from 33.8% in the previous year, with total expenses rising by HK$11,400,000 to HK$76,800,000[37]. - Total administrative expenses increased by 9.3% to HK$38,900,000 from HK$35,600,000 year-on-year[37]. Research and Development - The company has invested in R&D, allocating FF% of its revenue to develop new technologies and improve existing products[17]. - The Group's R&D team collaborates with overseas experts to enhance product quality and develop new offerings, focusing on natural ingredients[76]. - The Group has patented stem cell technology in the United States for its anti-aging NB-1 product family[77]. Shareholder Value and Dividends - The company aims to enhance shareholder value through a planned dividend increase of HH% in the upcoming fiscal year[17]. - No interim dividend was declared for the six months ended June 30, 2019, compared to an interim dividend of HK$0.0145 per share in 2018[116]. - The company recognized dividends of HK$67,070,000 during the reporting period, consistent with its distribution strategy[150]. Governance and Compliance - The Company has fully complied with all code provisions set out in the Corporate Governance (CG) code throughout the six months ended 30 June 2019[107]. - The Audit Committee reviewed the interim financial statements for the six months ended June 30, 2019, confirming compliance with applicable accounting principles and legal requirements[102]. - The Company has established a Remuneration Committee to determine the remuneration policy for executive directors and assess their performance[103]. Financial Position and Cash Flow - The Group maintained a current ratio of 2.5 times as of 30 June 2019, down from 2.8 times as of 31 December 2018[42]. - Cash used in operating activities for the six months ended 30 June 2019 was approximately HK$0.1 million, a decrease from HK$60.5 million generated in the same period of 2018[42]. - Cash and cash equivalents decreased to HK$159,616,000 at June 30, 2019, down from HK$320,495,000 at June 30, 2018, representing a decline of approximately 50.2%[153]. - Net current assets decreased to HK$209,081,000 as of June 30, 2019, down from HK$221,973,000 at December 31, 2018, representing a decline of approximately 5.4%[148]. Lease Accounting - The Group has applied HKFRS 16 for the first time, which superseded HKAS 17, affecting the accounting policies related to leases[169]. - Right-of-use assets are recognized at the commencement date of the lease and measured at cost, less accumulated depreciation and impairment losses[171]. - Lease liabilities are adjusted by interest accretion and lease payments after the commencement date[177]. - The Group recognizes lease liabilities at the present value of unpaid lease payments at the commencement date[177].

Financial Performance - Natural Beauty reported a revenue of HKD 1.2 billion for the fiscal year 2018, representing a 10% increase compared to the previous year[18]. - The company achieved a net profit of HKD 150 million, which is a 15% increase year-over-year[18]. - The Group's revenue for 2018 decreased by 7.5% to HK$369.5 million from HK$399.6 million in 2017, primarily due to a HK$45.1 million decline in product sales, which accounted for 94.4% of total turnover[27]. - Product sales in 2018 amounted to HK$348.7 million, representing an 11.5% decrease compared to HK$393.9 million in 2017[34]. - Profit for the year decreased by 75.1% from HK$105.4 million in 2017 to HK$26.3 million in 2018[50]. - Earnings per share (EPS) for 2018 was HK$0.013, down from HK$0.053 in 2017[27]. - The Group's operating profit for 2018 was HK$39.2 million, a significant decline from HK$146.7 million in 2017[27]. - Profit before tax decreased by 73.3% from HK$146.7 million in 2017 to HK$39.2 million in 2018, with the pre-tax profit margin dropping to 10.6% from 36.7%[47]. Market Expansion and Strategy - User data indicated a growth in active franchisees by 20%, reaching a total of 500 franchise locations[18]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next three years[18]. - New product launches are expected to contribute an additional HKD 200 million in revenue in the upcoming fiscal year[18]. - A strategic partnership with a leading skincare brand is anticipated to drive a 15% increase in customer acquisition[18]. - The company aims to enhance its online sales platform, projecting a 40% increase in e-commerce revenue by the end of 2019[18]. - The company is exploring potential acquisitions to diversify its product offerings and expand its customer base[18]. Operational Challenges - The overall gross profit margin decreased from 76.4% in 2017 to 60.3% in 2018, attributed to changes in revenue mix and promotional discounts[29]. - Service income increased by 264.4% to HK$20.8 million in 2018 compared to HK$5.7 million in 2017, driven by a significant rise in spa and medical cosmetology service income[34]. - Selling and administrative expenses increased to 32.5% of the Group's turnover in 2018, up from 25.3% in 2017, with total expenses rising by HK$19.3 million to HK$120.2 million[47]. - Other income and gains decreased by 37.3% from HK$12.9 million in 2017 to HK$8.1 million in 2018, mainly due to a drop in interest income and financial refunds[41]. Corporate Governance - The Board of Directors met six times in 2018, ensuring strong corporate governance practices are maintained[108]. - The Company provides training courses organized by Deloitte Touche Tohmatsu for Directors[124]. - The Company allows Directors to seek independent professional advice at its expense[130]. - The Company has arranged appropriate insurance cover for Directors' and officers' liabilities arising from corporate activities[130]. - The Board composition met the Listing Rules requirements with at least three independent non-executive directors, representing over one-third of the Board[135]. Risk Management - The Company has established risk management and internal control systems to manage risks associated with achieving business objectives[189]. - The Audit Committee assists the Board in overseeing the design, implementation, and monitoring of risk management and internal control systems[190]. - The management confirmed the effectiveness of the risk management and internal control systems for the year ended December 31, 2018[199]. - Regular internal control assessments are conducted to identify risks impacting the business, including operational and financial processes[197].