Revenue Performance - The Group's total revenue decreased by 31.1% from HK$487.8 million in 2021 to HK$335.9 million in 2022, primarily due to a reduction in product sales by HK$144.5 million[23]. - Product sales accounted for 97.4% of the Group's total revenue in 2022, amounting to HK$327.3 million, a decrease of 30.6% compared to HK$471.8 million in 2021[26]. - Revenue from the PRC market decreased by 18.7% to HK$214.2 million in 2022 from HK$263.7 million in 2021, while revenue from the Taiwan market fell by 49.3% to HK$103.1 million from HK$203.2 million[26]. - The Group's total revenue decreased by 46.2% in 2022 to HK$8.589 million from HK$15.972 million in 2021[29]. - Revenue in the PRC market fell by 20.4% to HK$222.0 million in 2022 compared to HK$279.0 million in 2021, primarily due to decreased product sales[29]. - Revenue in the Taiwan market decreased by 49.3% to HK$103.1 million in 2022 from HK$203.2 million in 2021, impacted by COVID-19 policies[30]. - Revenue from other regions, including Hong Kong, Malaysia, and Macau, increased by 92.8% from HK$5.6 million in 2021 to HK$10.8 million in 2022, but still represented only 3.2% of the Group's total revenue[22]. - The income from e-commerce, TV shopping, and telemarketing channels decreased by HK$101 million to HK$45.4 million in 2022, representing 13.5% of the Group's total revenue[95]. Gross Margin and Profitability - The overall gross margin decreased from 62.7% in 2021 to 56.3% in 2022, attributed to changes in product revenue mix and the impact of COVID-19 policies in mainland China and Taiwan[24]. - Gross margin on product sales in the PRC decreased from 61.6% in 2021 to 55.9% in 2022[29]. - Gross profit margin on product sales in Taiwan decreased from 68.1% in 2021 to 63.6% in 2022[30]. - The Group's profit before tax turned to a loss of approximately HK$23.5 million in 2022, compared to a profit of HK$48.5 million in 2021, with the pre-tax profit margin decreasing to -7.0%[61]. - The Group's net loss for 2022 was approximately HK$30.5 million, a decrease of 186.4% compared to a net profit of approximately HK$35.3 million in 2021[87]. - The Group reported a pre-tax loss of HK$23.5 million in 2022, a decline of 148.6% from a profit of HK$48.5 million in 2021[86]. Expenses and Cost Management - Distribution and selling expenses as a percentage of the Group's revenue increased to 41.5% in 2022 from 37.2% in 2021[35]. - Total distribution and selling expenses decreased by HK$42.3 million to HK$139.3 million in 2022 from HK$181.6 million in 2021[35]. - Staff costs related to distribution work decreased by HK$7.0 million to HK$73.3 million in 2022[35]. - Total administrative expenses decreased by HK$15.0 million to HK$68.6 million in 2022, with significant reductions in staff costs and other operational expenses[82]. - Other expenses and losses decreased from HK$3.1 million in 2021 to HK$2.5 million in 2022, reflecting improved cost management[83]. Strategic Initiatives - The Group remains focused on enhancing its product offerings and expanding its market presence despite recent challenges[26]. - The Group's strategy includes stimulating franchisee sales through the establishment of self-owned spas in strategic locations[26]. - As of December 31, 2022, the Group operated two self-owned spas in the PRC and one in Malaysia, aiming to establish these as model outlets to attract franchisees[26]. - The Group's strategy includes two share incentive plans aimed at aligning management interests with the Group's growth and performance[68]. Operational Developments - The Group opened 140 new stores and closed 76 stores during the year ended December 31, 2022, compared to 255 new openings and 119 closures in 2021[76]. - As of December 31, 2022, the Group operated 1,408 spas and 9 concessionary counters, with 1,405 being franchised[97]. - The Group's capital expenditure in 2022 was HK$44.3 million, primarily for new plant construction in the PRC (HK$29.3 million) and store renovations and equipment (HK$13.1 million)[109]. - In October 2022, the Group launched a new brand called B.U.T. ESSE, generating HK$1.2 million in revenue[104]. Financial Position - The Group's secured bank borrowings as of December 31, 2022, amounted to HK$92.4 million, down from HK$102.4 million in 2021[65]. - Total assets as of 2022 were HK$872.3 million, a decrease from HK$930.4 million in 2021[60]. - The Group's return on equity (ROE) was -5.1% in 2022, down from 5.4% in 2021[60]. - The Group's liquidity position remains strong, with no material contingent liabilities as of December 31, 2022[87]. - Cash generated from operating activities in 2022 was approximately HK$11.6 million, down from HK$44.6 million in 2021[87]. - As of December 31, 2022, the Group had cash and cash equivalents of approximately HK$160.6 million, compared to HK$184.5 million as of December 31, 2021[87]. - The Group's gearing ratios increased from 14.8% in 2021 to 20.1% in 2022[87]. Governance and Compliance - The Audit Committee held six meetings during the year ended December 31, 2022, reviewing the annual performance for the year ended December 31, 2021, and the interim performance for the six months ended June 30, 2022[144]. - The company has a whistle-blowing policy as part of the employee handbook to address potential misconduct[143]. - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements[154]. - The company conducted annual self-assessments to confirm compliance with control policies across all departments[158]. - The Company confirmed the effectiveness of its risk management and internal control systems as of December 31, 2022[187]. - The Company is committed to maintaining high standards of business integrity and transparency, with a strict anti-corruption policy in place[159]. - The Company has adopted an anti-corruption policy to strictly prohibit any form of fraud or bribery, ensuring high standards of business integrity and transparency[186]. Shareholder Relations - The Company emphasizes the importance of effective communication with shareholders for good investor relations and timely disclosure of information[197]. - There is a dedicated section of "Shareholder Services" on the Company's website to provide comprehensive information related to shareholders[192]. - The Company has optimized the planning and procedures of general meetings to ensure all Directors can attend and participate[199].

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].