Overview - The bull horn comb, once a luxury item for the elite, has become a popular daily use product among the general public due to increased production and rising living standards. The demand for natural health products has surged, with the market for bull horn combs expected to reach 1.028 billion yuan in 2024, with a demand of 18.6225 million units [1][10]. Development Background - The Chinese government has been promoting cultural industries and traditional crafts as important carriers of cultural heritage, providing policy support for the development of the bull horn comb industry. The increasing consumer focus on health and preference for natural materials have further driven market growth [4]. Industry Chain - The bull horn comb industry consists of upstream sectors such as cattle farming (water buffalo and yellow cattle), production equipment, and packaging materials. The midstream involves the production and manufacturing of bull horn combs, while the downstream includes various sales channels like specialty stores, supermarkets, and e-commerce platforms [6][8]. Current Development - The bull horn comb industry has seen a shift from a luxury item to a widely used product. The demand for natural health products has increased significantly, with the market projected to reach 1.028 billion yuan and a demand of 18.6225 million units in 2024 [10]. Competitive Landscape - The bull horn comb market is fragmented with numerous participants. Key players include Tan Mu Jiang, Zhang Xiao Quan, and several other companies specializing in traditional crafts. Tan Mu Jiang is noted for its high-quality wooden products and has a strong market presence [12][14]. Company Analysis - Tan Mu Jiang Holdings Limited reported a revenue of 505 million yuan in 2024, with a gross profit of 305 million yuan and a gross margin of 60.38% [14]. - Zhangjiajie Drill Bull Horn Crafts Co., Ltd. focuses on quality and has obtained over 80 national patents, establishing itself as a leading brand in the industry [17]. Future Trends - The bull horn comb industry is expected to integrate modern technology, developing smart combs with health monitoring features. There will be an emphasis on enhancing health benefits and establishing a raw material traceability system to ensure sustainable supply and improve product quality [19].

Core Viewpoint - The financial performance of the woodworking brand Tan Mu Jiang (00837) has shown a significant slowdown in growth for the fiscal year 2024, with a slight increase in revenue but a decline in profit [1][2]. Financial Summary - For the fiscal year ending December 31, 2024, the company reported revenue of 505.44 million RMB, a year-on-year increase of 1.2% [2]. - The profit attributable to the company's owners was 171.37 million RMB, down 1.4% from the previous year [2]. - The gross profit increased by 1.4% to 305.20 million RMB, while the pre-tax profit rose by 1.5% to 212.93 million RMB [2]. - Basic earnings per share decreased by 1.4% to 68.90 RMB cents [2]. - The final dividend per share was 36.63 HKD cents, a decrease of 5.2% compared to the previous year [2]. Business Performance - The offline business showed relative stability, with a 2.7% increase in revenue, although direct store revenue fell by 4.3% to 4.46 million RMB [1]. - Online sales faced challenges, with a 0.9% decline to 210 million RMB, attributed to overlapping holiday seasons and lack of participation in major sales events [1][3]. - The company executed 13 marketing campaigns in 2024, but sales during the Valentine's Day campaign dropped significantly by 61.07% year-on-year, indicating a need for adjustment in marketing strategies [3]. Market Position - The company's high-end pricing strategy is under market scrutiny, with some consumers perceiving its products as overpriced compared to ordinary brands [3]. - Despite some recognition for product durability, overall market feedback has been mixed, suggesting a need for improved value perception [3]. - As of April 17, 2025, the stock price was 5.71 HKD per share, down from a peak of 6.78 HKD per share on March 27, 2025, with a total market capitalization of 1.42 billion HKD [3].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 505,436,000, representing a 1.2% increase from RMB 499,688,000 in 2023[9] - Gross profit for the same period was RMB 305,202,000, reflecting a 1.4% increase compared to RMB 300,877,000 in 2023[9] - Profit attributable to owners of the company decreased by 1.4% to RMB 171,366,000 from RMB 173,734,000 in 2023[9] - Basic earnings per share for 2024 was RMB 68.90, down from RMB 69.85 in 2023, a decrease of 1.4%[9] - The proposed final dividend per share is HKD 36.63, a decrease of 5.2% from HKD 38.64 in 2023[9] - Other income and net gains for the year were approximately RMB 42,456,000, an increase of about RMB 1,246,000 or 3.0% compared to RMB 41,210,000 last year[76] - The company's annual profit for the fiscal year was approximately RMB 171,479,000, a decrease of about RMB 2,295,000 or 1.3% from RMB 173,774,000 in the previous year[80] - The income tax expense for the year was approximately RMB 41,455,000, an increase of about RMB 5,538,000 or 15.4% compared to RMB 35,917,000 last year, primarily due to an increase in pre-tax profit[79] Market Expansion and Strategy - The company plans to expand its presence in overseas markets, including flagship stores in Hong Kong and Singapore, and establish a local service warehouse in North America[16] - The company aims to enhance brand image and service quality while avoiding price wars, focusing on long-term brand value[16] - The company will continue to develop new products and improve technical efficiency as part of its strategic goals for 2025[22] - The company emphasizes the importance of governance and market expansion as key focus areas for 2025[22] - The company aims to strengthen product competitiveness by developing multiple product lines and filling market gaps[35] - The company plans to enhance store profitability through targeted investments and sales team guidance, focusing on store construction, training, and advertising[35] - The company is committed to building a robust franchise system, aiming for long-term sustainability rather than short-term gains[25] - The company is focusing on expanding its franchise system and increasing enforcement against market infringements[91] Sales and Distribution - Offline business POS sales reached approximately RMB 290.16 million, achieving 131.5% of the target plan, with a year-on-year growth of 2.7%[25] - The total number of stores increased to 1,254, up by 84 stores from 1,170 in the previous year, with shopping mall stores accounting for 70.3%[26] - The membership system registered over 1.19 million members, with 287,567 new members added, representing a growth of 76.77% year-on-year[30] - The company opened 223 new stores, showing a significant recovery and annual growth in the number of specialty stores post-pandemic[25] - The company achieved RMB 19.28 million in sales through its official mini-program, marking a substantial step in developing new retail channels[25] - The online business sales reached approximately RMB 209,636,000, achieving 102.2% of the annual target, but down 0.9% year-on-year due to the overlap of Valentine's Day and Spring Festival affecting sales[36] - A total of 328 stores were renovated during the year, with 274 stores adopting the Morandi image, accounting for 83.5% of the total renovations[34] Product Development and Innovation - The company launched 44 new products during the year, focusing on practical and artistic designs to meet market demand[31] - The company launched 8 new products across different price ranges, including various comb types, to meet online customer demands[32] - The company has developed and tested over 6,000 products using mature materials, resulting in a noticeable decrease in product return rates[58] - The company is committed to continuous product development and optimization, focusing on traditional Chinese culture and market demand[50] - The company is set to launch new products and improve production processes for multi-material structural products[91] Operational Efficiency - The liquidity ratios showed a decline, with the current ratio at 5.48, down 20.3% from 6.88 in 2023, and the quick ratio at 2.50, down 40.8% from 4.22[9] - The automation technology for the wooden combs has improved processing efficiency by 70%, significantly reducing labor intensity[56] - The logistics team produced and delivered 5.352 million items, ensuring market order fulfillment and maintaining appropriate safety stock levels[59] - The company aims to enhance production efficiency through technical upgrades and process improvements, addressing labor protection issues during high-pressure production[71] Corporate Governance - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring diverse expertise[108] - The company has complied with all applicable provisions of the corporate governance code during the review year[106] - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of governance[114] - The company aims to ensure a balanced board composition through appropriate diversity measures, including gender diversity[112] - The company has adopted a board diversity policy considering various factors such as gender, age, cultural background, and professional experience[127] Risk Management and Compliance - The company has identified key risks including market risk, currency risk, and operational risk, and has implemented management strategies to mitigate these risks[171][172][175] - The company has established a whistleblowing policy that provides an anonymous reporting channel for employees to express concerns about misconduct[135] - The board believes that the risk management and internal control systems are appropriate and effective, complying with corporate governance codes[140] Employee Engagement and Social Responsibility - The company has increased employment for disabled individuals by 11, with 43 new hires and 32 retirements during the year[68] - The company is promoting employment for people with disabilities and enhancing training programs for employees[95] - The total charitable donations made by the group for the year ended December 31, 2024, were approximately RMB 0, compared to RMB 50,000 in 2023[190] Shareholder Communication and Dividends - The company has adopted a shareholder communication policy to ensure timely and clear information dissemination to shareholders and potential investors[145] - The company reported a final dividend of HKD 0.3663 per share, totaling approximately HKD 91,104,000, which represents 50.0% of the profit attributable to shareholders for the fiscal year ending December 31, 2024[160] - The company has adopted a dividend policy that considers financial performance, cash flow, and overall business conditions when declaring dividends[161]

Financial Performance - Revenue increased by 1.2% to approximately RMB 505,436,000 (2023: RMB 499,688,000) [2] - Gross profit rose by 1.4% to approximately RMB 305,202,000 (2023: RMB 300,877,000) [2] - Gross profit margin improved by 0.2 percentage points to 60.4% (2023: 60.2%) [2] - Profit attributable to owners decreased by 1.4% to approximately RMB 171,366,000 (2023: RMB 173,734,000) [2] - Earnings per share decreased by 1.4% to approximately RMB 0.6890 (2023: RMB 0.6985) [2] - Total revenue for the year ending December 31, 2024, was RMB 505,436,000, compared to RMB 499,688,000 in 2023, reflecting a growth of approximately 1.5% [18] - Online sales revenue decreased to RMB 209,636,000 in 2024 from RMB 211,468,000 in 2023, a decline of about 0.9% [18] - Offline sales revenue increased to RMB 290,161,000 in 2024 from RMB 282,441,000 in 2023, representing a growth of approximately 2.6% [18] - Franchise fee income rose to RMB 1,179,000 in 2024 from RMB 1,118,000 in 2023, an increase of about 5.5% [18] - Direct sales from retail stores generated RMB 4,460,000 in 2024, slightly down from RMB 4,661,000 in 2023, indicating a decrease of around 4.3% [18] Assets and Liabilities - Total assets less current liabilities increased to RMB 911,063,000 (2023: RMB 837,583,000) [5] - Non-current assets increased to RMB 471,312,000 (2023: RMB 289,458,000) [5] - Cash and cash equivalents decreased to RMB 41,714,000 (2023: RMB 67,381,000) [5] - Total equity attributable to owners increased to RMB 883,959,000 (2023: RMB 808,484,000) [6] - Total inventory increased to RMB 292,498,000 in 2024 from RMB 248,136,000 in 2023, with raw materials rising to RMB 230,711,000 [37] - Trade receivables increased to RMB 7,153,000 in 2024 from RMB 6,808,000 in 2023, with a provision for losses rising to RMB 69,000 [39][41] - Trade payables increased to RMB 9,507,000 in 2024 from RMB 6,856,000 in 2023, with significant increases in the 31-60 days category [42] Expenses and Profitability - Employee benefits expenses increased to RMB 107,047,000 in 2024 from RMB 101,746,000 in 2023, reflecting a rise in salaries and retirement contributions [21] - Pre-tax profit rose to RMB 212,934,000 in 2024 compared to RMB 209,691,000 in 2023 [25] - Total tax expense increased to RMB 41,455,000 in 2024 from RMB 35,917,000 in 2023, influenced by various tax incentives and adjustments [25] - The company reported a net loss from the fair value change of investment properties of RMB 7,470,000 in 2024, compared to a loss of RMB 5,550,000 in 2023 [20] - The total cost of sales increased to RMB 197,383,000 in 2024 from RMB 196,738,000 in 2023, indicating a slight rise in inventory costs [21] Dividends - Proposed final dividend per share is HKD 0.3663 (2023: HKD 0.3864), subject to shareholder approval [2] - Proposed final dividend per share for 2024 is HKD 36.63, equivalent to RMB 34.43, compared to HKD 38.64 (RMB 34.98) in 2023, totaling RMB 85,632,000 [27] - Approved final dividend for the fiscal year ending December 31, 2023, is HKD 38.64 per share, equivalent to RMB 36.18, up from HKD 25.03 (RMB 22.86) in 2022, totaling RMB 89,996,000 [28] Business Operations and Strategy - The company plans to focus on governance, performance targets, market expansion, new product development, and brand building in 2024 [43] - The company has no significant revenue from any single external customer exceeding 10% of total revenue [33] - Over 90% of the company's revenue and assets are derived from the manufacturing and distribution of wooden crafts and ornaments [32] - The company has no significant business activities outside of China, with all major assets located within the country [32] - The offline business achieved POS sales of 131.47% of the target plan, with a year-on-year growth of 4.88% [46] - A total of 223 new stores were opened, with the number of specialty stores increasing significantly post-pandemic, reaching 1,254 stores by December 31, 2024, up from 1,170 stores in 2023 [47][48] - The company launched 44 new products during the year, focusing on practicality and artistic design, enhancing consumer choice and experience [51] - The membership system registered over 1.19 million members, with a 76.77% increase in new members and an 87.99% increase in processed redemption orders compared to the previous year [50] Marketing and Sales - The brand's advertising and promotion efforts included diverse channels such as LED screens and subway ads, enhancing brand exposure and market penetration [49] - The company generated RMB 19.28 million in sales through its official mini-program, marking a significant step in developing new retail channels [46] - Online sales reached RMB 235 million, achieving 102.17% of the annual target, but down 0.84% year-on-year due to the overlap of Valentine's Day and Spring Festival affecting February sales [56] - The marketing activities executed during the year included 13 campaigns, with significant sales increases such as a 24.86% year-on-year growth during the Women's Day event [60] - The Douyin channel promotion resulted in 320 videos published, reaching over 6.23 million total exposures and 143.2 thousand interactions [59] Innovation and Development - The company is committed to continuous innovation in product design and cultural exploration to enhance brand development [53] - The company completed the design and development of 16 new product projects and launched 44 regular new products, achieving a success rate of 79.4% for products that passed trial sales [71] - The company has implemented advanced design software and technologies, such as AI-assisted design, to improve design efficiency and quality [75] - The new product series inspired by traditional Chinese culture includes several limited edition items, showcasing a blend of tradition and modern fashion [52] Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable provisions during the review year [129] - The audit committee held two meetings during the review year to review the audited consolidated financial statements for the year ending December 31, 2023, and the unaudited interim financial statements for the six months ending June 30, 2024 [132] - The audit committee also monitored the effectiveness of the internal control measures and reviewed the independence of the external auditors [133] Future Outlook - The focus for 2025 includes market expansion and operational management, emphasizing brand integrity and avoiding price wars [116] - The company plans to enhance its brand image and marketing strategies, including 4-6 promotional events and a design competition to celebrate its 10th anniversary [118] - The company aims to establish a direct store in Singapore by 2025 as part of its international expansion strategy [70]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 263,082,000, representing a 2.5% increase from RMB 256,773,000 in the same period of 2023[8]. - Gross profit increased to RMB 162,245,000, up 4.8% from RMB 154,885,000, with a gross margin of 61.7%, compared to 60.3% in the previous year[8]. - Profit attributable to owners of the company was RMB 96,288,000, a 2.6% increase from RMB 93,880,000 in the prior year[8]. - Basic earnings per share rose to RMB 38.7, up 2.7% from RMB 37.7 in the same period last year[8]. - Operating profit for the six months ended June 30, 2024, was approximately RMB 119,491,000, a decrease of about RMB 2,017,000 or 1.7% compared to RMB 121,508,000 in 2023[47]. - The net profit for the six months ending June 30, 2024, was approximately RMB 96,288,000, an increase of about RMB 2,340,000 or 2.5% compared to RMB 93,948,000 for the same period in 2023[51]. - Total comprehensive income for the period was RMB 94,383,000, slightly down from RMB 94,743,000 in the previous year, indicating a decrease of about 0.4%[86]. - The effective tax rate for the six months ended June 30, 2024, was 19.2%, a decrease of 3.3 percentage points from 22.5% in the same period of 2023[50]. Financial Position - As of June 30, 2024, the group had cash and bank balances of RMB 104,304,000, up from RMB 67,381,000 on December 31, 2023, primarily sourced from operating income[52]. - The company's non-current assets increased to RMB 517,466,000 as of June 30, 2024, up from RMB 289,458,000 at the end of 2023, reflecting a significant growth of approximately 78.7%[87]. - Current assets decreased to RMB 403,625,000 from RMB 641,319,000, showing a decline of about 37.1%[87]. - The net current asset value was RMB 326,549,000, down from RMB 548,125,000, indicating a decrease of approximately 40.3%[87]. - The company's total equity increased to RMB 811,423,000 as of June 30, 2024, compared to RMB 808,484,000 at the end of 2023, reflecting a marginal increase of about 0.2%[87]. - The group has no bank loans or interest-bearing debts as of June 30, 2024, indicating a debt-free capital structure[54][55]. Operational Highlights - The company aims to enhance internal governance and expand external market opportunities despite challenges such as currency depreciation and rising raw material costs[11]. - The company remains committed to its core values of quality branding and customer service amidst a competitive market environment[11]. - The management acknowledges the need for continued efforts to meet annual growth targets in the second half of 2024[11]. - The company is preparing to seize new market opportunities despite current economic challenges[11]. - The total number of stores increased to 1,199 as of June 30, 2024, up from 1,170 on December 31, 2023, representing a net increase of 29 stores[16]. - The company opened a record 102 new stores during the reporting period, with 98.0% of these located in shopping centers[18]. - The membership base grew by over 120,000, surpassing one million total members, with a 128.0% increase in processed member redemption orders compared to the previous year[21]. - The company is committed to expanding its market presence in new first-tier cities and revitalizing the Northeast market, which has become a significant growth contributor[15]. Marketing and Sales Strategy - The company plans to enhance its brand image in overseas markets while focusing on developing quality offline channels and platforms[13]. - The company aims to improve service quality and value-added services in its stores, optimizing product categorization and inventory management[13]. - The company is actively exploring new retail business models and increasing advertising efforts around its stores to drive sales[15]. - The e-commerce team achieved sales of RMB 122.7 million, reaching 104.0% of the semi-annual target, with a year-on-year decline of 0.2%[26]. - The online content promotion led to a 27.7% increase in sales compared to the same period last year, significantly outpacing overall platform sales growth[26]. Product Development and Innovation - During the reporting period, the company launched a total of 25 new products, including 5 Mother's Day products and 13 summer products, enhancing its product lineup[22]. - The company identified four potential blockbuster products for online sales, with "Hair Care Comb Cui Ping" and "Lacquer Art Comb Bear" emerging as top performers by the end of June[28]. - The company is focusing on optimizing its online store's visual presentation and product materials to enhance brand consistency[29]. - The company is promoting the development of new technologies, including automated polishing and intelligent robotic production, to enhance product quality and reduce returns[64]. Employee and Community Engagement - The total compensation paid to employees was approximately RMB 51,346,000, compared to RMB 47,673,000 for the same period in 2023, reflecting an increase of about 3.8%[65]. - The company added 27 new disabled employees while retiring 12, achieving a net increase of 15 disabled employees[38]. - The company participated in exhibitions showcasing handicrafts created by disabled women, promoting social awareness and cultural exchange[35]. - A cooperation agreement was signed with the Central Academy of Fine Arts to provide professional training for over 300 disabled employees, enhancing their artistic potential[35]. Legal and Compliance - The company has initiated legal actions against 40 cases of violations, with 4 cases concluded, resulting in compensation of 79,000 yuan[38]. - The company maintained compliance with corporate governance codes and standards throughout the reporting period[76]. Future Outlook - The company plans to enhance its online member system to convert customer traffic into retained members, aiming to create a long-term brand asset[29]. - The company aims to complete a comprehensive upgrade of its overseas online platform pages by August 2024, considering local market aesthetics and consumption habits[30]. - The company plans to enhance its marketing efforts in domestic and overseas markets, focusing on brand image and optimizing core business channels[62].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 263,082,000, representing a 2.5% increase from RMB 256,773,000 in the same period of 2023[1] - Gross profit increased to RMB 162,245,000, up 4.8% from RMB 154,885,000, with a gross margin of 61.7%, an increase of 1.4 percentage points compared to 60.3% in 2023[1] - Profit for the period attributable to owners of the company was RMB 96,288,000, a 2.6% increase from RMB 93,880,000 in the previous year[1] - Basic earnings per share rose to RMB 38.7, up 2.7% from RMB 37.7 in the prior year[1] - Total comprehensive income for the period was RMB 94,383,000, slightly down from RMB 94,743,000 in the same period last year[3] - Profit before tax for the six months ended June 30, 2024, was RMB 96,288,000, compared to RMB 93,880,000 in 2023, reflecting a growth of 2.6%[22] - Net profit for the period increased by 2.5% to RMB 96,288,000 from RMB 93,948,000[65] Assets and Liabilities - Non-current assets increased to RMB 517,466,000 from RMB 289,458,000 as of December 31, 2023, reflecting significant growth in property, plant, and equipment[4] - Inventory as of June 30, 2024, was RMB 264,078,000, compared to RMB 248,136,000 at the end of 2023, indicating a rise in stock levels[4] - Current liabilities decreased to RMB 77,076,000 from RMB 93,194,000, showing improved liquidity management[4] - The company's net assets attributable to owners increased to RMB 811,423,000 from RMB 804,385,000, indicating a stable financial position[4] - Cash and bank balances as of June 30, 2024, were RMB 104,304,000, significantly up from RMB 67,381,000 as of December 31, 2023[66] Revenue Recognition and Accounting Policies - All revenue from customer contracts is recognized at a point in time, reflecting the group's revenue recognition policy[17] - The group has not applied any new standards or amendments that are not yet effective during the accounting period, and the revised Hong Kong Financial Reporting Standards did not have a significant impact on the financial position and performance for the period[10] - The group has made significant accounting policy changes regarding long service payments due to the abolition of the offset mechanism for mandatory provident fund contributions, with no major impact on the financial statements for the year ended December 31, 2023[11] - The revised Hong Kong Accounting Standards provide clarification on the classification of liabilities as current or non-current, which may affect future financial reporting[10] Sales and Marketing - Over 90% of the group's revenue, performance, and assets are derived from the manufacturing and sales of wooden crafts and ornaments, indicating a single operating segment[14] - The group's sales are generally affected by seasonal factors, with higher sales in March-April and September-December, attributed to retail peaks around holidays[16] - The company aims to enhance its marketing efforts by optimizing domestic market channels and expanding overseas market presence, particularly through new store openings and brand exposure[76] - The company is actively promoting its brand through various offline marketing activities, including advertising in shopping centers and major tourist areas[35] Store Operations and Expansion - The total number of stores increased to 1,199 as of June 30, 2024, up by 29 stores from 1,170 on December 31, 2023, with shopping center stores accounting for 68.1%[33] - The company opened a record 102 new stores during the reporting period, with shopping center stores making up 98.0% of this total[34] - The company achieved 130.3% of its POS sales target for the first half of the year, with a year-on-year growth of 4.7% compared to the same period in 2023[32] Employee Engagement and Corporate Culture - The company received a total of 301 improvement suggestions from employees in the first half of the year, with 123 adopted and 80 implemented, indicating active employee engagement in innovation[51] - The group emphasizes maintaining a strong corporate culture and employee development through various training programs[78] - The company has added 27 new employees with disabilities and has a net increase of 15 disabled employees during the reporting period, reflecting its commitment to promoting employment for disabled individuals[52] Product Development and Innovation - A total of 25 new products were launched during the reporting period, including 5 Mother's Day products and 13 summer products[37] - The company plans to enhance product gross margin by optimizing existing designs and exploring new materials and processes[46] - The group plans to continue product development through IP collaborations and the launch of new products, including traditional craftsmanship enhancements[77] Online Sales and E-commerce - Online sales reached RMB 1.227 billion, achieving 104.0% of the semi-annual target, but down 0.2% year-on-year[40] - The online business team launched new promotional modules, contributing approximately 11.8% to total sales[41] - The brand's live streaming on Tmall lasted 182 hours, with a 32% increase in sales compared to the previous year[42] Governance and Compliance - The company has adopted corporate governance measures in line with local and international standards to enhance internal control systems[88] - All directors have confirmed compliance with the securities trading standard code as of June 30, 2024[89] Dividends - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[29] - The company approved a final dividend of RMB 38.64 per share for the fiscal year ended December 31, 2023, totaling RMB 87,000,000[29]

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 41,210,000, compared to RMB 35,364,000 in 2022, representing an increase of approximately 16.5%[4] - The pre-tax profit for 2023 was RMB 209,691,000, a significant increase from RMB 133,363,000 in 2022, reflecting a growth of approximately 57.1%[17] - The income tax expense for 2023 was RMB 35,917,000, compared to RMB 26,105,000 in 2022, which is an increase of around 37.3%[17] - The company reported a total comprehensive income of RMB 82,776,000 for the year, which includes a profit of RMB 79,384,000[113] - The company reported a net loss of RMB 508,000 for the year, compared to a loss of RMB 1,891,000 in the previous year, indicating an improvement in financial performance[92] Government Support - Government subsidies received amounted to RMB 2,908,000 in 2023, up from RMB 2,497,000 in 2022, indicating a growth of about 16.5%[4] - The company continues to benefit from tax incentives, with a significant portion of its income tax expenses influenced by preferential tax rates and deductions[11] Employee Costs - The total employee costs, including salaries and other benefits, rose to RMB 101,746,000 in 2023 from RMB 81,456,000 in 2022, an increase of about 24.9%[6] - The total remuneration for the highest-paid individuals in 2023 was RMB 1,974,000, a decrease of 6.9% from RMB 2,121,000 in 2022[24] Investment Properties - The net rental income from investment properties decreased to RMB (4,189,000) in 2023 from RMB (5,162,000) in 2022, indicating a decline of approximately 18.7%[6] - The fair value changes of investment properties resulted in a loss of RMB (5,550,000) in 2023, compared to a loss of RMB (2,020,000) in 2022, reflecting a worsening of approximately 174.3%[4] Shareholder Information - The proposed final dividend for 2023 is HKD 38.64 per share, equivalent to RMB 34.98, totaling RMB 87,000,000, compared to RMB 54,991,000 in 2022[29] - The company has not reflected the proposed dividend in the financial statements as it is subject to shareholder approval at the annual general meeting scheduled for May 23, 2024[29] - The company declared a dividend of RMB 27,508,000 for the current year, down from RMB 55,215,000 from the previous year[113] Assets and Liabilities - The carrying value of a property located in Jiangsu Province as of December 31, 2023, was approximately RMB 24,682,000, down from RMB 25,981,000 in 2022[38] - The carrying value of the land use rights in Chongqing as of December 31, 2023, was approximately RMB 5,578,000, down from RMB 5,739,000 in 2022[44] - The company's total liabilities as of December 31, 2023, were RMB 66,351,000, reflecting an increase from RMB 61,849,000 in the previous year[152] Store Operations - As of December 31, 2023, the company had a total of 1,170 stores, an increase of 75 stores compared to 1,095 stores as of December 31, 2022[179] - The number of new stores opened during the year reached 215, achieving 165.38% of the annual target, marking a historical high[182] - The proportion of shopping mall stores reached 66.7% in 2023, up from 62.1% in 2022[180] Product Development and Sales - The online sales team successfully launched three new products, with "萌熊" ranking first in both sales volume and revenue, while "心想事橙" and "大橘大利" ranked fifth and twelfth in sales volume, respectively[73] - Launched 45 new products during key festivals, with 12 functional products as the main type for 2023[186] - Increased sales in 2023 compared to 2022, with monthly sales growth rates fluctuating between -10% to 54.7%[190] Marketing and Customer Engagement - The group plans to enhance its membership system by providing better rewards and services to meet customer needs, utilizing various platforms for user feedback[71] - Expanded into new platforms, including Kuaishou and Jingxi, to enhance brand exposure[191] - Engaged in overseas social media content production to drive traffic to the website[198] Financial Management - The company has not utilized any derivative contracts to hedge against interest rate risks, but management will consider hedging when necessary[143] - The company’s financial risk management policies include monitoring cash flow and maintaining sufficient cash levels to mitigate liquidity risks[151] Compliance and Corporate Governance - The company has not granted any share options during the fiscal year ending December 31, 2023, in compliance with the listing rules[122] - The company is required to transfer 10% of its after-tax profits to statutory surplus reserves until the reserve balance reaches 50% of registered capital[130]

Financial Performance - Revenue increased by 43.6% to approximately RMB 499,688,000 (2022: RMB 348,002,000) [2] - Gross profit rose by 46.6% to approximately RMB 300,877,000 (2022: RMB 205,248,000) [2] - Profit attributable to owners increased by 62.0% to approximately RMB 173,734,000 (2022: RMB 107,250,000) [2] - Earnings per share increased by 62.0% to approximately RMB 69.85 (2022: RMB 43.12) [2] - Total comprehensive income for the year was RMB 173,483,000, compared to RMB 102,155,000 in the previous year [9] - Operating profit increased to RMB 210,272,000, up from RMB 133,990,000 in the previous year [3] - The group's annual profit for the year was approximately RMB 173,774,000, an increase of about RMB 66,516,000 or 62.0% compared to RMB 107,258,000 for the previous year [139] - The group's gross profit for the year was approximately RMB 300,877,000, an increase of about RMB 95,629,000 or 46.6% from RMB 205,248,000 last year, with a gross margin rising from 59.0% to 60.2% [132] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.3864 per share, equivalent to RMB 34.98 per share, totaling RMB 87,000,000, subject to shareholder approval [19] - The company reported a proposed final dividend of 38.64 HKD cents per share, amounting to approximately RMB 87 million, compared to RMB 54.991 million in the previous year [45] Store Expansion and Retail Performance - The company opened a total of 329 stores during the year, with 253 stores completed, including 209 new stores, 24 relocated stores, and 20 renovated stores [37] - The number and quality of specialty stores have significantly increased, contributing to market expansion [31] - The company reported a significant increase in retail performance, exceeding expectations and showing substantial growth [31] - As of December 31, 2023, the total number of stores increased to 1,161, up from 1,088 in 2022, representing a growth of 6.7% [59] Online and Offline Business Performance - Online sales reached approximately RMB 237 million, achieving 112.9% of the annual target and a year-on-year growth of 25.72% [65] - Offline business revenue was approximately RMB 282,441,000, up about RMB 104,199,000 or 58.5% from RMB 178,242,000 last year [129] - Online business revenue reached approximately RMB 211,468,000, an increase of about RMB 45,059,000 or 27.1% compared to RMB 166,409,000 last year [129] Marketing and Brand Development - The company launched 1 offline pop-up event, 3 brand train promotional activities, and participated in 12 government-led brand exhibitions throughout the year [35] - The online business team published 314 videos on their own account, achieving a total exposure of over 140 million and 2.516 million interactions [40] - The company has successfully improved brand recognition and competitiveness through optimized market layout and expansion into better channels and shopping areas [56] - The company participated in the Malaysia Cultural Expo, showcasing its brand and attracting significant audience engagement [71] Product Development and Innovation - The company completed the design and development of large set packaging, enhancing the perceived value of high-end products [74] - The company launched 36 new regular products and successfully transitioned 22 out of 25 trial products to regular status, achieving a success rate of 88% [106] - The company has developed and optimized functional products to increase product value and control costs, continuously pushing for innovation [107] Operational Efficiency and Supply Chain Management - The production team improved efficiency through technology upgrades and self-developed equipment, ensuring supply amidst increased market demand [77] - The company has implemented a new human resources performance system to enhance employee motivation and align individual goals with company objectives [150] - The company is committed to enhancing its operational efficiency through the improvement of existing facilities while expanding its production capabilities [180] - The company has upgraded its automatic rounding processing technology, effectively reducing labor intensity and improving operational efficiency [111] Financial Position and Assets - Non-current assets totaled RMB 289,458,000 as of December 31, 2023, compared to RMB 280,367,000 as of December 31, 2022 [192] - Current assets increased to RMB 641,319,000 as of December 31, 2023, from RMB 525,190,000 in the previous year [192] - The company's cash and bank balances increased to RMB 67,381,000 as of December 31, 2023, from RMB 27,160,000 in the previous year [192] - The group's inventory as of December 31, 2023, was approximately RMB 248,136,000, an increase of about RMB 3,706,000 or 1.5% from RMB 244,430,000 last year [141] Legal and Compliance Matters - The company is currently in litigation regarding three patent infringement cases, with one case scheduled for trial in February 2024 [153] - The company has strengthened internal governance, addressing six cases of violations of company conduct standards during the year [149] Social Responsibility and Community Engagement - The company received the "International Rehabilitation Centennial Contribution Award" for its contributions to the rehabilitation industry, recognizing its commitment to social responsibility [119] - The company has implemented a special development fund to support employment for people with disabilities and organized the first sports meeting for disabled employees [94] Membership and Customer Engagement - The company plans to enhance its membership system by offering better rewards and services to meet customer needs [38] - The company aims to enhance its online membership system to convert traffic into loyal customers, creating long-term brand value [70]

管理層自產品的角度考慮其業務並根據木工藝品及飾品廣泛銷售所產生的收益評估其表現。本集團逾90% 的收益、業績及資產源自木工藝品及飾品製造及銷售的單一分部，因此並無呈列分部資料。 5. 經營季節因素 未經審核中期財務報告附註 截至二零二三年六月三十日止六個月 按主要產品或服務類別劃分來自客戶合約的收益明細如下： | --- | --- | --- | |--------------------------------------------------|------------------------|--------------| | | | | | | 截至六月三十日止六個月 | | | | 二零二三年 | 二零二二年 | | | （未經審核） | （未經審核） | | | 人民幣千元 | 人民幣千元 | | 政府補貼（附註 (i) ） | 404 | 969 | | 按攤銷成本計量的金融資產利息收入－銀行利息收入 | 6,857 | 202 | | 按公平值計入當期損益的金融資產的公平值變動的收益 | 883 | 2,698 | | 中國增值稅優惠退款（附註 8(v) ） | 13,772 | 10,69 ...

Financial Performance - The company reported a total sales revenue of RMB 256.77 million for the first half of 2023, a 53.6% increase from RMB 167.09 million in the same period of 2022[13]. - The gross profit for the first half of 2023 increased by approximately RMB 54.69 million, contributing to an operating profit of RMB 121.51 million, a 71.8% increase from RMB 70.72 million in the previous year[17]. - The group's revenue was approximately RMB 256,773,000, an increase of 53.7% compared to RMB 167,086,000 for the same period in 2022[39]. - The group's gross profit for the same period was approximately RMB 154,885,000, reflecting a gross margin of 60.3%, up from 60.0% in the previous year[48]. - The net profit for the period was approximately RMB 93,948,000, a 70.7% increase compared to RMB 55,047,000 for the same period in 2022[50]. - Basic earnings per share for the period were RMB 37.7, up 70.6% from RMB 22.1 in the previous year[48]. - The net profit before tax for the six months ended June 30, 2023, was RMB 27,286,000, compared to RMB 15,340,000 in 2022, indicating a growth in profitability[86]. - The income tax expense for the six months ended June 30, 2023, was RMB 19,898,000, an increase from RMB 12,074,000 in 2022[86]. - The profit for the six months ended June 30, 2023, was approximately RMB 93,948,000, an increase of about RMB 38,901,000 or 70.7% compared to RMB 55,047,000 for the same period in 2022[179]. Operational Highlights - The logistics center processed approximately 2.62 million products during the reporting period, ensuring timely distribution according to order requirements[6]. - The company launched five new products, including a new handle massage comb designed to enhance user comfort[4]. - The new southern factory has been fully operational, alleviating material processing and drying capacity shortages[24]. - The company has established 29 efficient repair stations, completing 107,043 repairs within the stipulated time frame[128]. - The company launched 21 new products during the reporting period, including 12 functional products, enhancing the product line to meet diverse customer needs[126]. - The automation project for comb tooth polishing has entered the trial production phase, achieving an average output of 44 pieces per hour, aimed at reducing labor intensity[163]. Market and Sales Strategy - The company is actively expanding new channels and resources to ensure raw material reserves and market order supply[34]. - The company has entered two new e-commerce platforms, Kuaishou and Jingxi, to enhance brand exposure and sales channels[130]. - The company plans to enhance online sales strategies, targeting key promotional events such as Qixi Festival and Double Eleven, while maintaining a diversified channel approach[157]. - E-commerce sales reached RMB 122.9 million, achieving 115.4% of the half-year target and a 39% increase compared to the same period last year[154]. - The company conducted 7 marketing events in the first half of 2023, with Mother's Day sales reaching an average of RMB 1.948 million per day, a 39% year-on-year increase[132]. Asset and Liability Management - As of June 30, 2023, the company's non-current assets increased to RMB 102,222,000 from RMB 91,370,000, representing a growth of approximately 11.5%[51]. - Current assets decreased to RMB 220,421,000 from RMB 244,430,000, a decline of about 9.8%[51]. - The company's total assets minus current liabilities rose to RMB 768,101,000, up from RMB 725,573,000, indicating an increase of approximately 5.8%[51]. - The accounts payable increased to RMB 8,492,000 as of June 30, 2023, compared to RMB 4,764,000 as of December 31, 2022, indicating a rise in short-term liabilities[116]. - The accounts receivable decreased to RMB 5,101,000 as of June 30, 2023, down from RMB 5,349,000 as of December 31, 2022[114]. Awards and Recognition - The company received the "International Rehabilitation Century Contribution Award" on May 21, 2023, recognizing its contributions to the rehabilitation sector[6]. - The company continues to enhance its brand image, having been recognized as a leading cultural and tourism brand in Chongqing[193]. Future Plans - The company plans to hold a celebration event in the second half of 2023 to commemorate its 30th anniversary[8]. - The company plans to accelerate the launch of new popular products in the second half of 2023, utilizing various promotional tools to increase product sales gradually[186]. - The company plans to continue launching functional products in the second half of 2023, aiming to improve product value and control costs[136]. Challenges and Risks - The company noted challenges in supply chain management, including material specification limitations and production bottlenecks, but overall performance in the first half of 2023 was deemed satisfactory[101]. - Legal opinions have been obtained regarding a property dispute, with management assessing that the ongoing liquidation process will not significantly impact the group's business operations and financial condition[21].