Financial Performance - Total revenue for the year ended December 31, 2024, was approximately RMB 253.0 million, an increase of about 6.4% compared to approximately RMB 237.7 million for the same period in 2023[2] - Operating profit was approximately RMB 7.6 million, a decline of about 49.1% from approximately RMB 14.9 million in the same period of 2023[3] - Net profit for the year was approximately RMB 6.6 million, down approximately 51.9% from RMB 13.6 million in the same period of 2023[3] - Basic and diluted earnings per share were both RMB 0.2073 cents, compared to RMB 0.4309 cents in the previous year[4] - The company did not recommend the distribution of a final dividend based on the review of operating performance[3] - The group reported a segment profit of RMB 9,383 thousand for 2024, down from RMB 15,079 thousand in 2023, indicating a decline of 37.5%[16] - Bank interest income for the group was RMB 1,225 thousand in 2024, compared to RMB 1,627 thousand in 2023, showing a decrease of 24.7%[16] - Other income decreased from RMB 1,280 thousand in 2023 to RMB 197 thousand in 2024, a decline of 84.6%[16] - The company reported other income of RMB 1,422,000 in 2024, a decrease of 51.0% from RMB 2,907,000 in 2023[22] - The operating profit for 2024 was approximately RMB 7.6 million, a decrease of about 49.1% from RMB 14.9 million in 2023, primarily due to increased selling and distribution expenses and administrative costs[54] - The net profit for the fiscal year 2024 was approximately RMB 6.6 million, down about 51.9% from RMB 13.6 million in 2023, but higher than the estimated net profit of RMB 5.0 million disclosed in the profit warning announcement[57][58] Revenue Breakdown - E-commerce channel revenue was approximately RMB 135.9 million, representing a growth of about 7.7% from approximately RMB 126.2 million in the same period of 2023[2] - Revenue for hair care products in 2024 reached RMB 230,393 thousand, an increase of 5.8% from RMB 217,684 thousand in 2023[13] - Revenue for skincare products in 2024 was RMB 1 thousand, compared to RMB 25 thousand in 2023, indicating a significant decline[13] - Total revenue for other home and personal care products in 2024 was RMB 22,558 thousand, up from RMB 19,944 thousand in 2023, reflecting a growth of 8.0%[13] - Overall revenue for the group in 2024 was RMB 252,952 thousand, representing an increase of 6.4% from RMB 237,653 thousand in 2023[13] - Revenue from external customers in 2024 reached RMB 252,952,000, an increase of 6.9% compared to RMB 237,653,000 in 2023[20] - The core brand, Bawang, generated revenue of approximately RMB 239.0 million, accounting for 94.5% of total revenue, with a year-on-year increase of 5.7%[44] - The Chasing Wind brand, focused on herbal anti-dandruff products, achieved revenue of approximately RMB 2.4 million, a significant increase of about 19.3% compared to the previous year[44] - The Litao brand, based on natural ingredients, reported revenue of approximately RMB 9.6 million, marking a substantial increase of about 146.0% year-on-year[44] Assets and Liabilities - Total assets minus current liabilities amounted to RMB 151.1 million, a slight decrease from RMB 155.4 million in the previous year[5] - Non-current assets included property, plant, and equipment valued at RMB 40.8 million, an increase from RMB 34.6 million in the previous year[5] - Cash and cash equivalents increased to RMB 120.3 million from RMB 88.3 million in the previous year[5] - The total equity of the company was RMB 145.5 million, up from RMB 139.5 million in the previous year[6] - Trade receivables amounted to RMB 19.367 million as of December 31, 2024, down from RMB 21.504 million in 2023[34] - Trade payables increased to RMB 21.644 million in 2024 from RMB 19.078 million in 2023[36] - Trade and other payables as of December 31, 2024, amount to approximately RMB 65.8 million, up from RMB 59.4 million in 2023[79] - The company has no significant contingent liabilities or capital commitments as of December 31, 2024[76][77] Strategic Initiatives - The company continued to execute a value chain-oriented business model to maintain sustainable levels of sales and operating costs[38] - The company launched a "Thousand Towns and Ten Thousand Stores" market development project to enhance product distribution and increase sales revenue[39] - The company utilized new media platforms for brand promotion, enhancing brand awareness and consumer interest[38] - The company has established flagship stores on 11 online retail platforms, with two new stores launched during the fiscal year[42] - The company actively participated in community welfare activities to enhance its public image as a responsible enterprise[41] - The company has expanded its live-streaming sales activities to increase brand exposure and consumer engagement[40] - The company plans to enhance sales of the Bawang brand by leveraging multiple patented technologies and focusing on the promotion of its best-selling anti-hair loss products[64] - The company aims to attract younger consumers by upgrading product packaging design and launching visually appealing shampoo bottles[64] - The company will actively seek collaborations with other brands and IPs to launch limited edition co-branded products and engage in interactive promotional activities[64] - The company intends to utilize social media platforms like Weibo, Douyin, and Xiaohongshu to increase brand awareness and consumer engagement, thereby boosting sales[64] - The company will continue to deepen cooperation with distributors through various measures, including partnerships with influential KOLs to enhance product exposure[66] - The company plans to increase sales through promotional activities during special events and by enhancing the frequency of in-store promotions[67] - The company aims to achieve stable sales growth in e-commerce channels by optimizing product display and leveraging customs data to explore overseas markets[68] - The company will focus on product quality and core technology innovation while improving production management to maintain competitive advantages[69] - The company has initiated the operation of photovoltaic equipment to reduce traditional electricity consumption and production costs, contributing to ESG goals[70] Governance and Management - The board consists of three executive directors and three independent non-executive directors[89] - The chairman of the board is Mr. Chen Qi Yuan[89] - The company is committed to maintaining transparency and communication with stakeholders[89] - The board emphasizes the importance of strategic planning for future growth[89] - The company aims to enhance operational efficiency through innovative practices[89] - The board is focused on expanding market presence and exploring new opportunities[89] - The company is dedicated to research and development of new products and technologies[89] - The board acknowledges the contributions of all parties involved in the company's success[89] Economic Outlook - The International Monetary Fund (IMF) revised China's GDP growth forecast for 2025 from 4.5% to 4.6%, indicating a positive surprise in economic development for 2024 with an actual GDP growth of 5.0%[59] - The retail sales in China for 2024 increased by 3.5% year-on-year, supported by government-led consumption stimulus measures, with online retail sales surging by 7.2%[60] - The company maintains a cautious outlook for the economic environment in 2025, considering the uncertainties and challenges in the overall economic recovery[63] Future Plans - The company plans to expand its OEM business by leveraging its design, R&D capabilities, and production management skills[71] - The company aims to restore sales growth and profitability while enhancing investor confidence in the short term[72] - There are currently no ongoing acquisition discussions, and the company is not actively seeking acquisition opportunities[71] - The company will continue to seek commercial cooperation opportunities with potential overseas distributors[71] - The company has maintained a conservative financial management policy and stable financial condition[73] - The board does not recommend the payment of any final dividend for the year ending December 31, 2024[85] - The board expresses gratitude to all shareholders, customers, suppliers, banks, professionals, and employees for their continuous support[89] - The announcement date is March 28, 2025[89]

Financial Performance - BaWang International reported a revenue of approximately $50 million for the first half of 2024, representing a 15% increase compared to the same period in 2023[8]. - The total revenue for the six months ended June 30, 2024, was approximately RMB 109.8 million, representing an increase of approximately 10.3% from RMB 99.6 million for the same period last year[27]. - For the six months ended June 30, 2024, the Group's revenue from operations was approximately RMB 109.8 million, an increase of approximately 10.3% from RMB 99.6 million in the same period last year[33]. - Revenue from online sales channels reached approximately RMB 55.6 million, representing a growth of approximately 21.6% compared to RMB 45.7 million for the same period last year[33]. - The core brand, Bawang, generated revenue of approximately RMB 104.3 million, accounting for about 95.0% of total revenue, with an increase of approximately 8.6% year-over-year[33]. - The Litao product series generated revenue of approximately RMB 3.2 million, which accounted for approximately 3.0% of total revenue, reflecting a significant increase of approximately 39.7% compared to the previous year[34]. - The Group reported a profit for the period of RMB 1,210,000 for the first half of 2024, compared to a profit of RMB 4,518,000 in the same period of 2023, indicating a decline of about 73%[149]. - Profit before taxation for the period was RMB 1,189,000, down 73.7% from RMB 4,518,000 in the previous year[144]. - Basic and diluted earnings per share for the period were both RMB 0.04, down from RMB 0.14 in the same period last year[144]. Profitability and Margins - The company achieved a net profit margin of 12%, up from 10% in the previous year, indicating improved operational efficiency[10]. - The gross profit margin improved to 40%, up from 35% in the previous year, reflecting better cost management[10]. - Gross profit for the six months ended June 30, 2024, amounted to approximately RMB 51.4 million, representing an increase of approximately 24.6% from RMB 41.2 million in the same period last year, with the gross profit margin increasing from approximately 41.4% to approximately 46.8%[41]. - Operating profit for the same period was approximately RMB 1.7 million, a decrease from approximately RMB 5.2 million for the same period last year[27]. - Selling and distribution costs amounted to approximately RMB 37.4 million, an increase of approximately 35.6% from approximately RMB 27.6 million for the same period last year, with the percentage of revenue rising from approximately 27.7% to approximately 34.0%[44]. Market Expansion and Product Development - BaWang International plans to launch two new product lines in Q3 2024, focusing on herbal hair care and personal care products[10]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in sales from this region by the end of 2024[8]. - Future guidance indicates an expected revenue growth of 18% for the full year 2024, driven by new product launches and market expansion[8]. - The Group successfully expanded its overseas market into Canada, increasing sales revenue from the overseas market[29]. - The Group aims to enhance revenue by promoting high-quality Bawang branded products, leveraging consumer confidence in domestically manufactured goods[68]. - New product launches, including fruit series and Royal Wind beauty haircare series, are planned to attract new distributors and explore untapped markets[74]. Marketing and Brand Strategy - The Group utilized popular social media platforms to enhance brand influence and stimulate purchases, contributing to sales revenue growth[27]. - The Group plans to utilize social media platforms like Weibo, Douyin, Kuaishou, and Xiaohongshu for word-of-mouth marketing to boost brand awareness and sales[69]. - Various marketing activities will be conducted, including quizzes and educational webinars, to enhance brand recognition and consumer knowledge of hair care[70]. - Experience shops and counters will be established for consumers to try Bawang products, strengthening firsthand experience and recognition[70]. - The company plans to enhance brand exposure and consumer engagement through various livestreaming sales styles, aiming to optimize products and services based on consumer feedback[72]. Research and Development - BaWang International has allocated $5 million for research and development in new technologies aimed at enhancing product efficacy[10]. - Continuous optimization of internal processes and production efficiency is a priority to enhance corporate operational effectiveness[76]. - The company is renewing production lines to improve efficiency and conserve energy while ensuring a safer production environment[77]. Financial Position and Assets - As of June 30, 2024, the Group's cash, bank balances, and time deposits amounted to approximately RMB 112.4 million, a decrease from RMB 118.3 million as of December 31, 2023[82][83]. - The total assets of the Group were approximately RMB 225.4 million as of June 30, 2024, down from RMB 230.3 million as of December 31, 2023[83]. - The Group maintains a zero gearing ratio, indicating no outstanding loans as of the reporting date[83]. - The Group's trade and other payables as of June 30, 2024, were approximately RMB 57.4 million, representing a decrease of 3.4% from approximately RMB 59.4 million as of December 31, 2023[94]. Governance and Compliance - The company appointed new independent non-executive directors on June 30, 2024, enhancing its governance structure[135][136]. - The Company has complied with the notification requirements under the Securities and Futures Ordinance regarding interests and short positions[109]. - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the review period[129]. Shareholder Information - As of June 30, 2024, CHEN Qiyuan holds 1,900,840,000 ordinary shares of the Company, representing approximately 60.12% of the issued share capital[100]. - CHEN Zheng He also holds 1,900,840,000 ordinary shares of the Company, equivalent to approximately 60.12% of the issued share capital[100]. - The Company has a significant concentration of ownership, with CHEN Zheng He acting as trustee for the beneficial interests of his siblings[114].

Revenue Performance - The total revenue for the six months ended June 30, 2024, was approximately RMB 109.8 million, an increase of about 10.3% compared to the same period last year[2] - E-commerce channel revenue was approximately RMB 55.6 million, representing a year-on-year increase of about 21.6%[2] - For the six months ended June 30, 2024, the revenue from hair care products was RMB 99,582,000, compared to RMB 91,526,000 for the same period in 2023, representing an increase of approximately 8.5%[12] - The total revenue for the group for the six months ended June 30, 2024, was RMB 109,820,000, up from RMB 99,567,000 in the same period of 2023, indicating a growth of about 10.3%[12] - The group’s revenue recognition from contracts with customers for the six months ended June 30, 2024, was RMB 109,820,000, compared to RMB 99,567,000 for the same period in 2023, reflecting a growth of approximately 10.3%[13] - The group’s other household and personal care products segment reported revenue of RMB 10,238,000 for the six months ended June 30, 2024, compared to RMB 8,020,000 in the same period of 2023, marking an increase of about 27.6%[12] Profitability - Operating profit for the period was approximately RMB 1.7 million, down from RMB 5.2 million in the same period last year[2] - Net profit for the period was approximately RMB 1.2 million, compared to RMB 4.5 million in the same period last year[2] - The group reported a segment profit of RMB 3,297,000 from hair care products for the six months ended June 30, 2024, while the other segment incurred a loss of RMB 1,467,000[16] - The group’s pre-tax profit for the six months ended June 30, 2024, was RMB 1,189,000[16] - For the six months ended June 30, 2023, the company reported a pre-tax profit of RMB 4,518,000[17] - Operating profit for the six months ended June 30, 2024, was approximately RMB 1.7 million, down from approximately RMB 5.2 million in the same period last year, mainly due to increased selling and distribution expenses and administrative costs[37] - Net profit for the six months ended June 30, 2024, was approximately RMB 1.2 million, compared to approximately RMB 4.5 million in the same period last year[41] Assets and Liabilities - Total assets less current liabilities amounted to RMB 152.241 million as of June 30, 2024[5] - Non-current assets, including property, plant, and equipment, were valued at RMB 38.681 million[5] - The company's net assets stood at RMB 141.442 million as of June 30, 2024, compared to RMB 139.502 million at the end of 2023[5] - Trade and other receivables totaled RMB 13,078,000 as of June 30, 2024, down from RMB 17,655,000 as of December 31, 2023[24] - Total accounts payable as of June 30, 2024, amounted to RMB 57,371 thousand, a decrease from RMB 59,411 thousand as of December 31, 2023[11] - The group reported a trade and other payables amounting to approximately RMB 57.4 million as of June 30, 2024, down from RMB 59.4 million as of December 31, 2023, reflecting a decrease of about 3.4%[54] - The total assets of the group as of June 30, 2024, were RMB 225.4 million, compared to RMB 230.3 million as of December 31, 2023, indicating a decrease of approximately 2.1%[49] - The group maintains a conservative financial strategy with a debt-to-asset ratio of 0% as of June 30, 2024, indicating no outstanding loans[49] Expenses - The cost of sales for the six months ended June 30, 2024, was approximately RMB 58.4 million, a slight increase of about RMB 0.1 million (or approximately 0.2%) from RMB 58.3 million in the same period last year, with the cost-to-revenue ratio decreasing from approximately 58.6% to about 53.2%[32] - Gross profit increased to approximately RMB 51.4 million, up about 24.6% from approximately RMB 41.2 million in the same period last year, with the gross profit margin rising from approximately 41.4% to about 46.8%[33] - Selling and distribution expenses rose to approximately RMB 37.4 million, an increase of about 35.6% from approximately RMB 27.6 million in the same period last year, with the expense ratio increasing from about 27.7% to approximately 34.0%[34] - Administrative expenses increased to approximately RMB 13.0 million, up about 34.2% from approximately RMB 9.7 million in the same period last year, primarily due to increased R&D costs and wages[35] Dividend Policy - The company does not recommend the distribution of an interim dividend based on the operational performance review[2] - The company did not declare or propose any dividends for the six months ended June 30, 2024, consistent with the previous year[22] - The board does not recommend the distribution of an interim dividend for the six months ended June 30, 2024, based on the group's operating performance review[60] Strategic Initiatives - The company aims to expand its market presence and enhance product offerings while navigating economic challenges and geopolitical tensions, with a focus on "high-quality development" as a primary goal[43] - The company plans to enhance the promotion of the BaWang brand series through high-quality products and multi-channel media, aiming to deepen consumer recognition of the brand concept "Afraid of Hair Loss, Use BaWang"[44] - The company will implement a "Thousand Towns and Ten Thousand Stores" market development project to accelerate product distribution in local markets, particularly in Hainan, to increase sales revenue[45] - The company aims to optimize its e-commerce strategy by restructuring product offerings on platforms like Tmall and JD, focusing on high-cost performance products to meet consumer demand and increase sales[46] - The company will continue to develop new products based on market trends and consumer needs, particularly in herbal shampoo and hair care categories, to drive sales growth on e-commerce platforms[46] - The company is committed to enhancing production efficiency and product quality through strategic partnerships with universities and research institutions, focusing on core technology innovation[47] - The company will replace old production lines and equipment to achieve smarter, more efficient, and energy-saving production processes[47] - The company plans to expand its OEM business by leveraging its design and production capabilities to increase market share and influence in this sector[47] - The company will enhance brand loyalty and repurchase rates by launching a membership system offering exclusive discounts and rewards[45] - The company will increase the frequency of promotional activities at quality sales points to boost brand visibility and customer engagement[46] - The company aims to reduce production costs while increasing worker compensation through improved production management and green production practices[47] Financial Reporting - The group has consistently applied accounting policies in accordance with International Financial Reporting Standards, ensuring no significant impact on financial performance from new standards adopted[10] - The group has adopted new and revised International Financial Reporting Standards effective from January 1, 2024, with no significant impact on the financial statements[10] - The group’s financial statements are prepared based on historical cost, with certain financial instruments measured at fair value, ensuring consistency with previous reporting periods[9] Market Expansion - The company successfully expanded into the Canadian market, increasing overseas sales revenue[27] - The distribution network for the Ba Wang brand includes 957 distributors and six key retailers, covering 26 provinces and four municipalities in China[28] - The company held a product launch event for distributors, showcasing new products that generated increased order volumes[27] - The company has established flagship stores for Ba Wang and Chui Feng brands on 15 online retail platforms[28]

Financial Performance - The total revenue for the year ended December 31, 2023, was approximately RMB 237.7 million, a decrease of about 3.5% from RMB 246.3 million in 2022[18]. - The operating profit for 2023 was approximately RMB 14.9 million, compared to an operating loss of approximately RMB 17.3 million in 2022[18]. - The net profit for the year was approximately RMB 13.6 million, a significant recovery from a net loss of approximately RMB 19.3 million in 2022[19]. - The gross profit margin improved to 50.4% in 2023, up from 37.6% in 2022[3]. - The company reported a basic earnings per share of RMB 0.4309 for 2023, compared to a loss per share of RMB 0.6110 in 2022[3]. - The gross profit for 2023 was RMB 119.7 million, an increase from RMB 92.5 million in 2022[3]. - The net profit margin improved to 5.7% in 2023, compared to a net loss margin of 7.8% in 2022[3]. - Revenue from online sales increased to approximately RMB 126.2 million, up approximately 9.1% from RMB 115.7 million in 2022, while revenue from conventional sales decreased by approximately 14.7%[73]. - The core brand, Bawang, generated approximately RMB 231.7 million in revenue, accounting for approximately 97.5% of the Group's total revenue, representing a decrease of approximately 2.5% compared to 2022[78]. - The Group recorded a reversal of impairment losses of approximately RMB 1.1 million in respect of trade receivables for the year ended December 31, 2023, by adopting the expected credit loss model[59]. Revenue Sources - Revenue from shampoo and hair-care products was RMB 217.7 million in 2023, an increase from RMB 211.1 million in 2022[6]. - Other household and personal care products generated revenue of RMB 19.9 million in 2023, down from RMB 35.1 million in 2022[6]. - The branded Chinese herbal anti-dandruff hair-care series, Royal Wind, generated approximately RMB 2.0 million in revenue, accounting for approximately 0.9% of total revenue, and decreased by approximately 48.4% compared to 2022[79]. - The natural-based product line, Litao, generated approximately RMB 3.9 million in revenue, accounting for about 1.6% of the Group's total revenue, representing a decrease of approximately 15.1% compared to 2022[80]. - The herbal anti-dandruff brand, Zhui Feng, achieved revenue of approximately RMB 2.0 million, representing 0.9% of total revenue, down approximately 48.4% from the previous year[81]. Market and Economic Context - In 2023, China's actual year-on-year GDP growth was 5.2%, slightly above expectations[25]. - The IMF revised China's GDP growth prediction for 2024 from 4.2% to 4.6%, an increase of 0.4 percentage points[24]. - Retail sales of consumer goods in China increased by 7.2% year-on-year in 2023, indicating strong consumption strength[30]. - The IMF projected global economic growth of 3.1% in 2024, unchanged from 2023, but improved from the previous forecast of 2.9%[26]. - China's Premier Li Qiang announced an ambitious GDP growth target of around 5.0% for 2024, which is an upward revision of 0.8 percentage points from the IMF's forecast[113][117]. Strategic Initiatives - The Group plans to build a management team with strong experience in both domestic and global HPC sectors to regain sales growth momentum[31]. - The Group aims to maintain a multi-brand and multi-product strategy in HPC sectors to acquire market shares from competitors[31]. - The Group conducted integrated marketing through social media platforms, collaborating with over 50 Blue-Verified bloggers to enhance online sales revenue[41]. - The Group enhanced product publicity by advertising Bawang branded products in metro stations of first-tier cities[37]. - The Group's marketing strategy included engaging consumers through in-store events and social media promotions to increase sales revenue[38]. - The Group's long-term focus is on strengthening its business model and positioning to become a leader in branded Chinese herbal HPC products[31]. Distribution and Sales Channels - As of December 31, 2023, the Bawang brand distribution network included approximately 949 distributors and six key account retailers, covering 27 provinces and four municipalities in China[47]. - The Royal Wind brand distribution network also comprised approximately 949 distributors and six key account retailers, targeting primarily online sales channels[48]. - The Litao products distribution network included approximately 905 distributors, focusing on consumers in second-tier and third-tier cities in China[49]. - The Group established 11 online retail platforms for its brands, with two new platforms launched during the year under review[50]. Production and Quality Assurance - The Group's production process for hair-care and skin-care products has been certified by SGS, valid until July 2025, meeting US FDA CFSAN requirements[53]. - The Group's production process for hair-care and skin-care products has been certified by SGS, valid until July 2025, meeting ISO22716-2007 standards[58]. - The Group has invested in energy conservation projects, resulting in a significant reduction in overall power consumption[66]. Corporate Social Responsibility - The Group participated in community welfare events, donating 300 bottles each of shampoo and shower gel to underprivileged families during Christmas 2023[44]. - The Group's charitable activities aim to enhance its corporate image and publicize its mission[44]. Financial Management and Position - The Group maintains cash and cash equivalents at a level deemed sufficient to meet operational needs and mitigate cash flow fluctuations[60]. - The Group's management closely monitors foreign exchange risks due to sales denominated in foreign currencies and considers hedging to mitigate these risks[61]. - The Group adopts conservative financial management policies to maintain a solid financial position and is open to exploring potential investment opportunities to enhance shareholder returns[139]. - As of December 31, 2023, the Group's cash and cash equivalents were approximately RMB 118.3 million, a decrease from RMB 124.4 million in 2022, with total time deposits at approximately RMB 30.0 million[140]. - Total assets as of December 31, 2023, were RMB 230.3 million, down from RMB 244.2 million in 2022, indicating a decrease of about 5.7%[143]. Human Resources and Governance - The total personnel expenses for the Group amounted to approximately RMB 40.6 million in 2023, down from approximately RMB 55.0 million in 2022, reflecting a decrease in employee count to about 430 from 442[166]. - The Group's total personnel expenses, including salaries and benefits, for the year 2023 are approximately RMB 40.6 million, down from RMB 55.0 million in 2022, indicating a decrease of about 26.5%[169]. - The number of full-time employees increased to 236 in 2023 from 207 in 2022, while contract personnel decreased from 235 to 194[172]. - The Group continues to invest in human capital by providing various internal training programs aimed at enhancing employees' soft skills, such as time management and leadership development[169]. - The Group's human resources policies are considered crucial for its future development, emphasizing good career prospects and a pleasant working environment to maintain a stable workforce[174]. - The Board of Directors consists of six members, including the Chairman and the CEO, ensuring a separation of roles to reinforce independence and accountability[180]. - The Company has adopted a Nomination Policy and a Diversity Policy to ensure a diverse and independent Board, with independent non-executive Directors appointed for a term of three years[190]. - The Board held 12 meetings in 2023, with all Directors attending every meeting, reflecting strong governance practices[189].

Financial Performance - The total revenue for BaWang International (Group) Holding Limited for the year ended December 31, 2023, was approximately RMB 237.7 million, a decrease of about 3.5% compared to RMB 246.3 million for the same period in 2022[2]. - The revenue from e-commerce channels was approximately RMB 126.2 million, an increase of about 9.1% compared to RMB 115.7 million for the same period in 2022[3]. - The operating profit for the year was approximately RMB 14.9 million, a turnaround from an operating loss of approximately RMB 17.3 million in 2022[3]. - The net profit for the year was approximately RMB 13.6 million, compared to a net loss of approximately RMB 19.3 million in the previous year[3]. - Basic and diluted earnings per share were RMB 0.4309 cents, compared to a loss of RMB 0.6110 cents per share in 2022[4]. - The company reported a gross profit of approximately RMB 119.7 million for the year, compared to RMB 92.5 million in 2022[4]. - The profit from the hair care segment in 2023 was RMB 16,871,000, compared to a loss of RMB 12,044,000 in 2022[28]. - The total profit from personal care products was RMB 15,079,000 in 2023, compared to a loss of RMB 18,060,000 in 2022[28]. - The company reported a pre-tax profit of RMB 13,544,000 in 2023, recovering from a loss of RMB 19,431,000 in 2022[28]. - Net profit for the year was approximately RMB 13.6 million, compared to a net loss of RMB 19.3 million in 2022, with no significant change from the estimated net profit of approximately RMB 14.0 million disclosed in the profit warning announcement[73]. Assets and Liabilities - The total assets minus current liabilities amounted to RMB 155.4 million as of December 31, 2023, compared to RMB 151.4 million in 2022[5]. - The net asset value increased to RMB 139.5 million in 2023 from RMB 126.3 million in 2022[6]. - Non-current assets in China decreased to RMB 56,345,000 in 2023 from RMB 71,022,000 in 2022, indicating a reduction of 20.7%[33]. - The company’s total non-current assets decreased to RMB 57,148,000 in 2023 from RMB 71,816,000 in 2022, a decline of 20.5%[33]. - The company reported trade and other payables of approximately RMB 59.4 million as of December 31, 2023, a decrease from RMB 79.6 million in 2022[100]. Revenue Breakdown - Hair care products generated revenue of RMB 217,684 thousand in 2023, up from RMB 211,115 thousand in 2022, reflecting an increase of about 3.3%[23]. - The group’s revenue from other household and personal care products decreased to RMB 19,944 thousand in 2023 from RMB 35,139 thousand in 2022, a decline of approximately 43.3%[23]. - Revenue from the skincare segment decreased to RMB 25,000 in 2023 from RMB 87,000 in 2022, reflecting a significant decline[28]. - Revenue from Hong Kong increased to RMB 2,051,000 in 2023 from RMB 1,136,000 in 2022, showing an increase of 80.5%[33]. - Revenue from the natural-based product line "Litao" was approximately RMB 3.9 million, accounting for 1.6% of the group's total revenue for 2023, a decrease of about 15.1% compared to 2022[61]. - The core brand, BaWang, generated revenue of approximately RMB 226.0 million, accounting for 95.1% of the total revenue, a decrease of 4.9% from the previous year[59]. - The herbal anti-dandruff hair care brand, Chasing Wind, recorded revenue of approximately RMB 2.0 million, representing 0.9% of total revenue, a decrease of about 48.4% from 2022[59]. Expenses and Costs - Financial expenses decreased to RMB 1.3 million in 2023 from RMB 2.1 million in 2022[4]. - Sales cost for 2023 was approximately RMB 117.9 million, a decrease of about 23.3% from RMB 153.8 million in 2022, with the sales cost as a percentage of revenue dropping from approximately 62.4% in 2022 to about 49.6% in 2023[62]. - Administrative expenses decreased to approximately RMB 27.6 million in 2023, down about 14.8% from RMB 32.4 million in 2022, with the percentage of revenue dropping from approximately 13.1% to 11.6%[67]. - Research and development costs for 2023 were RMB 12,507 thousand, down from RMB 14,123 thousand in 2022, a decrease of 11.4%[41]. Dividends and Shareholder Information - The company did not recommend the distribution of a final dividend based on the review of its operating performance[3]. - The group did not declare any dividends for the years ending December 31, 2023, and 2022[42]. - The annual general meeting is scheduled for May 31, 2024, with a suspension of share transfer registration from May 25 to May 31, 2024[108]. - The annual performance announcement will be published on the company's website and other designated platforms, with the annual report for the year ending December 31, 2023, to be sent to shareholders[111]. - The board expresses gratitude to shareholders, customers, suppliers, banks, professionals, and employees for their continuous support[112]. Strategic Initiatives - The company plans to enhance brand influence through cross-industry collaborations and limited edition product launches to increase sales revenue[83]. - The company aims to engage consumers via social media platforms like Weibo, Douyin, and Kuaishou to boost brand awareness and sales growth[84]. - The company will introduce innovative packaging for its anti-hair loss shampoo products to attract younger consumers[84]. - The company intends to optimize its product structure on e-commerce platforms to increase sales, including launching new product lines and enhancing existing ones[87]. - The company is focusing on core technology innovation and strategic partnerships with universities and research institutions to maintain competitive advantages[89]. - The company plans to improve operational efficiency and competitiveness by upgrading production lines and enhancing factory image[89]. - The company plans to enhance sales on the JD platform by utilizing in-platform promotional tools and timely launching new products based on market response[90]. - For the Pinduoduo platform, the company will continue to introduce high-cost performance new products and leverage promotional activities to drive sales growth[90]. - The company aims to expand its distributor channels by collaborating with platforms like Meituan and 1688 to customize products and increase sales[90]. - The company will increase investment in live streaming on Douyin, adding more live rooms and collaborating with influencers to boost brand awareness and sales[90]. Market and Economic Context - The International Monetary Fund revised China's GDP growth forecast for 2024 from 4.2% to 4.6%, citing stronger-than-expected growth in 2023 and increased government spending on disaster response capabilities[76]. - In 2023, China's GDP grew by 5.2% year-on-year, slightly above expectations, with the IMF emphasizing the importance of addressing challenges in the real estate sector and managing local government debt[78]. - The retail sales of consumer goods in China increased by 7.2% year-on-year in 2023, indicating strong consumer power and serving as a major driver of economic growth[79]. - The Chinese government set a GDP growth target of around 5.0% for 2024, which is 0.8 percentage points higher than the IMF's previous forecast of 4.2%[79].

Financial Performance - The total revenue for the six months ended June 30, 2023, was approximately RMB 99.6 million, a decrease of approximately 13.9% from RMB 115.6 million for the same period last year[13]. - The operating profit for the same period was approximately RMB 5.2 million, compared to an operating loss of approximately RMB 15.0 million for the same period last year[13]. - The net profit for the six months ended June 30, 2023, was approximately RMB 4.5 million, compared to a net loss of approximately RMB 16.2 million for the same period last year[14]. - Revenue from the Group's core brand, Bawang, was approximately RMB 96.1 million, accounting for approximately 96.5% of total revenue, representing a decrease of approximately 13.6% year-over-year[32]. - The Royal Wind brand generated revenue of approximately RMB 1.1 million, accounting for approximately 1.1% of total revenue, with a decrease of approximately 43.6% compared to the previous year[33]. - The Litao product series generated revenue of approximately RMB 2.3 million, accounting for approximately 2.3% of total revenue, with a slight increase of approximately 1.8% year-over-year[34]. - The Herborn skincare series generated revenue of approximately RMB 22,000, accounting for approximately 0.02% of total revenue, representing a decrease of approximately 56.0% compared to the same period last year[35]. - The Group's sales in overseas markets, including Hong Kong, Singapore, Thailand, Malaysia, the USA, and Mongolia, accounted for approximately 1.1% of total revenue during the six months ended June 30, 2023[41]. - For the six months ended June 30, 2023, the total sales revenue was distributed as follows: 54.0% through conventional channels and 46.0% through online channels[38]. - The Group recorded an operating profit of approximately RMB 5.2 million, compared to an operating loss of approximately RMB 15.0 million for the same period last year[48]. - The total number of shares that can be issued under the 2020 Share Option Scheme cannot exceed 30.0% of the company's total issued shares[154]. Distribution Network - As of June 30, 2023, the Bawang brand distribution network included 1,089 distributors and six KA retailers, covering 26 provinces and four municipalities in China[23]. - As of June 30, 2023, the Royal Wind brand distribution network included 1,058 distributors and one key account retailer, covering 26 provinces and four municipalities in China[24]. Marketing and Brand Strategy - The company engaged in cross-sector cooperation with Fairy Sword and Chivalrous Legend, producing a co-branded limited-edition haircare shampoo gift-pack[21]. - The company utilized social media platforms like Weibo, Douyin, and Xiaohongshu to enhance brand exposure and customer engagement[16][17]. - The company participated in community welfare events, donating products to needy women and impoverished families, enhancing its public image[22]. - The company advertised its products in metro stations of Shenzhen and other first-tier cities to increase brand visibility[16]. - The company aims to strengthen distributor confidence and accelerate the development of a new distribution network through in-store promotions[17]. - The Group plans to roll out new anti hair-fall shampoo products and scented shampoo bottles to attract high-end customers and younger demographics[73]. - The Group aims to enhance sales revenue through both conventional and online sales channels for its Royal Wind branded product series, targeting young consumers[75]. - The Group will expand its Herborn branded product line into shampoo products to supplement the previously underdeveloped market and enhance sales revenue[76]. - The Group intends to increase sales revenue by developing new distributors and establishing points-of-sale in uncovered markets[78]. - The Group plans to utilize major festive days for promotional activities in shopping malls to boost sales[80]. - The Group aims to achieve stable growth in online sales by optimizing operational efficiency and upgrading hair-care product categories[82]. - The Group will transform the sales platform on JD.com from consigned sales into direct-operated stores to enhance market share and sales revenue[82]. - The Group will continue to promote Bawang branded products through social media platforms to increase brand influence and sales growth[79]. - The company plans to increase weekend promotions and in-store events at high-quality sales points to enhance brand influence[83]. - The company aims to optimize operational efficiency and maintain market share for key products like anti-hair loss sprays and herbal shampoos through targeted marketing on platforms like Xiaohongshu and Alibaba[83]. - The company will transition its JD platform from a third-party operation to self-operated, enhancing product offerings in the shampoo category to increase market share[88]. - The company intends to boost sales on the Pinduoduo channel by introducing new products such as fragrant shampoo and hyaluronic acid shampoo while maintaining market share for existing hot items[88]. - The company will increase investment in live-streaming sales to enhance revenue through direct online sales[88]. - The company will maintain key online distributors by assisting with inventory planning and management, especially during promotional periods like Double 11[88]. Cost Management and Profitability - The cost of sales decreased to approximately RMB58.3 million, down by approximately RMB17.2 million (or 22.8%) from RMB75.5 million in the same period last year[39]. - Gross profit increased to approximately RMB41.2 million, representing a 2.8% increase from approximately RMB40.1 million for the same period last year, with a gross profit margin rising from 34.7% to 41.4%[40]. - Selling and distribution costs amounted to approximately RMB27.6 million, a decrease of approximately 38.3% from RMB44.7 million for the same period last year, with the percentage of revenue dropping from 38.7% to 27.7%[45]. - Administrative expenses were approximately RMB9.7 million, down by approximately 30.2% from RMB13.9 million for the same period last year[46]. - Other income increased to approximately RMB1.5 million, a 7.1% increase from RMB1.4 million for the same period last year[55]. Assets and Liabilities - As of June 30, 2023, the Group's cash, bank balances, and time deposits amounted to approximately RMB 107.6 million, a decrease of 13.5% from RMB 124.4 million as of December 31, 2022[97][99]. - The total assets of the Group decreased to RMB 212.5 million as of June 30, 2023, down from RMB 244.2 million as of December 31, 2022, representing a decline of 13.0%[99]. - Trade and other payables decreased by 44.1% to approximately RMB 44.5 million as of June 30, 2023, compared to RMB 79.6 million as of December 31, 2022[114][119]. - The Group had no bank borrowings as of June 30, 2023, consistent with the position as of December 31, 2022[116][121]. - The total personnel expenses for the six months ended June 30, 2023, were approximately RMB 23.0 million, down from RMB 25.8 million for the same period in 2022, indicating a decrease of 10.9%[124][125]. - The Group employed 430 employees as of June 30, 2023, a reduction from 468 employees as of June 30, 2022, reflecting a decrease of 8.1%[124][126]. - The Group's operations are primarily conducted in Renminbi, mitigating significant exchange rate risks associated with daily operations[103][104]. - The Board will continue to monitor foreign exchange exposure and is prepared to take prudent measures such as hedging when required[105]. Corporate Governance and Compliance - The company has complied with the applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023[168]. - The company has adopted the Model Code for Securities Transactions by Directors and all Directors confirmed compliance throughout the review period[169]. - The Audit and Risk Management Committee reviewed the unaudited interim results for the six months ended June 30, 2023, and recommended its adoption by the Board[177]. - The ESG Committee was established on June 2, 2023, to oversee the Group's ESG performance and strategies[175]. Shareholder Information - As of June 30, 2023, Chen Qiyuan and Chen Zheng He each hold a long position of 1,900,840,000 ordinary shares, representing approximately 60.12% of the issued share capital of the Company[133]. - Wong Sin Yung holds a long position of 2,100,000 ordinary shares, representing approximately 0.07% of the issued share capital of the Company[133]. - Chen Qiyuan has beneficial interests in 20,000 shares of Fortune Station, representing 50.43% of its issued share capital[139]. - Chen Zheng He has a long position in 19,657 shares of Fortune Station, representing 49.57% of its issued share capital[139]. - As of June 30, 2023, no other directors or chief executives had interests or short positions in shares or debentures of the Company or its associated corporations that were required to be disclosed[140]. - The Company maintains a register of interests and short positions as required by the Securities and Futures Ordinance[141]. - The Company has not disclosed any substantial shareholders with interests or short positions in shares or underlying shares other than those mentioned[142]. Employee Policies - The Company emphasizes the importance of human resources policies for future development, including competitive compensation and a comfortable work environment[129]. - The Company has implemented a performance-based bonus scheme and stock option plan for employees[129]. - The share option scheme aims to motivate employees and retain those contributing to the long-term growth and profitability of the Group[148]. - The total number of shares in respect of which options may be granted under the 2020 Share Option Scheme is 316,244,072 shares, representing 10.0% of the issued share capital of the Company[152]. - The maximum number of shares issuable to each eligible participant in the 2020 Share Option Scheme within any 12-month period is limited to 1.0% of the shares of the Company in issue at any time[151]. - The 2020 Share Option Scheme was adopted on May 29, 2020, and will remain in force for 10 years unless cancelled or amended[149]. - No share options were outstanding or granted under the 2020 Share Option Scheme for the six months ended June 30, 2023[160]. - The beneficial interests of CHEN Qiyuan's five children under 18 in Heroic Hour represent 65.00% of the issued share capital of Heroic Hour[144]. - CHEN Zheng He is deemed to be interested in the shares of Fortune Station held by Heroic Hour due to his role as trustee[144].

Financial Performance - The total revenue for the year ended December 31, 2022, was approximately RMB 246.3 million, a decrease of about 10.0% from RMB 273.6 million in 2021[21]. - The operating loss for 2022 was approximately RMB 17.3 million, compared to an operating loss of approximately RMB 7.5 million in 2021[21]. - The net loss for the Group in 2022 was approximately RMB 19.4 million, up from a net loss of approximately RMB 9.1 million in 2021[22]. - The net loss ratio for 2022 was (7.9%), compared to (3.3%) in 2021[3]. - Basic and diluted loss per share for 2022 was (0.6144) RMB cents, compared to (0.2872) RMB cents in 2021[3]. - The Group recorded an operating loss of approximately RMB 17.3 million for the year ended December 31, 2022, compared to an operating loss of approximately RMB 7.5 million in 2021[23]. - The net loss for the Group for the year ended December 31, 2022, was approximately RMB 19.4 million, compared to a net loss of approximately RMB 9.1 million in the same period of 2021[23]. - The Group's total assets decreased to approximately RMB 244.2 million as of December 31, 2022, down from RMB 295.6 million in 2021, reflecting a decline of approximately 17.4%[150]. Revenue Breakdown - Revenue from shampoo and hair-care products was RMB 211.1 million in 2022, down from RMB 232.2 million in 2021[5]. - Revenue from the Bawang brand was RMB 237.7 million in 2022, a decrease from RMB 260.4 million in 2021[8]. - Revenue from online sales was approximately RMB 115.7 million, representing a decrease of approximately 17.9% from RMB 141.0 million in 2021[86]. - The core brand, Bawang, generated approximately RMB 237.7 million in revenue, accounting for approximately 96.5% of total revenue, and decreased by approximately 8.7% compared to 2021[87]. - The branded Chinese herbal anti-dandruff hair-care series, Royal Wind, generated approximately RMB 4.0 million in revenue, a decrease of approximately 32.3% compared to 2021[88]. - The natural-based branded shampoo, shower gel, and laundry detergent series, Litao, generated approximately RMB 4.6 million in revenue, representing a decrease of approximately 25.8% compared to 2021[89]. Cost and Expenses - Selling and distribution costs remained relatively stable at RMB 83.5 million in 2022 compared to RMB 84.3 million in 2021[3]. - Administrative expenses increased to RMB 32.4 million in 2022 from RMB 29.3 million in 2021[3]. - Cost of sales decreased to approximately RMB 153.8 million, down about 11.9% from RMB 174.6 million in 2021, with the cost as a percentage of revenue decreasing from approximately 63.8% in 2021 to approximately 62.4% in 2022[94][99]. - Gross profit decreased to approximately RMB 92.5 million, a decline of about 6.6% from RMB 99.0 million in 2021, while the gross profit margin increased from approximately 36.2% to approximately 37.6%[95][100]. - Other income decreased to RMB 3.6 million, a decline of 55.7% compared to 2021, primarily due to a reversal of impairment losses in property, plant, and equipment[96][101]. - Selling and distribution expenses for 2022 decreased to approximately RMB 83.5 million, a slight reduction of about 0.9% compared to approximately RMB 84.3 million in 2021, with the percentage of revenue increasing from approximately 30.8% in 2021 to approximately 33.9% in 2022[102][104]. - Administrative expenses for 2022 amounted to approximately RMB 32.4 million, representing an increase of approximately 10.3% compared to approximately RMB 29.3 million in 2021, with administrative expenses as a percentage of revenue rising from approximately 10.7% in 2021 to approximately 13.1% in 2022[104][110]. Market and Strategic Initiatives - During the year, a cross-sector cooperation with an online game company attracted over 3.0 million users to the Group's online store, leading to an increase in online sales revenue[38]. - A limited edition co-branded haircare gift-pack was launched, which attracted a readership of over 5.7 million on social media, enhancing publicity for the Group's branded products[42]. - The Group plans to focus on building a management team with strong experience in both domestic and global HPC sectors to regain sales growth momentum and profitability[32]. - The Group aims to strengthen its business model and positioning to acquire market shares from competitors, maintaining a multi-brand and multi-product strategy in the HPC sectors[32]. - The Group intends to enhance publicity and promotion of its branded products through various marketing strategies, including social media and celebrity endorsements[127]. - The Group plans to enhance sales revenue by launching new products such as ginger shampoo, scalp essence, and haircare essence oil through online sales channels[135]. - The Group aims to increase sales by leveraging major festive days for promotional activities in shopping malls, targeting events like International Women's Day and National Day[134]. - The Group will optimize operational efficiency and stabilize market share for hot-selling items, particularly the anti-hair fall haircare product series[137]. Human Resources and Governance - The Group employed approximately 442 employees as of December 31, 2022, a decrease from approximately 499 employees in 2021, with total personnel expenses amounting to approximately RMB 55.0 million[173]. - The Group emphasizes continuous investment in human capital to maintain a high-quality workforce, with various internal training programs conducted in 2022[177]. - The Group's human resources policies are deemed crucial for future development, focusing on promising career prospects and competitive employee remuneration[180]. - The Board of Directors consists of six members, including the Chairman and CEO, ensuring a separation of roles to enhance independence and accountability[186]. - The Board held 10 meetings in 2022, with full attendance from key members, indicating strong governance practices[195]. - The Group's commitment to corporate governance includes compliance with the applicable code provisions of the Corporate Governance Code for the year ended December 31, 2022[184]. Financial Management - The Group maintains a conservative financial management policy, with a gearing ratio of 0% as of December 31, 2022[150]. - The Group's management continues to monitor liquidity risks to ensure sufficient cash and cash equivalents for operational needs[71]. - As of December 31, 2022, the Group's cash, bank balances, and time deposits amounted to approximately RMB 124.4 million, an increase of 9.7% from RMB 113.3 million in 2021[148]. - Trade receivables decreased by approximately 28.5% to RMB 14.3 million as of December 31, 2022, down from RMB 20.0 million in 2021, primarily due to reduced sales through online and conventional channels[165]. - Trade and other payables were approximately RMB 79.6 million as of December 31, 2022, a decrease from RMB 83.5 million in 2021, mainly due to lower trade payables and accrued payroll[170].

Financial Performance - The total revenue for the six months ended June 30, 2022, was approximately RMB 115.6 million, remaining relatively stable compared to the same period last year[20]. - The operating loss for the same period was approximately RMB 15.0 million, compared to an operating loss of approximately RMB 14.1 million for the previous year[20]. - The net loss for the six months ended June 30, 2022, was approximately RMB 16.2 million, compared to a net loss of approximately RMB 14.3 million for the same period last year[22]. - For the six months ended June 30, 2022, the Group's revenue from operations was approximately RMB115.6 million, remaining relatively stable compared to the same period last year[46]. - Revenue from online sales channels was approximately RMB52.3 million, representing a decrease of approximately 8.6% from approximately RMB57.2 million for the same period last year[46]. - The core brand, Bawang, generated revenue of approximately RMB111.2 million, accounting for approximately 96.2% of the Group's total revenue, with an increase of approximately 0.9% compared to the same period last year[48]. - The branded Chinese herbal anti-dandruff haircare series, Royal Wind, generated revenue of approximately RMB2.0 million, accounting for approximately 1.7% of total revenue, with an increase of approximately 8.7% compared to the same period last year[49]. - The natural-based branded shampoo, shower gel, and laundry detergent series, Litao, generated revenue of approximately RMB2.3 million, accounting for approximately 2.0% of total revenue, representing a decrease of approximately 32.6% compared to the same period last year[50]. - The branded Chinese herbal skincare series, Herborn, generated revenue of approximately RMB0.05 million, accounting for approximately 0.1% of total revenue, with a decrease of approximately 54.2% compared to the same period last year[51]. - The Group recorded an operating loss of approximately RMB15.0 million, compared to a loss of RMB14.1 million in the same period last year[1]. - The net loss attributable to owners of the Company was approximately RMB16.2 million, compared to RMB14.3 million in the same period last year[1]. - The total comprehensive expense for the period attributable to owners of the company was RMB 16,706,000, compared to RMB 15,113,000 in 2021, indicating an overall increase in losses[178]. Marketing and Product Development - The Group continued to operate under a value-chain-oriented business model, maintaining sustainable levels of sales and operating costs[24]. - The Group implemented creative marketing strategies and programs through cross-industry cooperation to enhance brand image and product promotion[25]. - A notable collaboration occurred with Netease CC Live Streaming, leveraging their large subscriber base to promote the Bawang brand and stimulate sales[27]. - The company collaborated with NetEase CC Live to create co-branded gift boxes featuring popular game streamers, which significantly boosted brand interest and sales[28]. - A partnership with the "Gao Kao on the Palm" app enhanced brand recognition among the younger generation through integrated promotional materials[29]. - The company successfully promoted its herbal haircare products within the online game "Absolute Performance," targeting an 80% female gamer demographic[31]. - The company launched its classic herbal product series in the Russian and Mongolian markets, as well as anti-hair fall products in the US market, expanding its overseas sales channels[33]. - The introduction of Bawang Blossom Flower Shower Gel and a new toothpaste series filled market gaps in the flower shower gel and herbal oral hygiene segments[34]. - The company continued to develop new products under the Bawang Herbal Fairy Animations Series, creating a unique IP image and appealing to the youth market[35]. - New anti-hair fall and oil-controlling shampoo products were launched on the T-Mall platform, aligning with consumer demand for oil control[37]. Distribution and Sales Channels - As of June 30, 2022, the Bawang brand distribution network included 980 distributors and eight key retailers, covering 26 provinces and four municipalities in China[39]. - The Royal Wind brand also had a distribution network of 980 distributors as of June 30, 2022, with products sold in multiple countries including Hong Kong and Singapore[40]. - The Litao product line, targeting second and third-tier cities, had a distribution network of 931 distributors as of June 30, 2022, with plans for further market expansion[41]. - Sales through distributors accounted for 49.2% of total revenue, while online sales accounted for 22.1%, totaling 71.3% from distributors[53]. - Sales to overseas markets, including Hong Kong, Singapore, Thailand, Malaysia, USA, Russia, and Mongolia, accounted for approximately 2.4% of total revenue during the six months ended June 30, 2022[54]. Cost and Expenses - For the six months ended June 30, 2022, the cost of sales was approximately RMB75.5 million, a slight decrease of 0.3% from RMB75.7 million in the same period last year, representing 65.3% of revenue[1]. - The Group's gross profit for the same period was approximately RMB40.1 million, a 0.5% increase from RMB39.9 million, with a gross profit margin rising from 34.5% to 34.7%[1]. - Selling and distribution costs increased by approximately 6.4% to RMB44.7 million, rising from 36.3% of revenue in 2021 to 38.7% in 2022[1]. - Administrative expenses decreased by approximately 1.4% to RMB13.9 million, primarily due to reduced research and development expenses[1]. - Other income increased by approximately 40.6% to RMB1.4 million, driven by gains from accounts payable and scrap material sales[1]. Economic Context - The International Monetary Fund (IMF) cut its growth forecast for China's economy to 3.3% for 2022, down from 4.8%[70]. - China's economy grew by 0.4% in Q2 2022, resulting in a 2.5% growth for the first half of the year, which was below expectations[72]. - Analysts expect China's recovery to continue amid global recession fears, with infrastructure investment likely acting as a key growth driver[73]. - The International Monetary Fund (IMF) revised its forecast for China's economic growth in 2022 from 4.8% to 3.3% due to tightening monetary policies, with a further slowdown expected to 2.9% in 2023[74]. - The Chinese government set a GDP growth target of approximately 5.5% for 2022, higher than Reuters' forecast of 4.0%[74]. Corporate Strategy and Future Plans - The Group's corporate theme for 2022 is "Continue our Growth at a Steady Pace," reflecting a cautious approach to business development amid ongoing risks[77]. - The Group plans to enhance revenue for Bawang-branded products through various strategies, including participation in advertising festivals and targeted promotions for young consumers[78]. - The Group aims to increase sales revenue for Royal Wind branded products primarily through online sales channels targeting young consumers[80]. - The Group will continue to develop Litao branded products through traditional channels, focusing on household care items like laundry detergent[81]. - The Group intends to deepen cooperation with distributors by leveraging festive promotional activities and enhancing brand influence through creative marketing strategies[82]. - The Group plans to optimize operations on Taobao and diversify product offerings to capture market shares and increase online sales revenue[83]. - The Group will implement supporting policies for elite distributors like JD.com and vip.com to boost sales revenue from these channels[84]. - The Group plans to optimize operations on the Taobao platform to maintain market share in hair care products and develop new products like hair oils and body wash to increase flagship store sales[85]. - The Group aims to enhance sales revenue by developing internal live streaming resources and leveraging active user networks on other platforms[87]. Financial Position and Management - As of June 30, 2022, the Group's cash and bank balances were approximately RMB 93.7 million, down from RMB 113.3 million as of December 31, 2021[89]. - The Group maintains a conservative financial management policy with a gearing ratio of 0% as of June 30, 2022[91]. - The Group's operations are primarily conducted in Renminbi, minimizing significant exchange rate risks[96]. - As of June 30, 2022, the Group's trade and other payables were approximately RMB 64.8 million, a decrease of 22.4% from approximately RMB 83.5 million as of December 31, 2021[107]. - The total personnel expenses for the six months ended June 30, 2022, amounted to approximately RMB 25.8 million, down from approximately RMB 27.3 million for the same period in 2021[116]. - The Group employed 468 employees as of June 30, 2022, a decrease from 495 employees as of June 30, 2021[116]. - The Group did not have any bank borrowings as of June 30, 2022, consistent with the situation as of December 31, 2021[110]. - The Group's human resources policies are aimed at maintaining a stable workforce through promising career prospects and competitive remuneration[122]. - The Group's employees in the PRC and Hong Kong participate in social insurance and provident fund schemes, along with performance-based incentive bonuses[121]. Shareholder Information - The Directors and chief executive held a total of 1,900,840,000 shares, representing approximately 60.12% of the issued share capital of the Company[125]. - CHEN Qiyuan holds a beneficial interest of approximately 50.43% in the issued share capital of Fortune Station, equating to 1,900,840,000 shares[134]. - CHEN Zheng He is deemed to have an interest in 49.57% of Fortune Station's shares held by Heroic Hour, which he controls[136]. - The five children of CHEN Qiyuan under the age of 18 hold a combined interest of 65.00% in Heroic Hour, which in turn holds 49.57% of Fortune Station[137]. - As of June 30, 2022, Heroic Hour held approximately 942,199,659 shares of Fortune Station, representing 29.80% of the issued share capital[139]. - No other directors or executives had interests or short positions in shares of the company or its associated corporations as of June 30, 2022[135]. Share Option Scheme - The total number of ordinary shares held by CHEN Qiyuan is 20,000, which is 50.43% of the interest in Fortune Station[130]. - The total number of shares that may be granted under the 2020 Share Option Scheme is 316,244,072 shares, representing 10.0% of the issued share capital of the Company as of the date of the interim report[149]. - The maximum number of shares that may be issued upon the exercise of all outstanding options under the 2020 Share Option Scheme must not exceed 30.0% of the total number of shares in issue at any time[147]. - The maximum number of shares issuable to each eligible participant in the 2020 Share Option Scheme within any 12-month period is limited to 1.0% of the shares of the Company in issue at any time[147]. - Share options granted to connected persons or their associates require prior approval from independent non-executive Directors[150]. - Any share options granted to substantial shareholders or independent non-executive Directors exceeding 0.1% of the shares in issue and with an aggregate value over HK$5 million within any 12-month period require shareholders' approval[150]. - The exercise price of share options is determined by the Board and must be at least the highest of the closing price on the offer date, the average closing price for the preceding five business days, or the nominal value of a share[155]. - The 2020 Share Option Scheme was adopted on May 29, 2020, and will remain in force for 10 years unless cancelled or amended[144]. - There is no general requirement on the minimum holding period or performance targets for exercising options under the 2020 Share Option Scheme[153]. - The offer of a grant of share options is deemed accepted when the Company receives the signed offer letter and a non-refundable payment of HK$1.00 within 21 days[157]. - The company has not disclosed any new product developments or market expansion strategies in the provided documents[138]. - There are no reported mergers or acquisitions in the recent financial disclosures[138].

Financial Performance - Revenue for 2021 was RMB 273,604,000, a decrease of 0.5% from RMB 275,987,000 in 2020[9] - Gross profit for 2021 was RMB 99,031,000, resulting in a gross margin of 36.2%, compared to 39.2% in 2020[9] - Loss for the year attributable to owners of the Company was RMB 9,084,000, with a net loss ratio of 3.3%[9] - The total revenue for the Group for the year ended 31 December 2021 was approximately RMB273.6 million, a decrease of approximately 0.9% from RMB276.0 million in 2020[27][28] - The net loss for the Group for the year ended 31 December 2021 was approximately RMB9.1 million, compared to a net loss of approximately RMB4.0 million in 2020[29] - The Group's gross profit decreased to approximately RMB99.0 million, representing a decrease of approximately 8.4% compared to RMB108.1 million in 2020, with a gross profit margin decline from approximately 39.2% to 36.2%[105] - The Group recorded a loss of approximately RMB9.1 million for 2021, compared to a loss of approximately RMB4.0 million for 2020[108] Revenue Breakdown - Revenue from shampoo and hair-care products was RMB 232,166,000, down from RMB 249,230,000 in 2020[11] - Revenue from other household and personal care products increased to RMB 40,259,000 from RMB 24,868,000 in 2020, representing a growth of 62.0%[11] - The core brand, Bawang, generated approximately RMB260.4 million in revenue, accounting for approximately 95.2% of total revenue by product category in 2021[91] - Revenue from online sales was approximately RMB141.0 million, representing a decrease of approximately 8.2% from RMB153.5 million in 2020, while conventional sales increased by approximately 8.3%[90] Marketing and Brand Strategy - The Group plans to focus on expanding its product lines and enhancing market presence in the coming year[26] - The Group's marketing strategy included a collaboration with a puppetry artist, resulting in a series of animations and a cobranded anti-hair fall haircare gift-pack, which gained significant attention[42][46] - The marketing campaign attracted over 15 million views and media coverage from more than 25 news agencies in China[46] - The Group launched a giftbox in collaboration with Grain Mill, combining Bawang Black Sesame Shampoo and Eruptive Hair-grow Black Sesame Pills to enhance consumer recognition of product functionality[47] - The Group's marketing strategy included collaborations with popular social media platforms like Little Red Book, Weibo, B Station, and Tik Tok to promote anti-hair fall products[52] Operational Challenges - The company reported an operating loss of RMB 7,534,000 for 2021, compared to an operating loss of RMB 2,804,000 in 2020[9] - The cost of sales in 2021 amounted to approximately RMB174.6 million, an increase of approximately 4.0% from RMB167.9 million in 2020[102] - The percentage of revenue attributed to cost of sales increased from approximately 60.8% in 2020 to approximately 63.8% in 2021[102] - The Group recognized impairment losses of approximately RMB0.9 million for trade receivables for the year ended December 31, 2021, using the expected credit loss model[76][80] Future Outlook and Strategy - The Group plans to focus on building a management team with strong experience in both domestic and global HPC sectors to regain sales growth momentum and profitability[35][38] - The Group aims to strengthen its business model and positioning to acquire market shares from competitors while maintaining a multi-brand and multi-product strategy in the HPC sectors[35][38] - The company expects the Chinese and global economies to be unstable in 2022 and beyond, necessitating cautious business strategies[113] - The corporate theme for 2022 is "Continue our Growth at a Steady Pace"[114] Human Resources and Governance - The Group employed approximately 499 employees as of December 31, 2021, an increase from approximately 477 employees as of December 31, 2020, representing a growth of about 4.6%[165] - The Group's human resources policies are designed to maintain a stable workforce, emphasizing promising career prospects and competitive remuneration[171] - The Board of Directors comprised six members as of December 31, 2021, including the Chairman and the CEO, ensuring a diverse governance structure[176] - The Company has adopted a Model Code for Securities Transactions by Directors, with all Directors confirming compliance throughout the year under review[175] Corporate Social Responsibility - During the year, the Group participated in community welfare events, donating Bawang-branded products to COVID-19 affected areas and impoverished families, enhancing its corporate image[57] - The Group is committed to investing in human capital to retain a quality workforce and maintain good relationships with employees[160] Financial Position - The Group's cash, bank balances, and time deposits amounted to approximately RMB 113.3 million as of December 31, 2021, down from RMB 122.3 million in 2020[134][135] - Total assets increased to RMB 295.6 million in 2021 from RMB 264.6 million in 2020, maintaining a gearing ratio of 0%[136][137] - The Group's trade receivables as of December 31, 2021, were approximately RMB 20.0 million, a decrease of approximately 9.5% from RMB 22.1 million in 2020, attributed to a decline in overall sales through online and conventional channels[154]

Financial Performance - The total revenue for the six months ended June 30, 2021, was approximately RMB 115.6 million, representing a decrease of approximately 6.7% from RMB 123.9 million for the same period last year[15]. - The operating loss for the same period was approximately RMB 14.1 million, compared to an operating loss of approximately RMB 4.6 million for the same period last year[15]. - The net loss for the six months ended June 30, 2021, was approximately RMB 14.3 million, compared to a net loss of approximately RMB 5.3 million for the same period last year[16]. - Revenue through the online sales channel was approximately RMB 57.2 million, representing a decrease of approximately 12.4% from RMB 65.3 million for the same period last year[32]. - The core brand Bawang generated revenue of approximately RMB110.3 million, accounting for 95.4% of total revenue, representing a decrease of approximately 4.3% compared to the same period last year[36][42]. - The Royal Wind anti-dandruff haircare series generated revenue of approximately RMB1.9 million, accounting for 1.6% of total revenue, with a decrease of approximately 17.4% year-over-year[37][44]. - The Litao natural-based product series generated revenue of approximately RMB3.4 million, accounting for 2.9% of total revenue, reflecting a decrease of approximately 15.0% compared to the previous year[38][43]. - The Herborn skincare series generated revenue of approximately RMB0.1 million, accounting for 0.1% of total revenue, with a significant decrease of approximately 94.4% year-over-year[39][45]. - Loss before taxation for the period was RMB 14,338,000, compared to RMB 5,295,000 in the previous year, marking an increase of 170.5%[191]. - Loss for the period attributable to owners of the Company was RMB 14,338,000, compared to RMB 5,295,000 in the same period of 2020, representing an increase of 170.5%[192]. Cost and Expenses - Cost of sales amounted to approximately RMB75.7 million, a decrease of approximately RMB3.5 million (or 4.4%) from the previous year, but as a percentage of revenue, it increased from approximately 63.9% to 65.5%[47][48]. - Gross profit decreased to approximately RMB39.9 million, down approximately 10.9% from RMB44.8 million, with the gross profit margin decreasing from 36.1% to 34.5%[49][51]. - Selling and distribution costs increased to approximately RMB42.0 million, up approximately 12.9% from RMB37.2 million, with the percentage of revenue rising from 30.0% to 36.3%[50][52]. - Administrative expenses increased to approximately RMB14.1 million, representing a 7.6% increase from RMB13.1 million, primarily due to higher salaries and research and development expenses[54][59]. - The Group recorded an operating loss of approximately RMB14.1 million, compared to a loss of approximately RMB4.6 million in the same period last year, attributed to decreased revenue and increased marketing expenses[56][61]. Distribution and Sales Channels - As of June 30, 2021, the Bawang brand distribution network comprised 882 distributors and eight key account retailers, covering 26 provinces and four municipalities in China[24]. - The Royal Wind brand distribution network included 139 distributors, also covering 26 provinces and four municipalities in China as of June 30, 2021[25]. - The Litao products distribution network comprised 104 distributors and five key account retailers, targeting second-tier and third-tier cities in China as of June 30, 2021[26]. - The Group has established online flagship stores for its brands on 14 online retailing platforms in China, aiming to deepen efforts in this channel[27]. - The Group intends to optimize operations and stabilize market share for hot-selling items such as anti-hair fall products through its online flagship stores[88]. - The Group will continue to deepen cooperation with distributors and stimulate sales revenues through promotional activities during key holidays and events[87]. Corporate Strategy and Future Plans - The Group plans to launch four new anti-dandruff product series under the Royal Wind brand to cater to young consumers, primarily sold through conventional channels[80]. - The Group aims to enhance revenue for Bawang-branded products by leveraging consumer confidence in domestic products and appointing internet celebrities as brand ambassadors[79]. - The Group plans to launch several herbal shampoo products under the BaWang brand to expand its product range and will sell these through traditional channels[89]. - The Group aims for stable sales growth in e-commerce channels, optimizing operations and developing high-end products to maintain market share[90]. - The OEM business has seen substantial growth in the first half of the year, with plans to strengthen customer relationships and expand into different personal care products[95]. Assets and Liabilities - As of June 30, 2021, cash and cash equivalents were RMB 101.4 million, down from RMB 122.3 million as of December 31, 2020[105]. - Total assets decreased to RMB 227.6 million as of June 30, 2021, from RMB 264.6 million as of December 31, 2020[105]. - The Group maintains a gearing ratio of 0%, indicating no outstanding loans as of the reporting date[105]. - As of June 30, 2021, the Group's trade and other payables were approximately RMB69.6 million, representing a decrease of 14.1% from RMB81.1 million as of December 31, 2020[121]. - The total personnel expenses for the six months ended June 30, 2021, amounted to approximately RMB27.3 million, down from approximately RMB29.0 million for the same period in 2020[131]. - The Group employed 495 employees as of June 30, 2021, compared to 508 employees as of June 30, 2020[131]. Shareholding and Corporate Governance - CHEN Qiyuan holds a long position of 1,900,840,000 ordinary shares, representing approximately 60.12% of the issued share capital of the Company[141]. - CHEN Zheng He also holds a long position of 1,900,840,000 ordinary shares, equivalent to approximately 60.12% of the issued share capital of the Company[141]. - WONG Sin Yung has a long position of 2,100,000 ordinary shares, accounting for about 0.07% of the issued share capital of the Company[141]. - The Company has no substantial shareholders other than the directors and chief executives with interests or short positions in shares as of June 30, 2021[150]. - The overall structure of shareholding shows a concentrated ownership with key individuals holding substantial percentages of the Company’s shares[141]. - The company has complied with the applicable code provisions of the Corporate Governance Code during the reporting period[177]. Cash Flow and Financial Position - The net cash used in operating activities was RMB 15,016,000, compared to cash generated of RMB 19,125,000 in the same period of 2020, reflecting a decrease of approximately 178%[196]. - The company reported a net cash inflow from investing activities of RMB 288,000, a recovery from a net cash outflow of RMB 9,826,000 in the previous year[198]. - The net cash used in financing activities was RMB 6,255,000, down from RMB 13,770,000 in the same period of 2020, indicating a reduction of approximately 54%[198]. - The company experienced a net decrease in cash and cash equivalents of RMB 20,983,000 for the six months ended June 30, 2021, compared to a decrease of RMB 4,471,000 in the same period of 2020[198].