Financial Performance - In 2024, the company achieved a net profit of RMB 36.5 million, a significant increase of 308.1% year-on-year, marking a turnaround from previous losses [9]. - The overall gross margin for 2024 was 30.0%, an increase of 3.7 percentage points compared to 2023, despite a decrease in revenue scale [11]. - In 2024, the company's total revenue was RMB 1,348.4 million, a decrease of 22.3% compared to the previous year, primarily due to strategic optimization of existing brands and channels, and a decline in consumer confidence in the Chinese market [17]. - Operating profit for 2024 was RMB 27.8 million, a significant improvement from an operating loss of RMB 7.9 million in 2023, primarily due to reduced operating expenses and improved inventory turnover [28]. - The company achieved earnings per share of RMB 0.23 in 2024, compared to a loss per share of RMB 0.11 in 2023 [29]. - The company reported a financial income of RMB 10,410 thousand in 2024, up from RMB 4,802 thousand in 2023 [191]. - The total operating costs decreased to RMB 943,705 thousand in 2024 from RMB 1,279,245 thousand in 2023, contributing to improved profitability [191]. - The company declared dividends amounting to RMB 37,644 thousand in 2024, compared to RMB 18,203 thousand in 2023, reflecting an increase of approximately 106.7% [199]. Revenue and Sales - The sales volume of the Ansu brand's fly bait exceeded 750,000 bottles in 2024, representing a growth of 40% year-on-year [10]. - The sales revenue of adult personal care products decreased by 20.6% year-on-year, while infant personal care products saw a decline of 35.6%, mainly due to market demand reduction and increased competition [21]. - The health product sales revenue decreased by 21.3% year-on-year, impacted by brand events and stock shortages, although a new anti-aging health food brand was successfully launched in the second half of 2024 [21]. - Total revenue for the year ended December 31, 2024, was approximately RMB 1,336,824,000, with B2B sales contributing RMB 649,007,000 and B2C sales contributing RMB 687,817,000 [180]. Inventory and Cash Management - The company’s inventory as of December 31, 2024, was RMB 265.0 million, down 5.2% from RMB 279.6 million in the previous year [11]. - Cash and cash equivalents increased to RMB 438.6 million as of December 31, 2024, up by RMB 100.2 million from RMB 338.4 million in 2023 [30]. - Net cash generated from operating activities was RMB 172.2 million, reflecting improved cash flow management and inventory turnover [31]. Operational Efficiency and Strategy - The company continues to optimize its business structure by terminating low-margin business collaborations to enhance operational efficiency [11]. - The company is focused on leveraging digital tools to improve efficiency across various business segments [11]. - The company plans to strengthen its profitable business scale and profit through the establishment of an AI task force and the integration of AI technologies into its operations [15]. - The group plans to implement a "Efficiency Revolution" in its existing e-commerce operations, focusing on refined operations, cost reduction, and enhanced AI technology application [45]. Market Position and Brand Development - The new product "Morning Day and Night Pants" from the Sofy brand ranked TOP 1 in Tmall's new sanitary napkin product list for the 38th anniversary [10]. - The Kose Cosmeport brand's cleansing oil achieved TOP 1 in Tmall's imported cleansing oil repurchase list during the Double Eleven shopping festival [10]. - The company was recognized as a "Five-Star Operating Service Provider" and "Super V-Partner" by Tmall for its operational capabilities [10]. Corporate Governance and Compliance - The company has established three board committees, including the audit committee, remuneration committee, and nomination committee, to oversee specific areas of governance [128]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value [124]. - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024 [177]. - The company has complied with all relevant laws and regulations that significantly impact its business and operations during the reporting period [108]. Employee Relations and Diversity - The group has maintained stable employee relations without significant strikes or labor disputes affecting business activities [40]. - The group is committed to providing competitive compensation packages to retain employees, including salaries, discretionary bonuses, and benefits plans [40]. - As of December 31, 2024, female employees represent approximately 73.7% of the total workforce, including senior management [136]. - The company emphasizes gender diversity at all levels, particularly in the boardroom, and is committed to providing career development opportunities for employees [136]. Future Outlook and Challenges - The external environment for 2025 remains uncertain, with unfavorable factors such as international instability and weak consumer sentiment [44]. - The group is confident in navigating uncertainties in 2025, leveraging its accumulated operational experience and professional expertise [44]. - The company aims to explore overseas business development opportunities in North America and Southeast Asia, leveraging its mature e-commerce operational capabilities [15].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 1,348.4 million, a decrease of 22.3% compared to RMB 1,735.9 million for the year ended December 31, 2023[3] - Net profit for the year ended December 31, 2024, was RMB 36.5 million, a turnaround from a net loss of RMB 17.5 million for the year ended December 31, 2023, representing an increase of 308.1%[5] - Basic earnings per share for the year ended December 31, 2024, was RMB 0.23, compared to a basic loss per share of RMB 0.11 for the year ended December 31, 2023[6] - Operating profit for 2024 was RMB 27.8 million, compared to a loss of RMB 7.9 million in 2023, primarily due to reduced operating expenses and improved efficiency[65] - The overall gross margin for 2024 improved to 30.0%, up 3.7 percentage points from 26.3% in the previous year[53] Revenue Breakdown - B2B sales accounted for RMB 649,007 thousand in 2024, down 23% from RMB 843,128 thousand in 2023[24] - B2C sales were RMB 687,817 thousand in 2024, a decline of 21.6% compared to RMB 877,174 thousand in 2023[24] - Sales of adult personal care products accounted for 65.9% of total revenue in 2024, with sales of RMB 889,597 thousand, down 20.6% from 2023[56] - The company reported a significant decline in sales of infant personal care products, which fell by 35.6% to RMB 126,166 thousand in 2024[56] - Service revenue decreased by 25.8% year-on-year, impacted by events related to a specific brand, affecting e-commerce service income[60] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 1,189.95 million, compared to RMB 1,157.35 million as of December 31, 2023[10] - Total liabilities as of December 31, 2024, were RMB 469.48 million, an increase from RMB 430.09 million as of December 31, 2023[12] - Cash and cash equivalents as of December 31, 2024, were RMB 438.58 million, up from RMB 338.40 million as of December 31, 2023[10] - Trade payables increased to RMB 246,280 thousand in 2024 from RMB 181,691 thousand in 2023[48] - Total borrowings amounted to RMB 200,398 thousand in 2024, down from RMB 222,976 thousand in 2023[47] Expenses and Costs - The cost of goods sold for the year 2024 was RMB 958,736 thousand, down from RMB 1,263,651 thousand in 2023, reflecting a decrease of 24.1%[28] - Employee benefits expenses were RMB 93,597 thousand in 2024, a slight decrease from RMB 100,856 thousand in 2023[28] - Interest expenses decreased to RMB 6,002 thousand in 2024 from RMB 12,941 thousand in 2023, representing a reduction of approximately 53.6%[30] - Current income tax expense increased to RMB 1,758 thousand in 2024 from RMB 572 thousand in 2023, marking an increase of 208.5%[31] - Deferred income tax increased significantly to RMB 7,102 thousand in 2024 from RMB 2,648 thousand in 2023, an increase of 168.5%[31] Cash Flow - The net cash generated from operating activities for 2024 was RMB 172.2 million, primarily due to improved inventory turnover and better payment terms, resulting in increased cash flow[68] - The net cash used in financing activities was RMB 71.4 million, mainly due to debt repayment and dividend payments totaling RMB 72.9 million[69] - The debt-to-equity ratio as of December 31, 2024, was -32.5%, indicating a low level of debt relative to equity[70] - The net cash flow from operating activities improved significantly, reflecting the company's focus on reducing inventory and enhancing cash management[68] Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.50 per share for the year ended December 31, 2024[7] - The company plans to pay an interim dividend of HKD 0.25 per share for the six months ending June 30, 2024, totaling HKD 41.5 million (approximately RMB 37.6 million)[51] - The company had no profit distribution from its Chinese subsidiaries in both 2024 and 2023, maintaining a consistent policy[37] - The company will suspend share transfer registration from June 23 to June 26, 2025, to determine eligible shareholders for the annual general meeting[91] - The company will also suspend share transfer registration from July 3 to July 7, 2025, to identify shareholders entitled to receive the final dividend[92] Corporate Governance and Future Plans - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[86] - The company plans to implement a dual strategy of "efficiency revolution" and "innovation" to enhance operational quality and expand revenue through brand growth and acquisitions[82] - The company aims to explore business expansion opportunities in North America and Southeast Asia as part of its channel strategy[82] - The company has not adopted any new international financial reporting standards that would significantly impact its financial performance as of December 31, 2024[20] - The company has no plans to buy, sell, or redeem any of its listed securities during the fiscal year ending December 31, 2024[85]

Financial Performance - For the six months ended June 30, 2024, the company recorded revenue of RMB 613.3 million, a decrease of 32.0% compared to the same period last year[6]. - Net profit for the six months ended June 30, 2024, was RMB 23.7 million, representing a significant increase of 981.1% compared to RMB 2.2 million in the same period last year[6]. - Basic earnings per share for the six months ended June 30, 2024, were RMB 0.15, up from RMB 0.01 in the same period last year[6]. - The group's total revenue for the first half of 2024 decreased by 32.0% compared to the same period last year, primarily due to the optimization of existing brands and channels, and a decline in market share for certain Japanese brands in China[8]. - B2B sales accounted for 44.3% of total revenue in the first half of 2024, down from 46.2% in the same period of 2023, with revenue of RMB 271.2 million[9]. - Sales revenue from adult personal care products decreased by 29.5% year-on-year, while infant personal care products saw a decline of 45.8% due to increased competition and a decrease in birth rates[11]. - The revenue from beauty products decreased by 42.7% year-on-year, impacted by the termination of a partnership with a brand on a major e-commerce platform[11]. - The revenue from service offerings decreased by 44.0% year-on-year, primarily due to a decline in e-commerce operational service income[11]. - The company reported total revenue of RMB 613,304,000 for the six months ended June 30, 2024, a decrease of 32.0% compared to RMB 901,925,000 for the same period in 2023[69]. - B2B sales amounted to RMB 271,246,000 for the six months ended June 30, 2024, down 35.0% from RMB 416,907,000 in the prior year[69]. - B2C sales were RMB 337,666,000 for the six months ended June 30, 2024, a decrease of 29.3% from RMB 477,171,000 in the same period of 2023[69]. Profitability and Margins - The gross margin improved to 30.0%, an increase of 3.2 percentage points from 26.8% in the same period last year[6]. - Operating profit for the first half of 2024 was RMB 164 million, compared to RMB 81 million in the same period last year, attributed to optimized marketing expenses and reduced personnel costs[16]. - The overall gross profit margin increased to 30.0% for the first half of 2024, up from 26.8% in the same period last year, driven by a higher proportion of high-margin product sales[12]. - The gross profit margin for infant personal care products increased by 6.9 percentage points year-on-year, reflecting the company's strategy to reduce low-margin channel sales[15]. - The company recorded a financial net income of RMB 28 million in the first half of 2024, alongside RMB 90 million from equity transfer gains[16]. Cost Management and Strategy - The company successfully executed a strategy focused on cost reduction and operational efficiency, leading to improved profit margins[7]. - The company terminated partnerships with low-margin brands as part of its strategy to optimize brand and channel structure[7]. - The company aims to stabilize existing business and revenue through refined operations and cost reduction strategies to improve profitability[28]. - No significant capital expenditures or major investments are planned for the six months ending June 30, 2024[21]. Cash Flow and Financial Position - As of June 30, 2024, the net cash generated from operating activities was RMB 88.6 million, significantly up from RMB 0.865 million in the same period of 2023[17]. - The total cash and cash equivalents increased to RMB 365.4 million as of June 30, 2024, compared to RMB 276.0 million at the end of June 2023[17]. - The company reported a net increase in cash and cash equivalents of RMB 27,112 thousand for the period, contrasting with a decrease of RMB (142,254) thousand in the same period last year[50]. - The company received RMB 137,800 thousand from third-party borrowings during the financing activities, compared to RMB 233,373 thousand in the same period of 2023, indicating a decrease of about 41%[50]. - Interest paid during the period was RMB (2,986) thousand, down from RMB (4,400) thousand in the previous year, representing a reduction of approximately 32.1%[50]. - The company reported a tax refund of RMB 5,426 thousand, a significant improvement from a tax payment of RMB (11,552) thousand in the same period last year[50]. Corporate Governance and Social Responsibility - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange and has complied with all applicable provisions for the six months ended June 30, 2024[29]. - The company continues to review and monitor its corporate governance practices to ensure compliance with the governance code[29]. - The company donated 30,000 packs of Sofy sanitary napkins, valued at nearly RMB 200,000, to the girls in Aksu, Xinjiang, as part of its social responsibility initiatives[31]. - The audit committee, consisting of three independent non-executive directors, reviewed the company's financial information for the six months ended June 30, 2024[36]. Employee and Training Initiatives - As of June 30, 2024, the company employed 259 staff, with female employees accounting for 71% of the workforce[30]. - The company organized 33 employee training sessions in the first half of 2024, covering business introductions, industry and market understanding, corporate culture, and comprehensive skills enhancement[30]. Future Plans and Investments - The company plans to continue incubating proprietary and co-created brands in health food and skincare to expand brand influence and sales in the second half of 2024[28]. - Increased investment in the Douyin platform is planned to drive traffic conversion and enhance consumer engagement[28]. - The company has allocated 7.0% (HKD 22 million) of the proceeds to enhance its technology systems and data analytics capabilities, with HKD 17 million utilized by June 30, 2024[38]. - The company has also allocated 13.0% (HKD 42 million) for strategic investments in technology companies and O2O service providers, with all funds utilized by June 30, 2024[38]. Shareholder Information - The company announced an interim dividend of HKD 0.25 per share for the six months ended June 30, 2024, compared to HKD 0.12 for the same period in 2023, totaling approximately HKD 41.5 million[33]. - Major shareholders include Wisdom Oasis with 38.82% (64,392,700 shares) and Transcosmos Inc. with 34.52% (57,264,100 shares) as of June 30, 2024[41]. - The company will suspend the registration of share transfers from September 12 to September 16, 2024, to determine the identity of shareholders entitled to receive the interim dividend[35].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 613.3 million, a decrease of 32.0% compared to the same period last year[2] - Net profit for the six months ended June 30, 2024, was RMB 23.7 million, an increase of 981.1% compared to RMB 2.2 million in the same period last year[2] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.15, compared to RMB 0.01 in the same period last year[4] - The total revenue for the six months ended June 30, 2024, was RMB 613,304 thousand, a decrease from RMB 901,925 thousand in the same period of 2023, representing a decline of approximately 32.0%[56] - The gross margin for the first half of 2024 was 30.0%, an increase of 3.2 percentage points from 26.8% in the same period last year, while net profit rose to RMB 23.7 million, a significant increase of 981.1% year-on-year[54] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 1,169.1 million, compared to RMB 1,157.4 million as of December 31, 2023[6] - Current assets totaled RMB 1,042.9 million as of June 30, 2024, slightly up from RMB 1,040.4 million as of December 31, 2023[5] - Total liabilities decreased to RMB 425.7 million as of June 30, 2024, from RMB 430.1 million as of December 31, 2023[6] - The total equity attributable to owners of the company as of June 30, 2024, was RMB 741,054,000, up from RMB 727,258,000 at the beginning of the year[7] Cash Flow - The cash flow from operating activities for the six months ended June 30, 2024, was RMB 88,648,000, a significant increase from RMB 865,000 in the same period of 2023[9] - Cash and cash equivalents increased to RMB 365.4 million as of June 30, 2024, from RMB 338.4 million as of December 31, 2023[5] - The net cash generated from operating activities was RMB 88.6 million, primarily from operating income of RMB 77.7 million and income tax refunds of RMB 5.4 million[63] - The net cash used in investing activities was RMB 8.7 million, mainly for purchasing financial products[64] - The net cash used in financing activities was RMB 52.8 million, primarily due to the group's efforts to reduce the debt ratio, with net loan repayments of RMB 48.6 million[64] Expenses - The company reported a significant reduction in selling and marketing expenses to RMB 135.2 million from RMB 197.9 million in the same period last year[3] - Research and development expenses increased to RMB 2.3 million for the six months ended June 30, 2024, compared to RMB 1.8 million in the same period last year[3] - Cost of goods sold decreased to RMB 429,094 thousand for the six months ended June 30, 2024, down from RMB 660,115 thousand in 2023, reflecting a reduction of approximately 35%[8] - Sales and marketing expenses were reduced to RMB 45,794 thousand, a decrease of about 41% from RMB 77,152 thousand in the previous year[8] Revenue Breakdown - B2B and B2C sales accounted for RMB 271,246 thousand for the six months ended June 30, 2024, down from RMB 416,907 thousand in 2023, representing a decline of 35%[26] - Major customer A contributed RMB 196,072 thousand in revenue for the six months ended June 30, 2024, compared to RMB 331,455 thousand in 2023, reflecting a decrease of 41%[29] - Revenue from Douyin and Pinduoduo accounted for 11.1% of the company's total revenue in the first half of 2024, indicating successful channel expansion efforts[54] - Sales revenue for adult personal care products decreased by 29.5% year-over-year, primarily due to a decline in brand strength and reduced sales through low-margin channels[57] - Sales revenue for infant personal care products dropped by 45.8% year-over-year, influenced by declining birth rates and increased market competition[57] Corporate Governance - The board of directors has established an audit committee, consisting of three independent non-executive directors, to oversee financial reporting and risk management[82] - The company has adhered to the corporate governance code and will continue to review its governance practices to ensure compliance[77] - The company will continue to assess the effectiveness of its corporate governance structure and may consider separating the roles of chairman and CEO in the future[78] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[77] Future Plans - The company plans to continue optimizing its brand and channel structure to enhance operational quality and efficiency moving forward[54] - The group plans to continue advancing its own and co-created brands in health food and skincare, expanding brand influence and sales in the second half of 2024[75] - The company will increase investment in the Douyin platform to drive traffic conversion, user growth, and consumer loyalty[75] Dividends - The company announced an interim dividend of HKD 0.25 per share for the six months ended June 30, 2024, compared to HKD 0.12 for the same period in 2023, totaling approximately HKD 41.5 million[80] - The interim dividend is expected to be paid on September 26, 2024[80] Investment Proceeds - The net proceeds from the listing on July 12, 2021, amounted to approximately HKD 320 million after deducting underwriting fees and estimated expenses[83] - 54.3% of the proceeds (HKD 174 million) is allocated for investment in social media marketing, brand development, and enriching the brand, expected to be utilized by December 31, 2024[83] - 15.7% of the proceeds (HKD 50 million) is designated for enhancing supply chain management and enriching health product brands, with no funds utilized as of the report date[83] - 7.0% of the proceeds (HKD 22 million) is aimed at strengthening technology systems and product types, with HKD 17 million expected to be utilized by December 31, 2024[83] - 13.0% of the proceeds (HKD 42 million) is planned for strategic investments in technology companies and O2O service providers, with full utilization expected by December 31, 2024[83]

Financial Performance - The net loss for 2023 was RMB 17.5 million, representing an 85.0% reduction compared to a net loss of RMB 116.8 million in the previous year[12]. - In 2023, the company's total revenue was RMB 1,735.9 million, a decrease of 27.0% compared to the previous year[22]. - The sales revenue of adult personal care products decreased by 27.7% year-on-year, primarily due to a decline in market competitiveness and the termination of low-margin brand collaborations[28]. - The sales revenue of infant personal care products fell by 28.5% year-on-year, influenced by declining birth rates and intensified market competition[28]. - The sales revenue of beauty products decreased by 37.4% year-on-year, impacted by the termination of low-margin brand collaborations and competition from local brands[28]. - The revenue from service provision decreased by 37.9% year-on-year due to the closure of unprofitable operations[29]. - The operating loss for 2023 was RMB 79 million, significantly improved from a loss of RMB 122.5 million in the previous year, due to reduced marketing expenses by 48.8% and logistics costs by 27.9%[36]. - The gross profit for the group in 2023 was RMB 456.7 million, with a gross margin of 26.3%, an increase of 2.4 percentage points from 2022[33]. - The gross profit margin for 2023 was 26.3%, an increase of 2.4 percentage points from 23.9% in the previous year, attributed to improved product structure and inventory management[30]. Inventory and Cash Management - As of December 31, 2023, the company's inventory was RMB 279.6 million, a decrease of RMB 256.1 million or 47.8% year-on-year[10]. - The net cash generated from operating activities was RMB 143.7 million, down from RMB 260 million in 2022, reflecting stable cash flow management despite inventory control efforts[40]. - The group’s cash and cash equivalents as of December 31, 2023, were RMB 338.4 million, a decrease from RMB 417.6 million at the beginning of the year[38]. - The debt-to-equity ratio improved to -14.6% as of December 31, 2023, compared to 4.5% in 2022, indicating a reduction in borrowings and higher cash reserves[42]. Marketing and Revenue Channels - Revenue from Douyin and Pinduoduo channels increased by 36.8% and 52.2% year-on-year, respectively[16]. - Revenue from Douyin and Pinduoduo increased by 36.8% and 52.2% respectively compared to the previous year, with their contribution to total revenue rising from 5.3% in 2022 to 10.5% in 2023[21]. - The company plans to enhance existing profitable businesses and invest more in emerging channels like Douyin and Pinduoduo to connect brands with consumers effectively[20]. - Increased investment in platforms like Douyin and Pinduoduo will be prioritized, along with establishing a comprehensive influencer matrix[57]. Strategic Initiatives and Partnerships - The company achieved a Guinness World Record by selling 20,097,237 pieces of Sofy sanitary napkins within 24 hours on Tmall Supermarket[14]. - A strategic partnership was established with Shiseido Group to co-create a body care series under the brand "Yiyezi," exploring new market opportunities[17]. - The company expanded its brand portfolio by adding six new brands, including Cocunat and Algotherm, during the reporting period[14]. - The company aims to develop its own brand business in health food and effective skincare products to create a second growth curve[20]. - The company plans to focus on health food and effective skincare products through brand co-creation and incubation of proprietary brands[57]. Governance and Management - The board consists of 3 executive directors, 1 non-executive director, and 3 independent non-executive directors, complying with listing rules regarding independent director appointments[164]. - The company has adopted the 2022 Restricted Share Unit Plan effective from June 22, 2022, aimed at rewarding selected participants for their contributions[118]. - The independent non-executive directors have confirmed their independence during the reporting period[106]. - The company has established appropriate insurance arrangements for directors and senior officers to cover costs and liabilities incurred in the execution of their duties[148]. - The board has established three committees: audit committee, remuneration committee, and nomination committee, each with defined responsibilities[185]. Shareholder Information - Mr. Wang Yong holds 64,392,700 shares, representing approximately 38.82% of the company's equity[114]. - Major shareholder Wisdom Oasis owns 64,392,700 shares, accounting for 38.82% of the equity, while TCI holds 57,264,100 shares, representing 34.52%[116]. - The company did not recommend a final dividend for the year ending December 31, 2023, due to cumulative losses[86]. - The company reported zero distributable reserves as of December 31, 2023, consistent with the previous year[100]. Environmental and Social Responsibility - The company has recognized the importance of environmental protection and is committed to low-carbon development and green operations[154]. - Charitable donations made by the company for the year ending December 31, 2023, totaled RMB 469,379, an increase from RMB 142,896 in 2022[102]. Future Outlook - The external environment for 2024 remains uncertain, with unfavorable factors such as international instability and weak consumer sentiment[56]. - The company aims to enhance existing operations to improve quality and efficiency, laying a solid foundation for future development[57].

Financial Performance - For the year ended December 31, 2023, the revenue was RMB 1,735.9 million, a decrease of 27.0% compared to RMB 2,379.0 million for the year ended December 31, 2022[4] - The net loss for the year ended December 31, 2023, was RMB 17.5 million, a reduction of 85.0% compared to a net loss of RMB 116.8 million for the year ended December 31, 2022[4] - The operating loss for the year ended December 31, 2023, was RMB 7.9 million, compared to an operating loss of RMB 122.5 million for the previous year[5] - The total comprehensive loss for the year ended December 31, 2023, was RMB 17.8 million, compared to RMB 85.7 million for the year ended December 31, 2022[6] - The company reported a basic loss per share of RMB 0.11 for the year ended December 31, 2023, compared to RMB 0.71 for the year ended December 31, 2022[6] Revenue Breakdown - B2B sales contributed RMB 843,128,000 in 2023, down from RMB 1,176,588,000 in 2022, reflecting a decrease of about 28%[21] - B2C sales generated RMB 877,174,000 in 2023, compared to RMB 1,177,313,000 in 2022, marking a decline of approximately 25%[21] - Revenue from Douyin and Pinduoduo for the year ended December 31, 2023, increased by 36.8% and 52.2%, respectively, compared to the same period last year[4] - Sales of adult personal care products decreased by 27.7% year-on-year, primarily due to a decline in market influence and the termination of partnerships with low-margin brands[57] - Sales of infant personal care products fell by 28.5%, impacted by a declining birth rate and increased competition in the domestic market[58] - Revenue from beauty products dropped by 37.4%, influenced by the termination of partnerships with low-margin brands and competition from local brands[59] - Revenue from services decreased by 37.9%, mainly due to the cessation of unprofitable businesses[60] Cost and Expenses - The cost of goods sold for the year was RMB 1,263,651,000, down from RMB 1,782,892,000 in 2022, indicating a reduction of about 29%[25] - The company’s operating expenses for the year were RMB 1,716,717,000, down from RMB 2,489,198,000 in 2022, representing a decrease of about 31%[25] - The group reduced promotional and advertising expenses by 48.8% year-on-year, and logistics costs decreased by 27.9%[66] - The company’s interest expenses on borrowings decreased to RMB 8,926,000 in 2023 from RMB 14,743,000 in 2022, reflecting a reduction of approximately 39.1%[27] Assets and Liabilities - The total assets as of December 31, 2023, were RMB 1,157.4 million, down from RMB 1,765.6 million as of December 31, 2022[8] - The company reported a total liability of RMB 1,157,351,000 as of December 31, 2023, compared to RMB 1,002,436,000 in 2022, an increase of approximately 15%[11] - The company’s total equity amounted to RMB 727,258,000 as of December 31, 2023, compared to RMB 763,133,000 in 2022, a decline of approximately 5%[11] - The debt-to-asset ratio as of December 31, 2023, was 37.2%, a decrease of 19.6 percentage points from 56.8% as of December 31, 2022[4] - The total borrowings decreased to RMB 222,976 thousand in 2023 from RMB 435,238 thousand in 2022, reflecting the company's strategy to reduce debt levels[44] Inventory and Receivables - As of December 31, 2023, inventory was RMB 279.6 million, a decrease of 47.8% from RMB 535.7 million as of December 31, 2022[4] - The company had a total of RMB 243,697,000 in trade and other receivables as of December 31, 2023, down from RMB 492,647,000 in 2022, indicating a reduction of approximately 50.5%[41] - The trade receivables aged analysis showed a total of RMB 186,633 thousand as of December 31, 2023, down from RMB 303,225 thousand in 2022, indicating a significant reduction in receivables[42] Future Outlook and Strategy - The company anticipates a challenging external environment in 2024, focusing on expanding sales channels and providing diverse consumer experiences[86] - The company aims to optimize its product structure and increase the sales proportion of high-margin products to improve overall profitability[61] - The company has committed to investing in health food and skincare products through brand co-creation and incubation strategies[88] Corporate Governance and Shareholder Matters - The company maintains high standards of corporate governance to protect shareholder interests and enhance corporate value[92] - The board does not recommend the payment of a final dividend for the year ending December 31, 2023 (2022: none) [97] - The audit committee has reviewed the group's audited consolidated annual performance for the year ending December 31, 2023 [99] - The independent auditor has confirmed the consistency of the financial figures in the preliminary announcement with the audited consolidated financial statements for the year ending December 31, 2023 [100]

Financial Performance - The company's revenue for the six months ended June 30, 2023, was RMB 901.9 million, a decrease of 19.8% compared to the same period last year[9]. - The company achieved a net profit of RMB 2.2 million for the six months ended June 30, 2023, compared to a net loss of RMB 31.6 million in the same period last year[11]. - Basic earnings per share turned positive to RMB 0.01, compared to a loss of RMB 0.20 per share in the same period last year[12]. - Operating profit for the six months ended June 30, 2023, was RMB 8.1 million, a significant recovery from an operating loss of RMB 41.2 million in the same period of 2022[23]. - The gross profit for the same period was RMB 241,351 thousand, down 11.8% from RMB 273,795 thousand in 2022[64]. - The net profit for the period was RMB 2,193 thousand, compared to a net loss of RMB 31,639 thousand in the same period of 2022[64]. - The company reported a net profit of RMB 1,678,000 for the six months ended June 30, 2023, compared to a net loss of RMB 32,538,000 for the same period in 2022, indicating a significant turnaround in performance[69]. - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.01, compared to a loss of RMB 0.20 per share in the same period of 2022[120]. Revenue Breakdown - Total revenue for the six months ended June 30, 2023, was RMB 901,925 thousand, a decrease of 19.8% compared to RMB 1,124,389 thousand in the same period of 2022[105]. - Sales revenue of adult personal care products decreased by 22.5% year-on-year, primarily due to product structure adjustments and the termination of low-margin brand collaborations[16]. - Sales revenue of infant personal care products decreased by 18.6% year-on-year, impacted by declining birth rates and intensified market competition[16]. - B2B sales amounted to RMB 416,907 thousand, down 19.3% from RMB 516,443 thousand in 2022, while B2C sales decreased by 19.6% to RMB 477,171 thousand from RMB 593,807 thousand[105]. - Major customer A contributed RMB 331,455 thousand to total revenue in the first half of 2023, down from RMB 457,346 thousand in 2022[108]. Cost Management - The gross profit margin improved to 26.8%, up from 24.4% in the same period last year, while sales and marketing expenses decreased by 27.7% year-on-year[10]. - The gross profit margin for health products increased by 4.9 percentage points year-on-year, attributed to timely adjustments in sales strategies and product mix[22]. - The company's operating expenses for the six months ended June 30, 2023, totaled RMB 895,036 thousand, a decrease of 23% from RMB 1,162,183 thousand in 2022[109]. - Cost of goods sold for the six months ended June 30, 2023, was RMB 660,115 thousand, a reduction of 21.4% compared to RMB 839,292 thousand in 2022[109]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2023, amounted to RMB 276.0 million, an increase from RMB 243.2 million as of June 30, 2022[25]. - Net cash generated from operating activities for the six months ended June 30, 2023, was RMB 0.9 million, compared to RMB 13.0 million in the same period of 2022[26]. - Operating cash flow for the six months ended June 30, 2023, was RMB 865,000, a recovery from a cash outflow of RMB 2,292,000 in the previous year[71]. - The company reported a net cash outflow from investing activities of RMB 36,073,000, an improvement from RMB 56,190,000 in the prior year, reflecting better investment management[72]. Debt and Financial Stability - As of June 30, 2023, the company's debt-to-equity ratio was 2.7%, down from 4.5% on December 31, 2022, indicating a significant reduction in leverage[28]. - Total borrowings amounted to RMB 286.2 million as of June 30, 2023, primarily consisting of bank loans, with RMB 146.4 million secured against inventory or receivables[29]. - Total liabilities decreased to RMB 546,854 thousand from RMB 1,002,436 thousand at the end of 2022, indicating improved financial stability[68]. - Total borrowings decreased to RMB 286,210,000 as of June 30, 2023, from RMB 435,238,000 as of December 31, 2022, representing a reduction of approximately 34.2%[129]. Operational Adjustments - The company focused on optimizing its brand structure and ended partnerships with low-margin brands, which contributed to the revenue decline[13]. - The company implemented cost control measures and optimized inventory levels to enhance operational cash flow[13]. - The overall consumer spending sentiment remained low due to macroeconomic factors, impacting the overall consumption market[14]. - The company has expanded its e-commerce operations in 2023, collaborating with various brands to enhance market presence[16]. - In the first half of 2023, the company focused on optimizing its operational structure, resulting in improved cash flow and a return to profitability despite a decline in revenue compared to the previous year[40]. Employee and Corporate Governance - The company has maintained a stable employee relationship with a total of 346 employees as of June 30, 2023, primarily located in China[36]. - The company organized 46 employee training sessions in the first half of 2023, covering business introduction, industry understanding, corporate culture, and skills enhancement[47]. - The company has established a dedicated email for reporting any misconduct, ensuring compliance with internal control policies[47]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2023[53]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.12 per share for the six months ended June 30, 2023, totaling approximately HKD 19.9 million, compared to no dividend for the same period in 2022[50]. - The company declared dividends amounting to RMB 42,561,000 to shareholders during the reporting period[69]. Future Outlook - For the second half of 2023, the company plans to enhance existing operations, reduce costs, and invest in health-related products to meet diverse consumer needs[41].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 UNQ HOLDINGS LIMITED 優 趣 匯 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） 2177 （股份代號： ） 2023 6 30 截 至 年 月 日 止 六 個 月 之 中 期 業 績 公 告 財務摘要 收入下滑 (cid:129) 主要受產品結構調整及終止部分低毛利品牌合作的影響，本集團截至 2023 6 30 901.9 年 月 日止六個月錄得收入為人民幣 百萬元，較去年同期相 19.8% 比減少 。 毛利率提升、銷售及營銷開支減少 (cid:129) 因本集團品牌結構優化及高毛利品牌佔比提升，提升推廣效率、降本控 2023 26.8% 24.4% 費效果顯現， 年上半年毛利率為 ，而去年同期毛利率為 ， 27.7% 銷售及營銷開支較去年同期相比減少 。 淨利潤實現扭虧為盈 ...

Financial Performance - In 2022, the company's sales revenue decreased by 21.6% year-on-year, reaching RMB 2,379.0 million due to the impact of COVID-19[3]. - The total revenue for 2022 decreased by 21.6% compared to the previous year, amounting to RMB 2,379,014,000, primarily due to COVID-19 restrictions and decreased consumer demand[22]. - The total operating loss for the group in 2022 was RMB 122.5 million, an increase from a loss of RMB 63.4 million in the previous year, primarily due to a gross profit decline of RMB 331.6 million[37]. - The overall gross profit margin for 2022 was 23.9%, a decline of 5.8% from the previous year, driven by low-margin sales strategies and increased inventory write-downs[31]. - The gross profit margin for adult personal care products decreased by 6.2% to 18.9%, with gross profit of RMB 293.1 million in 2022 compared to RMB 487.1 million in 2021[32]. - The gross profit margin for infant personal care products fell by 7.5% to 24.9%, with gross profit of RMB 68.3 million in 2022 compared to RMB 138.9 million in 2021[33]. - The gross profit margin for health products decreased by 6.3% to 27.4%, attributed to weaker market performance and reduced marketing support from major brand partners[36]. - The gross profit margin for B2C sales was 39.9% in 2022, down from 44.0% in 2021, with gross profit of RMB 469.9 million compared to RMB 702.2 million in the previous year[33]. Sales and Market Performance - The B2B model's general trade and cross-border e-commerce sales revenue fell by 20.1% and 9.1% respectively, while the B2C model's sales revenue declined by 18.0% and 34.2%[4]. - Sales of adult personal care products fell by 20.2%, with revenue of RMB 1,549,742,000, impacted by brand marketing strategy changes and reduced promotional activities[26]. - Sales of infant personal care products decreased by 36.0%, generating RMB 274,327,000, attributed to declining birth rates and brand competitiveness[26]. - Sales in the Douyin and Pinduoduo channels grew by 148% and 23% respectively in 2022, indicating a strong performance in emerging social e-commerce platforms[17]. - The OTC brand Daiko Pharmaceutical achieved a total sales increase of 46% in 2022, showcasing resilience amid market challenges[16]. Operational Improvements - Operating cash flow improved from a negative RMB 124.7 million in 2021 to a positive RMB 260.0 million in 2022 due to cost-cutting measures[15]. - The company implemented a "slimming down" plan to optimize cash flow and reduce operational costs, including inventory reduction and administrative cost cuts[11]. - The company terminated unprofitable short-term businesses and streamlined its organization to achieve cost reduction and efficiency improvement[13]. - The company focused on digital marketing innovation and enhanced operational capabilities to adapt to the challenging external environment[10]. - The company aims to enhance its omnichannel operational capabilities and accelerate private domain construction on platforms like Douyin and Pinduoduo[19]. Employee and Management Initiatives - The company has adopted a restricted share unit plan and optimized its performance evaluation system to enhance employee motivation and cohesion[15]. - The group had a total of 421 employees, primarily located in China, including Shanghai, Hangzhou, and Beijing[51]. - The group has established a competitive compensation package to retain employees, including salaries, discretionary bonuses, and benefits[51]. - The company provides social insurance contributions, including pension, medical, unemployment, work injury, and maternity insurance, along with housing fund contributions for employees[110]. - The company has established an open communication atmosphere and an incentive system based on hard work values to motivate employees[110]. Governance and Compliance - The company has established a robust governance framework, ensuring compliance and risk management across its operations[68]. - The board consists of 3 executive directors, 1 non-executive director, and 3 independent non-executive directors as of the report date[163]. - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the reporting period[155]. - The audit committee reviewed the accounting principles and practices adopted by the group and discussed internal controls and financial reporting matters[151]. - The company has established an internal audit department to monitor risk management and internal control systems continuously[198]. Strategic Initiatives and Future Plans - The company plans to increase investment in health-related categories, including functional foods and OTC products, to meet diverse consumer needs[19]. - The company aims to provide more quality products to customers and increase consumer traffic for e-commerce platforms[4]. - The company plans to utilize the remaining net proceeds from the IPO according to the disclosed plans, with expectations to complete usage by December 31, 2024[94]. - The company is committed to low-carbon development and green operations to minimize environmental impact[153]. - The group intends to leverage its data analysis and brand operation capabilities to participate in brand diagnostics, business restructuring, and product design development[56]. Risk Management - The group’s financial condition and operating performance may be affected by various risks and uncertainties, detailed in the financial statements[90]. - The company aims to manage and mitigate inherent business risks to an acceptable level rather than eliminate all risks[198]. - The audit committee's responsibilities include monitoring the integrity of financial statements and reviewing the company's financial control and risk management systems[185]. Community Engagement - The company is actively involved in various community and professional organizations, enhancing its corporate social responsibility profile[68]. - Charitable donations made by the company for the year ended December 31, 2022, totaled RMB 142,896, an increase from RMB 10,579 in 2021[102].

Financial Data and Key Metrics Changes - The company's inventory decreased by 244 million yuan, approximately 31.55% year-over-year, indicating proactive inventory management in an uncertain market environment [2][3] - Operating cash flow increased to 260 million yuan, a rise of nearly 385 million yuan compared to the previous year, enhancing the company's risk resistance capability [3][6] - The company's total assets decreased from 2 billion yuan to 1.76 billion yuan, a reduction of about 13%, primarily due to a 32% drop in inventory [6] Business Line Data and Key Metrics Changes - The company's revenue saw a decline of over 20%, with B2B growth slightly outpacing B2C [4] - Gross margin decreased from 29.7% in 2021 to 23.9% in 2022, attributed to low-margin sales strategies and inventory clearance efforts [5][10] - The company terminated partnerships with four unprofitable brands and optimized over ten weaker brands, focusing on high-end beauty brands [2][3] Market Data and Key Metrics Changes - The company reported that general trade accounted for approximately 60% of total revenue, consistent with the previous year's figures [4] - The company achieved significant growth in social e-commerce platforms, with Douyin's annual growth exceeding 148% and Pinduoduo's growth over 23% [5][11] Company Strategy and Development Direction - The company aims to develop a dual-driven strategy by enhancing existing operations and expanding into private label brands and acquisitions [7][9] - There is a focus on increasing investment in social e-commerce and private domain traffic, particularly on platforms like Douyin and Pinduoduo [7][9] - The company plans to continue optimizing inventory structure and reducing administrative costs to improve operational efficiency [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2022 as a challenging year but viewed it as an opportunity for restructuring and optimization [10][11] - The company expects to continue reducing inventory and improving gross margins in 2023, with a focus on high-margin brands and products [10][12] - Management highlighted the potential for growth in health products and high-end beauty segments, indicating plans for increased investment in these areas [12][13] Other Important Information - The company experienced a foreign exchange loss of approximately 25 million yuan due to the appreciation of the US dollar, but this is not expected to impact future cash flow [5][6] - The company has reduced bank financing by about 25%, from 514 million yuan to 384 million yuan, as part of its balance sheet optimization efforts [6] Q&A Session Summary Question: Can you elaborate on the company's brand cooperation strategy? - Management noted that 2022 provided an opportunity to streamline operations, reducing inventory from 780 million yuan to 530 million yuan, while terminating unprofitable brand partnerships [10] Question: What measures are in place to improve gross margin? - Management indicated that they are negotiating better terms with brands and expect gross margins to improve in 2023 due to proactive inventory management [10][11] Question: How does the company plan to navigate the decline in revenue? - Management emphasized continued investment in promising channels and brands, particularly in Douyin and Pinduoduo, which have shown significant growth [11][12]