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]

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 全部或任何部分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： ） 2022 12 31 截 至 年 月 日 止 年 度 之 年 度 業 績 公 告 摘要 • 截至2022年12月31日止年度的收入為人民幣2,379.0百萬元，與截至2021 年12月31日止年度相比減少21.6%。 • 截至2022年12月31日止年度的毛利為人民幣569.2百萬元，與截至2021年 12月31日止年度相比減少36.8%。 • 截至2022年12月31日止年度的淨虧損為人民幣116.8百萬元，而截至2021 年12月31日止年度本公司錄得淨利潤為人民幣30.0百萬元。 • 截至2021年12月31日止年度的經營活動現金流由人民幣負124.7百萬元 轉正至截至2022年12月31日止年度人民幣260.0百萬元。 優趣匯控股有限公司（「本公司」）董事 ...

Financial Performance - The total revenue for the first half of 2022 was RMB 1,124.4 million, representing a decrease of 24.1% compared to the same period last year[4]. - The net loss for the first half of 2022 was RMB 31.6 million, compared to a net profit of RMB 35.0 million in the same period of 2021[12]. - Operating loss for the first half of 2022 was RMB 41.2 million, compared to an operating profit of RMB 66.7 million in the same period of 2021[31]. - The company reported a total comprehensive loss of RMB 23,114,000 for the six months ended June 30, 2022, compared to a comprehensive income of RMB 22,325,000 in the same period of 2021[86]. - The company recorded a net loss per share of RMB 0.20 for the first half of 2022, compared to earnings per share of RMB 0.26 in the same period of 2021[31]. Revenue Breakdown - B2B sales revenue decreased by 25.7% and cross-border e-commerce sales revenue decreased by 27.2% compared to the previous year[5]. - B2C sales were RMB 593,807 thousand, a decline of 22.7% from RMB 768,362 thousand in the prior year[140]. - B2C general trade sales revenue declined by 12.9%, largely offset by sales growth from a significant adult personal care product brand[21]. - B2B general trade sales revenue decreased by 25.7%, primarily due to reduced demand in the maternal and infant market and weakened competitiveness of a key brand[21]. - B2C cross-border e-commerce sales revenue fell by 31.0%, mainly due to significant declines in demand for beauty products and a shift in business focus for a key infant personal care product[21]. Cost and Profitability - The gross profit margin decreased to 24.4% from 32.2% in the previous year, with promotional and advertising expenses declining by 34.2%[12]. - Overall gross margin for the first half of 2022 was 24.4%, down from 32.2% in the same period last year, attributed to low-margin sales strategies and inventory clearance promotions[22]. - Gross profit for the same period was RMB 273,795 thousand, down 42.5% from RMB 476,647 thousand year-on-year[84]. - Cost of goods sold was RMB 839,292 thousand, a decrease of 15.7% from RMB 995,679 thousand in the same period last year[147]. Cash Flow and Liquidity - Operating cash flow improved to RMB 13.0 million from a negative RMB 36.1 million in the previous year[12]. - Cash and cash equivalents as of June 30, 2022, amounted to RMB 243.2 million, primarily sourced from operating cash flow and bank borrowings[34]. - The net cash generated from operating activities was RMB 13.0 million, a significant improvement compared to a net cash used of RMB 36.1 million in the same period of 2021[35]. - The net cash used in financing activities was RMB 168.1 million, mainly due to the improvement in cash flow and the repayment of net borrowings amounting to RMB 154.8 million[36]. - Cash and cash equivalents decreased by RMB 211,262 thousand for the six months ended June 30, 2022, compared to an increase of RMB 99,375 thousand in the same period of 2021[99]. Strategic Plans and Future Outlook - The company plans to deepen cooperation with major brands and increase investment in platforms like Douyin, which saw revenue growth of 389%[14]. - The company expects to focus on expanding sales in the second half of the year to compensate for the shortfall in performance[15]. - In the second half of 2022, the company plans to strengthen its presence on interest e-commerce platforms like Douyin and enhance its global brand development strategy, particularly in Japan[54]. - The company aims to optimize inventory management and reduce personnel structure to improve financial performance in the second half of the year[14]. Impact of COVID-19 - The decline in performance was primarily due to the impact of COVID-19 and reduced consumer confidence, particularly affecting the adult personal care and beauty product segments[13]. - The company faced significant impacts on supply chain and logistics efficiency due to COVID-19-related disruptions in warehouses during the first half of the year[52]. - The company donated epidemic prevention materials worth RMB 92,614 to the local community in response to the COVID-19 outbreak in Shanghai[61]. Corporate Governance and Compliance - The board of directors decided not to declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[63]. - The company has maintained compliance with the corporate governance code, with no known breaches reported during the period[56]. - The board believes that the current structure of having the same individual serve as both Chairman and CEO does not impair the balance of power and responsibilities[57]. Shareholder Information - Major shareholders include Wisdom Oasis with 38.82% and Transcosmos Inc. with 34.52% of the shares[78]. - The company raised approximately HKD 320 million from its IPO, with 54.3% allocated for social media marketing and brand development, amounting to HKD 174 million[71]. - As of June 30, 2022, the company utilized HKD 198 million of the IPO proceeds, leaving HKD 122 million unutilized[71]. Employee and Training Initiatives - As of June 30, 2022, the company employed 470 staff members, with female employees accounting for 71.3%[60]. - The company organized 35 training sessions in the first half of 2022, covering business introductions, industry understanding, corporate culture, and skill enhancement[60].

Financial Data and Key Metrics Changes - The company's revenue decreased by 24.1% in the first half of 2022 compared to the previous year [4] - The net profit shifted from a profit of 34.5 million to a loss of approximately 31.6 million [4] - Inventory was reduced from 847 million to 705 million, a decrease of 20.2% [3][6] - Bank borrowings decreased from 582 million to 428 million, a reduction of 26.6% [3][7] - The asset-liability ratio improved from 56.1% to 48.5% [7] Business Line Data and Key Metrics Changes - The adult personal care, infant, beauty, and health categories all experienced varying degrees of decline due to the pandemic [4] - The OTC segment showed some growth despite the overall decline in other categories [4] - The company maintained a stable market share in Tmall, ranging from 75% to 76% [4] - Significant growth was observed in emerging channels, with Douyin achieving nearly 390% growth and Pinduoduo achieving 173% growth [4] Market Data and Key Metrics Changes - The overall market faced challenges due to the pandemic, leading to a decline in consumer spending and increased uncertainty [2] - The company noted that traditional e-commerce platforms like Tmall and JD.com are reaching a saturation point, while interest e-commerce platforms like Douyin and Pinduoduo present new opportunities [14][15] Company Strategy and Development Direction - The company plans to enhance its multi-channel layout and focus on private domain and information e-commerce [8] - There will be increased investment in Douyin and Pinduoduo, as well as community group buying [8] - The company aims to introduce differentiated, high-quality products, particularly in the health category [8][17] - A strategic shift towards a more cautious approach in business operations is planned, focusing on core competencies and optimizing cash flow [9][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of the pandemic on operations and emphasized the need for adaptive measures [2][13] - The company is committed to improving cash flow and inventory management while exploring strategic partnerships [9][22] - Future growth is expected to come from optimizing existing operations and expanding into new product categories [17][21] Other Important Information - The company has implemented measures to reduce inventory and financing costs, leading to improved financial health [3][7] - Management is considering stock buyback plans due to perceived undervaluation of the company's shares [20] Q&A Session Summary Question: Can the company elaborate on the significant growth in Douyin's revenue? - Management reported a 389% year-on-year growth in Douyin, indicating ongoing improvements in team performance and sales strategies [10][11] Question: What measures will the company take to mitigate the impact of the pandemic on operations? - The company has implemented electronic systems for remote work and is reassessing warehouse layouts to ensure operational continuity [12][13] Question: What are the company's strategic growth points in light of external challenges? - The company plans to maintain its presence in traditional e-commerce while focusing on growth in Douyin and Pinduoduo [14][15] Question: How does the company plan to improve its gross margin? - Management indicated that inventory reduction efforts and a focus on higher-margin health products will contribute to margin improvement [18][19] Question: Is there a stock buyback plan in place? - Management expressed intentions to explore stock buyback options due to the current undervaluation of shares [20] Question: What is the impact of brand competition on performance? - Two key brands account for approximately 10% to 30% of revenue, with management planning to introduce new health-related products to offset declines [21]