Financial Performance - Revenue increased by 41.2% to RMB 1,036,870,000 in the first half of 2023 compared to the same period in 2022[11] - Gross profit rose by 52.5% to RMB 478,106,000, with a gross profit margin of 46.1%, up 3.3 percentage points[11] - Net profit surged by 510.2% to RMB 121,120,000, while adjusted net profit increased by 159.1% to RMB 131,217,000[11] - The company's revenue for the first half of 2023 was RMB1,036.9 million, a 41.2% increase compared to the same period in 2022[18] - Gross profit for the first half of 2023 was RMB478.1 million, with a gross profit margin of 46.1%, representing a 3.3 percentage point increase compared to the same period in 2022[18] - Revenue for the first half of 2023 increased to RMB 1,036.87 million, up 41.2% compared to RMB 734.32 million in the same period of 2022[155] - Gross profit for the first half of 2023 was RMB 478.11 million, a 52.3% increase from RMB 314.03 million in the first half of 2022[155] - Operating profit for the first half of 2023 surged to RMB 155.47 million, a 319.7% increase from RMB 37.05 million in the same period of 2022[155] - Net profit attributable to owners of the company for the first half of 2023 was RMB 111.83 million, a 639.6% increase from RMB 15.12 million in the first half of 2022[155] - Basic earnings per share for the first half of 2023 were RMB 0.49, compared to RMB 0.08 in the same period of 2022[155] - The company's total comprehensive income for the first half of 2023 was RMB 157.01 million, compared to RMB 19.78 million in the same period of 2022[157] - Total comprehensive income for the period reached RMB 147,719 thousand, with profit for the period contributing RMB 111,830 thousand and other comprehensive income adding RMB 35,889 thousand[163] - Total revenue for the six months ended June 30, 2023, was RMB 1,036,870 thousand, a significant increase from RMB 734,318 thousand in the same period in 2022[179] Store Operations and Customer Metrics - The number of active members served at direct stores grew by 21.3% to 73,919, with new active members increasing by 54.3%[14] - Client visits to direct stores increased by 33.3% to 613,668[11] - The company operates 196 direct stores, including 92 in tier-one cities and 80 in new tier-one cities, as of June 30, 2023[13] - The franchise network included 194 stores as of the same date[13] - The company's direct stores served 73,919 active members in the first half of 2023, a 21.3% increase compared to the same period in 2022[15] - The number of new active members joining in the first half of 2023 increased by 54.3% year-over-year, driven by improved efficiency in customer acquisition through digital investments[15] - Direct store client visits reached 613,668 in the first half of 2023, with an average of 6.6 visits per active member and an average spending of RMB12,882[16] - 79.6% of active members made multiple purchases of services in the first half of 2023, demonstrating high customer loyalty[16] - Franchised stores served 29,906 active members in the first half of 2023, a 28.3% increase compared to the same period in 2022[16] - The company expanded its store network to 196 direct stores and 194 franchised stores, opening 8 new direct stores and 14 franchised stores during the reporting period[34][35] - The company plans to open approximately 30 new direct and franchised stores in the second half of 2023, expanding and upgrading its store network[36][37] Digital and Online Initiatives - Digital investments improved customer acquisition efficiency, with online channels leveraging live broadcasts and private domains like WeCom and WeChat mini programs[14] - The company continued to improve its online-offline integrated operation platform, enhancing customer management and operational efficiency through digital tools[46][48] - The company launched a self-developed applet in WeCom to strengthen online organization and improve business operation, customer management, and decision-making capabilities[49] - The company launched a self-developed mini-program on WeChat Work to enhance operational efficiency and employee performance tracking[51] - The number of active members and client visits significantly increased post-pandemic, driven by the company's digital tools and brand influence[58] Service Offerings and Revenue Breakdown - The company offers diversified services, including traditional beauty, aesthetic medical, and subhealth assessment and intervention services[13] - Revenue from traditional beauty services reached RMB507.3 million in the first half of 2023, a 32.4% increase compared to the same period in 2022[23] - The number of active members for traditional beauty services was 71,787 in the first half of 2023, a 20.4% increase compared to the same period in 2022[23] - Traditional beauty services revenue increased by 32.4% to RMB 507.3 million for the six months ended June 30, 2023, with active members growing by 20.4% to 71,787[24][25] - Aesthetic medical services revenue surged by 59.6% to RMB 439.9 million, with active members increasing by 36.5% to 17,032 for the same period[28][29] - Subhealth assessment and intervention services revenue rose by 62.8% to RMB 33.5 million, with members growing by 57.3% to 2,710[30][31] - 23.4% of traditional beauty service active members purchased aesthetic medical or subhealth services, up 2.2 percentage points from the previous year[26][27] - Revenue from traditional beauty services at direct stores grew by 32.4% from RMB383.0 million in the first half of 2022 to RMB507.3 million in the first half of 2023[56][58] - Revenue from aesthetic medical services surged by 59.6% from RMB275.6 million in the first half of 2022 to RMB439.9 million in the first half of 2023[56][58] - Revenue from subhealth assessment and intervention services rose by 60.5% from RMB30.7 million in the first half of 2022 to RMB49.3 million in the first half of 2023[56][58] - Traditional beauty services contributed RMB 547,705 thousand in revenue, with direct store services accounting for RMB 472,987 thousand and product sales contributing RMB 34,351 thousand[179] - Subhealth assessment and intervention services generated RMB 49,296 thousand in revenue, with services recognized at a point in time contributing RMB 33,454 thousand and services recognized over time contributing RMB 15,842 thousand[179] - Aesthetic medical services, recognized at a point in time, contributed RMB 439,869 thousand to the total revenue[179] Strategic Investments and Acquisitions - Shanghai Beauty Farm made a strategic investment of RMB 4 million in Chengdu Youlan, acquiring a 20% equity stake in the relevant business project company[37][38] - In June 2023, the company completed the acquisition of three Changsha franchised stores for RMB 7 million, gaining a 51% equity stake and consolidating their results into the Group's financial statements[39][42] - The company received net proceeds of approximately HK$558.5 million from its global offering, with 67.6% (HK$261.7 million) allocated for expanding and upgrading its service network[91][94] - 10.2% (HK$39.5 million) of the net proceeds were allocated for strategic mergers and acquisitions of franchised stores[94] - 12.3% (HK$47.6 million) of the net proceeds were allocated for further investment in IT systems[94] - 9.9% (HK$38.4 million) of the net proceeds were allocated for working capital and other general corporate purposes, with HK$11.0 million remaining unutilized as of June 30, 2023[94] - The company plans to fully utilize the remaining net proceeds by December 31, 2026[94] New Service Launches and Innovations - The company introduced a new nursing care project focused on improving sleep disorders and regulating gastrointestinal health, combining traditional medicine with modern techniques[41][43] - A new anti-fatigue eye care service project was launched to address the increasing eye strain among clients[41][43] - The company developed and launched a women's pelvic floor health project in the Special Care Centre for Women, expanding its service scope[45][47] - The company is planning an energy intervention center, utilizing international advanced energy intervention technology to address health issues caused by aging[45][47] Expenses and Costs - The cost of sales and services increased from RMB420.3 million in H1 2022 to RMB558.8 million in H1 2023, driven by higher staff costs, increased product and consumable usage, and higher operation-related expenses[64] - Selling expenses rose from RMB120.2 million in H1 2022 to RMB166.9 million in H1 2023, primarily due to increased staff costs and higher promotion and marketing expenses[68] - R&D expenses increased from RMB15.0 million in H1 2022 to RMB17.2 million in H1 2023, mainly due to higher staff costs from increased R&D personnel[68] - General and administrative expenses decreased from RMB167.3 million in H1 2022 to RMB165.8 million in H1 2023, driven by a reduction in listing expenses of approximately RMB24.4 million, partially offset by higher staff costs[69] - Research and development expenses for the first half of 2023 were RMB 17.18 million, a 14.6% increase from RMB 14.99 million in the same period of 2022[155] - Selling expenses for the first half of 2023 were RMB 166.92 million, a 38.8% increase from RMB 120.24 million in the same period of 2022[155] - General and administrative expenses for the first half of 2023 were RMB 165.84 million, a slight decrease from RMB 167.26 million in the same period of 2022[155] - Employee benefits expenses increased to RMB 418,553 thousand for the six months ended June 30, 2023, up from RMB 332,621 thousand in the same period in 2022[192] - Total expenses for the six months ended June 30, 2023, were RMB 908,706 thousand, compared to RMB 722,777 thousand in the same period in 2022[192] Financial Position and Cash Flow - The company had cash and cash equivalents of RMB82.7 million and term deposits of RMB520.0 million as of June 30, 2023, with a significant portion held in RMB[76][77] - Net cash generated from operating activities increased by 72.8% to RMB222.3 million for the six months ended June 30, 2023, compared to RMB128.7 million in the same period in 2022[79][80] - Net cash used in investing activities was RMB653.4 million for the six months ended June 30, 2023, primarily due to the purchase of wealth management products and term deposits of approximately RMB1,066.0 million[82] - Net cash generated from financing activities was RMB337.2 million for the six months ended June 30, 2023, mainly due to proceeds of RMB506.5 million from the issuance of ordinary shares upon Global Offering[82] - The company's gearing ratio decreased to 1.6% as of June 30, 2023, from 67.2% as of June 30, 2022, primarily due to the decrease in liabilities resulting from the Global Offering proceeds[82] - The company had capital commitments of RMB21.4 million as of June 30, 2023, primarily related to leasehold improvements[82] - The company subscribed for wealth management products with an aggregate principal amount of RMB190.0 million in March and April 2023, with a fair value of RMB191.2 million as of June 30, 2023, representing approximately 6.1% of the company's total assets[84][85] - The company does not hedge against any fluctuation in foreign currency, as it is exposed to foreign exchange risk arising from currency exposures with respect to US dollars and HK dollars[85] - Total assets increased to RMB 3,111,459,000 as of June 30, 2023, compared to RMB 2,495,389,000 as of December 31, 2022, reflecting a significant growth in the company's asset base[158] - Current assets rose to RMB 1,832,650,000 as of June 30, 2023, up from RMB 1,247,783,000 as of December 31, 2022, driven by increases in inventories and financial assets at fair value through profit or loss[158] - Total equity surged to RMB 740,405,000 as of June 30, 2023, compared to RMB 203,109,000 as of December 31, 2022, primarily due to a substantial increase in share premium and retained earnings[158] - Non-current liabilities decreased slightly to RMB 380,110,000 as of June 30, 2023, from RMB 383,170,000 as of December 31, 2022, with a reduction in lease liabilities[160] - Current liabilities increased to RMB 1,990,944,000 as of June 30, 2023, from RMB 1,909,110,000 as of December 31, 2022, mainly due to higher trade payables and other payables[160] - Net current liabilities improved to RMB 158,294,000 as of June 30, 2023, compared to RMB 661,327,000 as of December 31, 2022, indicating better liquidity management[160] - Cash generated from operating activities increased to RMB 245,379 thousand, up from RMB 151,726 thousand in the same period last year[165] - Net cash inflow from operating activities was RMB 222,307 thousand, compared to RMB 128,685 thousand in the previous year[165] - The company raised RMB 506,545 thousand from the issuance of ordinary shares upon global offering[163] - Dividends declared amounted to RMB 84,009 thousand, with no dividends paid in the previous year[163] - Net cash used in investing activities was RMB 653,397 thousand, primarily due to purchases of property, plant, and equipment and other non-current assets[165] - Net cash generated from financing activities was RMB 337,205 thousand, driven by proceeds from the issuance of ordinary shares and capital injection from non-controlling interests[167] - Cash and cash equivalents at the end of the period stood at RMB 82,688 thousand, down from RMB 164,120 thousand at the beginning of the period[167] Corporate Governance and Shareholder Information - The company repurchased a total of 185,500 shares during the reporting period, with a total consideration of approximately HK$4,402,678.34[102][103] - The average price per share repurchased on June 29, 2023 was HK$23.382, with a total consideration of HK$292,275.00[104] - The average price per share repurchased on June 30, 2023 was HK$23.6909, with a total consideration of HK$4,098,525.70[104] - The company conducted internal audits on procurement and sales processes, identifying issues and proposing rectification suggestions[100] - The company established a mechanism for reviewing incompatible positions and a regular review mechanism to strengthen post-management[100] - The company has complied with all code provisions set out in the CG Code since the Listing Date and up to June 30, 2023[100] - The company will continue to review and enhance its corporate governance practices to ensure compliance with the CG Code[100] - The company has adopted the Model Code as its own code of conduct regarding dealings in the securities of the company[100] - The Audit Committee reviewed the unaudited interim condensed consolidated financial statements and the interim report of the Group for the Reporting Period[107] - As of the date of this interim report, there is no change in the Board and the information of Directors[108] - Li Yang holds 2,000,000 shares, representing 0.85% of the company's issued share capital[117] - Li Yang, together with another person, jointly holds 77,420,000 shares, representing 32.71% of the company's issued share capital[117] - Li Fangyu holds 42,400,000 shares, representing 17.92% of the company's issued share capital[117] - Li Fangyu, together with another person, jointly holds 72,580,000 shares, representing 30.67% of the company's issued share capital[117] - Lian Songyong holds 35,020,000 shares, representing 14.80% of the company's issued share capital[117] - Lian Songyong, together with another person, jointly holds 79,960,000 shares, representing 33.79% of the company's issued share capital[117] - The company has 236,661,068 shares in issue as of the date of this interim report[118] - Li Yang, Li Fangyu, Lian Songyong, and others collectively hold voting rights for 114,980,000 shares[118] - Li Yang is the power holder of Tiantian Trust, which holds 35,560,000 shares[118] - Li Fangyu is the power holder of Meimei Trust, which holds 42,400,000 shares[118] - Niu Guifen, Cui Yuanjun, and Yuan Huimin collectively hold 114,980,000 shares, representing 48.58% of the issued share capital[123] - LIY Management Holdings Limited holds 35,560,000 shares, representing 15.03% of the issued share capital[123] - LIFY Management Holdings Limited holds 42,400,000 shares, representing 17.92

Financial Performance - The company reported a revenue of RMB 1,036.9 million for the six months ended June 30, 2023, representing a 41.2% increase compared to RMB 734.3 million in the same period of 2022[6]. - Gross profit for the six months ended June 30, 2023, was RMB 478.1 million, with a gross margin of 46.1%, up from 42.8% in the same period of 2022[6]. - Net profit surged by 510.2% to RMB 121.1 million, compared to RMB 19.8 million in the same period of 2022[3]. - Adjusted net profit (non-HKFRS measure) increased by 159.1% to RMB 131.2 million from RMB 50.6 million in the same period of 2022[3]. - Operating profit surged to RMB 155.5 million, compared to RMB 37.0 million in the previous year, reflecting a significant increase of approximately 320.4%[46]. - The total comprehensive income for the period was RMB 157.0 million, compared to RMB 19.8 million in 2022, marking a significant increase[47]. - The company reported a basic earnings per share of RMB 0.49 for the first half of 2023, compared to RMB 0.08 in the same period last year[46]. - The profit attributable to the company's owners for the six months ended June 30, 2023, was RMB 111,830 thousand, a significant increase from RMB 15,123 thousand for the same period in 2022, representing a growth of 640%[69]. - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.49, compared to RMB 0.08 for the same period in 2022, reflecting a 512.5% increase[69]. Revenue Breakdown - Revenue from traditional beauty services was RMB 507.3 million, a 32.4% increase compared to the previous year[8]. - Revenue from medical beauty services was RMB 439.9 million, a 59.6% increase year-over-year[10]. - Revenue from sub-health assessment and intervention services reached RMB 33.5 million, up 62.8% year-over-year[12]. - Revenue from traditional beauty services at direct stores rose by 32.4% to RMB 507.3 million, driven by brand influence and improved customer engagement through digital tools[24]. - Medical beauty services revenue surged by 59.6% to RMB 439.9 million, attributed to a comprehensive service offering that meets post-pandemic customer needs[26]. - Revenue from sub-health assessment and intervention services grew by 60.5% to RMB 49.3 million, reflecting increased customer focus on health post-pandemic[27]. Membership and Customer Engagement - Active membership in direct stores increased by 21.3% to 73,919 members as of June 30, 2023, compared to 60,956 members in the same period of 2022[3]. - The number of active members served by franchise stores increased by 28.3% to 29,906 members as of June 30, 2023[5]. - Active members served reached 71,787, up 20.4% from 59,632 in the previous year[9]. - The number of members receiving medical beauty services grew to 17,032, reflecting a 36.5% increase from 12,476 last year[10]. - The average spending per active member was RMB 12,882, up from RMB 10,736 in the same period of 2022[6]. Operational Expansion - The company has established a nationwide network of 196 directly operated stores and 194 franchise-operated stores as of June 30, 2023[4]. - A total of 30 new stores are expected to open in the second half of 2023 through self-built or franchise methods[15]. - The company expanded its store network to 196 directly operated stores and 194 franchise stores as of June 30, 2023[14]. Strategic Initiatives - Strategic investments included a RMB 4 million investment in Chengdu Youlan brand and a RMB 7 million acquisition of three franchise stores in Changsha[16]. - New product offerings include sleep disorder improvement and eye fatigue relief services, enhancing customer experience and health[17]. - Strategic partnerships were established with leading skin management and scalp care brands to explore new project development in medical beauty and health sectors[20]. - The company is planning to introduce an energy intervention center utilizing cutting-edge international technology to address health issues related to energy imbalance[18]. - The company has successfully developed and launched a women's pelvic health program at its women's special care center, expanding its service offerings[18]. Cost and Expenses - Sales and service costs rose from RMB 420.3 million to RMB 558.8 million, primarily due to increased employee costs and operational expenses[30]. - Sales expenses increased from RMB 120.2 million in the first half of 2022 to RMB 166.9 million in the same period of 2023, primarily due to increased employee costs and marketing expenses[31]. - R&D expenses rose from RMB 15.0 million in the first half of 2022 to RMB 17.2 million in the same period of 2023, mainly due to an increase in R&D personnel[32]. Cash Flow and Financial Position - Operating cash flow for the first half of 2023 was RMB 222.3 million, a 72.8% increase from RMB 128.7 million in the same period of 2022[39]. - Cash and cash equivalents as of June 30, 2023, amounted to RMB 82.7 million, with term deposits exceeding three months totaling RMB 520.0 million[38]. - The debt-to-capital ratio decreased to 1.6% as of June 30, 2023, down from 67.2% a year earlier, primarily due to funds received from a global offering[41]. - The net cash used in investing activities for the first half of 2023 was RMB 653.4 million, mainly due to the purchase of financial products and term deposits[40]. - Total assets as of June 30, 2023, amounted to RMB 3,111.5 million, up from RMB 2,495.4 million at the end of 2022[48]. - Current liabilities totaled RMB 1,990.9 million, compared to RMB 1,909.1 million at the end of 2022, indicating a slight increase[49]. Corporate Governance and Compliance - The audit committee, including one non-executive director and two independent non-executive directors, reviewed the interim financial statements and confirmed compliance with applicable accounting standards[88]. - The company has adhered to the corporate governance code since its listing date until June 30, 2023[82]. - The company will continue to review and improve its corporate governance practices to ensure compliance with the corporate governance code[82]. - The company has adopted the standard code regarding the trading of its securities by directors and senior management, confirming compliance since its listing date[83]. Shareholder Communication - The announcement was made on August 24, 2023, indicating the company's ongoing commitment to transparency and shareholder communication[94]. - The interim report for the six months ending June 30, 2023, will be published on the company's and the stock exchange's websites[89].

Financial Performance - For the year ended December 31, 2022, the company generated revenue of RMB 1.64 billion and an adjusted net profit of RMB 157 million, serving nearly one million customers[12]. - Revenue for 2022 was RMB 1,635,414, a decrease of 8.1% from RMB 1,780,740 in 2021[40]. - Gross profit for 2022 was RMB 717,842, with a gross profit margin of 43.9%, down from 46.8% in 2021[40]. - Net profit for 2022 was RMB 110,532, a decline of 47% compared to RMB 208,341 in 2021[40]. - The Group's total revenue decreased by 8.2% from RMB 1,780.7 million in 2021 to RMB 1,635.4 million in 2022 due to the Pandemic[104]. - The adjusted profit for the year (non-HKFRS measure) was RMB 157.4 million, down from RMB 226.7 million in 2021, reflecting a decrease of 30.6%[44]. - The Group's selling expenses decreased from RMB 299.5 million in 2021 to RMB 287.2 million in 2022, primarily due to reductions in staff costs and travel expenses related to the impact of the Pandemic[120]. - Net cash generated from operating activities was RMB 382.0 million in 2022, down from RMB 669.9 million in 2021[138]. Market Position and Strategy - The company aims to capitalize on opportunities in the beauty and health management industry as the Chinese economy recovers[13]. - The beauty and health management services market in China is expected to grow steadily, with the company confident in future market share growth[35]. - The company plans to open over 50 new direct and franchised stores for traditional beauty services in 2023, expanding its service network and customer base[92]. - Mergers and acquisitions are identified as key strategies for rapid growth and market consolidation, focusing on leading chain brands in direct sales areas[95]. - The company is expanding its market presence, targeting an increase in market share by 15% in the next year[166]. Operational Efficiency and Development - The company has focused on enhancing operational efficiency and unifying its team to achieve stable revenues despite challenges from the COVID-19 pandemic[12]. - The company aims to enhance multi-business collaboration and standardize service processes to further improve operational management and customer satisfaction[26]. - The Group maintained its original store-opening plan and focused on employee training and digital construction to enhance competitiveness[47]. - The company aims to improve operational efficiency and customer experience through standardization and digitalization initiatives in 2023[98]. Customer Engagement and Loyalty - The average number of visits per active member at direct stores was nearly 10, with a high repeat purchase rate of 83.2% across three business lines, indicating strong customer loyalty[21]. - The average number of visits per active member increased to 3.5 in 2022 from 3.3 in 2021, reflecting improved customer engagement[65]. - The Group's proactive measures during the pandemic included promoting services through online channels, which helped maintain stable demand for prepaid packages[67]. Innovation and R&D - The company launched a series of popular women's body care and health procedures, and obtained five national medical utility model patents related to aesthetic medical services[20]. - The aesthetic medical business obtained five national medical utility model patents in 2022, enhancing its research and innovation capabilities[76]. - The Group has invested $5 million in research and development for new technologies in the medical beauty sector[166]. Corporate Governance - The company was listed on the Main Board of the Stock Exchange on January 16, 2023, and has complied with all applicable code provisions of the Corporate Governance Code since that date[181]. - The Board consists of two executive Directors, three non-executive Directors, and three independent non-executive Directors, meeting the requirements of the Listing Rules[185]. - The company has established three Board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, with plans to create an Environmental, Social, and Governance (ESG) Committee[187]. - The company emphasizes the importance of Board independence, with more than one third of the Board comprising independent non-executive Directors[192]. Employee Development and Culture - The Group launched nearly 3,000 learning projects in 2022, with over 50,000 cumulative participants and more than 100,000 effective learning hours[83]. - The establishment of BeautyFarm Training Centers has provided over 13,000 courses to service personnel, enhancing service quality[102]. - New employees are required to attend orientation and training programs to understand the corporate culture and policies[174]. - Regular employee meetings and seminars are held to communicate the company's values, performance expectations, and strategic goals[175]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to $180 million[166]. - The implementation of supportive economic policies in China is anticipated to create new opportunities for the company's development in 2023[36]. - The company aims to adapt to market changes and promote continuous and stable performance growth[37].

Financial Performance - For the year ended December 31, 2022, the company's revenue was RMB 1,635.4 million, a decrease of 8.2% compared to RMB 1,780.7 million in 2021[2]. - The gross profit for the same period was RMB 717.8 million, with a gross margin of 43.9%, down from 46.8% in 2021[2][8]. - The net profit for 2022 was RMB 110.5 million, significantly lower than RMB 208.3 million in 2021[4]. - Adjusted net profit (non-HKFRS measure) was RMB 157.4 million, a decrease of 30.6% from RMB 226.7 million in 2021[2][4]. - The overall gross margin for the year ended December 31, 2022, was 43.9%, down from 46.8% in 2021[10]. - The company reported a net profit attributable to owners of RMB 103,109,000 for the year ended December 31, 2022, compared to RMB 193,475,000 in 2021, a decrease of 46.7%[84]. - The company reported a net financial cost of RMB 21,619,000 for the year, slightly improved from RMB 22,933,000 in 2021[78]. - The company’s income tax expense for the year was RMB 19,943,000, significantly lower than RMB 46,761,000 in the previous year, a reduction of 57.4%[79]. - Basic earnings per share for the year ended December 31, 2022, were RMB 0.52, down from RMB 0.97 in 2021, a decline of 46.4%[84]. - The diluted earnings per share for the year ended December 31, 2022, was RMB 0.52, down from RMB 0.97 in 2021, representing a decline of 46.4%[86]. Revenue Breakdown - Traditional beauty services revenue for the year ended December 31, 2022, was RMB 835.6 million, a decrease of 11.2% compared to the previous year[11]. - Medical beauty services revenue for the year ended December 31, 2022, was RMB 620.2 million, a decrease of 7.8% compared to the previous year[13]. - Revenue from traditional beauty services decreased from RMB 941.4 million in 2021 to RMB 835.6 million in 2022, primarily due to the negative impact of recurring COVID-19 outbreaks[38]. - Revenue from medical beauty services decreased from RMB 6,730 million in 2021 to RMB 6,202 million in 2022, mainly due to the negative impact of recurring COVID-19 outbreaks leading to temporary store closures[40]. - Revenue from sub-health assessment and intervention services increased from RMB 609 million in 2021 to RMB 685 million in 2022, driven by continuous insights into customer needs despite some growth being offset by temporary closures[41]. - The medical beauty service revenue accounted for 37.9% of total revenue in 2022, amounting to RMB 620.2 million[37]. Store Operations - The number of active members served by the company's directly operated stores increased by 1.2% to 78,318 in 2022[7]. - The company maintained a network of 189 directly operated stores and 189 franchised stores across China as of December 31, 2022[7]. - The company opened 20 new direct-operated stores in 2022, including 17 traditional beauty stores and 3 medical beauty facilities[17]. - As of December 31, 2022, the company operated 189 direct stores and 189 franchise stores, with a net addition of 20 direct stores and 35 franchise stores during the year[18]. - Same-store sales decreased by 11.0% in 2022, with traditional beauty service stores experiencing a decline of 14.7%[42]. Employee and Training Initiatives - The total number of full-time employees reached 3,707 as of December 31, 2022, with 1,914 service personnel, 970 administrative staff, and 733 sales and marketing personnel[21][22]. - The company conducted nearly 3,000 learning projects in 2022, with over 50,000 learning instances and more than 100,000 effective learning hours[24]. - The company has provided over 13,000 training sessions at its training centers since establishment, focusing on improving service quality[33]. - The company has focused on retaining professional staff, achieving a record high in the number of professionals recruited through internal recommendations in 2022[25]. - The company will continue to recruit and retain high-quality talent, focusing on medical experts and digital talent to expand its professional workforce[33]. Strategic Developments - The company established a Women's Special Care Center in 2022, focusing on women's health issues, and received a first-class award for a key research project from the National Health Commission[20]. - The company established a strategic partnership with Allergan, a leading global medical aesthetics biopharmaceutical company, in July 2022[27]. - The company has expanded its medical services through strategic collaborations with leading domestic medical aesthetic product providers[27]. - The company plans to open over 50 new traditional beauty service stores in 2023 through self-built and franchised methods to expand its customer base and enhance brand awareness[29]. - The company will continue to develop and innovate women's health care projects, targeting issues such as chronic fatigue and sleep quality in 2023[31]. Financial Position and Liabilities - As of December 31, 2022, the company had cash and cash equivalents of RMB 1,641 million and unutilized bank financing of RMB 1,000 million[54]. - The total assets as of December 31, 2022, were RMB 2,495 million, compared to RMB 2,477 million at the end of 2021[64]. - Total liabilities increased to RMB 2,292,280 thousand in December 2022, up from RMB 2,214,776 thousand in December 2021, representing a growth of 3.5%[65]. - Current liabilities totaled RMB 1,909,110 thousand as of December 31, 2022, compared to RMB 1,853,753 thousand in the previous year, reflecting an increase of 3.0%[65]. - Non-current liabilities rose to RMB 383,170 thousand in December 2022, up from RMB 361,023 thousand in December 2021, marking a 6.1% increase[65]. - The net current liabilities amounted to RMB 661,327 thousand, an increase from RMB 544,273 thousand in the previous year, indicating a rise of 21.5%[65]. Corporate Governance and Compliance - The company was incorporated on February 10, 2022, in the Cayman Islands and listed on the Hong Kong Stock Exchange on January 16, 2023[66]. - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and have been approved by the board on March 29, 2023[67]. - The group adopted several new accounting standards effective from January 1, 2022, which did not have a significant impact on the financial statements[69]. - The company has adopted the corporate governance code to regulate its governance practices, ensuring accountability and protection of shareholder interests[99]. - The audit committee, consisting of one non-executive director and two independent non-executive directors, has reviewed the financial reporting process and internal controls, ensuring compliance with applicable accounting standards[103]. Future Outlook - The company aims to enhance operational efficiency and customer experience through the establishment of a digital system that integrates online and offline business operations[30]. - The company plans to enhance user stickiness and precision marketing through the integration of online and offline resources in 2023[29]. - The company will strengthen its collaboration with upstream suppliers to enhance industry standards and share management experiences[34].