Company Overview - Beauty Farm Medical and Health Industry Inc. successfully listed on the Main Board of the Hong Kong Stock Exchange in January 2023, marking a significant milestone as the first public company in China's beauty industry utilizing the dual-beauty business model[8]. - The company celebrated its 30th anniversary in 2023, reflecting on its journey and commitment to becoming a century-old beauty brand[8]. - The company has expanded its operations from a single store in Haikou to over 400 stores nationwide, serving customers over one million times in 2023, primarily targeting women[12]. - The company has built a diverse business matrix catering to mid-to-high-end female customers in China's high-tier cities, enhancing its brand presence and market reach[12]. Financial Performance - In 2023, the company achieved a net income of RMB 230 million, representing a year-over-year increase of 108.2%[17]. - Revenue for 2023 reached RMB 2,145,068, an increase of 31.1% from RMB 1,635,414 in 2022[29]. - Gross profit for 2023 was RMB 977,102, representing a gross profit margin of 45.6%, up from 43.9% in 2022[29]. - Net profit for 2023 increased to RMB 230,139, with a net profit margin of 10.7%, compared to 6.8% in 2022[29]. - Adjusted net profit for 2023 was RMB 241,039, with an adjusted net profit margin of 11.2%, up from 9.6% in 2022[30]. - The company generated net cash from operating activities of RMB 626 million in 2023, an increase of 64% year-over-year[17]. - As of December 31, 2023, the company's cash and cash-like items amounted to RMB 1.57 billion[17]. Business Model and Strategy - The dual-beauty business model was recognized as the inaugural year in 2023, showcasing the company's resilience through the challenges posed by the pandemic and macroeconomic environment[10]. - Beauty Farm aims to achieve long-term, high dividends for shareholders while driving progress through internal growth and external acquisition initiatives[11]. - The company upgraded its traditional beauty services to beauty and wellness services in 2023, marking a strategic expansion into the wellness sector[14]. - The company aims to enhance customer lifetime value through a diversified growth matrix business model[14]. - Mergers and acquisitions were emphasized as a primary strategy for growth, including a strategic investment in Chengdu Youlan and an acquisition of Hangzhou Yanspa[67]. Market Position and Growth - The beauty and wellness industry is experiencing a booming demand, with the company positioned to seize opportunities in this growing market[7]. - The company maintains a strong brand moat amidst rising user traffic costs, ensuring competitive advantage in the industry[10]. - The company aims to continue leading industry development while creating social value as it celebrates its 30th anniversary[26]. - The Group anticipates continuous growth in customer demand for beauty and wellness solutions, indicating significant industry potential[71]. Customer Engagement and Services - The company successfully converted 25% of its beauty and wellness members into aesthetic medical or subhealth medical members, up four percentage points year-over-year[14]. - Revenue from aesthetic medical services reached RMB 850 million, up 37.1% year-over-year[38]. - Revenue from subhealth medical services was RMB 101 million, up 47.6% year-over-year[38]. - The number of active members in aesthetic medical services reached 24,474, a 30.6% increase year-over-year, with average annual spending per member of RMB 34,597, up RMB 1,493 from 2022[55]. Corporate Governance and Management - The Company has established an Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of its affairs[172]. - The Board comprises two executive Directors, three non-executive Directors, and three independent non-executive Directors as of the date of this annual report[146]. - The Company has adopted the Model Code for securities transactions to ensure compliance with insider trading regulations[145]. - The Company will continue to review and enhance its corporate governance practices to ensure compliance with corresponding provisions[145]. Employee and Workplace Culture - The Group employed a total of 3,941 employees, with 3,722 females and 219 males, indicating a high female representation in the workforce[196]. - The total employee welfare expenses increase of approximately 22.5% from 2022 to 2023 indicates a focus on enhancing employee benefits in line with business growth[108]. - The development of female leadership is a core focus, helping female employees achieve career development and economic independence[198]. - The Group is committed to creating a fair, respectful, and inclusive working environment for all employees[198]. Environmental, Social, and Governance (ESG) - The company emphasizes its commitment to ESG principles, aiming to create value for society and promote sustainable development[20]. - The Company plans to establish an Environmental, Social, and Governance (ESG) Committee to manage ESG-related matters[152].
美丽田园医疗健康(02373) - 2023 - 年度财报