自然美(00157) - 2023 - 中期业绩

Overall Financial Performance Financial Highlights The Group's total revenue slightly decreased to HKD 161.5 million, while gross profit increased, leading to a significantly narrowed net loss of HKD 9.406 million for the period Key Financial Data for H1 2023 | Indicator | H1 2023 (HKD thousands) | H1 2022 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 161,511 | 163,591 | -1.3% | | Gross Profit | 94,966 | 87,532 | +8.5% | | Operating Loss | (2,352) | (23,934) | -90.2% | | Loss for the Period | (9,406) | (30,249) | -68.9% | | Basic Loss Per Share | (0.47) HK cents | (1.51) HK cents | -68.9% | - The company did not declare or pay any dividends for the six months ended June 30, 2023, compared to a dividend payment of HKD 6.006 million in the same period of 2022[31][90] Financial Position As of June 30, 2023, the Group's total assets were HKD 856 million, with a current ratio of 1.29x and a debt-to-equity ratio of 28.6%, reflecting changes in liquidity and leverage Summary of Financial Position (June 30, 2023 vs December 31, 2022) | Item | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 508,518 | 507,409 | | Current Assets | 347,739 | 364,900 | | Total Assets | 856,257 | 872,309 | | Current Liabilities | 269,167 | 250,777 | | Non-current Liabilities | 17,437 | 24,070 | | Total Liabilities | 286,604 | 274,847 | | Net Assets | 569,653 | 597,462 | - The Group's current ratio decreased from 1.46x at the end of 2022 to 1.29x as of June 30, 2023[16] - The Group's debt-to-equity ratio increased from 20.1% at the end of 2022 to 28.6% as of June 30, 2023[16] Management Discussion and Analysis Financial Review In H1 2023, total turnover slightly decreased to HKD 161.5 million, while improved gross margin and controlled expenses significantly narrowed the loss before tax to HKD 6.3 million and loss for the period to HKD 9.4 million Turnover by Geographical Region (H1 2023) | Region | Turnover (HKD thousands) | Percentage of Total | YoY Change | | :--- | :--- | :--- | :--- | | Mainland China | 111,485 | 69.0% | +14.2% | | Taiwan | 40,039 | 24.8% | -33.3% | | Other | 9,987 | 6.2% | +68.2% | | Total | 161,511 | 100.0% | -1.3% | - Overall gross profit margin increased from 53.5% in the prior period to 58.8%, primarily due to changes in the product revenue mix in the mainland China market[88] - Loss before tax significantly decreased by 75.0% from HKD 25.3 million in the prior period to HKD 6.3 million[12] - Loss for the period decreased by 68.9% from HKD 30.2 million in the prior period to HKD 9.4 million[13] Business Segment Performance Product sales, the core revenue source, remained stable at HKD 159.7 million, while service revenue significantly declined by 52.1% to HKD 1.8 million, primarily due to reduced spa and medical beauty services Turnover by Business Segment (H1 2023) | Business Segment | Turnover (HKD thousands) | Percentage of Total | YoY Change | | :--- | :--- | :--- | :--- | | Products | 159,707 | 98.9% | -0.1% | | Services | 1,804 | 1.1% | -52.1% | | Total | 161,511 | 100.0% | -1.3% | Products Product sales, the primary revenue source, remained stable at HKD 159.7 million, with mainland China sales growing 16.6% offset by a 33.3% decline in Taiwan - Product sales amounted to HKD 159.7 million, accounting for 98.9% of the Group's total revenue, primarily from the sale of skincare, beauty and essential oil products, health foods, and cosmetics under the "Natural Beauty" brand[3] Product Segment Sales by Region (H1 2023) | Region | Sales (HKD thousands) | YoY Change | | :--- | :--- | :--- | | Mainland China | 109,985 | +16.6% | | Taiwan | 40,039 | -33.3% | | Other | 9,683 | +76.2% | | Total | 159,707 | -0.1% | Services Service revenue, primarily from spa and medical beauty services, significantly declined by 52.1% to HKD 1.8 million in H1 2023, mainly due to reduced spa and medical beauty service revenue - Service revenue decreased by 52.1% from HKD 3.8 million in the prior period to HKD 1.8 million[6] Service Revenue Details (H1 2023) | Service Type | Revenue (HKD thousands) | YoY Change | | :--- | :--- | :--- | | Spa/Medical Beauty Services | 1,728 | -54.0% | | Training Revenue | 1 | -66.7% | | Other | 75 | +100.0% | | Total | 1,804 | -52.1% | Geographic Market Performance Mainland China's turnover grew 14.2% to HKD 111.5 million with improved gross margin, while Taiwan's turnover declined 33.3% to HKD 40 million due to channel sales drops - Mainland China market turnover increased by 14.2% to HKD 111.5 million, with product sales gross margin improving from 53.6% to 60.6%[20] - Taiwan market turnover decreased by 33.3% to HKD 40 million, with product gross margin declining from 65.8% to 60.0%[21] Distribution Channels and Stores The Group primarily relies on franchised/self-operated spa centers and counter channels, contributing 86.8% of total turnover, with the global store count reaching 1,455 (a net increase of 49), while e-commerce and TV shopping channels saw an 18.7% decline - Turnover from franchised/self-operated spa centers and counter channels accounted for 86.8% of the Group's total turnover, reaching HKD 140.2 million[23] - Turnover from e-commerce, TV shopping, and telemarketing channels decreased to HKD 21.3 million, accounting for 13.2% of total turnover[33] Store Count Changes (As of June 30, 2023) | Region | June 30, 2023 | June 30, 2022 | Net Change | | :--- | :--- | :--- | :--- | | Mainland China | 1,115 | 1,035 | +80 | | Taiwan | 326 | 345 | -19 | | Other | 14 | 26 | -12 | | Total | 1,455 | 1,406 | +49 | - In H1 2023, the Group opened 94 new stores and closed 56 stores[36] Operating Expenses In H1 2023, the Group successfully controlled operating costs, with distribution and selling expenses decreasing 6.0% to HKD 68.9 million and administrative expenses decreasing 8.1% to HKD 33 million - Distribution and selling expenses decreased from HKD 73.3 million to HKD 68.9 million, with their percentage of turnover decreasing from 44.8% to 42.6%[9] - Administrative expenses decreased by 8.1% from HKD 35.9 million to HKD 33.0 million[10] Liquidity and Financial Resources As of June 30, 2023, the Group held HKD 151.4 million in cash and HKD 163.2 million in bank borrowings, with net cash from operations significantly improving to HKD 21.2 million, though facing foreign exchange risk from RMB and NTD denominated cash Financial Resources Status (June 30, 2023) | Item | Amount (HKD thousands) | | :--- | :--- | | Cash and Cash Equivalents | 151,400 | | Bank Borrowings | 163,200 | | Net Cash Generated from Operating Activities | 21,200 | - The Group's debt-to-equity ratio (total bank borrowings/shareholders' equity) was 28.6%, and the current ratio was 1.29x[16] - Approximately 57.1% of the Group's bank balances and cash were denominated in RMB and 30.4% in NTD, exposing the Group to exchange rate fluctuation risks[17] Research & Development The Group prioritizes R&D through two major centers, focusing on product upgrades like the NB-1 series and MicroRNA gene activation technology, having secured three stem cell patents and one plant extract patent - The Group has established two R&D bases, the Natural Beauty Biotech R&D Center and the EHS-NTU Industry-Academia Collaboration Center, and collaborates with professional laboratories in Europe, Japan, and Australia[37] - R&D focuses include upgrading the classic NB-1 series products, introducing MicroRNA gene activation technology, and researching the anti-aging effects of retinol[38] - The company has obtained three stem cell patents and one plant extract patent, and continues to invest in the development of its own intellectual property[39] Future Outlook The Group plans to leverage parent company resources to expand into new channels like B2B and duty-free, strengthen live streamer collaborations and health food promotion in Taiwan, and accelerate franchise expansion in mainland China through a new B2B team - The company will continue to utilize EHS International resources to vigorously expand into new channels such as B2B, duty-free, and distributors, while consolidating existing channels (franchise chains, TV shopping, e-commerce)[47] - Taiwan market strategy: Collaborate with live streamers, promote health foods, and generate revenue for franchised stores[48] - Mainland China market strategy: Establish a B2B team to develop new channels, increase advertising to attract franchises, and focus on promoting health supplements to achieve cross-selling[48] Notes to the Financial Statements 3. Segment Information The Group operates in three geographical segments, with mainland China recording a loss of HKD 9.3 million and Taiwan and other regions showing profits, while 87.7% of non-current assets are in mainland China Segment Results (For the six months ended June 30, 2023) | Segment | External Revenue (HKD thousands) | Segment (Loss)/Profit (HKD thousands) | | :--- | :--- | :--- | | Mainland China | 111,485 | (9,271) | | Taiwan | 40,039 | 3,120 | | Other | 9,987 | 2,471 | | Total | 161,511 | (3,680) | Non-current Assets by Region (June 30, 2023) | Region | Non-current Assets (HKD thousands) | | :--- | :--- | | Mainland China | 433,965 | | Taiwan | 59,213 | | Other | 1,858 | | Consolidated Total | 495,036 | 4. Revenue All Group revenue is contract-based, with product sales contributing HKD 159.7 million and mainland China being the largest regional source at HKD 111.5 million (69% of total) Revenue Breakdown (For the six months ended June 30, 2023) | Category | Revenue (HKD thousands) | | :--- | :--- | | By Product/Service | | | Product Sales | 159,707 | | Service Revenue | 1,804 | | By Major Region | | | Mainland China | 111,485 | | Taiwan | 40,039 | | Other | 9,987 | | Total | 161,511 | 6. Income Tax Expense In H1 2023, the Group's income tax expense was HKD 3.1 million, lower than the prior period, primarily from operations in mainland China (25% tax rate) and Taiwan (20% tax rate) Composition of Income Tax Expense (H1 2023) | Item | Amount (HKD thousands) | | :--- | :--- | | Current Tax - China | 1,740 | | Current Tax - Taiwan | 665 | | Current Tax - Malaysia | 4 | | Withholding Tax | 80 | | Deferred Tax | 607 | | Total | 3,096 | 8. Loss Per Share For the six months ended June 30, 2023, basic loss per share significantly narrowed to HKD 0.47 cents, with no diluted loss per share presented due to the absence of potential ordinary shares - Basic loss per share is calculated based on the loss for the period attributable to owners of the company of approximately HKD 9,406,000 and the weighted average number of ordinary shares outstanding of approximately 2,002,100,932 shares[31] - Diluted loss per share was not presented as the company had no outstanding potential ordinary shares during the period[84] Corporate Governance and Other Information Corporate Governance The company maintains high corporate governance standards, with established committees and full compliance with the Corporate Governance Code throughout the reporting period - The Board has established an Audit Committee, Executive Committee, Remuneration Committee, and Nomination Committee to safeguard and enhance shareholders' interests[50] - The Board believes that the company has fully complied with all code provisions of the Corporate Governance Code throughout the six months ended June 30, 2023[56] - The interim financial statements have been reviewed by the Audit Committee and by the company's auditor, RSM Hong Kong, in accordance with Hong Kong Standard on Review Engagements[51] Other Disclosures For the six months ended June 30, 2023, the company did not engage in any purchase, sale, or redemption of its listed securities, and no interim dividend was declared - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[58] - The company did not declare an interim dividend for the six months ended June 30, 2023[59]