自然美(00157) - 2024 - 中期业绩

Corporate Information This section provides an overview of the company's fundamental corporate details and governance structure Corporate Information This section details the company's fundamental information, including board and committee members, registered office, principal place of business, auditors, legal advisors, share registrar, and principal bankers - The Board of Directors comprises Executive Directors Dr. Lei Chien (Chairperson), Mr. Lin Chia-Wei, and Ms. Lin Yen-Ling; Non-Executive Directors Ms. Lin Shu-Hua and Mr. Chen Shou-Huang; and Independent Non-Executive Directors Mr. Chen Ruey-Long, Mr. Lin Tsang-Hsiang, and Mr. Yang Shih-Chien[5] - The company has established Audit, Executive, Nomination, and Remuneration Committees, chaired by Mr. Chen Ruey-Long, Dr. Lei Chien, Mr. Yang Shih-Chien, and Mr. Lin Tsang-Hsiang, respectively[4][9] Management Discussion and Analysis This section provides a comprehensive review of the company's financial performance, business operations, and strategic outlook for the period Financial Review For the six months ended June 30, 2024, the Group's total turnover decreased by 2.9% to HKD 156.7 million, with a 223.8% increase in loss for the period to HKD 30.5 million due to higher expenses Revenue by Geographical Segment (For the Six Months Ended June 30) | Region | 2024 H1 (HKD thousands) | 2023 H1 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 107,833 | 111,485 | -3.3% | | Taiwan | 45,953 | 40,039 | +14.8% | | Other | 2,963 | 9,987 | -70.3% | | Total | 156,749 | 161,511 | -2.9% | Key Financial Indicators (For the Six Months Ended June 30) | Indicator | 2024 H1 (HKD thousands) | 2023 H1 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 156,749 | 161,511 | -2.9% | | Gross Profit | 93,330 | 94,966 | -1.7% | | Loss Before Tax | (28,673) | (6,310) | +354.4% | | Loss for the Period | (30,454) | (9,406) | +223.8% | - The Group's overall gross profit margin slightly increased from 58.8% to 59.5%, primarily due to changes in the product revenue mix in the Mainland China market[13] - Distribution and selling expenses increased by HKD 13.1 million to HKD 82.0 million, and administrative expenses rose by HKD 5.9 million to HKD 38.9 million, mainly driven by higher salaries and advertising costs, contributing to the expanded loss[18][19] - As of June 30, 2024, the Group's debt-to-asset ratio was 30.7% (29.9% at end of 2023), and its current ratio was 1.06 times (1.21 times at end of 2023)[21] Business Review The Group is actively adjusting its market strategy, with Mainland China revenue down 3.3% but improved gross margin, Taiwan sales up 14.8% driven by e-commerce, and significant R&D investment in AI-integrated products and offline store expansion - Mainland China market turnover decreased by 3.3% to HKD 107.8 million, while product sales gross profit margin improved from 60.6% to 64.9%[26] - Taiwan market turnover grew by 14.8% to HKD 46.0 million, primarily driven by TV shopping, e-commerce, and telemarketing channels[27] Store Count Changes (As of June 30) | Region | 2024 Total Stores | 2023 Total Stores | Net Change | | :--- | :--- | :--- | :--- | | Mainland China | 1,298 | 1,115 | +183 | | Taiwan | 323 | 326 | -3 | | Other | 32 | 14 | +18 | | Total | 1,653 | 1,455 | +198 | - The Group made R&D progress, upgrading its Resveratrol product series and collaborating with Fudan University to integrate AI visual assistance into massage robots, enhancing service quality and addressing professional labor shortages[37] - In April 2024, the company launched upgraded NMN Resveratrol series and new health foods, generating HKD 14.3 million and HKD 6.0 million in Q2 revenue respectively, alongside AI smart health detectors and massage robots which contributed HKD 2.7 million[40][41] Outlook for 2024 For 2024, the company will implement a 'dual-core strategy' in Mainland China, focusing on intensified health food promotion and accelerated store expansion through local agent partnerships, supported by increased investment in R&D and talent - The company will implement a 'dual-core strategy' in Mainland China, centered on 'intensified promotion of health foods' and 'joint store expansion with agents'[46][48] - The health food business achieved double-digit year-on-year growth in H1, with the company adopting a strategy of frequent small-scale training and promotional events for deeper market penetration[47][49] - Through partnerships with local agents, the number of newly opened franchised stores achieved double-digit year-on-year growth in H1, laying a foundation for future performance growth[50] - To support business expansion, the company increased investment in R&D and talent in H1 2024, doubling the size of both front-end store expansion and back-end operations teams[50][51] Corporate Governance Highlights This section outlines the company's commitment to high corporate governance standards, including committee structures, compliance with codes, and key personnel changes Corporate Governance Practices The company is committed to high corporate governance standards, having established four committees and confirming full compliance with the Corporate Governance Code and Model Code for securities transactions by directors during the reporting period, alongside disclosing key personnel changes - The company has established Audit, Executive, Remuneration, and Nomination Committees, with terms of reference no less exacting than those required by the Corporate Governance Code[52] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, deeming them compliant with applicable accounting standards and Listing Rules[53] - The Board believes the company has fully complied with all code provisions of the Corporate Governance Code for the six months ended June 30, 2024[59] - All company directors confirmed compliance with the Model Code for securities transactions during the reporting period[60] - During the reporting period, Ms. Lin Yen-Ling resigned as Group Chief Executive Officer on April 2, while Mr. Cheng Chi-Chung was appointed as the new CEO on July 16[65] Other Information This section provides additional key information regarding the company's securities, dividend policy, share award scheme, and major shareholder holdings Shareholder and Share-Related Information This section provides key information, including no purchases, sales, or redemptions of listed securities, no interim dividend declarations, no share awards granted under the scheme, and details of major shareholders holding over 5% of the company's shares - For the six months ended June 30, 2024, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[66] - The company did not declare any interim dividend for the six months ended June 30, 2024[67] - No share awards were granted under the company's share award scheme during the reporting period[74] Major Shareholder Holdings (As of June 30, 2024) | Major Shareholder Name | Nature of Interest | Number of Shares Held (Long Position) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Eastern Media International Corporation (東森國際) | Controlled Corporation Interest | 600,630,280 | 30.00% | | CHAO Shih-Heng (趙世亨) | Controlled Corporation Interest | 455,630,196 | 22.76% | | TSAI Yen-Yu (蔡燕玉) | Controlled Corporation Interest | 445,315,083 | 22.24% | | Next Focus Holdings Limited | Beneficial Owner / Controlled Corporation Interest | 445,315,083 | 22.24% | Independent Review Report This section presents the independent review report from the company's auditor on the interim financial information Auditor's Independent Review Report RSM Hong Kong conducted an independent review of the interim financial information for the six months ended June 30, 2024, concluding that nothing came to their attention suggesting the financial information was not prepared in all material respects in accordance with HKAS 34 - The review was conducted by RSM Hong Kong for the interim financial information for the six months ended June 30, 2024[80][86] - The review concluded that nothing came to the reviewer's attention suggesting the interim financial information was not prepared in all material respects in accordance with HKAS 34[84][85] Condensed Consolidated Financial Statements This section presents the company's condensed consolidated financial statements, including the statement of profit or loss, financial position, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the company reported turnover of HKD 156.7 million, a 2.9% decrease, with operating loss expanding to HKD 24.6 million and loss for the period increasing 223.8% to HKD 30.5 million, resulting in a basic loss per share of HKD 1.52 cents Profit or Loss Statement Summary (For the Six Months Ended June 30) | Item (HKD thousands) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Revenue | 156,749 | 161,511 | | Gross Profit | 93,330 | 94,966 | | Operating Loss | (24,579) | (2,352) | | Loss Before Tax | (28,673) | (6,310) | | Loss for the Period | (30,454) | (9,406) | | Basic Loss Per Share (HK cents) | (1.52) | (0.47) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets were HKD 822.6 million, total liabilities HKD 296.2 million, and net assets HKD 526.4 million, with a HKD 48.1 million decrease in net assets from year-end 2023 primarily due to period loss and exchange differences Financial Position Summary | Item (HKD thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-Current Assets | 522,557 | 529,149 | | Current Assets | 300,041 | 343,285 | | Total Assets | 822,598 | 872,434 | | Current Liabilities | 284,373 | 283,360 | | Non-Current Liabilities | 11,841 | 14,550 | | Total Liabilities | 296,214 | 297,910 | | Net Assets | 526,384 | 574,524 | Condensed Consolidated Statement of Cash Flows During the reporting period, cash from operating activities shifted from a HKD 21.2 million net inflow to a HKD 26.5 million net outflow, with net cash outflows of HKD 16.8 million from investing and HKD 11.6 million from financing activities, resulting in a HKD 54.9 million decrease in cash and cash equivalents to a period-end balance of HKD 95.5 million Cash Flow Summary (For the Six Months Ended June 30) | Item (HKD thousands) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Net Cash from Operating Activities | (26,532) | 21,205 | | Net Cash Used in Investing Activities | (16,781) | (69,943) | | Net Cash from Financing Activities | (11,585) | 44,720 | | Net Decrease in Cash and Cash Equivalents | (54,898) | (4,018) | | Cash and Cash Equivalents at Period End | 95,504 | 151,387 | Notes to the Condensed Financial Statements The notes provide detailed explanations of key financial data, including consistent accounting policies, segment information showing Mainland China's loss and Taiwan's profit, revenue primarily from product sales, no impairment found for Mainland China's cash-generating unit, related party transactions, and a significant post-reporting period loan refinancing - Segment results indicate a HKD 29.4 million loss in Mainland China, while the Taiwan market achieved a HKD 1.9 million profit[103] - Management assessed the impairment of the cash-generating unit for cosmetics sales in Mainland China, determining no impairment was needed based on value-in-use calculations, though sensitivity analysis showed minor adverse changes in gross margin or discount rate would eliminate the remaining buffer[115][116] - Advertising expenses of HKD 0.616 million were incurred with related party Eastern Media International Corporation during the period[127] - Subsequent to the reporting period, the Group refinanced a RMB 110 million loan due on July 18, 2024, with a new 5-year loan[132][133]