自然美(00157) - 2024 - 中期财报

Corporate Information Corporate Information This section outlines the company's fundamental details, including key personnel, auditors, and listing information - The Chairman of the Board is Executive Director Dr. Lei Qian[5] - The company's auditor is RSM Hong Kong[9] - The company is listed on the Hong Kong Stock Exchange with stock code 00157[10] Management Discussion and Analysis Financial Review The Group's H1 2024 turnover declined by 2.9% to HK$157 million, with net loss expanding to HK$30.5 million due to increased expenses, despite a slight gross margin improvement Revenue by Geographical Segment (H1 2024 vs H1 2023) | Region | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | 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 (H1 2024 vs H1 2023) | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 156,749 | 161,511 | -2.9% | | Gross Profit | 93,330 | 94,966 | -1.7% | | Gross Margin | 59.5% | 58.8% | +0.7pp | | Loss for the Period | (30,454) | (9,406) | +223.8% | | Loss Before Tax | (28,673) | (6,310) | +354.4% | - Distribution and selling expenses increased by HK$13.1 million year-on-year to HK$82 million, with the percentage of turnover rising from 42.6% to 52.3%, primarily due to higher salaries and advertising costs. Administrative expenses increased by HK$5.9 million year-on-year to HK$38.9 million[18][19] - As of June 30, 2024, the Group's gearing ratio (total bank borrowings/shareholders' equity) slightly increased to 30.7% from 29.9% at the end of 2023, while the current ratio decreased from 1.21 times to 1.06 times[21] Business Review The Group's business review highlights mixed market performance, network expansion, and successful new product launches leveraging AI and health-focused innovations - Mainland China market turnover decreased by 3.3%, but product sales gross margin improved from 60.6% to 64.9%, primarily due to changes in product mix[26] - Taiwan market turnover increased by 14.8%, driven mainly by TV shopping, e-commerce, and telemarketing channels, though gross margin decreased from 60.0% to 57.3%[27] Number of Stores by Ownership (As of June 30, 2024) | Region | Franchised Spas | Self-operated Spas | Self-operated Counters | Total | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 1,289 | 2 | 7 | 1,298 | | Taiwan | 323 | 0 | 0 | 323 | | Other | 30 | 2 | 0 | 32 | | Total | 1,642 | 4 | 7 | 1,653 | - The Group made R&D progress, upgrading its Resveratrol series products and integrating NMN and stem cell technologies, while also collaborating with Fudan University to launch AI smart massage robots with AI robotics and vision assistance to enhance service quality and address labor shortages[37] - Upgraded NMN Resveratrol series and new health food products launched in April 2024 contributed HK$14.3 million and HK$6 million in Q2 revenue respectively, with newly introduced AI smart devices generating HK$2.7 million in revenue[40][41] Outlook for 2024 The company's 2024 outlook focuses on a 'dual-core strategy' in Mainland China, accelerating store expansion and health supplement promotion, supported by increased R&D and talent investment - Implementing a 'dual-core strategy' in Mainland China: opening up agent franchises to accelerate store expansion and vigorously promoting health food products to generate additional performance[46] - In H1 2024, store expansion achieved significant year-on-year growth, primarily driven by newly signed agents, with health food sales also achieving double-digit year-on-year growth[46][47] - The company has completed its strategic layout in key regions including North, Central, South, and East China, signing with four influential agents with over 20 years of experience in the beauty industry[48] - To support business expansion, the company heavily invested in R&D, talent acquisition, and expanded its front-end store expansion and back-end operational teams in H1 2024[50][51] Corporate Governance Highlights Corporate Governance Practices The company maintains high corporate governance standards, with full compliance to the Corporate Governance Code and established committees, ensuring proper financial oversight and director conduct - 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] - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, deeming them compliant with applicable accounting standards, legal requirements, and Listing Rules[53] - The company adopted a code of conduct for directors' securities transactions, with all directors confirming compliance with the Model Code during the reporting period[60] - Significant personnel changes occurred during the period: Ms. Lam Yin Ling resigned as Group CEO on April 2, 2024, and Mr. Cheng Chi Chung was appointed Group CEO on July 16, 2024[65] Other Information Shareholder and Share Capital Information This section details key information including no interim dividend declaration, no share repurchases, and a breakdown of major shareholder holdings as of June 30, 2024 - No interim dividend was declared for the six months ended June 30, 2024[67] - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[66] - No share awards were granted by the company under its share award scheme during the reporting period[74] Major Shareholders' Shareholdings (As of June 30, 2024) | Major Shareholder Name | Nature of Interest | Number of Shares Held | Approx. % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Eastern Media International Corporation (东森国际) | Controlled corporation interest | 600,630,280 | 30.00% | | CHAO Shih-Heng (赵世亨) | Controlled corporation interest | 455,630,196 | 22.76% | | TSAI Yen-Yu (蔡燕玉) | Controlled corporation interest | 445,315,083 | 22.24% | Independent Review Report Independent Review Report RSM Hong Kong reviewed the interim financial information for H1 2024, concluding no material non-compliance with HKAS 34, noting the review's scope is less than an audit - Auditor RSM Hong Kong conducted a review of the interim financial information, not a full audit[82] - Conclusion: The auditor found no matters that cause them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[84] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For H1 2024, the company reported a 2.9% revenue decrease to HK$157 million, with net loss widening to HK$30.5 million and basic loss per share at 1.52 HK cents Profit or Loss Statement Summary (For the six months ended June 30) | Item | 2024 (HKD Thousand) | 2023 (HKD Thousand) | | :--- | :--- | :--- | | 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, total assets were HK$823 million, total liabilities HK$296 million, and net assets HK$526 million, reflecting a decrease from year-end 2023 Statement of Financial Position Summary | Item | As of June 30, 2024 (HKD Thousand) | As of Dec 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | 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 (Total Equity) | 526,384 | 574,524 | Condensed Consolidated Statement of Cash Flows H1 2024 saw a shift to HK$26.5 million net cash outflow from operating activities, with total cash and cash equivalents decreasing to HK$95.5 million by period-end Cash Flow Statement Summary (For the six months ended June 30) | Item | 2024 (HKD Thousand) | 2023 (HKD Thousand) | | :--- | :--- | :--- | | 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 End of Period | 95,504 | 151,387 | Notes to the Condensed Financial Statements Segment Information The Group's H1 2024 segment performance shows Mainland China as the largest revenue source but with a HK$29.4 million loss, while Taiwan and Other segments were profitable Segment Revenue and (Loss)/Profit (H1 2024) | Segment | Revenue from External Customers (HKD Thousand) | Segment (Loss)/Profit (HKD Thousand) | | :--- | :--- | :--- | | Mainland China | 107,833 | (29,358) | | Taiwan | 45,953 | 1,908 | | Other | 2,963 | 566 | | Total | 156,749 | (26,884) | Property, Plant and Equipment and Impairment Assessment The Group acquired HK$22.3 million in PPE; impairment assessment for Mainland China CGU showed no impairment, with a HK$14.48 million headroom, but is sensitive to key assumptions - Management conducted an impairment assessment for the cash-generating unit (CGU) selling cosmetics in Mainland China, which includes property, plant and equipment, goodwill of HK$24.6 million, and right-of-use assets of HK$28.26 million[115] - The impairment test used the value-in-use method, based on 4.5-year cash flow projections, with a 2.20% terminal growth rate and a 15% discount rate, concluding no impairment for the CGU[116] - The impairment assessment's headroom was HK$14.48 million; a decrease in gross margin from 59% to 58.4% or an increase in discount rate from 15% to 15.6% would eliminate all headroom, indicating sensitivity to assumption changes[116] Trade and Other Receivables As of June 30, 2024, net trade receivables increased to HK$78.7 million, with a notable rise in overdue accounts over 150 days, potentially indicating higher collection risk Trade Receivables Aging Analysis (Net) | Aging | As of June 30, 2024 (HKD Thousand) | As of Dec 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | Within 30 days | 21,261 | 24,759 | | 31-150 days | 37,808 | 35,749 | | Over 150 days | 19,647 | 16,907 | | Total | 78,716 | 77,415 | Related Party Transactions The Group's main related party transaction involved HK$0.616 million in advertising fees paid to a fellow subsidiary, with a similar amount payable at period-end - The Group paid HK$0.616 million in advertising fees to fellow subsidiary Eastern New Media, a significant increase from HK$0.198 million in the prior year[127] - As of June 30, 2024, the amount payable to related party Eastern New Media was HK$0.616 million[128] Events After the Reporting Period Post-period, the Group successfully refinanced a RMB110 million (approx. HK$118 million) Mainland China loan with a 5-year term and 2-year principal holiday, enhancing cash flow flexibility - The Group refinanced a matured RMB110 million loan, with the new loan also amounting to RMB110 million[132] - The new loan has a 5-year term with no principal repayment required for the first 2 years, which will help alleviate the Group's near-term cash flow pressure[132]