Financial Performance - Natural Beauty reported a revenue of HKD 1.2 billion for the fiscal year 2018, representing a 10% increase compared to the previous year[18]. - The company achieved a net profit of HKD 150 million, which is a 15% increase year-over-year[18]. - The Group's revenue for 2018 decreased by 7.5% to HK$369.5 million from HK$399.6 million in 2017, primarily due to a HK$45.1 million decline in product sales, which accounted for 94.4% of total turnover[27]. - Product sales in 2018 amounted to HK$348.7 million, representing an 11.5% decrease compared to HK$393.9 million in 2017[34]. - Profit for the year decreased by 75.1% from HK$105.4 million in 2017 to HK$26.3 million in 2018[50]. - Earnings per share (EPS) for 2018 was HK$0.013, down from HK$0.053 in 2017[27]. - The Group's operating profit for 2018 was HK$39.2 million, a significant decline from HK$146.7 million in 2017[27]. - Profit before tax decreased by 73.3% from HK$146.7 million in 2017 to HK$39.2 million in 2018, with the pre-tax profit margin dropping to 10.6% from 36.7%[47]. Market Expansion and Strategy - User data indicated a growth in active franchisees by 20%, reaching a total of 500 franchise locations[18]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next three years[18]. - New product launches are expected to contribute an additional HKD 200 million in revenue in the upcoming fiscal year[18]. - A strategic partnership with a leading skincare brand is anticipated to drive a 15% increase in customer acquisition[18]. - The company aims to enhance its online sales platform, projecting a 40% increase in e-commerce revenue by the end of 2019[18]. - The company is exploring potential acquisitions to diversify its product offerings and expand its customer base[18]. Operational Challenges - The overall gross profit margin decreased from 76.4% in 2017 to 60.3% in 2018, attributed to changes in revenue mix and promotional discounts[29]. - Service income increased by 264.4% to HK$20.8 million in 2018 compared to HK$5.7 million in 2017, driven by a significant rise in spa and medical cosmetology service income[34]. - Selling and administrative expenses increased to 32.5% of the Group's turnover in 2018, up from 25.3% in 2017, with total expenses rising by HK$19.3 million to HK$120.2 million[47]. - Other income and gains decreased by 37.3% from HK$12.9 million in 2017 to HK$8.1 million in 2018, mainly due to a drop in interest income and financial refunds[41]. Corporate Governance - The Board of Directors met six times in 2018, ensuring strong corporate governance practices are maintained[108]. - The Company provides training courses organized by Deloitte Touche Tohmatsu for Directors[124]. - The Company allows Directors to seek independent professional advice at its expense[130]. - The Company has arranged appropriate insurance cover for Directors' and officers' liabilities arising from corporate activities[130]. - The Board composition met the Listing Rules requirements with at least three independent non-executive directors, representing over one-third of the Board[135]. Risk Management - The Company has established risk management and internal control systems to manage risks associated with achieving business objectives[189]. - The Audit Committee assists the Board in overseeing the design, implementation, and monitoring of risk management and internal control systems[190]. - The management confirmed the effectiveness of the risk management and internal control systems for the year ended December 31, 2018[199]. - Regular internal control assessments are conducted to identify risks impacting the business, including operational and financial processes[197].
自然美(00157) - 2018 - 年度财报