Financial Performance - Natural Beauty reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a growth of 15% year-over-year[8]. - The Group's turnover increased by 18.6% to HK$438.4 million in 2019, up from HK$369.5 million in 2018, primarily driven by a HK$74.5 million increase in product sales[31]. - Product sales accounted for 96.5% of total revenue in 2019, amounting to HK$423.3 million, representing a 21.4% increase from HK$348.7 million in 2018[38]. - Overall, the company reported a significant decline in service income, impacting total revenue performance[44]. - Profit before tax decreased by 5.5% from HK$39.2 million in 2018 to HK$37.0 million in 2019, with a pre-tax profit margin declining to 8.4% from 10.6%[52]. - Profit for the year decreased by 16.6% from HK$26.3 million in 2018 to HK$21.9 million in 2019[54]. - Cash generated from operating activities was approximately HK$18.9 million in 2019, down from HK$74.0 million in 2018[54]. Market Expansion and Customer Base - The company expanded its customer base, reaching 500,000 active users, which is a 20% increase compared to the previous year[12]. - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[15]. - The company plans to open 30 new retail locations in key markets, aiming for a 30% increase in market presence[17]. - The Taiwan market saw a significant turnover increase of 79.4%, from HK$73.3 million in 2018 to HK$131.6 million in 2019, driven by direct-sale stores and online sales[42]. - Revenue from the China market increased by 3.8% from HK$292,700,000 in 2018 to HK$303,800,000 in 2019, driven by growth in product sales[45]. Product Development and Innovation - Investment in research and development increased by 25%, focusing on innovative beauty products and technologies[18]. - The Group emphasizes research and development, collaborating with overseas skin-care companies and utilizing bio-technology materials imported from Europe, Japan, and Australia[81]. - The flagship NB-1 product series accounted for 19.2% of total product sales, generating HK$80.5 million in 2019[82]. - The resveratrol beverage launched in 2019 contributed HK$15.1 million, increasing its category share by 3.6%[82]. - The resveratrol skincare series achieved sales of HK$38.6 million, representing 9.2% of total product sales[82]. Financial Management and Expenses - Distribution and selling expenses increased by HK$29.5 million from HK$120.2 million in 2018 to HK$149.7 million in 2019, representing 34.1% of the Group's turnover compared to 32.5% in 2018[52]. - Total administrative expenses rose by HK$2.5 million, or 3.6%, to HK$72.5 million in 2019 from HK$70.0 million in 2018[52]. - Taxation expenses increased by HK$2.2 million to HK$15.1 million in 2019, with effective tax rates rising from 32.9% in 2018 to 40.8% in 2019[54]. Corporate Governance - Natural Beauty aims to enhance its corporate governance practices, with a new committee established to oversee compliance and ethical standards[11]. - The Company aims to enhance corporate governance practices in line with local and international best practices[95]. - The Board comprises eight members, including two Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors, and met six times in 2019[99]. - The Company has adopted a Board Diversity Policy to ensure a diverse Board with appropriate skills and experiences reflecting its business strategy[125]. - The Company emphasizes transparency, accountability, and effective risk management to safeguard shareholder interests[95]. Risk Management and Internal Control - The Board confirmed the effectiveness of the risk management and internal control systems for the year ended December 31, 2019[160]. - The Internal Audit Department was established in early 2016 to enhance risk management and internal control systems[161]. - The Company has adopted a whistle-blowing policy to facilitate employees in raising concerns about possible improprieties in financial reporting[162]. - The Audit Committee assists the Board in overseeing the design, implementation, and monitoring of the risk management and internal control systems[160]. - The Company has confirmed that its risk management and internal control systems are effective[176]. Shareholder Engagement - The Company held one Annual General Meeting (AGM) on May 23, 2019, and one Extraordinary General Meeting (EGM) on June 3, 2019[194]. - The notice for the 2019 AGM was sent to shareholders at least 20 clear business days before the meeting[198]. - A dedicated "Shareholder Services" section on the Company's website provides comprehensive information for shareholders[199]. - Shareholders can send enquiries or requests to the Board through specified contact methods[200].
自然美(00157) - 2020 - 年度财报