Financial Performance - Natural Beauty Bio-Technology Limited's turnover increased by 47.5% to HK$230.9 million for the six months ended June 30, 2021, compared to HK$156.5 million for the same period in 2020[17]. - Revenue for the six months ended June 30, 2021, was HK$230,878,000, a significant increase of 47.3% compared to HK$156,498,000 for the same period in 2020[163]. - Gross profit for the same period was HK$145,675,000, up 57.4% from HK$92,556,000 in 2020[121]. - Profit before tax for the period was HK$25,242,000, compared to a loss of HK$11,208,000 in the previous year[121]. - Profit for the period attributable to owners of the company was HK$17,033,000, a significant recovery from a loss of HK$6,447,000 in 2020[121]. - Total comprehensive income for the period was HK$24,507,000, compared to a loss of HK$14,059,000 in the same period last year[121]. - Profit for the period increased by 365.6% from a loss of HK$6.4 million for the six months ended June 30, 2020 to a profit of HK$17.0 million for the six months ended June 30, 2021[34]. Revenue Breakdown - Revenue from the PRC segment reached HK$131.1 million, accounting for 56.8% of total turnover, representing a 65.0% increase from HK$79.5 million in the first half of 2020[17]. - Revenue from Taiwan was HK$97.4 million, which is 42.2% of total turnover, showing a growth of 30.1% from HK$74.9 million in the previous year[17]. - Sales from the PRC market for products increased by 58.3% to HK$124.3 million from HK$78.5 million[26]. - Revenue from external customers for the six months ended 30 June 2021 was HK$131,128,000, compared to HK$97,414,000 for the same period in 2020, representing an increase of 34.6%[153]. - Revenue from franchised/self-owned spas and medical cosmetology centers reached HK$164.7 million, representing 71.4% of the Group's total revenue for the six months ended June 30, 2021[46]. Cost and Expenses - Total product sales amounted to HK$223.7 million, representing an increase of 46.3% compared to HK$152.9 million for the same period last year[26]. - Total staff costs for the period amounted to HK$64,582,000, an increase from HK$59,222,000 in the previous year, reflecting a rise of 9.9%[170]. - Total administrative expenses increased by HK$2.7 million or 6.8% to HK$42.3 million for the six months ended June 30, 2021, compared to HK$39.6 million for the same period last year[32]. - The cost of inventories recognized as cost of sales was HK$75,892,000, compared to HK$42,050,000 in 2020, indicating a significant increase of 80.5%[170]. - Distribution and selling expenses as a percentage of turnover decreased to 36.5% for the six months ended June 30, 2021, down from 44.9% for the same period last year[32]. Strategic Initiatives - The company aims to enhance its product offerings and expand its market presence to sustain growth in the future[3]. - Future strategies include focusing on new product development and leveraging technology to improve customer engagement[3]. - The company is committed to cultivating relationships with franchisees and customers to enhance brand loyalty and market penetration[3]. - Management highlighted the importance of adapting to market trends and consumer preferences to drive sales growth[3]. - The company plans to explore potential mergers and acquisitions to accelerate growth and expand its market share[3]. Market Expansion - The Group's strategy includes establishing self-owned spas as model outlets to attract franchisees[27]. - The focus for the year is on online business growth due to the ongoing impact of COVID-19 on physical stores, with an emphasis on revenue diversification through various channels[68]. - In Taiwan, the Group is leveraging media resources to enhance brand awareness and has successfully sold products through all available virtual retail channels[69]. - The Tmall flagship store for Natural Beauty has opened, expected to significantly boost online sales in the second half of the year[69]. - The franchising business in the PRC is being driven forward, with new channels and e-commerce starting to generate revenue[69]. Compliance and Governance - The Company fully complied with all code provisions set out in the CG Code throughout the six months ended 30 June 2021, except for code provision E.1.2[84]. - The Company has adopted a code of conduct regarding directors' securities transactions that is no less exacting than the required standard set out in the Model Code[88]. - The Company has implemented written guidelines for securities transactions by relevant employees who may possess unpublished inside information[88]. - The interim financial information was reviewed and found to be in compliance with HKAS 34, with no significant issues identified[118]. - The review was conducted by RSM Hong Kong, a certified public accountant firm[114]. Cash Flow and Liquidity - Cash generated from operating activities for the six months ended 30 June 2021 was approximately HK$8.7 million, compared to HK$9.0 million for the same period in 2020[37]. - The Group's total cash and cash equivalents as at 30 June 2021 were approximately HK$154.3 million, slightly down from HK$154.5 million as at 31 December 2020[37]. - The company reported a net decrease in cash and cash equivalents of HK$727,000 for the six months ended June 30, 2021, compared to a decrease of HK$10,325,000 in the same period of 2020[130]. - The Group's cash flow management strategies have led to improved liquidity, as evidenced by the increase in cash and cash equivalents year-over-year[130]. Shareholder Information - The Company declared dividends of HK$6,006,000 during the period[128]. - The Group recognized a final dividend of HK$0.003 per share, amounting to approximately HK$6,006,000, payable to the owners of the Company[178]. - Eastern Media International Corporation held 600,630,280 ordinary shares, representing approximately 30.00% of the issued share capital of the Company[106]. - CHAO Shih-Heng and associated entities held 455,630,196 ordinary shares, accounting for approximately 22.76% of the issued share capital[106]. - TSAI Yen-Yu held 445,315,083 ordinary shares, which is about 22.24% of the issued share capital[106].
自然美(00157) - 2021 - 中期财报