Financial Performance - Natural Beauty Bio-Technology Limited reported audited annual results for the year ending December 31, 2024[2]. - Revenue for the Group in 2024 increased by 5.2% to HK$353.7 million compared to HK$336.0 million in 2023, driven by an increase in product sales of HK$18.5 million[30]. - Product sales accounted for 99.1% of total revenue in 2024, amounting to HK$350.4 million, representing a 5.6% increase from HK$331.9 million in 2023[36]. - Revenue from the PRC market increased by 7.3% from HK$237.8 million in 2023 to HK$255.2 million in 2024[31]. - Revenue in the Taiwan market rose by 8.7% to HK$92.1 million in 2024, up from HK$84.7 million in 2023[31]. - Revenue from other regions, including Hong Kong and Malaysia, decreased by 52.9% from HK$13.5 million in 2023 to HK$6.4 million in 2024, contributing only 1.8% to total revenue[31]. - Overall gross profit margin decreased from 59.6% in 2023 to 57.2% in 2024 due to changes in the revenue mix of products in the PRC market[32]. - Service income decreased by 19.9% to HK$3.3 million in 2024 compared to HK$4.0 million in 2023[38]. - The Group's operating loss for 2024 is projected to be HK$97.2 million, a significant decline from the previous year's loss of HK$3.7 million[30]. - Return on Equity (ROE) is projected to decline to (23.1%) in 2024 from (2.6%) in 2023[30]. - The Group reported a loss before tax of approximately HK$105.2 million in 2024, compared to a loss of HK$11.9 million in 2023, reflecting a decrease in pre-tax profit margin[62]. - The Group's net loss increased significantly from approximately HK$15.1 million in 2023 to approximately HK$103.6 million in 2024[70][75]. - Cash used in operating activities was approximately HK$13.7 million in 2024, compared to cash generated of HK$21.7 million in 2023[71][76]. - The Group's cash and cash equivalents decreased to approximately HK$109.0 million as of December 31, 2024, down from HK$158.7 million in 2023[71][76]. - The effective tax rate shifted from 27.3% in 2023 to -1.5% in 2024, with income taxation expenses changing from HK$3.2 million to a credit of HK$1.6 million[69][74]. - The Group's gearing ratio increased from 29.9% in 2023 to 43.0% in 2024, indicating a higher level of debt relative to equity[72][76]. - The Group's net cash position deteriorated to HK$-83.2 million in 2024 from HK$-13.1 million in 2023, indicating increased financial strain[73][77]. Product Development and Sales - The company is focusing on new product development, specifically the NB-1 Target Aqua Radiance Energizing Essence series[17]. - In 2024, the Group achieved HK$315.8 million in sales from franchised/self-owned spas, an increase of HK$21.3 million from HK$294.5 million in 2023, representing 89.3% of total revenue[87][89]. - Sales from e-commerce, TV shopping, and telemarketing channels decreased to HK$37.8 million, down HK$3.7 million from HK$41.5 million in 2023, accounting for 10.7% of total revenue[88][89]. - The company launched 12 skincare products and 9 health supplements in 2024, generating HK$43.0 million in sales[93][96]. - The health food series achieved sales of HK$33.7 million in 2024, marking an 86.2% increase from HK$18.1 million in 2023[94][96]. - Health food sales have nearly doubled year-on-year, injecting strong momentum into the overall business[118]. - The company is implementing a multi-channel sales strategy in Taiwan, focusing on health food sales and enhancing brand exposure through live streaming[120]. Market Expansion and Strategy - Future outlook indicates a commitment to market expansion and potential mergers and acquisitions[4]. - The company plans to deepen market penetration and enhance brand equity in the high-end consumer segment in 2025[98]. - The company plans to introduce Exosome Technology into the Taiwan market to meet growing consumer demand, alongside the development of an AI Massage Robot to enhance service precision[104][109]. - The Group's management revised their marketing strategy in the second half of 2024 to focus on multi-channel and multi-brand approaches in response to intensified competition and changing customer needs[58]. - The company has established a dual-core strategy in the PRC market, successfully attracting ten heavyweight agents for local store expansion[115]. - The establishment of operation centers in key provinces aims to strengthen local market penetration and collaboration with agents[121]. - The brand plans to deepen market penetration and enhance its influence among high-end consumer groups by 2025[101][104]. - Future plans include the proactive deployment of international high-end smart beauty equipment to drive industrial upgrading and enhance market competitiveness[115]. - In 2024, the number of newly opened franchise stores in the PRC is expected to grow by 50% year-on-year[121]. Corporate Governance - Management emphasizes the importance of corporate governance and compliance in their strategic planning[4]. - The company has appointed new representatives and committee members to strengthen its governance structure[6][9]. - The Board of Directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[141]. - The Board met a total of eight times during 2024, exceeding the minimum requirement of four meetings per year[144]. - Attendance records indicate that all executive directors attended 100% of the Board meetings, with Dr. Lei Chien and Mr. Lin Chia-Wei attending all meetings[147]. - The Company has adopted a code of conduct for securities transactions by directors, which complies with the Model Code, with no incidents of non-compliance reported for the year ended December 31, 2024[159]. - The Company allows directors to seek independent professional advice at the Company's expense, ensuring compliance with corporate governance guidelines[157]. - The Board ensures that all directors have access to the Chief Legal Counsel and Company Secretary for governance and compliance matters[152]. - The company has confirmed that all directors complied with the required standards of the Model Code throughout the year[160]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance with the standards set forth in the Listing Rules[163]. - The Board of Directors is collectively responsible for directing and supervising the company's affairs, including operational and financial performance monitoring[165]. - The Board reserves major policy matters, strategies, budgets, and material transactions for its decision, ensuring sound internal control and risk management systems are in place[166]. - The Chairperson and Chief Executive Officer roles are separate, with the Chairperson focusing on strategic issues and the CEO responsible for overall operations[170]. - An annual confirmation of independence was received from all independent non-executive directors, ensuring compliance with independence guidelines[173]. - The company established a Board Independence Evaluation Mechanism to ensure strong independent judgment, with satisfactory results from the review conducted during the year[174]. Human Resources and Training - As of December 31, 2024, the Group employed 542 staff, with total remuneration of approximately HK$148.4 million, up from HK$105.2 million in 2023[107][110]. - The company provides training courses for directors, with attendance recorded for professional development[155]. - New directors will receive comprehensive formal and tailored orientation training to explain their responsibilities and regulatory requirements[195]. - The company encourages all directors to participate in continuous professional development to ensure their contributions remain informed and relevant[197]. - All directors and senior management received compliance manuals outlining their principal continuing obligations due to the company's listing on the Main Board of the Stock Exchange[194].
自然美(00157) - 2024 - 年度业绩