Revenue Performance - The Group's total revenue decreased by 31.1% from HK$487.8 million in 2021 to HK$335.9 million in 2022, primarily due to a reduction in product sales by HK$144.5 million[23]. - Product sales accounted for 97.4% of the Group's total revenue in 2022, amounting to HK$327.3 million, a decrease of 30.6% compared to HK$471.8 million in 2021[26]. - Revenue from the PRC market decreased by 18.7% to HK$214.2 million in 2022 from HK$263.7 million in 2021, while revenue from the Taiwan market fell by 49.3% to HK$103.1 million from HK$203.2 million[26]. - The Group's total revenue decreased by 46.2% in 2022 to HK$8.589 million from HK$15.972 million in 2021[29]. - Revenue in the PRC market fell by 20.4% to HK$222.0 million in 2022 compared to HK$279.0 million in 2021, primarily due to decreased product sales[29]. - Revenue in the Taiwan market decreased by 49.3% to HK$103.1 million in 2022 from HK$203.2 million in 2021, impacted by COVID-19 policies[30]. - Revenue from other regions, including Hong Kong, Malaysia, and Macau, increased by 92.8% from HK$5.6 million in 2021 to HK$10.8 million in 2022, but still represented only 3.2% of the Group's total revenue[22]. - The income from e-commerce, TV shopping, and telemarketing channels decreased by HK$101 million to HK$45.4 million in 2022, representing 13.5% of the Group's total revenue[95]. Gross Margin and Profitability - The overall gross margin decreased from 62.7% in 2021 to 56.3% in 2022, attributed to changes in product revenue mix and the impact of COVID-19 policies in mainland China and Taiwan[24]. - Gross margin on product sales in the PRC decreased from 61.6% in 2021 to 55.9% in 2022[29]. - Gross profit margin on product sales in Taiwan decreased from 68.1% in 2021 to 63.6% in 2022[30]. - The Group's profit before tax turned to a loss of approximately HK$23.5 million in 2022, compared to a profit of HK$48.5 million in 2021, with the pre-tax profit margin decreasing to -7.0%[61]. - The Group's net loss for 2022 was approximately HK$30.5 million, a decrease of 186.4% compared to a net profit of approximately HK$35.3 million in 2021[87]. - The Group reported a pre-tax loss of HK$23.5 million in 2022, a decline of 148.6% from a profit of HK$48.5 million in 2021[86]. Expenses and Cost Management - Distribution and selling expenses as a percentage of the Group's revenue increased to 41.5% in 2022 from 37.2% in 2021[35]. - Total distribution and selling expenses decreased by HK$42.3 million to HK$139.3 million in 2022 from HK$181.6 million in 2021[35]. - Staff costs related to distribution work decreased by HK$7.0 million to HK$73.3 million in 2022[35]. - Total administrative expenses decreased by HK$15.0 million to HK$68.6 million in 2022, with significant reductions in staff costs and other operational expenses[82]. - Other expenses and losses decreased from HK$3.1 million in 2021 to HK$2.5 million in 2022, reflecting improved cost management[83]. Strategic Initiatives - The Group remains focused on enhancing its product offerings and expanding its market presence despite recent challenges[26]. - The Group's strategy includes stimulating franchisee sales through the establishment of self-owned spas in strategic locations[26]. - As of December 31, 2022, the Group operated two self-owned spas in the PRC and one in Malaysia, aiming to establish these as model outlets to attract franchisees[26]. - The Group's strategy includes two share incentive plans aimed at aligning management interests with the Group's growth and performance[68]. Operational Developments - The Group opened 140 new stores and closed 76 stores during the year ended December 31, 2022, compared to 255 new openings and 119 closures in 2021[76]. - As of December 31, 2022, the Group operated 1,408 spas and 9 concessionary counters, with 1,405 being franchised[97]. - The Group's capital expenditure in 2022 was HK$44.3 million, primarily for new plant construction in the PRC (HK$29.3 million) and store renovations and equipment (HK$13.1 million)[109]. - In October 2022, the Group launched a new brand called B.U.T. ESSE, generating HK$1.2 million in revenue[104]. Financial Position - The Group's secured bank borrowings as of December 31, 2022, amounted to HK$92.4 million, down from HK$102.4 million in 2021[65]. - Total assets as of 2022 were HK$872.3 million, a decrease from HK$930.4 million in 2021[60]. - The Group's return on equity (ROE) was -5.1% in 2022, down from 5.4% in 2021[60]. - The Group's liquidity position remains strong, with no material contingent liabilities as of December 31, 2022[87]. - Cash generated from operating activities in 2022 was approximately HK$11.6 million, down from HK$44.6 million in 2021[87]. - As of December 31, 2022, the Group had cash and cash equivalents of approximately HK$160.6 million, compared to HK$184.5 million as of December 31, 2021[87]. - The Group's gearing ratios increased from 14.8% in 2021 to 20.1% in 2022[87]. Governance and Compliance - The Audit Committee held six meetings during the year ended December 31, 2022, reviewing the annual performance for the year ended December 31, 2021, and the interim performance for the six months ended June 30, 2022[144]. - The company has a whistle-blowing policy as part of the employee handbook to address potential misconduct[143]. - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements[154]. - The company conducted annual self-assessments to confirm compliance with control policies across all departments[158]. - The Company confirmed the effectiveness of its risk management and internal control systems as of December 31, 2022[187]. - The Company is committed to maintaining high standards of business integrity and transparency, with a strict anti-corruption policy in place[159]. - The Company has adopted an anti-corruption policy to strictly prohibit any form of fraud or bribery, ensuring high standards of business integrity and transparency[186]. Shareholder Relations - The Company emphasizes the importance of effective communication with shareholders for good investor relations and timely disclosure of information[197]. - There is a dedicated section of "Shareholder Services" on the Company's website to provide comprehensive information related to shareholders[192]. - The Company has optimized the planning and procedures of general meetings to ensure all Directors can attend and participate[199].
自然美(00157) - 2022 - 年度财报