Employee Compensation and Relations - As of June 30, 2023, the total compensation for employees was approximately HKD 59.4 million, a decrease from HKD 73.5 million for the same period in 2022[1] - The company is committed to maintaining competitive compensation packages and fostering good relationships with employees through training and development programs[1] Capital Expenditures and Assets - Capital expenditures for the six months ended June 30, 2023, amounted to HKD 40.8 million, primarily for the construction of a new factory in Mainland China (HKD 23.6 million) and new store renovations (HKD 17.1 million)[2] - The right-of-use assets were valued at HKD 33.8 million as of June 30, 2023, down from HKD 70 million a year earlier, while lease liabilities decreased to HKD 17.5 million from HKD 23.2 million[3] - The Group's capital expenditure for the first half of 2023 was HK$40.8 million, primarily for new plant construction and store openings[106] Borrowings and Financial Position - The company’s secured bank borrowings amounted to HKD 84.4 million as of June 30, 2023, compared to HKD 92.4 million at the end of 2022[4] - Borrowings increased from HK$ 113,842,000 to HK$ 158,497,000, representing an increase of about 39.2%[180] - Cash and cash equivalents at June 30, 2023, were HK$ 151,387,000, down from HK$ 181,382,000 at the same time last year, a decrease of approximately 16.5%[187] Market Performance and Revenue - The Group's turnover in the PRC market increased by 14.2% to HK$111.5 million for the six months ended June 30, 2023, compared to HK$97.6 million for the same period in 2022[51] - Turnover in the Taiwan market decreased by 33.3% to HK$40.0 million for the six months ended June 30, 2023, down from HK$60.0 million for the same period in 2022[52] - Overall turnover for the Group decreased by 1.3% or HK$2.1 million to HK$161.5 million from HK$163.6 million for the same period in 2022[88] Gross Margin and Profitability - Gross margin of product sales in the PRC market improved to 60.6% for the six months ended June 30, 2023, up from 53.6% in the previous year[51] - The Group's overall gross profit margin increased from 53.5% for the six months ended June 30, 2022, to 58.8% for the six months ended June 30, 2023[89] - The increase in gross profit margin was mainly due to changes in the revenue mix of products bundling in the PRC market[89] Corporate Governance - The Company has fully complied with the corporate governance code provisions throughout the six months ended 30 June 2023[26] - The Board met the requirements of the Listing Rules regarding the appointment of independent non-executive directors throughout the reporting period[34] - The Company recognizes the importance of good corporate governance in enhancing management and preserving shareholder interests[26] Shareholder Information - For the six months ended June 30, 2023, the company reported a substantial shareholder, Eastern Media International Corporation, holding 600,630,280 shares, representing 30.00% of the issued share capital[168] - Another significant shareholder, CHAO Shih-Heng, holds 455,630,196 shares, which is approximately 22.76% of the issued share capital[168] - The company has a total of 445,315,083 shares held by TSAI Yen-Yu, accounting for about 22.24% of the issued share capital[168] Research and Development - The Group is focused on R&D for product upgrades and new technologies, including the NB-1 Aqua Plus and NB-1 Delicate Pore series[63][64] - Collaborations with professional laboratories in Europe, Japan, and Australia are aimed at enhancing R&D capabilities[63] - The Group plans to develop highly effective active ingredients for anti-aging skincare solutions[64] Financial Results and Losses - Loss before tax decreased by 75.0% from HK$25.3 million for the six months ended June 30, 2022 to HK$6.3 million for the six months ended June 30, 2023[135] - Loss for the period decreased by 68.9% from HK$30.2 million for the six months ended June 30, 2022 to HK$9.4 million for the six months ended June 30, 2023[135] - Cash generated from operating activities for the six months ended June 30, 2023 was approximately HK$21.2 million, compared to HK$8.7 million for the six months ended June 30, 2022[135] Other Financial Metrics - Current ratios were 1.46 times as at 31 December 2022 and 1.29 times as at 30 June 2023[135] - Total assets decreased from HK$ 621,532,000 as of December 31, 2022, to HK$ 587,090,000 as of June 30, 2023, representing a decline of approximately 5.5%[180] - Net current assets decreased from HK$ 114,123,000 to HK$ 78,572,000, a decline of approximately 31.1%[180]
自然美(00157) - 2023 - 中期财报