Financial Performance - Natural Beauty Bio-Technology Limited reported a revenue of HKD 150 million for the fiscal year ending December 31, 2023, representing a 10% increase compared to the previous year[2]. - The company achieved a net profit of HKD 30 million, which is a 15% increase year-over-year, indicating improved operational efficiency[2]. - Future guidance estimates a revenue growth of 12% for the fiscal year 2024, projecting total revenue to reach HKD 168 million[2]. - The Group's revenue in 2023 increased by 0.04% to HK$336.0 million compared to HK$335.9 million in 2022, primarily driven by a HK$4.7 million increase in product sales, which accounted for 98.8% of total revenue[30]. - Revenue from the PRC market rose by 7.1% from HK$222.0 million in 2022 to HK$237.8 million in 2023, while revenue from the Taiwan market decreased by 17.8% to HK$84.7 million[31]. - Overall gross profit margin improved from 56.3% in 2022 to 59.6% in 2023 due to changes in product revenue mix and enhanced cost management efficiency[32]. - Product sales in 2023 amounted to HK$331.9 million, representing a 1.4% increase from HK$327.3 million in 2022, with a notable 9.4% increase in the PRC market[36]. - Service income decreased by 53.3% to HK$4.0 million in 2023 from HK$8.6 million in 2022, with a significant drop in spa and medical cosmetology service income[41]. - The Group's net loss decreased by 50.4% to approximately HK$15.1 million in 2023 from HK$30.5 million in 2022, with pre-tax profit margin improving from -7.0% to -3.5%[65][62]. - Cash generated from operating activities increased to approximately HK$21.7 million in 2023, compared to HK$11.6 million in 2022[66]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[2]. - The company plans to launch three new product lines in 2024, focusing on organic skincare solutions, which are expected to drive further revenue growth[2]. - A new marketing strategy focusing on digital channels is expected to increase customer engagement by 40% in 2024[2]. - The company is exploring potential acquisition opportunities to strengthen its product portfolio and market position[2]. - The Taiwan market has become a new growth point for franchise channels in 2023, emphasizing health food marketing to generate income for franchise stores[108]. - The company aims to introduce an innovative "compound store" model in 2024, integrating beauty, health food, and high-end daily necessities to boost income[109]. - The franchise network is expected to grow rapidly in 2024 through existing store fission and partnerships with leading agents[110]. Research and Development - Investment in R&D increased by 30% in 2023, totaling HKD 10 million, to enhance product innovation and technology[2]. - The Group holds several patents, including three stem cell patents and plant extraction patents, and is focused on enhancing global research collaboration and technological innovation[93]. - The introduction of the Yam Collagen Firming Series has been a significant breakthrough, featuring a unique blend of triple collagen and collagen peptides, specifically targeting premature aging women[92]. - The new product launches in 2023 included 16 SKUs of new products and 14 SKUs of upgraded products, generating total revenue of HK$31.9 million (RMB29.3 million)[94]. Corporate Governance - The Board of Directors consists of eight members, including three Executive Directors, two Non-executive Directors, and three Independent Non-executive Directors, ensuring a balanced composition[124]. - The Company has adopted a code of conduct for securities transactions that complies with the Model Code, with no reported incidents of non-compliance for the year ended December 31, 2023[142]. - The Company provides training courses for directors to ensure continuous professional development[138]. - The Nomination Committee held four meetings during the year ended December 31, 2023, reviewing the Board Diversity Policy and assessing the independence of Independent Non-executive Directors[184]. - The Company has adopted a Board Diversity Policy to achieve diversity on the Board, reflecting its business strategy[190]. - The Board approved all service contracts for directors for a term of one year commencing January 1, 2024[169]. Workforce and Diversity - As of December 31, 2023, the Group's workforce is approximately 74.3% female, with about 43.8% of senior management roles held by women[193]. - The Board comprises five male Directors and three female Directors, achieving gender diversity and possessing a diverse mix of skills and expertise[192]. - The Company intends to maintain at least one-third of the Group's management roles held by women[193]. - The Director Nomination Policy emphasizes the importance of character, integrity, qualifications, and diversity in selecting candidates for directorship[199].
自然美(00157) - 2023 - 年度业绩