Baijin Life Science Holdings (1466) published additional information regarding its 2025 Annual Report. The report addresses the reasons behind a goodwill impairment of approximately HK$20 million tied to the performance of Tonnett Group, which operates the skincare segment. Applications of new sales and marketing strategies, including a shift away from online distribution and increased focus on large distributors, were cited as factors leading to the revision of earlier forecasts.

The company noted that internal reorganizations and resource allocations toward establishing a flagship beauty club contributed to temporary revenue shortfalls. Management revised Tonnett Group’s growth projections based on recent sales data, updates to its operational leadership, and external market information.

Baijin Life Science Holdings implemented enhanced internal control measures to prevent future delays in results publication. These measures include formal handover protocols, monthly cross-functional reviews of management accounts, and a task force led by the executive director and chief financial officer to regularly monitor financial reporting.

In addition, the company provided an update on a non-fulfillment of Tonnett Group’s accumulated profit guarantee. The vendor associated with the acquisition fully settled the resulting HK$41,969,866 compensation, as disclosed in the previously published announcements.