Natural Beauty Announces 2017 Annual Results

Gross Profit Margin Increased to 76.4%

Strong sales and Overwhelming Response

For New Products of Dr.NB-1 Target Series

Declare a Final Dividend of 3.35 HK cents Per Share

HONG KONG, CHINA - Media OutReach  - March 27, 2018 - Natural Beauty Bio-Technology Limited ("Natural Beauty" or the "Group"; Stock Code: 00157), the leading professional skin-care, and spa services provider in Greater China, announced today its annual results for the year ended 31 December 2017(the "Year").

Results and Operation Highlights:

Distribution channels

• Income principally from its network of distribution channels, including spas and concessionary counters in department stores.
• As at 31 December 2017, there were 1,077 spas and 14 concessionary counters.
• A total of 82 new stores were opened and 73 stores were closed during the Year.

Research and Development

• To continuously improve the quality of its existing products and develop new products, whilst collaborating with overseas skin-care companies on technological development.
• Successfully launched a new series of Dr.NB-1 target products which received overwhelming response and achieved strong sales of HK$45.6 million in the fourth quarter, accounting for 11.4% of total product sales in 2017.
• Sales of NB-1 branded products reached HK$167.9 million, accounting for more than 40% of total product sales.

Financial highlights

• Revenue decreased by 15.9% to HK$399.6 million.
• The Group's overall gross profit margin increased from 74.3% in 2016 to 76.4% in 2017 mainly due to the launch of a new high-profit-margin product in the fourth quarter of 2017.
• Profit for the Year down by 29.0% to HK$105.4 million
• Basic earnings per share were 5.3 HK cents
• Recommend a final dividend of 3.35 HK cents per share. Dividend payout ratio is approximately 63.2%

Mr. Hsiao Wen-Chung, Chief Executive Officer of the Group said, "Looking ahead, we will pursue to strengthen our position as a leading skin care brand and spa operator in the Greater China Region. We will continue to speed up new store opening in tier 3 and tier 4 cities in the PRC. Besides, we are dedicated to developing high-technology beauty apparatus applied with high-quality and leading-edge products and create efficient and effective technology beauty skills and products, in order to improve the spa franchisee's service skills. We will also continue to explore and expand new marketing channels and opportunities for skin care products, such as combining the traditional cosmetology with the preventive medical cosmetology and integrating online and offline marketing resources with the aim to establish business model of "Online To Offline". In light of China's policies for Health Industry, we will continue to promote high-end food supplements through diverse channels in order to increase the revenue. We strive to strengthen our competitive edges by implementing the aforesaid strategies, so as to generate satisfactory returns for our shareholders."

About Natural Beauty Bio-Technology Limited

Natural Beauty is a leading beauty and spa services and products provider in Greater China. The Group principally offers tailor-made beauty and skin care solutions through its trained professional beauticians. The Group is engaged in research and development, manufacture and sale of skin care, aroma-therapeutic and beauty products, marketed under the brandname "NB®". The products are distributed through a distribution network of over 1,0 0 0 NB's SPAs and dedicated counters in Greater China.