Natural Beauty Announces 2018 Interim Results

The Company Develops High-tech Skincare Business and  Taps into Medical Aesthetics Market Interim Dividend of 1.45 HK cents per share

HONG KONG, CHINA -  Media OutReach  -  30 August 2018 - Natural Beauty Bio-Technology Limited ("Natural Beauty" or the "Group"; Stock Code: 00157), a leading provider of professional skin-care and spa services in Greater China, announced today its interim results for the six months ended 30 June 2018 (the "Period").

Financial and Operational Highlights:

Distribution channels

  • Income principally came from the Group's distribution network, including spas and concession counters in department stores.
  • As at 30 June 2018, there were 1,042 spas, 15 concession counters and 1 medical cosmetology center.
  • A total of 17 new stores were opened and 51 stores were closed during the Period.

Research and Development

  • To constantly improve the quality of its existing products and develop new products, while collaborating with overseas skin-care companies on technological development.
  • Successful launch of a well-received new series of NB-1 Bright-Crystal target products generated sales of HK$33.2 million in the first half of the year, accounting for 17.7% of total value of product sales during the Period.
  • Sales of NB-1 branded products reached HK$101.7 million, accounting for more than 54.4% of total value of product sales.

Financial highlights

  • Revenue rose by 5.5% year on year to HK$193.7 million on the back of increased product sales.
  • Overall gross profit margin decreased to 70.8% mainly because the Group offered promotional discounts on its products and services during the Period.
  • Net profit for the Period was HK$29 million.
  • Basic earnings per share were 1.45 HK cents.
  • An interim dividend of 1.45 HK cents per share are recommended. Dividend payout ratio is 100%.

Ms. Yang Shu-Hwa, Interim Chief Executive Officer of the Group said, "Looking ahead, we will continue to develop our core business by accelerating the pace of opening new stores in fast-growing cities and by expanding our market coverage through such new sales channels as pharmacy chains and beauty stores. Also, the Group has started its high-tech skincare business to serve the middle-class and affluent consumers. The business provides solutions to minor skin problems by treating the cases with high-tech skincare devices and products. Following the launch of our first medical cosmetology center, the Group has tapped into a medical aesthetics market by offering professional medical aesthetic solutions. Leveraging our position as a leading skin care brand and spa operator in Greater China, we are moving ahead with the above-mentioned strategies for development so as to enhance our competitiveness and to generate good returns to shareholders."

About Natural Beauty Bio-Technology Limited

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