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, - 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." (mor/roc).