Hong Kong beauty centre group Modern Beauty Salon Holdings has announced a profit rise of nearly 30 per cent in the six months to 30 September.
The group reported turnover of HK$325 million – up 17.5 per cent year on year. Gross profit increased 29.7 per cent to HK$158 million. Its gross profit margin and net profit margin were 49 per cent and 10 per cent respectively.
Revenue from the provision of beauty and wellness services and expiry of prepaid beauty packages continued to account for the largest share of the Group’s total turnover. In Hong Kong, revenue of HK$287.8 million. In mainland China, revenue increase 13.9 per cent to HK$17.56 million.
Tsang Yue Joyce, chairperson and CEO of Modern Beauty, said the improved performance was related to the strong economic growth in China, along with domestic consumption and consumer spending maintaining ongoing growth.
The group has 29 beauty and wellness service centres in Hong Kong with a total gross floor area of approximately 257,000sqft. In addition, the group has 13 retail outlets under the names of p.e.n, be Beauty Shop and Ferrecare Concept Store, scattered across Hong Kong, Kowloon and New Territories.
The group’s performance of the business in mainland China is steady. Despite swift changes in the PRC consumer market and “ferocious competition” amongst peer industry players, during the six months, the group’s business in certain service centres of mainland China has continued to be profitable.
The group has nine beauty and wellness centres in Beijing, Shanghai and Guangzhou, with a total gross floor area of approximately 46,000sqft. These centres provide customers with professional integrated services, including beauty and facial care, spa, massage and slimming services, which are targeted on high-consumption professionals and more affluent middle-class with continuous growth, with a view to increase the luxury customer base.
As a market leader in the beauty industry, the group seized market development opportunities to expand its market share and improve the returns for its shareholders. During the period, the group announced the acquisition of beauty skincare services business in Singapore and Malaysia for HK$250 million.
Tsang concluded: “The group believes that Hong Kong’s retail sector will continue to thrive vibrantly. As European economic outlook remains uncertain, the group will make incessant efforts to practice a prudent financial management by implementing cost control initiatives, and make a strategic move to strive for steady growth. Looking ahead, upon the completion of the Singaporean and Malaysian businesses acquisition, we would expect the enlarge Group to further expand our retail network in Hong Kong, Singapore and Malaysia, and enhance our skincare and wellness product lines; continue to expand our service centres and improve our brand awareness; and continue to implement cost control for improvement of the future incomes and enhancement of profit growth, generating satisfactory returns for our shareholders and the community.”
