BEAUTYFARM MED (02373) has released a positive profit alert for the first half of the year.
The company anticipates that for the six-month period ending June 30, 2026, the group will achieve the following financial results: (i) revenue not less than RMB 1.88 billion, representing an increase of no less than 28% compared to the same period in 2025; (ii) adjusted net profit not less than RMB 260 million, a growth of at least 36% year-on-year; and (iii) net profit not less than RMB 235 million, an increase of no less than 37% from the prior corresponding period.
The group's consistent growth is attributed to its dual-drive strategy focusing on both organic expansion and strategic acquisitions.
Key Drivers of Performance
The board believes the strong performance during the reporting period stems from two main factors. Firstly, accelerated expansion through acquisitions has been pivotal. Following the acquisition of the Nairui'er brand in 2024, the group successfully acquired the Siyanli brand in 2025, the third-largest player in the domestic beauty industry. Its financials have been consolidated into the group's statements since January 2026, bolstering the group's presence in premium commercial districts across core cities and enhancing market share.
Secondly, improvements in organic operations and efficiency have contributed significantly. The group has seen steady growth in same-store revenue from directly-operated outlets. Its beauty and wellness segments have benefited from brand upgrades and digitally-driven refined operations, leading to a stable increase in customer numbers. The consumer healthcare segment has also experienced rising revenue, with the CellCare brand's upgrade and new anti-aging solutions driving volume and price increases in medical aesthetics services. Platform efficiency and economies of scale have further improved internal profit margins.
Commitment to Shareholder Value
The company remains committed to enhancing shareholder value through sustained measures. This includes conducting regular share buybacks to increase earnings per share and demonstrating confidence in the company's long-term intrinsic value. Coupled with a consistent high-dividend policy and robust earnings growth, these actions are steadily enhancing the group's valuation appeal in the capital markets.
Looking ahead, the group plans to continue executing its dual-drive strategy, leveraging the advantages of its integrated business model. Combined with management equity incentive targets, the group expresses strong confidence in achieving full-year performance growth.