Beauty Farm Medical and Health Industry Inc. ("Beauty Farm" or the "Company") (02373.HK) recently declared a dividend for the year ended December 31, 2022. Based on the final dividend of HK$0.39 per share, the Company distributed a total of HK$92.3 million at a dividend payout ratio of approximately 66.44% and a dividend yield of approximately 3.95%. According to the financial results announced in March 2023, for the year ended December 31, 2022, the Company recorded total revenue of RMB 1.64 billion and adjusted net profit of RMB 157 million. The dividend declaration was in line with the Company’s dividend distribution plan proposed at the beginning of 2023. Despite consumer market headwinds throughout 2022, Beauty Farm delivered robust returns to its investors at a high dividend payout ratio, demonstrating tremendous confidence in the Company’s long-term growth prospects.

Meanwhile, the Company also actively stepped up its buyback program. According to Beauty Farm’s latest announcements, it repurchased a total of 829,000 shares over the past four months, which represented approximately 0.35% of its outstanding shares. The Company aims to boost investor confidence by actively rewarding shareholders with continued buybacks and dividend distributions. The repurchased shares will be cancelled, which will reduce the number of shares outstanding and drive up both share price and earnings per share. The Company is pleased to share the benefits of its remarkable growth and performance by returning profits to investors.

Beauty Farm achieved stellar results in the first half of 2023. For the six months ended June 30, 2023, the Company’s revenue was RMB 1.037 billion, up 41.2% year-over-year. Net profit surged by 510.2% year-over-year to RMB 121 million, and adjusted net profit increased by 159.1% year-over-year to RMB 131 million.

As one of China’s most established health and beauty management chains, Beauty Farm remained committed to its “dual-beauty” strategy as it scaled up medical aesthetics business. For the six months ended June 30, 2023, medical aesthetics revenue reached RMB 440 million, up 59.6% year-over-year, while delivering a robust gross profit margin of 55.1%. The rapid growth across the Company’s medical aesthetics and subhealth service segments sparked great synergy with its traditional beauty services, emerging as the Company’s second growth curve. Beauty Farm will further diversify its product matrix to better support customers with more comprehensive services.

While actively pursuing business development and embracing product innovation, the Company has significantly bolstered its market share through continued additions of new stores. As of June 30, 2023, the Company has extended its market reach with 196 direct stores and 194 franchised outlets to a total of 390 stores. Throughout the first half of 2023, the Company opened 22 new stores, including 14 franchised and eight direct stores, which consisted of six salons offering traditional beauty services, a CellCare medical aesthetics clinic, and a Neology healthcare center.

Beauty Farm is actively fostering a comprehensive ecosystem of pan-beauty offerings based on its “dual-beauty” model. As the Company's multi-brand, nationwide expansion gains traction and the number of stores grows, it is actively exploring merger and acquisition opportunities to expand its brand portfolio. Additionally, the Company continues to leverage digital tools to drive customer acquisition, providing sustained growth momentum to strengthen its market-leading position.