HONG KONG, Aug. 26, 2016 /PRNewswire/ -- Natural Beauty Bio-Technology Limited ("Natural Beauty" or the "Group"; Stock Code: 00157), the leading professional skin-care, and spa services provider in China, announced today its interim results for the six months ended 30 June 2016.
For the six months ended 30 June 2016, turnover of the Group decreased by 9.4% to HK$240.3 million (1H2015: HK$265.1 million), mainly attributable to the translation effect to Hong Kong dollars, the Group's reporting currency, and the decrease in product sales. Overall gross profit margin declined to 76.1% as a result of larger promotion discount during the period under review (1H2015: 77.9%). Profit for the period rose by 5.8% to HK$82.9 million (1H2015: HK$78.4 million). The growth was mainly attributable to the decrease in distribution and selling expenses and administration expenses, and the increase in other income. Earnings per share were HK4.14 cents (1H2015: HK3.92 cents). The Board declared to distribute an interim dividend of HK4.1 cents per share and special interim dividend of HK2.5 cents per share.
During the period under review, turnover in the PRC market dropped by 10.3% to HK$194.4 million as a result of the translation effect to Hong Kong dollars, the Group's reporting currency, and the decline in product sales. As the Group increased promotion discount during the period under review, gross margin on product sales decreased to 78.6%. Turnover in Taiwan decreased by 3.9% to HK$44.4 million. Gross margin on product sales edged up by 0.5 percentage points to 80.5%. On the other hand, sales in other regions, including Hong Kong, Macau and Malaysia, decreased by 29.9% to HK$1.4 million, accounting for an insignificant 0.6% of the Group's turnover.
The Group derives its income principally from its network of distribution channels, including spas and concessionary counters in department stores. As at 30 June 2016, there were 1,064 spas and 14 concessionary counters. A total of 20 new stores were opened, while 14 stores were closed during the period under review.
For the first half of 2016, average sales per store in the PRC grew 7.5% to HK$244,000, while average sales per store in Taiwan maintained stable at HK$178,000.
To maintain its competitive edge, the Group has developed its flagship NB-1 product family and other products for spot removal, whitening, allergy-resistance and slimming. The stem cell technology is patented in the United States to protect the uniqueness of the NB-1 products. During the six months ended 30 June 2016, sales of NB-1 products recorded strong growth. The group sold 222,529 sets/bottles, which generated sales of HK$128.4 million, representing a 12% growth year-on-year. The sales of NB-1 products accounted for more than 54% of the Group's total product sales during the period.
Mr. Hsiao Wen-Chung, Chief Operating Officer and interim Chief Executive Officer of the Group said, "Looking ahead, we are confident in the long-term growth of the beauty and personal care market, and will continue to strengthen our leading position as a leading skin care brand and spa operator in the Greater China Region. We will continue to expand our store network in tier 3 and 4 cities in the PRC. On the product end, we will launch a large number of new products in the second half year to satisfy the needs of consumers. We will devote more marketing and promotional efforts to drive the growth of food supplement. We will also continue to develop 'Stremark' in the area of plastic surgery recovery skincare. We are building an information platform for customers and integrate online and offline marketing resources with the aim to establish the business model of 'Business (Natural Beauty) to Customer to Business (Franchisee)'. We will strive to strengthen our competitive edges by implementing the aforesaid strategies, so as to generate satisfactory returns for our shareholders."
About Natural Beauty Bio-Technology Limited
Natural Beauty is a leading beauty and spa services and products provider in Greater China. The Group principally offers tailor-made beauty and skin care solutions through its trained professional beauticians. The Group is engaged in research and development, manufacture and sale of skin care, aroma-therapeutic and beauty products, marketed under the brandname "NB®". The products are distributed through a distribution network of over 1,000 NB's SPAs and dedicated counters in Greater China.
