Revenue and Net Profit Reached Record High
Cash-generating Capability Significantly Enhanced
HONG KONG, Aug. 26, 2025 /PRNewswire/ — Beauty Farm Medical and Health Industry Inc. (“Beauty Farm” or the “Company”) (02373.HK), one of the largest beauty and wellness services providers in China, together with its subsidiaries, the “Group,” is pleased to announce the Group’s audited interim results for the six months ended June 30, 2024 (the “Reporting Period”).
Performance Highlights:
- Revenue surged to RMB1,459 million, representing a YOY increase of 28.2%.
- Net profit rose to RMB171 million, reflecting YOY growth of 35.5%.
- Adjusted net profit increased to RMB191 million, and adjusted net profit margin reached 13.1%, hitting a record high.
- Net cash generated from operating activities reached RMB410 million, expanding 84.4% YoY.
- Cash and cash-like items grew to RMB2 billion, representing a net increase of 27.5% YoY.
- Advanced acquisitions and consolidations, increasing the Company’s ownership stake in Naturade to 90%.
- Optimized shareholder structure by introducing high-quality long-term investors as CPE exited.
Beauty Farm delivered strong results in the first half of 2025, once again achieving record highs in both revenue and profit, with total revenue increasing 28.2% year over year to RMB1,459 million. As our revenue steadily climbed, the benefits of scale became increasingly evident, driving our gross margin to 49.3%, an increase of 2.3 percentage points year-over-year. Net profit rose by an impressive 35.5% year-over-year to RMB171 million. Notably, adjusted net profit soared to RMB191 million and adjusted net profit margin reached a record-high of 13.1%, underscoring the Group’s ability to drive profitability despite macroeconomic headwinds.
These impressive financial results were supported by our optimized store network and increased membership growth. As of June 30, 2025, we operated 552 stores in total, including 273 direct stores and 279 franchised and brand-operated stores. In the first half of 2025, client visits at our direct stores reached 920,000, up 47.8% year-over-year. The total number of active members at our direct stores amounted to 120,000, surging by 46.5% year-over-year. Under our “dual beauty + dual wellness” model, in the first half of 2025, 20% of our beauty and wellness members purchased aesthetic medical services or subhealth medical value-added services, demonstrating the effectiveness of our business model.
As a brand focused on China’s top-tier markets, we have strategically prioritized the 20 cities with the highest density of high-net-worth customers. Our deep penetration in the four tier-one cities, i.e., Beijing, Shanghai, Guangzhou, and Shenzhen, forms the Group’s core competitive moat, with 157 direct stores across tier-one cities representing 58% of all direct stores, contributing more than 60% of the Group’s total revenue. The wealth effect in top-tier cities continued to propel growth in the first half of 2025, with revenue generated in the four tier-one cities increasing over 52% year-over-year. Looking ahead, we will continue to deepen our penetration in key cities to further strengthen our competitive moat.
Studies by the China Consumers Association indicate that emotional value profoundly influences the younger generation’s consumption choices. According to iiMedia Research, the market size for China’s emotional economy is expected to reach RMB2.3 trillion by 2025 and exceed RMB4.5 trillion by 2029. As women take on increasingly important roles across society, careers, and family life, their focus on emotional well-being has deepened significantly, fueling a rising interest in self-indulgent consumption. At Beauty Farm, we are reshaping premium consumption scenarios through a dual-value proposition of tech-driven functional skincare and immersive urban wellness sanctuaries.
Double-digit Growth in all Three Business Segments, Highlighted by Doubled Revenue in Subhealth Medical Services
In the first half of 2025, all three of our business segments – beauty and wellness services, aesthetic medical services and subhealth medical services – delivered outstanding performances. First, our cornerstone beauty and wellness services business achieved revenue of RMB807 million, an increase of 29.6% year-over-year. Its rapid expansion continues to drive growing economies of scale, elevating profitability to new heights. Gross profit margin rose to 42.1%, an increase of 1.8 percentage points year-over-year. Customer base expansion was the primary revenue growth driver in the first half of 2025, with the number of client visits to our beauty and wellness services’ direct stores soaring to 850,000, up 48.6% year-over-year. The number of active members of our direct beauty and wellness stores increased to 112,000, up 45.7% year-over-year. Furthermore, the number of members of our franchised beauty and wellness stores exceeded 53,000, up 70.1% year-over-year, highlighting a robust joint growth trend with our partners.
The Group’s second growth engine, aesthetic medical services, maintained its resilient growth trend. In the first half of 2025, revenue from aesthetic medical services reached RMB499 million, up 13.0% year-over-year, and gross profit margin reached 56.9%, up 1.8 percentage points year-over-year. In the first half of the year, the number of client visits at the direct stores of our aesthetic medical services reached 50,000, up 28.0% year-over-year. The number of active members served at our direct stores grew to 24,000, an increase of 27.6% year-over-year. Furthermore, we continued to upgrade our aesthetic medical services store network. As of June 30, 2025, we operated 27 aesthetic medical clinics. Meanwhile, our physician team has accumulatively secured more than 700 professional certifications and training credentials, expanding our industry authority and reinforcing our medical expertise with tangible, authoritative credentials.
Finally, we accelerated our subhealth medical services business’s expansion in the first half of 2025. Client visits at our subhealth medical services direct stores reached 19,000, up 75.5% year-over-year. The total number of active members amounted to 7,014, surging by 93.4% year-over-year. Driven by this momentum, our subhealth medical services achieved a substantial leap in growth. In the first half of 2025, revenues from this business reached RMB154 million, a remarkable increase of 107.8% year-over-year, with revenue share exceeding 10% for the first time. Of this total, revenue from our functional medicine segment surged by 122.0% year-over-year, and revenue from our Women’s Special Care Center soared by 172.8% year-over-year, emerging as the most significant segment within our subhealth medical services business. In the first half of 2025, gross profit margin of subhealth medical services grew to 63.1%, a significant increase of 8.7 percentage points year-over-year. As of June 30, 2025, the number of our subhealth medical service clinics increased to 11.
Remarkable Outcomes from Acquisitions and Consolidations
As consolidation accelerates across China’s beauty service industry, we remain committed to propelling growth through a dual-engine strategy fueled by both internal growth and external expansion. Leveraging acquisition as a core Group-level development strategy has already yielded positive results. Since our July 2024 acquisition of Naturade, China’s second-largest beauty brand, it has delivered an outstanding performance, validating the Group’s strong consolidation capabilities. In the first half of 2025, Naturade achieved revenue of RMB277 million, and its adjusted net profit margin rose from 6.5% pre-acquisition to 10.4%, rapidly aligning with the profitability levels of our Group. Building on the remarkable outcomes of this integration and operational refinement, in May this year, we announced an additional 20% equity acquisition in Naturade, increasing our ownership stake to 90%. This deal not only strengthened our control of Naturade but also created greater value for our shareholders.
We have been steadily reinforcing Naturade’s core competitive edge. As a leading AI-powered wellness brand rooted in traditional Chinese medicine theories, Naturade was once again ranked by globally recognized market intelligence firm Frost & Sullivan as the “Top AI-Powered Wellness Brand in China.” Meanwhile, the Group has begun rolling out its “AI-Powered Wellness System 2.0,” its first AI-driven digital and intelligent transformation flagship program, at Naturade. Developed by seven top experts and authoritative traditional Chinese medicine institutions, this program innovatively integrates modern diagnostic and testing technologies with traditional Chinese medicine approaches. The system generates AI-powered reports based on testing and assessments across five dimensions: constitution, tongue appearance, meridians, organs, and skin, building a full-cycle, data-driven, and results-visualized health management closed loop, pioneering a new AI-powered wellness trend.
Optimized Shareholder Structure and Enhanced Market Capitalization
In March this year, Beauty Farm officially launched its “Market Capitalization Enhancement Plan” to systematically drive value creation through three strategic initiatives. First, the Company has established a long-term shareholder return mechanism, pledging to distribute no less than 50% of the annual net profit attributable to the parent company’s shareholders as dividends over the next three complete fiscal years (except under special circumstances). Second, to optimize shareholder structure, the Company is bringing in long-term strategic investors to build a healthier and more diverse shareholder ecosystem. Third, the Company continues to strengthen the alignment of management and shareholder interests, leveraging its equity incentive plan to advance joint value creation and sustainable growth.
The plan has already begun to bear fruit. On August 18, the Company announced that CITIC Private Equity Funds Management Co., Ltd. (“CPE”) completed the sale of 51.329 million shares of the Company, officially stepping down from the roster of major shareholders. In addition, we introduced high-quality long-term investors, further enhancing the Company’s shareholder structure. Market feedback on the Company’s implementation of the plan has been strongly positive. Since the beginning of 2025, the Company’s market capitalization has increased by 90%, reflecting strong capital market endorsement of the Company’s value-enhancement initiatives.
Looking ahead, we remain firmly committed to driving growth through a dual-engine, internal growth and external expansion strategy. Internally, we will continue to deepen our “dual beauty + dual wellness” model: horizontally, by expanding the coverage of our beauty and wellness services brand matrix, and vertically, by deepening the penetration of our medical businesses, driving steady revenue growth. Meanwhile, we will consistently fortify our advantages across key cities, capturing a greater market share of beauty and health consumption in top-tier cities. Externally, we will replicate Naturade’s successful acquisition and integration as we actively explore industry consolidation opportunities, further catalyzing industry consolidation. Finally, we will lead the industry’s digital and intelligent transformation, harnessing our deep expertise in digital technologies and focusing on innovative, scenario-based AI applications in beauty and health services to accelerate the research, development, and launch of AI-powered, intelligent beauty service solutions.
Our comprehensive and coordinated execution of these strategic initiatives and our market capitalization enhancement plan will significantly bolster the Group’s corporate competitiveness and capital market appeal, creating sustainable value for our customers, shareholders, employees, and partners.
About Beauty Farm
Beauty Farm Medical and Health Industry Inc. is a leading beauty and health management platform in China. Over the past 32 years, Beauty Farm has developed a unique “dual beauty + dual wellness” business model, covering customers’ comprehensive beauty and health needs for their entire life cycle. We offer a diversified service matrix, including beauty and wellness brands Beauty Farm, Naturade and Palaispa, aesthetic medical brand CellCare, and subhealth medical services brand Neology. Our nationwide store network reaches over 100 cities with over 550 stores and serves millions of mid-to-high-end customers in top-tier cities in China.
For more information, please visit https://ir.beautyfarm.com.cn/.
For investor and media inquiries, please contact:
Beauty Farm Medical and Health Industry Inc.
Vivian Lu
Tel: +86 (21) 6095-3299
Email: ir@beautyfarm.com.cn
Piacente Financial Communications
Jenny Cai
Tel: +86 (10) 6508-0677
Email: beautyfarm@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: beautyfarm@tpg-ir.com