Revenue and Net Profit Reached Record High
Mergers and Acquisitions Integration Drove High-Quality Growth
HONG KONG, March 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 annual results for the year ended December 31, 2024 (the “Reporting Period”).
Performance Highlights:
- Revenue surged to RMB2,572 million, representing a YOY increase of 19.9%.
- Net profit rose to RMB252 million, reflecting YOY growth of 9.7%.
- Net cash generated from operating activities reached RMB797 million, expanding 27.4% YOY.
- Cash and cash equivalents amounted to RMB1,831million, a net increase of RMB257 million YOY.
- Completed full integration of Naturade and upgraded “dual beauty + dual wellness” model.
- Announced commitment to distributing 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.
The Group delivered stellar results in 2024, once again achieving record highs in both revenue and profit. For the full year, revenue rose to RMB2,572 million, an increase of 19.9% year-over-year. Economies of scale further propelled gross profit margin to 46.3%, an increase of 0.7 percentage points year-over-year. Net profit increased by 9.7% year-over-year to RMB252 million.
In the first half of the year, Beauty Farm acquired a 70% stake in the core assets of Guangzhou Naturade Health Management Co., Ltd. (“Naturade”) for RMB350 million. With 145 Naturade stores fully integrated into Beauty Farm’s brand family, the Group has rapidly expanded its footprint across key cities in the Guangdong–Hong Kong–Macao Greater Bay Area and strategic neighboring areas. This has significantly expanded our market share and enhanced our strengths in the wellness sector, propelling the number of the Group’s stores to 554. Furthermore, the acquisition of Naturade has driven an upgrade to the Group’s business model, evolving from our previous “tri-beauty” approach to a fully integrated, well-rounded “dual beauty + dual wellness” model.
In 2024, the Group’s net cash generated from operating activities reached RMB797 million, expanding 27.4% year-over-year. As of December 31, 2024, the total amount of cash and cash equivalents grew to RMB1831 million, representing a net increase of RMB257 million year-over-year. The Group’s strong financial performance and ample cash reserves provided solid support for upcoming mergers, acquisitions, and operational upgrades.
Solid Growth in all three Business Segments, 99% YOY Revenue Surge in Subhealth Medical Services
In 2024, the synergistic effects of the Group’s unique business model became even more evident, driving steady increases in client visits and members across our cornerstone beauty and wellness services. In 2024, Beauty Farm welcomed 1.52 million client visits at direct stores, up 20.4% year-over-year. The number of active members of our direct stores soared to 137,027, an impressive increase of 46.3% year-over-year. Driven by our business model’s distinct advantages, in 2024, 24.9% of beauty and wellness members purchased or received aesthetic medical services or subhealth medical services, of which 28.7% of premium beauty services members purchased value-added services, reflecting a year-over-year increase of 3.7 percentage points in conversion rate.
Beauty and wellness services maintained its robust growth trajectory in 2024, achieving revenue of RMB1,443 million, an increase of 20.9% year-over-year. With this notable increase in revenue have come growing economies of scale, boosting the segment’s gross profit margin to 40.7%, an increase of 1.1 percentage points year-over-year. These remarkable business achievements are attributed to Beauty Farm’s precise insight into the evolving needs of female consumers and our continuous advancement in product innovation. In 2024, the Company launched a body wellness product suite and entered into a strategic partnership with French brand LPG®. Together, we exclusively developed a customized LPG® treatment for Beauty Farm. This standout offering quickly captured market attention with its notable efficacy and exceeded RMB100 million in its first year of sales, emerging as a phenomenal best-seller. Notably, Naturade, the Company’s premium AI-powered beauty and wellness brand, was ranked by Frost & Sullivan, a highly authoritative industry ranking, as the “Top AI-Powered Beauty and Wellness Brand in China” in May 2024. This further reinforced our core competitive edge in the “AI-powered beauty and wellness” segment.
Furthermore, our long-term membership management capabilities, digital marketing expertise, and industry consolidation and acquisition prowess drove the sustainable expansion of our customer base. In 2024, the number of client visits to beauty and wellness services’ direct stores totaled 1.4 million, up 19.5% year-over-year. The number of active members of direct beauty and wellness stores reached 130,961, an increase of 44.8% year-over-year, and the number of members of franchised beauty and wellness stores soared to 61,447, up 57.9% year-over-year.
In 2024, revenue from aesthetic medical services reached RMB928 million, up 9.1% year-over-year. The number of client visits at aesthetic medical services’ direct stores reached 90,612, up 26.2% year-over-year, while the number of active members served at direct stores grew to 33,630, an increase of 37.4% year-over-year. Additionally, after eight years of diligent advancement, we fully upgraded our TimeSo “Differentiated Aesthetics” system, restoring our customers’ “innate beauty.” The Group also made great strides in advancing its medical expertise in 2024, creating the unique CellCare “two-category, five-tier physician team training system.” This system has produced a multi-disciplinary talent team of over 90 senior physicians and over 100 professional nursing and technical personnel dedicated to client care. Moreover, the Group has established a proprietary “three-tier medical quality control management system,” implementing a full-spectrum quality control cross-audit framework across medical institutions nationwide. With over 130 quality control protocols more rigorous than industry standards, it ensured the safety and compliance of our aesthetic medical services. CellCare also achieved notable results in terms of medical technology innovation, expanding its patent portfolio to 58, an impressive increase of 44 patents compared to last year.
Finally, our subhealth medical services achieved a substantial leap in 2024. Revenues from our subhealth medical services surpassed RMB200 million, a remarkable increase of 98.9% year-over-year. Gross profit margin reached 58.2%, a significant increase of 11.5 percentage points year-over-year. Client visits at direct stores rose to 27,079, up 62.5% year-over-year. The total number of active members amounted to 7,552, surging by 80.2% year-over-year. Notably, our Women’s Special Care Center has become a new growth engine, with revenue exceeding RMB100 million, an increase of more than 300% year-over-year, and active members rising by more than 200% year-over-year.
Powerful Alliance between Top Two Industry Players Manifested Acquisition and Integration Synergies
The beauty and health industry has entered a new cycle, where market leaders are leveraging their extensive experience in M&A and industry consolidation, sophisticated business frameworks, and deep capital pool to accelerate industry consolidation and expand their market share. Beauty Farm seized this opportunity, elevated its industry consolidation strategy to the Group level, and realized the landmark acquisition of Naturade, creating a powerful alliance between the two leading brands in China’s beauty industry.
Naturade has been deeply focused on traditional Chinese medicine-based wellness services for eighteen years, creating a unique technical system featuring “acupuncture without damaging the skin, non-combustible moxibustion, pain-free gua sha, and highly effective massage.” This system organically integrates traditional Chinese medicine theories with modern technologies, further enhancing Beauty Farm’s competitiveness in the field of AI-powered beauty and wellness services.
Post acquisition, Beauty Farm once again demonstrated its robust integration capabilities with an exceptional operational performance throughout the year. In the second half of 2024, Naturade recorded 232,860 client visits at its direct stores and converted 34,252 customers into active members at our direct stores, contributing RMB287.3 million in revenue to the Group. The post-integration boost in Naturade’s performance and efficiency was largely driven by a notable increase in revenue per store from our core AI-powered beauty and wellness services, the full empowerment of value-added services, and the synergies achieved through the consolidation of our middle office departments.
Looking ahead, Beauty Farm will consistently pursue opportunities for both horizontal and vertical industry consolidation. To expand horizontally, Beauty Farm will remain committed to amplifying its member base and market share of beauty services. Vertically, Beauty Farm will actively explore opportunities for acquisitions or partnerships with upstream stakeholders, aiming to enhance brand equity and lay a solid groundwork for the Group’s long-term development.
Enhanced Market Capitalization and Shareholder Returns
After weathering market fluctuations in its first year of listing, Beauty Farm achieved a powerful rebound and remarkable transformation in 2024. Driven by stellar results, proactive shareholder return strategies, and a consistently optimized capital structure, the Company’s market capitalization surged by 60%, outperforming the market by a wide margin.
To further enhance the Company’s value in the capital market and drive shareholder returns, the Group officially announced three strategic initiatives in March 2025.
- First, with respect to its shareholder return commitment, the Company has established a long-term shareholder return mechanism. The Company will 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 (please refer to the Company’s announcement dated March 26, 2025 for details), to meaningfully reward shareholders for their trust and share in the Company’s growth.
- Second, in terms of optimizing shareholder structure, the Company will continue to bring in long-term strategic investors, focusing on increasing the proportion of outstanding shares and boosting market trading activity, while building a healthier and more diverse shareholder ecosystem.
- Third, regarding its long-term management incentive program, the Company continues to harness its equity incentive plan to align the interests of the management team with the Company’s development. The performance metrics will cover both future revenue growth and profit improvement over the next three years, establishing a sustainable development mechanism that drives the shared growth of management and shareholder value.
Looking ahead, we have mapped out our business objectives for the next three years, prioritizing both scaling and profitability improvement. Additionally, we have launched an equity incentive plan closely tied to the interests of our management team, aiming to boost the team’s motivation and sense of purpose while propelling the Company to new heights.
Strategically, we remain firmly committed to driving growth through a dual-engine, internal and external growth strategy, and we will strive to further enhance this approach. Internally, we will focus on developing four core capabilities—expanding customer base, further refining operations, visionary product research and development, and advancing digital capabilities—to comprehensively increase revenue per store and improve the Group’s overall operating efficiency. Externally, we will leverage the integration of the Naturade brand to build a framework for large-scale acquisitions and integrations, accelerating the alignment of this segment’s net profit margin with the Group’s overall standard and maximizing synergies. Meanwhile, we will keenly observe market cycle shifts and seize optimal opportunities for industry consolidation, actively pursuing both horizontal and vertical M&A opportunities to build a strategic moat for the Company’s long-term, sustainable advancement. In an era of accelerating digital and intelligent transformation, we will maximize our competitive edge built through long-term investments in digitalization by focusing on innovative AI technology application in the field of “beauty and health.” We aim to drive the research and development of smart beauty industry solutions, optimize the Company’s operational decision-making mechanisms, and spearhead a new chapter in the digital and intelligent upgrade of the beauty industry.
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About Beauty Farm
Beauty Farm Medical and Health Industry Inc. is a leading beauty and health management platform in China. Over the past 30 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