Modern Beauty Salon Holdings eyes more mainland stores
Despite a slump in revenue last year, Hong Kong-listed Modern Beauty Salon Holdings says it plans to open more stores, with Mainland China a priority.
The company currently operates 13 stores across Hong Kong under the brands P.e.n and Be Beauty Shop, selling skincare and wellness products and treatments.
Revenue to March 31 was HK$599 million, down 13.6 per cent on the previous year. However, receipts from sales of prepaid beauty packages during the year under review was $563.1 million, an increase of 0.8 per cent over the same period last year.
The company reported a net loss attributable to shareholders of $22.9 million, a sharp turnaround from the $33.3 million profit of the prior year.
Chairperson and CEO Dr Joyce Tsang Yue said the company served 414,000 customers in Hong Kong last year, a modest increase of 1.7 per cent.
On the mainland, Modern Beauty operate six service centres through three wholly foreign-owned enterprises in Beijing, Shanghai and Guangzhou. The group’s sales in Mainland China increased marginally from $22.3 million to $23.3 million in the latest year and receipts from sales of prepaid beauty packages increased by 3.2 per cent to $19.9 Million. However, the mainland business recorded a loss of $3.7 million compared with a loss of $5.3 million for the same period last year.
“We plan to open more shops in the second tier cities to grasp the business opportunities in the context of ample spending power of the consumers but with much less operating costs in those regions,” said Yue.
Singapore and Malaysia
Meanwhile, in Singapore Modern Beauty increased it store count by one to 11, and continued with one store in Malaysia.
Revenue from operations in Singapore and Malaysia totalled $50.1 million, down from $69.7 million for the same period last year.
“Despite the sluggish local economic growth and dampened overall consumer confidence, we will continue to focus on the provision of quality services to lay a solid foundation for our business, build up local customers’ confidence in the group and enhance our brand awareness,” she said.