Beautyfarm Med (02373) Board of Directors sends a letter: Heading towards a market value of 500 billion, we are ready!

On January 16th, BEAUTYFARM MED (02373) official WeChat account released a letter to shareholders. Chairman and Executive Director Li Yang stated in the letter, "Beautyfarm will steadily work towards achieving its goals. Entering the Hong Kong stock market...aiming for a market value of 10 billion...moving towards a market value of 50 billion...we are ready..." It is reported that this is not the first time BEAUTYFARM MED has set a goal of reaching a market value of 10 billion. As early as August 5, 2024, BEAUTYFARM MED CFO Zhou Min stated, "We hope that Beautyfarm can achieve a doubling of its size in the medium term and strive to become a 10 billion level company in the future." Below is the original text from the public account: A Letter to Shareholders on the Second Anniversary of Beautyfarm's Listing Respected shareholders and partners: The beginning of a story is often the most attractive, but the real plot often unfolds in the second year. In the second year after listing. In 2024, BEAUTYFARM MED (2373.HK) continued to deliver steady performance growth, leading industry consolidation, and significantly increasing market share. In the capital market, after experiencing ups and downs in the first year, we welcomed a turnaround and rebirth in the second year. Based on excellent performance, we actively rewarded shareholders, optimized capital structure, and our market value has increased against the trend by 68% since the beginning of 2024. We are prepared for the Hong Kong Stock Connect target. A new journey, a new start. 1. Return to member value, create meticulous service Customer orientation is the unchanged original intention of Beautyfarm. As the "first brand of high-end beauty in China," we are committed to defining "high-end beauty" and creating "Beauty Farm quality." To achieve this, we have launched "meticulous service," aiming to perceive customers' emotions more sensitively, respond to customers' needs more accurately, and ensure that every service touchpoint can bring customers a more considerate service experience. Targeting urban women in China's top-tier cities, who bear the dual pressures of work and family. We continue to discover women's needs, lead industry innovation, and support women's empowerment. At the beginning of the year, we noticed the dual needs of "pain relief treatment demand" and "body shaping" caused by increased pressure on modern women, introduced the leading French professional beauty brand LPG, and exclusively customized the LPG BF+ course for Chinese women, which immediately exploded in the market, with sales exceeding one hundred million renminbi. We continue to focus on and promote the improvement of women's health levels. In October, we launched the "Pink Ribbon Month" activity, guarding women's health in various ways as "pink knights for women," introducing the Women's Balance Care series, continuously caring for women's breast health, ovarian health, and unlocking the key to women's health... Each service upgrade, each care treatment, each greeting tightens the connection between us and our customers, jointly building strong trust in Beautyfarm among members... 2. Seize major industry consolidation opportunities Currently, the industry is entering a new round of reshuffling. In this context, Beautyfarm advocates for a development strategy that changes with the times, seizes major industry consolidation opportunities, and transforms strategically from internal growth to "internal + M&A" dual-wheel drive growth. This year, we achieved a major milestone in Beautyfarm's history of mergers and acquisitions - the comprehensive acquisition of the industry's second-ranked brand, Nairo. This was also a major event that shocked the industry this year. With over 150 Nairo stores fully integrated into Beautyfarm's brand family, quickly covering core cities in the Greater Bay Area and important cities around it, the group's market share and strength in the health field have been significantly improved. With this, our store count has exceeded 550, further consolidating our leading position. With the addition of Nairo, our business model has also undergone a comprehensive upgrade, transitioning from the previous "Three Beauty Model" to the "Double Beauty + Double Health" three-dimensional business model. Our traffic entry points have widened. This new traffic will synergize with the value-added businesses of medical cosmetology and sub-health medical care in the future, driving the increase in company revenue and profits. In the past year, many small and medium-sized institutions have eventually chosen to exit abruptly due to various challenges. As a leading company, we continue to explore opportunities to clear out beauty salons, strive to promote industry consolidation, and hope to inject confidence into the long-term development of the beauty industry. At the same time, we have carried out multiple cross-industry cooperation and study tour activities to provide support and assistance to industry partners, jointly promoting the industry towards a more positive and healthy direction... 3. Focus on profit improvement, drive organizational change Mr. Kazuo Inamori once pointed out, "Companies pursue profits openly and honestly, which is the right path." This statement holds even more profound meaning in the current economic cycle. Starting from the second half of 2024, Beautyfarm launched a campaign to "focus on profit and efficiency improvement," firmly driving the improvement of profit and efficiency. In the future, Beautyfarm will lead the reform of the supply chain, drive organizational change to improve labor productivity, and continuously deepen the group's digital construction, making data-driven decisions to comprehensively improve operational efficiency. 4. A new journey, a new start We have experienced a magnificent 31 years in the past, and we are currently in a historical moment of crossing cycles. I firmly believe that internally, we will continue to cultivate our inner strength, seize opportunities externally, expand market share against the trend, uphold long-termism, take on the social responsibility of a listed company, and continuously contribute value to customers, shareholders, employees, partners, and society. Beautyfarm will steadily work towards achieving its goals. Entering the Hong Kong Stock Connect...aiming for a market value of 10 billion...moving towards a market value of 50 billion...we are ready... BEAUTYFARM MED Industries Co., Ltd. Li Yang Chairman and Executive Director