BEAUTYFARM MED expects a net profit of no less than 2.35 billion yuan in the middle of the year, a year-on-year increase of no less than 37%.

BEAUTYFARM MED (02373) announced that the group is expecting the following financial performance for the six months ending June 30, 2026 (reporting period): (i) revenue not less than RMB 18.8 billion, an increase of not less than 28% compared to the same period in 2025; (ii) adjusted net profit not less than RMB 2.6 billion, an increase of not less than 36% compared to the same period in 2025; and (iii) net profit not less than RMB 2.35 billion, an increase of not less than 37% compared to the same period in 2025. The group has always adhered to the dual-drive strategy of "internal growth + external acquisition," continuously investing in and acquiring industry-leading brands since its listing. It has now developed into one of the leading domestic platforms for beauty and health management services. With its unique business model of "dual beauty + dual health care," the group has effectively navigated economic cycles, demonstrating strong operational resilience and growth potential with steady revenue growth and excellent profit performance. The board of directors believes that the main factors contributing to the growth in the reporting period are: (1) Accelerated external expansion: The group continues to promote industry consolidation, following the acquisition of the second-ranked domestic beauty brand Naire in 2024, successfully acquiring the third-ranked domestic beauty brand Siyanli in 2025. The performance of Siyanli has been consolidated into the group's financial statements since January 2026, further strengthening the group's core layout in 20 high-end districts and improving market share and brand influence. The initial integration of Siyanli has progressed smoothly, highlighting synergies and driving revenue and profit growth for the group. (2) Internal quality improvement and efficiency enhancement: In the first half of the year, the group achieved steady internal growth, with revenue from direct-operated stores continuing to increase. In the beauty and health sector, operations benefited from brand upgrades and digital-driven refined operations, leading to steady growth in customer numbers. In the consumer medical sector, revenue scales continued to rise, with the CellCare Xiuker medical beauty brand releasing a brand upgrade and expert-researched anti-aging solutions, driving both volume and price increases in the medical beauty business. At the same time, the group's platform efficiency and scale effects continue to be released, further boosting internal profit margins. The group continues to implement measures to enhance capital market value, creating long-term sustainable returns for shareholders. On the one hand, it conducts regular share repurchases to enhance earnings per share, demonstrating confidence in the long-term intrinsic value of the company; on the other hand, relying on long-term high dividend policies and steady revenue growth, the group's attractiveness in the capital market valuation is steadily increasing. In the future, the group will continue to implement the dual-drive strategy of "internal growth + external acquisition," leveraging the advantages of the "dual beauty + dual health care" business model, and incorporating management equity incentive targets. The group is confident in achieving full-year performance growth.