Chlitina Holding Achieved NT$ 8.96 EPS, Revenue Hits Record High
TAIPEI, Aug, 14 2019 - (ACN Newswire) - Chlitina Holding ("Chlitina", ticker:4137 TT) held a board meeting on Aug. 12 to discuss the company's 2019H1 operating results and dividend policy. Chlitina also announced July 2019 revenue.
- In the first half of 2019, Chlitina reported consolidated sales of NT$ 2.45 billion. Benefiting from its beauty salon franchise core business, Chlitina maintained a steady performance. Additionally, franchisee recruitment and product sales to franchisees both experienced steady growths. Chlitina achieved a gross profit margin of 84%, an operating profit margin of 35.5%, a net profit after tax of NT$ 712 million and after-tax earnings per share (EPS) of NT$ 8.96. Revenue and profit both hit record highs.
- In July 2019, Chlitina reported consolidated sales of NT$ 363 million and YTD consolidated sales of NT$ 2.82 billion, which grew 14% YoY. In May and June 2019, Chlitina sponsored the Shanghai TV Festival and the Shanghai International Film Festival to enhance its brand image. In the second half of 2019, Chlitina will launch more campaign events in airports, on TV shows, and through travel promotions to prepare for the upcoming Autumn-Winter season skin care campaigns.
- Since last year, Chlitina has strategically expanded the UPLIDER Medical Beauty Clinics' operating size. The company plans to establish five clinics in Shanghai, Nanjing and other cities. Besides medical beauty projects, Chlitina will provide high-end anti-aging services, hoping to take advantage of its research, product development and innovation abilities in order to improve service quality, as well as build a cornerstone for the company's future development.
- Looking forward to the second half of 2019, the company anticipates high demand within the Chinese beauty industry and a clear path for growth. Thus, we expect continuous sales growth in individual Chlitina stores. So far, Chlitina has 4,829 global franchise stores, and we are optimistic we can achieve our target of adding 400-500 new stores this year earlier than planned.
Looking back at operation results in the first half of 2019:
Chlitina Holding reported consolidated sales of NT$ 2.45 billion, which translates to a YoY growth of 16.86%, driven by positive performances from Chlitina franchises' steady expansion, franchisee recruitment and product sales to franchisees. The company also adapted policies to enhance internal operational efficiency. Supported by both internal and external improvement, Chlitina achieved a gross profit margin of 84% and an operating profit margin of 35.5%. In addition to revenue from its skin care business, in the first quarter, Chlitina received a 22.24 million RMB financial subsidy from the Shanghai city government. Overall, Chlitina had a net profit after tax of NT$ 712 million, and after-tax earnings per share (EPS) of NT$ 8.96, growing 21.28% and 20.27% respectively. Revenue and profit both hit record highs.
Chlitina Holding explained that the company's core business, "CHLITINA", the beauty salon franchise, accounted for up to 96.87% of the company's total revenue, which benefited from a successful franchise strategy and development in new markets. Additionally, the company paid attention to employee training and upgraded franchise operation quality, which helped operations improve steadily during the period. Chlitina also invested in a branding and advertisement strategy. The company updated its slogan from "Women Love Bravely" to "Love Bravely, Not Hesitantly" to convey the idea of "beauty in action". Chlitina held a special exhibition to celebrate this theme at the Shanghai Hongqiao Airport with exhibits on 32 walls, and joined the Shanghai TV Festival and the Shanghai International Film Festival, investing in three documentaries while also conducting charity activities. Moreover, Chlitina made use of social media (Weibo) together with other brands to amplify its messages and boost market share, effectively sustaining its core business's development.
Looking back at operation results in July 2019:
In July 2019, Chlitina reported consolidated sales of NT$ 363 million, which were influenced by the beauty industry's seasonality. The YTD consolidated sales achieved NT$ 2.82 billion, or a 13.80% increase YoY. As of the end of July, Chlitina had already added 350 franchise stores and the total store number reached 4,829, a 10% increase compared with the same period last year. This development fully showed the company's stability. Chlitina will keep hosting training courses, consumer acquisition tea parties and experiential activities to maintain franchise store owners' active attitude and help prepare for the upcoming Autumn-Winter season skin care campaigns.
Second half year of 2019 operation outlook:
Looking to the second half of 2019, we expect high demand within the Chinese beauty industry, and we will focus on Taiwan, Hong Kong and Southeast Asian markets to maintain our core business' revenue. At the same time, Chlitina will continue to promote our UPLIDER Medical Beauty Clinics and services. We plan to open two general clinics (in Shanghai and Nanjing separately) and three medical beauty clinics (two in Shanghai and one in Nanjing). Aside from general medical beauty services, Chlitina will provide more services to improve suboptimal health and provide anti-aging treatments with products developed through our joint research platform with Tongji University: the Tongji University-Chlitina Regenerative Medical Research Institution. Additionally, all new products will be distributed in all channels. In other words, Chlitina aims to build omni-channel high-quality services, which will become a cornerstone for the company's future development.
Moreover, Chlitina's mission is not to satisfy consumers' desire of beauty, but instead to satisfy high-end anti-aging medical needs in the future. Thus, since 2017, Chlitina has cooperated with Tongji University and established the Tongji University-Chlitina Regenerative Medical Research Institution to research skin recovery and other anti-aging related topics. Already, stem cell skin repair research has delivered preliminary results. According to our study, adipose tissue-derived mesenchymal stem cells (ADSC) is not only a convenient raw material to acquire, but its derivatives also help promote collagen synthesis, inhibit melanin production, accelerate skin wound healing and delay skin aging in clinical trials. ADSC could become a practical ingredient for medical beauty and health maintenance. Chlitina hopes it will soon bring to fruition current products and aging and regeneration medical beauty projects. At the same time, Chlitina will also develop more competitive new products and projects to increase diversity, improve the company's operations level and maintain a top position in Asia's beauty industry.
IR Trust Director Vicky Zhang
Investor relations contact:
Chlitina Investor Relations Director Anita Hu
Chlitina's core business is franchise beauty salons. The company was founded in 1989, and the founder Dr. W.K. Chen is known as the Father of Amino Acids, the first medical beauty expert to apply amino acids in skincare. In 1997, Chairman Chen Pi-hua expanded Chlitina to the Mainland China market, achieving great renown with high-quality products and a successful business model. The company went public in Taiwan in 2013. The business operates in Mainland China, Taiwan and Hong Kong, and it is expanding throughout Southeast Asia. Chlitina has more than 4,829 franchised shops globally and 4,476 shops in Mainland China. It has trained more than 300,000 professional beauty consultants and become a symbolic Chinese beauty salon chain brand.
Besides the core business's steady growth, Chlitina is expanding its business with new programs, such as the Xinmeili e-commerce platform, UPLIDER Medical Beauty Clinic, RnD nails and eyelashes salon. Chlitina hopes to seize new development opportunities with these initiatives. Taking advantage of research, production, branding and distribution channels, Chlitina has become a beauty industry chain.
Chlitina Official Website: www.chlitina.com
Some of the statements contained in this press release may be considered forward-looking statements. These statements identify prospective information. Forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. These forward-looking statements are subject to a number of factors that may cause actual results to differ materially from the expectations described, which include but are not limited to economic, competitive, market, currency, governmental and financial factors. Chlitina Holding assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions.
Sectors: Daily Finance, Daily News
Copyright ©2019 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
Latest Press Release
More Latest Release >>
Toyota Provides Diverse Mobility for Tokyo 2020, including a Full Line-up of Electrified Vehicles
Aug 23, 2019 16:58 JST
NEC Receives Order for Intelligent Transportation System in Makkah, Saudi Arabia
Aug 23, 2019 11:42 JST
MHI to Exhibit at the Japan-Africa Business Expo during TICAD7
Aug 22, 2019 14:20 JST
Fujitsu and Qualcomm Complete 5G Data Calls in Sub-6 GHz and mmWave Spectrum Bands
Aug 22, 2019 11:13 JST
NEC: Industrial Internet Consortium Approves Testbed of Negotiation Automation Platform for coordinating interests among AI systems
Aug 21, 2019 11:24 JST
NEC to Install More than 20MW of Municipal Energy Storage Projects in New England
Aug 21, 2019 11:01 JST
Fernando Alonso Keeps an Eye on Dakar with TOYOTA GAZOO Racing
Aug 20, 2019 17:06 JST
MHIEC Receives Order to Refurbish the Hiroshima Naka Waste to Energy Plant
Aug 20, 2019 11:10 JST
New Combustor Center for Manufacturing Aero Engine Parts to be Established within MHI's Nagasaki Shipyard & Machinery Works
Aug 19, 2019 12:49 JST
Toyota Yaris WRC Ready to Master the Varied Roads of Germany
Aug 16, 2019 20:13 JST
Fujitsu Develops AI Disaster Mitigation Technology to Predict River Flooding with Limited Data
Aug 16, 2019 14:15 JST
ULVAC Launches Revolutionary PZT Piezoelectric Thin-film Process Technology and HVM Solution for MEMS Sensors/Actuators
Aug 16, 2019 14:00 JST
Honda Announces Changes in Production Operations in Argentina
Aug 14, 2019 09:04 JST
The HondaJet is the Most Delivered Aircraft in its Class for the First Half of 2019
Aug 13, 2019 10:47 JST
Notice of Signing Basic Agreements for Airport Operation of the Seven Airports in Hokkaido
Aug 09, 2019 17:05 JST
MHI Developing the QoEn Index for Energy Infrastructure to Support the Sustainable Growth of Society
Aug 09, 2019 14:04 JST
Fujitsu Initiates Year-Round Recruitment
Aug 09, 2019 11:27 JST
Mitsubishi Motors to Introduce its Customers to a New Energy Plan by MC Retail Energy
Aug 08, 2019 19:20 JST
Fujitsu RunMyProcess Joins Google Cloud Partner Program
Aug 08, 2019 09:00 JST
SDK Revises 2019 Consolidated Performance Forecast
Aug 07, 2019 16:05 JST