The company’s revenue contributed from the PRC market in the amount of HK$99.5mn, representing 74.0% of the Group’s revenue for four months.
Perfect Shape (PRC) Holdings Limited (“Perfect Shape”), one of the premium slimming and beauty service providers in the PRC, Hong Kong and Macau operating under the well-recognised brand name “Perfect Shape”, today announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (“HKSE”).
Of the 250,000,000 shares set for Global Offering (subject to an Over-allotment Option), 90% will be offered internationally and the remaining 10% offered to the Hong Kong public (“Hong Kong Public Offer”). The indicative offer price range is between HK$1.35 and HK$1.8 per share. Assuming the Over-allotment Option is not exercised, the total issue size is estimated at between approximately HK$337.5 million and HK$450 million.
The Hong Kong Public Offer will begin on 13 December 2011 (Tuesday) and end at noon on 16 December 2011 (Friday). The final offer price and allotment results will be announced on 22 December 2011 (Thursday). Dealing of Perfect Shape’s shares will commence on the Main Board of HKSE on 23 December 2011 (Friday) under the stock code 1830. Shares will be traded in board lots of 2,000 shares. China Everbright Capital Limited is acting as the Sole Sponsor, while China Everbright Securities (HK) Limited is acting as the Sole Global Coordinator, Sole Bookrunner and Sole Lead Manager of the proposed listing of Perfect Shape.
Perfect Shape is principally engaged in the provision of tailor-made slimming services with the complement of slimming products for achievement of better results. Established in 2003, the Group first tapped into the PRC market in 2009 and experienced rapid expansion in the country. Currently, the Group self-operates 57 service centres, of which 44 are located in 10 major cities in the PRC with 12 in Hong Kong and 1 in Macau. Its number of members in the PRC increased by about 62 times from around 600 as at 31 March 2009 to around 38,000 as at the Latest Practicable Date1, with 48,000 and 4,000 members in Hong Kong and Macau respectively. The well-established client base brings confidence to new clients and provides the Group with new market opportunities through word-of-mouth referrals, according to a Perfect Shape Holdings report.
During the track record period, the Group’s revenue recorded a CAGR of 14.4% from HK$236.3 million for FY2009 to HK$309.0 million for FY2011, with net profit increased by about 71% from HK$29.5 million for FY2010 to HK$50.3 million for FY2011. For the four months ended 31 July 2011, the Group’s net profit soared by 102% to HK$28.9 million, which was at a similar level as the whole year’s profit for FY2010. The Group’s net profit margin for the four months ended 31 July 2011 rose to 21.5% with operating profit margin reached 29.0%. The promising profit margins were attributable to the shift of the Group’s business to the PRC market.
The Group’s revenue from the PRC operation increased by 85 times from HK$1.9 million in FY2009 to HK$162.9 million in FY2011. Revenue from the PRC operation soared over 130% to HK$99.5 million for the four months ended 31 July 2011 as compared to HK$42.5 million in the same period in 2010, contributing 74% of the Group’s total revenue. The Group targets to increase the percentage of revenue contribution from its PRC operations to around 80% of its total revenue for the year ending 31 March 2012. The same store sales of its service centres in the PRC, which represent 4 service centres established prior to 1 January 2010, soared by 87.3% from HK$7.9 million in the first quarter of 2010 to HK$14.8 million in the first quarter of 2011.
Perfect Shape maintained strong cash inflow from its operating activities which were sufficient to cover net cash used in its investing and financing activities. As at 31 July 2011, the Group’s cash and cash equivalents amounted to HK$139.8 million with no outstanding bank loans, overdrafts or other borrowings during the track record period. The Group is committed to sharing fruits and creating additional values to its shareholders. Thus, it intends to distribute all annual distributable profit, if any, from ordinary activities as dividends subsequent to the Global Offering starting from the financial year 2012/2013.
Perfect Shape is led by Dr. Au-Yeung Kong who is a registered practising medical practitioner in Hong Kong. He has accumulated nearly eight years of management and operation experience in slimming and beauty industry. With Dr. Au-Yeung’s professionalism in medical science, he has designed various slimming programmes for oriental ladies who are in the pursuit of ideal body shapes and weights.
Looking ahead, demand for slimming and beauty services is expected to elevate with the rapid growth of the PRC economy and the sustainable improvement of general living standard in the PRC. Therefore, the Group plans to continue with its strategic expansion of service centre network in the PRC to scale up its geographical coverage and promote its brand recognition. The Group intends to open additional 106 new service centres in the PRC by 31 March 2015, of which 78 service centres will be in the first-tier cities, and 28 will be in second & lower-tier cities. The estimated total expenses for setting up of the 106 service centres will be HK$254.0 million.
In order to enhance the Group’s operational efficiency and strengthen its customer database management for better sales and marketing and fostering customer loyalty, the Group plans to upgrade its management information system and build up an electronic customer relationship management (“CRM”) platform which will enable the Group to analyse client’s information such as spending power and purchase patterns. It also plans to scale up the sales and marketing of its existing and new lines for slimming and beauty products in order to broaden the income stream.
Dr. Au-Yeung Kong, Founder, Chairman, CEO & Executive Director of Perfect Shape said, “We are very delighted to see the business of the Group take a great leap forward. The listing strengthens our Group’s capital base, helps fortifying our brand name and attracting industry experts to boost our business development in the long term. Moving onward, we will continue to expand our business operation in the PRC aggressively in order to capitalise the robust growth in the PRC slimming market. We believe that the proposed listing in Hong Kong can help support our growth and enhance returns to our shareholders in the long run. With all these initiatives in the pipeline, our Group is set to sustain its momentum as one of the largest slimming and beauty service providers in the PRC.”
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