Modern Beauty Announces China Expansion Plan <!-- #BeginEditable "release" --> Market Development in Full Swing HONG KONG, April 27 /Xinhua-PRNewswire/ -- Modern Beauty Salon HoldingsLimited ("Modern Beauty" or "the Company" - HKSE stock code: 919), one ofthe leading providers of comprehensive beauty and healthcare services inHong Kong, announced today the latest progress of its Mainland Chinaexpansion effort. The Company, upon completion of series of extensive market researchesand feasibility studies, will first set its feet in major cities includingBeijing, Shanghai, Guangzhou and Shenzhen via setting up of self-owned-and-managed centres as well as joint venture partnership with domestic partnersin Mainland China. Targeting to open 20 service centres over the next twoyears, the Company estimates the total capital expenditure at around RMB20million for the first year. It is expected that every service centre willbe able to attain a breakeven in a year's time. In accordance with its China expansion agenda, the Company is on trackto open its first service centre in Guangzhou in September this year.Situated at Guangzhou city's prime business district and aself-owned-and-managed operation under the tradename of "Modern BeautySalon", the service centre takes up a gross floor area of up to 7,000square feet and will offer a full range of services including beauty andfacial treatments and spa treatments. The Company's dedicated Chinamanagement team has already commenced the recruitment and training offrontline staff as well as the renovation works of the centres. Apart from its self-owned-and-managed operation, the Company iscurrently in talks with several China business partners over theestablishment of joint venture companies to kick start its operation inMainland China. Details of the said cooperation are expected to beconfirmed in the foreseeable future, enabling the Company to expand intothe market in a timely and wisely fashion. Modern Beauty Chairperson and Chief Executive Officer Joyce Tsang said,"The robust economic development in China recent years has resulted in asurge in average consumer spending, in particular amongst the middle incomegroup. In their quest of better quality of living, we also witness agrowing demand for quality and professional beauty and healthcare services.Modern Beauty is well placed to seize this golden opportunity to ventureinto Mainland China market and is confident of capturing the huge potentialthat comes along." In terms of expansion approach, the Company adopts a strategy to open achain of small- to middle-sized service centres with a floor area rangingfrom 2,000 to 10,000 square feet. This business strategy allows the Companyto effectively manage customer flow whilst establishing a steady customerbase and ensuring the provision of quality services. With Mainlandcustomers giving a strong consideration to branding, the Company believesthe renowned "Modern Beauty" brand would offer a pledge of confidence tocustomers and would certainly help expedite its business developmentnationwide. Looking ahead, Modern Beauty will market its services in Mainland Chinathrough multiple channels including advertising campaigns, beauty seminarsto establish a strong brand presence. The Company also plans to engage aspokesperson with a healthy image to help promote Modern Beauty's productsand services to reach a broader customer base. Ms Tsang added, "Modern Beauty is committed to becoming one of theleading and premier beauty and healthcare services providers in the Chinamarket. We aim to expand our service centre network to cover both first andsecond-tier cities and achieve a nationwide coverage in the long run. " Regarding the Company's latest development in Hong Kong, the Company'smen beauty services -- "be homme" -- has recorded satisfactory performancesince its debut in April this year, successfully attracting around 1,000members in just a month's time. Moreover, the Company is planning to add toits network six more service centres this financial year (April 1, 2006 toMarch 31, 2007) in Hong Kong (Tseung Kwan O, Shatin, Happy Valley,Aberdeen, North Point and Central). Total investment is estimated to bearound HK$30 to 40 million. With additional centre coverage and serviceenhancement, it is expected to bring about approximately 15% in salesgrowth. Together with the six new stores to be opened, Modern Beauty willoperate a total of 24 service centres in Hong Kong for the financial year2006/07. For more information, please visit www.modernbeautysalon.com . About Modern Beauty Salon Holdings Limited (HKSE stock code: 919) Established in 1991, Modern Beauty Salon Holdings Limited providescomprehensive beauty and healthcare services which can be broadlycategorized into beauty and facial services, spa and massage services,slimming services and fitness services under tradenames of "Modern BeautySalon", "be Sanctuary Spa", "Slim Express", "Modern Fitness", "be homme"and "Moment of Serenity". Modern Beauty now operates 18 service centres in Hong Kong and hasapproximately 154,000 customers. The Company was listed on the main boardof the Hong Kong Stock Exchange in February 2006. Gary Li Tel: +852-2894-6283 / +852-9652-9002 Email: gary.li@hillandknowlton.com.hk Angie Tang Tel: +852-2894-6262 / +852-6100-0199 Email: angie.tang@hillandknowlton.com.hkSOURCE Modern Beauty Salon Holdings LimitedRelated links:www.modernbeautysalon.com<!-- #EndEditable -->Issuers of news releases and not PR Newswire are solely responsible for the accuracy of the content.Terms and conditions, including restrictions on redistribution, apply.Copyright © 1996-< script>document.write(thisYear);< /script> 2006 PR Newswire Association LLC. All Rights Reserved.A United Business Media company.
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