Natural Beauty Announces 2017 Interim Results

Speed Up Expansion of New Franchised Stores with Enhanced Service

Declare an Interim Dividend of HK$1.71 cents Per Share and

Special Dividend of HK$0.54 cents Per Share

HONG KONG, CHINA - Media OutReach - 24 August 2017 - Natural Beauty Bio-Technology Limited ("Natural Beauty" or the "Group"; Stock Code: 00157), the leading professional skin-care, and spa services provider in Greater China, announced today its interim results for the six months ended 30 June 2017(the "Period").

Results and Operation Highlights:

Distribution channels

• Establish self-owned spas as model outlets in strategic locations to stimulate overall sales of products to franchisees
• As at 30 June 2017, there were 1,074 spas and 12 concessionary counters
• A total of 47 new stores were opened and 43 stores were closed during the Period

Research and Development

• To continuously improve the quality of its existing products and develop new products, whilst collaborating with overseas skin-care companies on technological development Anti-aging flagship NB-1 product family and other products for spot removal, whitening, allergy-resistance and slimming have been developed
• The stem cell technology of the Group's flagship NB-1 products is patented in the United States
• Sales of NB-1 branded products reached HK$83.6 million, accounting for 46.2% of total product sales

Financial highlights

• Revenue decreased by 23.6% to HK$184 million
• The Group's overall gross profit margin declined to 73.5% mainly because the sales of high-value and high-profit-margin products declined during the Period
• Profit for the Period down by 53.7% to HK$38.4 million
• Basic earnings per share were HK$1.92 cents
• Recommend an interim dividend of HK$1.71 cents per share and special dividend of HK$0.54 cents per share. Dividend payout ratio is approximately 117.2%

Mr. Hsiao Wen-Chung, Chief Executive Officer of the Group said, "Looking ahead, we will pursue to strengthen our position as a leading skin care brand and spa operator in the Greater China Region. We will continuously speed up to open new stores in tier 3 and tier 4 cities in the PRC, as well as optimize the franchisee's service and skills to create the distinguishability as a professional skin care brand. Besides, we will launch various favorable programs for customers with the aim to drive in-store traffic. In terms of product, we will roll out high-end food supplements riding on the policy of health care industry in the PRC to increase our revenue. We strive to strengthen our competitive edges by implementing the aforesaid strategies, so as to generate satisfactory returns for our shareholders."

About Natural Beauty Bio-Technology Limited

Natural Beauty is a leading beauty and spa services and products provider in Greater China. The Group principally offers tailor-made beauty and skin care solutions through its trained professional beauticians. The Group is engaged in research and development, manufacture and sale of skin care, aroma-therapeutic and beauty products, marketed under the brandname "NB®". The products are distributed through a distribution network of over 1,000 NB's SPAs and dedicated counters in Greater China.