Beauty center operator looking good

Ling Wang

Monday, August 11, 2014

Shenzhen-based Pengai manages and operates 14 centers, across 11 cities in nine provinces. Services provided include non-surgical and surgical aesthetic treatments, plus general health care.

Non-surgical aesthetic treatments include cosmetic surgery and laser treatments aiming to remove fine facial lines and wrinkles, unwanted hair and acne scars.

Surgical treatments cover double- eyelid surgery, rhinoplasty, breast augmentation, liposuction and facelifts.

Gross profit margin for non-surgical treatments is nearly 80 percent, while that for surgical treatments is more than 60 percent.

The firm earned a net profit of 30.77 million yuan (HK$38.73 million) and 33.5 million yuan in 2011 and 2012, but incurred a net loss of 255.63 million yuan in 2013 due to fair-value losses of preferred shares issued.

Chairman Zhou Pengwu and his wife Ding Wenting opened their first hospital, which they named Pengcheng Hospital, in Shenzhen in 1997. The second facility opened in 2005, in the same city.

Since 2011, Pengai has opened four hospitals and acquired aesthetic medical treatment centers in seven cities: Nanchang, Shenzhen, Jinan, Yantai, Shanghai, Beijing and Changsha.

The mainland market is fragmented, with over 24,000 treatment centers and clinics.

See the article here:
Beauty center operator looking good