China SHESAYS Medical Cosmetology Inc. Announces Preliminary Unaudited Results for FY 2010; Provides Business Outlook Update for Investors
Published: Feb 01, 2011
CHENGDU, China, Feb. 1, 2011 /PRNewswire-Asia-FirstCall/ -- China SHESAYS Medical Cosmetology Inc. (OTC Bulletin Board: CSAY) ("China SHESAYS" or the "Company"), which operates a network of specialized medical cosmetology hospitals, clinics and skincare centers in Sichuan province, China, today announces preliminary unaudited results for fiscal year 2010 and provides an update of its business outlook for investors.
For the fiscal year ended December 31, 2010, the Company expects $12.3 million in revenue and $1.5 million in net income. These preliminary results are lower than previously anticipated by the Company's management, largely due to the adverse market sentiment resulting from a high-profile incident in which a famous singer featured in the Super Girl contest in China died from complications related to plastic surgery in a clinic unaffiliated with China SHESAYS.
The 24-year-old singer, Ms. Bei Wang, suffered respiratory and circulatory failure following plastic surgery at a medical cosmetology clinic in Wuhan city of Hunan province in November 2010. As rumors state that the doctors performing the surgery lacked plastic surgery qualifications, the Ministry of Health has initiated an overhaul of the entire medical cosmetology industry in China to weed out unqualified players. Such regulatory reforms may lead to increased market concentration, ultimately benefiting licensed operators.
"We are truly sorry for what happened to Ms. Wang and our thoughts go out to her family. The effects of this unfortunate incident on the general attitudes towards cosmetic procedures may continue to negatively impact our top and bottom lines for the next few quarters," said Yixiang Zhang, Chairman and Chief Executive Officer of China SHESAYS. "However, we anticipate a pick-up in demand in the second half of 2011 after the general public gradually reassesses the risks associated with cosmetic surgery. In addition, as we expect the regulatory overhaul to force a significant number of substandard players out of business, we believe our solid industry position, strong brand image and leading market share may allow us to ultimately benefit from the increased general and regulatory scrutiny that followed this incident. "
"In addition to the negative impact of Ms. Wang's incident, we increased marketing expenses in the fourth quarter to enhance our marketing efforts, which we expect to further improve the brand name and our leading position in Sichuan market. In addition, our three newly opened clinics in the second half of 2010 had negative impact on our bottom line because it usually takes 6-12 months to fully develop a new market. We expect these three new clinics to be profitable in the second quarter of 2011, which will generate incremental revenues and net income. We remain focused on the initiatives which will contribute to our long-term growth and increased profitability, thus enhancing shareholder value," concluded Mr. Zhang.
About China SHESAYS Medical Cosmetology Inc.
China SHESAYS, founded in 2005, operates a chain of specialized medical cosmetology hospitals, clinics and skincare centers in Sichuan province. The Company has a full range of services including cosmetic surgery, cosmetic dermatology, cosmetic dentistry and cosmetic Traditional Chinese Medicine ("TCM"). Headquartered in Chengdu, China, China SHESAYS has become one of the fastest growing cosmetology businesses in China and it is one of the most renowned cosmetology hospital chains in Sichuan province. Currently, the Company sees more than 20,000 patients each year. For more information about the Company, contact CCG Investor Relations or visit the Company's website at www.chinashesays.com .
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward looking statements are based upon the current plans, estimates and projections the Company's management and are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from the forward looking statements. Such statements include, but are not limited to, those concerning our market and industry segment growth and penetration and demand, and the acceptance of our cosmetic services and products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, hopes, beliefs, predictions, and intentions about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, general economic conditions; geopolitical events and regulatory changes, availability of capital, the Company's ability to maintain its competitive position as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. China SHESAYS does not assume any obligation to update the forward-looking information contained in this press release.
For more information, please contact:
Ms. Wenbin Zhu, Chief Financial Officer
China SHESAYS Medical Cosmetology Inc.
Web Site: www.chinashesays.com
Investor Relations Contact:
CCG Investor Relations
Crocker Coulson, President
Linda Salo, Account Manager
Web Site: http://www.ccgir.com
SOURCE China SHESAYS Medical Cosmetology Inc.