Eternal Beauty Holdings Limited (“Eternal Beauty” or the “Group”; stock code: 6883.HK), a leading player in China’s perfume industry, today announced its annual results for the year ended 31 March 2026 (“FY2026” or the “Year”). Despite the global macro environment uncertainties, the Group steadily advanced its business development by adhering to two core strategies: “Resilience” and “Evolution”. During the Year, the Group recorded revenue of RMB 2,152.2 million, representing a year-on-year increase of approximately 3.3%. Operating profit and profit for the year amounted to RMB 294.7 million and RMB 243.4 million respectively, representing a year-on-year increase of 9.9% and 7.2%, respectively, demonstrating sustained and solid profitability. The overall gross profit margin was 47.0% and net profit margin was 11.3%.
The group maintained ample liquidity. As at 31 March 2026, the Group’s cash and cash equivalents and short-term bank structured deposits totaled approximately RMB1,005.9 million. The Board has resolved to recommend the declaration of a final dividend of HK6.0 cents per share for the year ended 31 March 2026, continuing its stable shareholder return policy.
Ms. Lam King, Executive Director and Chief Executive Officer of the Group, stated: “This year marked the Group’s first full financial year after its listing on the Main Board of the Stock Exchange. During the Year, we completed a major upgrade of our strategic positioning, evolving from the focus on product distribution and channel operations into an ‘Art of Living Brand Partner’. Amid a complex and ever-changing business environment, we adhered to the operating philosophy of ‘profit before scale’. Through stringent pricing controls, flexible and precise channel strategies, and stringent cost management, we effectively responded to external challenges and achieved stable profit growth, while maintaining a stable dividend to reward our shareholders.
In 2025, China’s cosmetics market experienced a slowdown in overall growth, and consumer behavior became more rational. However, the perfume and fragrance segment performed strongly, becoming a main sub-segment driving growth. China’s perfume market continued to expand steadily from a still-low penetration base, while competition at both brand and channel levels became increasingly intense, “emotional value” and “art of living” has become key directions for differentiation. Leveraging on our long-term strategic focus on the perfume track, the differentiated positioning of high-margin niche brands, and our precise grasp of consumer trends, the Group effectively captured structural market opportunities.”
As of 31 March 2026, Eternal Beauty’s external brand portfolio covered 76 brands. Perfume brands accounted for the largest share at 56, followed by home fragrances and skincare with 24 and 16; while personal care, eyewear and color cosmetics brands numbered 9, 6 and 6, respectively.
Business Review
External Brand Matrix Optimized and Upgraded, Non-Perfume Businesses Growth Outpaced
During the Year, the Group continued to strengthen its matrix of premium and niche perfume brands, while further improving its art of living deployment in the home fragrance segment. The brand structure continued to optimize, further consolidating the Group’s leadership in the fragrance market in Greater China. To enhance overall profit resilience, the Group disposed of certain subsidiaries with weaker growth momentum during the Year, and concentrated resources on core businesses with high growth potential.
In terms of revenue structure, the contribution of the perfume business decreased from 80.9% to 78.5%. Revenue from non-perfume business (including service fees) increased by 17.0% year-on-year, significantly outpacing than the Group’s overall growth rate, and its share increased to 21.5%, becoming one of the Group’s core growth engines. Among these, skincare revenue reached RMB219.1 million, representing a year-on-year increase of 44.2%; service and management fee income increased by 210.5% year-on-year, reflecting solid progress in the Group’s asset-light model of extending from product operations to brand service capabilities, and the continued optimization of its revenue structure.
Overall, perfumes provide a solid foundation for the Group’s core business, while functional skincare and home fragrances present structural growth opportunities.
Dual Self-Owned Brands Synergize to Build Endogenous Growth Momentum
Leveraging its two self-owned brands, Perfume Box and Santa Monica, as core growth drivers, the Group is advancing a strategic upgrade from traditional brand agency to becoming an art of living ecosystem operator, forging a new source of growth momentum.
Perfume Box, the Group’s self-owned retail brand that directly reaches end consumers, deepens its presence in core cities in Chinese Mainland with differentiated store strategy, including themed specialty stores, limited-time pop-up stores and IP co-branded experiential spaces. Each store flexibly configures its product portfolios based on local consumer preferences, enabling the Group to achieve stronger market adaptability and pricing flexibility than industry peers, directly contributing to the improvement in overall gross profit margin. As of 31 March 2026, Perfume Box had opened 9 offline stores in cities including Shanghai, Shenzhen and Nanjing. Its cumulative membership approached 750,000, with more than 110,000 new members added during the year, and the registration rate of new in-store customers reached 15%. The average transaction value at offline stores remained above RMB1,250, and sales contributed by members accounted for 50%, demonstrating strong customer stickiness and sustainable profit contribution capability.
Self-owned brand Santa Monica is positioned as “art of living from the outside in”, building full-category synergy across perfumes, home fragrances and eyewear, advancing the Group’s evolution from brand management toward brand ecosystem operations. Its eyewear products continued to expand their retail network, entering major shopping malls and professional ophthalmic hospitals in Chinese Mainland and Hong Kong. The full-category product portfolio delivered a notable year-on-year growth in brand revenue, demonstrating the sustained development potential of self-owned brands. Going forward, the Group will replicate this full-category synergy and brand operation model in the cosmetics and home fragrance fields, and continue to build a multi-brand, cross-category art of living ecosystem.
Adjustment of Omni-Channel Structure, Distribution Channel Emerging as a Core Growth Engine
In the face of macro-environment volatility and changes in consumer behavior, the Group continued to promote the dynamic optimization of its multi-channel portfolio, decisively eliminating low-efficiency sales terminals while concentrating resources on high-growth-potential formats such as themed self-operated stores, premium department store counters, duty-free channels and co-branded pop-up stores, achieving a strategic upgrade of the channel structure.
In terms of revenue contribution, excluding agency service fees, online channel revenue reached RMB792.9 million in FY2026, representing a year-on-year increase of 4.9%, and accounting for approximately 36.8% of total revenue. Offline channel revenue reached RMB1,341.9 million, representing a year-on-year increase of 1.5%, and accounting for approximately 62.3% of total revenue. Both channels recorded positive growth. Among them, the distribution channel became the core growth engine, with revenue increasing by approximately 22.8% year-on-year, and the proportion of sales from distribution channels in total sales increased from approximately 30.4% for the year ended 31 March 2025 to approximately 36.2% for the year ended 31 March 2026.
During the Year, the Group completed structural adjustments to approximately 900 points of sale, and added a few high-efficiency terminals, including Perfume Box self-operated stores, premium department store counters and pop-up stores. As a result, the sales network further focused on self-owned retail brands and high-efficiency counters, achieving simultaneous improvement in unit output and channel profit resilience. As at the end of the Year, the total number of members has exceeded 3 million, and member assets are becoming a cornerstone for the Group’s long-term value accumulation.
Outlook and Future Strategies
Deepen the Omni-Channel Layout of Art of Living
The Group will seize the “self-pleasing economy” and “art of living” as core upgrade opportunities and take its fragrance business as the foundation. It will continue to optimize its overall category structure and consolidate its leading position in China’s fragrance market. Meanwhile, based on in-depth analysis of consumer trends and user demand, the Group will orderly advance category extension, steadily expanding into high-potential segments such as home fragrances, functional skincare products and eyewear, improving its art of living ecosystem, further enhancing its multi-category and all-scenario art of living category layout, and upgrading from single-category advantage to integrated business-format advantage.
Accelerate Development of Self-Owned Brand to Forge a New Source of Growth Momentum
Self-owned brands are the Group’s core for breaking through the growth bottleneck of traditional agency businesses, achieving value upgrading and independent control over profit. They are also a key strategic direction for the Group to create a second growth curve and enhance overall profitability. The Group will concentrate core resources to empower Perfume Box and Santa Monica, and continue to drive these two self-owned brands into the Group’s future core growth engines, promoting scalable, branded and high-quality development of the business.
As the Group’s core direct-operated retail carrier, Perfume Box will continue to steadily expand its offline direct-operated network, deeply implement the refined operating system of “super-localization” and “one store, one strategy”, precisely matching consumption preferences of different cities and customer segments, and creating differentiated terminal experiences. Santa Monica will continue to deepen its core brand positioning of “art of living from the outside in”. Leveraging the Group’s mature operating system, market insight and supply chain integration capabilities, it will continue to launch seasonal limited editions and high-quality cross-sector co-branded series, strengthening differentiated brand recognition and effectively enhancing market competitiveness.
Actively Invest in and Introduce High-Growth Brands
Leveraging its global brand resources, mature channel system and supply chain advantages, the Group will continue to proactively introduce and strategically invest in niche fragrance and premium skincare brands with differentiated characteristics, high margins and high growth potential. This will enrich the Group’s brand matrix, optimize its overall brand asset structure, improve its sub-segment layout, and further enhance the quality and profitability of the overall business.
After the Year, the Group has completed its strategic investment in the domestic aromatherapy functional skincare brand AromeManpo, officially launching a two-way development model of “international introduction + local empowerment”. Going forward, the Group will continue to deploy its mature core capabilities in omni-channel expansion, digital management, content marketing and terminal operations, deeply collaborating with partner brands for a synergistic development pattern of mutual benefit, further expanding the Group’s business scope and long-term development potential.
Build an Omni-Channel Social Media Content Ecosystem
The Group continues to build an omni-channel social media ecosystem covering the Chinese Mainland, Hong Kong and Macau markets. In Chinese Mainland, the Group focuses on Weibo (微博), RED, WeChat (微信) and Douyin as its core platforms; while in Hong Kong and Macau markets, it focuses on mainstream platforms such as Facebook, Instagram, YouTube and Threads. The Group has established a content system compassing “official account operations, creator collaboration and AI-Generated Content support”. Through differentiated strategies and matrix operations involving Key Opinion Leaders, Key Opinion Consumers, and Key Opinion Staff, the Group enhances brand reach precision and support sales conversion capabilities, while leveraging artificial intelligence to optimize content production and deepen consumer insights.
Gradually Integrate Member Assets, Build an Integrated Omni-channel Platform
As industry competition shifts from product and channel competition to user, refined user asset operations have become a core factor in building long-term competitiveness. The Group has positioned omni-channel user asset operations as a core strategy. Going forward, within the scope of compliance and user authorization, the Group plans to gradually integrate the member assets of external brands, self-owned brands and Perfume Box, breaking down the data silos and operational barriers among different business lines, brands and channels.
Focus on High-Margin Niche Fragrances and Cross-Sector Innovation
The Group will increase resource investment in premium and niche fragrances, and continue to optimize its brand structure and profitability model. Leveraging its foundation advantage of more than 7,400 online and offline points of sale nationwide, the Group will promote multi-category and multi-scenario channel development, deepen cross-category traffic sharing and consumption conversion, further unlock the channel value and continuously increase the revenue contribution of high-margin categories.
Strengthen Corporate Governance and Investor Relations
The Group continues to strengthen its corporate governance and investor relations management, improving the governance structure of the Board, internal control system and risk compliance mechanisms. It strictly complies with the Listing Rules and relevant regulatory requirements, and continuously improve the Group’s standardized operation level. The Group further strengthens the timeliness, accuracy and transparency of information disclosure, and establishes a regular investor communication mechanism to proactively communicate strategic progress and operating performance, enhance capital market trust and recognition, and remain committed to enhancing long-term shareholder value.
Ms. Lam concluded: “Looking back on the past year, the Group achieved solid operating performance amid a complex and volatile global macro environment, and underwent a strategic transition from a private enterprise to an international listed company with listed-company governance standards. The healthy operating cash flow and stable dividend payout demonstrated during the Year fully validated the inherent resilience of our business model and reflected our relentless efforts to create sustainable value for Shareholders.
Looking ahead, although the industry has entered into a phase of parallel competition in the existing market and structural adjustment, we believe that the ‘self-pleasing economy’ and the fragrance track still present long-term growth potential. We will improve our corporate governance to a higher standard, steadily advance our omni-channel layout and self-owned brand development. We will fully leverage our core capability as a strategic partner of global brands in the Asia-Pacific region, and remain committed to creating long-term value for Shareholders, partners, employees and all stakeholders, promoting the healthy development of the industry.”
