The Largest 2025 M&A Deal in China's Beauty Service Industry: Beauty Farm Strategically Acquires Siyanli for RMB1.25 Billion, Reshaping the Premium Beauty Service Market
HONG KONG, Oct. 15, 2025 /PRNewswire/ -- Beauty Farm Medical and Health Industry Inc. ("Beauty Farm" or the "Company") (02373.HK), is pleased to announce that it has strategically acquired 100% equity interest in Shanghai Siyanli Industrial Co., Ltd. ("Siyanli") for a total consideration of RMB1.25 billion.
Founded in 1996, Siyanli is a benchmark brand in China's premium beauty service industry. According to Frost & Sullivan, Siyanli ranked as the third-largest beauty brand in China by revenue in 2024. Siyanli recorded revenue of RMB850 million and net profit of RMB81 million in 2024 (unaudited), underscoring its well-established track record of solid and resilient performance.
The transaction will be settled through a combination of cash and equity, with 67% of the consideration paid in cash and 33% in newly issued shares. To optimize capital efficiency, Beauty Farm has arranged acquisition financing to cover 41% of the transaction, meaning the Company will utilize only RMB330 million of its own funds to complete the RMB1.25 billion acquisition. Under the Share Purchase Agreement (SPA), the shares issued to the seller, MBK Partners, will be subject to a phased lock-up period, demonstrating the seller's strong confidence in Beauty Farm and Siyanli's long-term synergistic potential. From a valuation perspective, the transaction values Siyanli at a highly attractive P/E ratio of just 14.8x, significantly lower than Beauty Farm's own current trading multiple and the average valuation of comparable peers.
This acquisition marks another game-changing move for Beauty Farm in reshaping the industry landscape following its 2024 acquisition of Naturade, China's second-largest beauty brand by market share. Upon completion of this transaction, the Group will rapidly expand its store network, bringing the total number of stores to more than 734, and grow its direct store membership base beyond 200,000. The Siyanli acquisition will inject powerful growth momentum into the Company's comprehensive "dual beauty + dual wellness" model, driving a major leap forward in Beauty Farm's industry leadership and market influence.
Powerful Alliance Cements Market Leadership
Leveraging cutting-edge technology to empower results-driven skincare, Siyanli has meticulously developed its premium salon skincare brand, focusing on delivering exclusive skincare and beauty experiences for women in top-tier cities. As of June 30, 2025, Siyanli operated 163 premium beauty service stores and 19 aesthetic medical clinics across 48 major cities in China, with more than 90% of its revenue from 20 tier-one cities and new tier-one cities, creating a well-rounded premium service network.
According to Frost & Sullivan, based on 2024 revenue, the Group's Beauty Farm and Naturade brands, together with its newly-acquired Siyanli brand, occupy the top three positions in China's beauty industry. Following this acquisition, the synergy of these three leading brands is poised to drastically elevate the Group's industry standing and market share.
From a core customer perspective, Siyanli targets urban women who pursue a high-quality lifestyle. Upon completion of this acquisition, approximately 60,000 active Siyanli members will be integrated into the Group's membership system, driving a transformative increase of over 44% in the number of active members of the Group's direct stores. This acquisition will expand traffic channels with high-quality clients for Beauty Farm's "dual beauty + dual wellness" business model, laying a stronger foundation for the Company's cornerstone business.
In terms of business expansion, the Group's and Siyanli's urban store networks are highly complementary. This existing alignment will accelerate the deep integration and efficient allocation of medical resources within each region, comprehensively enhancing the Group's aesthetic medical service and subhealth medical service capabilities and further elevating the scale and quality of the Group's value-added services.
This powerful alliance fully unleashes a multiplier effect, effectively driving a transformative leap in the Group's scale and setting new competitive benchmarks industry-wide.
Deepening Strategic Presence in Tier-One Cities to Fortify Brand Moat
The beauty and wellness industry in China is currently undergoing accelerated consolidation. Industry leaders, leveraging their sophisticated experience in mergers and acquisitions, their well-established business models, and the advantages of being publicly listed, are spearheading this consolidation process and continuously expanding their market share. According to Frost & Sullivan, China's beauty services market reached RMB485 billion in revenue in 2024. Among these, 20 tier-1 and new tier-1 cities form the core hubs of wealth and consumption power, contributing nearly 40% of the national beauty service market share in 2024. These cities comprise the Group's strategic core region for expansion, which is reflected in revenue data: they contribute more than 90% of the revenue for both the Group and Siyanli, closely aligning with the Group's strategic footprint.
China's four tier-one cities – Beijing, Shanghai, Guangzhou, and Shenzhen – account for nearly 20% of the national beauty service market share in 2024. Data from the first half of 2025 show that this region contributed over 60% of the revenue for both the Group and Siyanli. With the completion of this acquisition, the Group is well-positioned to comprehensively reshape the market landscape of beauty services in tier-one and new tier-one cities, driving a step-change in market share.
From a store network perspective, brands compete fiercely for prime business locations in key cities to bolster their offline presence. Siyanli has precisely targeted high-net-worth female customers, building a premium store network centered around key commercial districts. According to Winshang.com data, among the 456 high-end commercial properties across China's 20 tier-one and new tier-one cities, the Group and Siyanli have an established presence in 191 locations, covering a substantial 42% footprint that is approaching one-half of these key properties.
Upon completion of this acquisition, the Group's store coverage in prime commercial projects across China's key cities will expand significantly. By maximizing the multi-brand synergies across its brick-and-mortar network, the Group will further expand its presence in prime commercial properties across tier-one and new tier-one cities going forward, continuously strengthening its competitive edge in the premium beauty service industry.
Firmly Committed to Driving Growth Through an Internal and External Expansion Strategy to Shape the Future of the Beauty and Wellness Industry
With 32 years of expertise in the beauty and wellness industry, the Group has consistently pursued a dual-engine strategy of "organic growth + external acquisitions." Since 2014, it has successfully completed over 30 successful mergers and acquisitions, refining a replicable, market-validated consolidation model. In 2024, the Group strategically acquired Naturade, China's second-largest beauty brand by market share. In the first half of 2025, Naturade's adjusted net profit margin rose to 10.4% from 6.5% in 2023. This stellar result highlights the effectiveness of the Group's deep operational empowerment.
As a frontrunner in China's premium beauty service industry, Siyanli boasts a solid and proven profitability profile. In 2024, Siyanli achieved RMB850 million in revenue and RMB81 million in net profit. It is expected to provide a direct boost to the Group's revenue and profit scale while delivering powerful incremental growth.
Even more promising, Beauty Farm will drive Siyanli toward a dual breakthrough in revenue growth and efficiency improvement. Leveraging the lessons learned from its successful integration of Naturade, the Group will focus on two strategic pillars in the Siyanli integration. First, the Group will systematically extend its proven capabilities in aesthetic medical services and subhealth medical services to Siyanli customers, addressing their full-lifecycle beauty and wellness needs. Second, the Group will leverage refined customer operations, AI-driven digital and intelligent transformation, and supply chain integration to optimize Siyanli's operational efficiency and drive profitability growth.
This powerful alliance will maximize synergies, propelling the public company's revenue and profitability to new heights. This will drive greater long-term returns for shareholders and open up vast new upside potential for Beauty Farm in the capital markets.
As emotional spending and self-rewarding consumption continue to gain momentum, the beauty and wellness industry has emerged as a trillion-yuan "golden sector." Meanwhile, the industry's highly fragmented landscape is offering top players with proven growth potential unique opportunities for rapid expansion.
This landmark acquisition marks a milestone breakthrough in Beauty Farm's growth journey. Within just two years, the Group has brought Naturade and Siyanli, the second- and third-largest players in the market, under its umbrella. The Siyanli acquisition not only sets a record for 2025's largest acquisition in China's beauty service industry, it also forges a "tri-power alliance" that signals the beginning of a new era for the industry. The acquisition empowers the Group's "dual beauty + dual wellness" model with a broader membership base, a denser network of premium commercial locations, and enhanced medical service prowess, fueling a transformative leap from quantitative growth to qualitative improvement. Furthermore, this "tri-power alliance" is just the beginning of Beauty Farm's consolidation journey. As a market leader, Beauty Farm will continue to spearhead industry consolidation, unlocking expansive growth potential and guiding the beauty and wellness industry toward a new era of high-quality development.
About Beauty Farm
Beauty Farm Medical and Health Industry Inc. is a leading beauty and health management platform in China. Over the past 32 years, Beauty Farm has developed a unique "dual beauty + dual wellness" business model, covering customers' comprehensive beauty and health needs for their entire life cycle. We offer a diversified service matrix, including beauty and wellness brands Beauty Farm, Naturade, Palaispa and Siyanli, aesthetic medical brand CellCare, and subhealth medical services brand Neology. Our nationwide store network reaches over 100 cities with over 730 stores and serves millions of mid-to-high-end customers in top-tier cities in China.
For more information, please visit https://ir.beautyfarm.com.cn/.
For investor and media inquiries, please contact:
Beauty Farm Medical and Health Industry Inc.
Vivian Lu
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Email: ir@beautyfarm.com.cn
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In the United States:
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Brandi Piacente
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Email: beautyfarm@tpg-ir.com
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