Offshore Trust Insight | BEAUTYFARM MED (02373.HK) Down 1.70% Intraday; Three Concert Parties Hold 44.97% via a Trident Trust (HK) Trust

On November 4, 2026, the medical aesthetics and life beauty theme traded divergently, and BEAUTYFARM MED (02373.HK) weakened. As of 13:36, the stock was quoted at HKD 16.780, down 1.70%, with a turnover of about HKD 414,000 and a market capitalisation of about HKD 4.151 billion based on the latest price. It touched a low of HKD 16.310 and a high of HKD 17.100 during the day, with an amplitude of 4.63%.

It is understood that Beauty Farm Medical and Health Industry Inc. listed on the Main Board of HKEX on January 16, 2023 at an offer price of HKD 19.320, offering 40.5365 million H shares globally (12.1610 million shares for the Hong Kong public offering and 28.3755 million shares for the international offering), with a board lot size of 500 shares, and the Hong Kong public offering was about 22.12 times subscribed. The company operates in three segments — beauty and wellness services, medical aesthetics services and sub-health medical services — under a "dual beauty plus dual wellness" model; as at June 30, 2026, the group operated 706 stores in total, comprising 395 directly operated stores and 311 franchised stores. The current price of HKD 16.780 is down 13.15% cumulatively from the offer price.

In terms of shareholding structure, according to the HKEx disclosure of interests platform, chairman Li Yang declared holdings of 115,185,500 shares on April 3, 2026, representing 45.78% of the issued voting shares; non-executive director Li Fangyu declared 115,158,500 shares, or 45.77%; executive director and chief executive officer Lian Songyong declared 115,158,500 shares, or 45.77%; and Cui Yuanjun, Niu Guifen, Yuan Huimin and Chen Xiaomei each declared holdings of between 115,209,000 and 115,236,000 shares, or 45.79% to 45.80%, in respect of the same block of shares. These declarations reflect the aggregate holding of the concert party, meaning the same block is declared repeatedly by each person. Among institutional shareholders, FIL Limited declared holdings of 15,276,000 shares, or 6.07%, after increasing its position by 359,500 shares on September 21, 2026.

Public listing documents and the disclosure of interests show that the company's shareholding structure involves offshore family trusts. According to the HKEx disclosure of interests platform, Trident Trust Company (HK) Limited declared holdings of 113,151,500 shares on January 7, 2026, representing 44.97% of the issued voting shares at that time, corresponding to three holding platforms: LYBF Management Holdings Limited and LIY Management Holdings Limited each hold 35,560,000 shares, or 14.13%; LIFY Management Holdings Limited and LFYE Management Holdings Limited each hold 42,571,500 shares, or 16.92%; and LIANSY Family Holdings Limited and Meiyao Holdings Limited each hold 35,020,000 shares, or 13.92%, with the three platforms together accounting for exactly 113,151,500 shares. According to the prospectus as cited in public reports, chairman Li Yang holds the company's shares through family trust companies; Lian Songyong's family trust is the EffieA Trust, which holds a 69.63% interest in Meiyao Holdings, while Cui Yuanjun's family trust GFA Trust holds 18.88% and Yuan Huimin's family trust Orthogonal holds 10.5% (Sina Finance, Phoenix Net). The names, establishment dates, protectors and scope of beneficiaries of the trusts associated with Li Yang and Li Fangyu have not been disclosed.

Regarding offshore trusts, on July 24, 2026, the Ministry of Finance and the State Taxation Administration jointly issued the Announcement on Matters Concerning Individual Income Tax on Offshore Trusts (Announcement No. 21 of 2026), bringing the entire life cycle of an offshore trust — establishment, existence and termination — into the individual income tax administration system, establishing three look-through points of establishment, existence and termination with a uniform 20% tax rate. The announcement specifies that during the existence of an offshore trust, income generated by an individual resident's offshore trust and by overseas entities held or controlled by that trust, whether actually distributed or not, is taxable to that individual resident, who must file and pay individual income tax on an annual basis. Article 6 of the announcement specifies that where, during the existence of an offshore trust of an individual resident, the individual resident becomes a non-resident individual, the taxable income is the balance after deducting the original value from the market value of the offshore trust's property on the day the individual becomes a non-resident, and individual income tax must be filed and paid. The 90-day supplementary filing window set by the announcement runs from July 24, 2026.

On the operating side, the company's revenue in the first half of 2026 was RMB 1.882 billion, up 29.0% year on year; gross profit was RMB 967 million, up 34.3%, with a gross margin of 51.4%, up 2.1 percentage points; net profit was RMB 239 million, up 40.2%; profit attributable to owners of the company was RMB 222 million, up 43.0%; adjusted net profit was RMB 263 million, up 39.9%, with an adjusted net margin of 14.0%, up 1.1 percentage points. By segment, beauty and wellness services revenue was RMB 1.095 billion, up 35.7%, with a gross margin of 44.2%, up 2.1 percentage points; medical aesthetics services revenue was RMB 603 million, up 20.9%, with a gross margin of 58.9%, up 2 percentage points; and sub-health medical services revenue was RMB 184 million, up 20%, with a gross margin of 69.0%, up 6 percentage points. On operating metrics, client visits at directly operated stores reached 1.21 million, up 32.0%, and annualised active members at directly operated stores reached 220,000, up 45.6%. On cash flow, net cash generated from operating activities was RMB 551 million, up 34.4%; as at June 30, cash and cash-like assets totalled RMB 2.427 billion, up 21.5%. On acquisition integration, Siyanli, consolidated from January 2026, contributed revenue of RMB 380 million in the first half, with its adjusted net margin rising from 9.5% in 2024 to 11%, while Nayrui'er recorded an adjusted net margin of 10.8%, up 0.4 percentage points.

In terms of products and business developments, Beauty Farm announced a strategic partnership with Shiseido in February this year, launching a patented whitening treatment; in March it upgraded its "Beauty Farm AI skin test" and refreshed the Xiuke'er brand; in May it launched the new brand proposition "Beauty, Beyond This" and, together with Ipsos, released the White Paper on High-End Life Beauty; in August it officially launched the group brand "BFG Beauty Farm Group" and the consumer medical brand "CellCare Beauty Farm Medical", and in the same month brought 10 Nayrui'er stores in Hangzhou into its directly operated system, lifting the number of directly operated stores in Hangzhou to 25, with the Hangzhou Beauty Farm Medical clinic opening on August 18.

Huachuang Securities believes that the company's "organic plus inorganic" twin-engine strategy has delivered notable results and that profitability continues to improve: the gross margin gain mainly reflects stronger supply chain bargaining power under economies of scale and an optimised product mix; the selling expense ratio was 17.6%, up 0.4 percentage points, mainly due to higher promotion spending associated with multi-brand upgrades, while the administrative expense ratio was 15.8%, down 0.4 percentage points, reflecting organic efficiency gains and back-office synergies after acquisitions. The broker notes that all three segments achieved both volume and price growth — direct revenue of beauty and wellness services was RMB 1.033 billion, up 40%, with client visits up 33% and average ticket size up 5%; medical aesthetics services saw client visits up 24% and average ticket size up 4%; sub-health medical services saw average ticket size rise 11% year on year with profitability strengthening markedly; same-store revenue of the main Beauty Farm brand (direct members per store) grew 5.5% year on year, and the rising adjusted net margins of acquired brands validate the company's platform-based integration and enablement capabilities.