Zhang Shengfeng Holds 4.69 Million Shares And Looks Forward To The Company'S Development Prospects

It is learned that the company has been informed by Zhang Shengfeng, executive director of the company, that it has purchased 4.687 million shares of common stock from the market through its wholly-owned company Xinfeng International Co., Ltd. on August 31, 2020, September 1, 2020, September 2, 2020 and September 3, 2020 at an average price of about HK $0.4745 per share. These shares are equivalent to about 0.21% of the total issued share capital of the company at the date of this announcement.

City beauty said in the announcement that the company believes that Zhang Shengfeng's recent increase in equity shows its confidence in the future of the company and its subsidiaries.

Zhitong finance app noted that, affected by the prominent reform results and the increase of shares held by senior executives, the share price of urban beauty has continued to rise in recent years, rising nearly 30% since September 1.

It is understood that Zheng Yaonan, the founder of urban beauty, put forward the slogan of "Second Entrepreneurship" in June 2019, returning to the positioning of "practical brand", and made comprehensive reform and Optimization on the organization, production, supply chain and sales of urban beauty, and achieved many results.

In order to improve the ability of inventory management and fine product management, metrobeauty focuses on classic products and greatly reduces the number of SKUs. It is reported that the number of SKUs of autumn and winter products of the company in 2020 is about 35% less than that of autumn and winter products in 2019. In order to enhance the competitiveness of products, urban beauty increased investment in research and development, set up Innovation Research Institute, and appointed chief technical officer Tang Qiansheng as president of Innovation Research Institute. By August 2020, the total number of patents of urban beauty has reached 164.

In addition, the city beauty also launched the seventh generation of image stores, continued to renovate the stores on the pedestrian street, and transformed into smart retail stores; the company organized multiple departments to re plan multiple business lines and product lines.

It is reported that the city beauty's supply chain management ability and market quick response ability have achieved outstanding results. The response speed of new products produced by supply chain collaboration has been improved to 30 days, and the finished products can be delivered to stores within 5 to 10 days. According to the company's 2020 semi annual report, some of the new products listed in June and July 2020 will sell out 50% or more within 30 days.

It is worth noting that the online sales channels of urban beauty have increased significantly. The sales volume of some major e-commerce platforms increased by more than 30% year-on-year in May and June, and the multi platforms of 618 activities also achieved double-digit growth, among which the sales volume of all categories of beauty Jingdong and tmall achieved high growth year-on-year.

On August 25, the "light + warm" black technology product was released on the new product release of "urban beauty" in autumn and winter 2020. This is the first new product of urban beauty after returning to the "practical brand" positioning, marking that "practical + technology" has become the new brand positioning of urban beauty.