Welcome to Beauty Farm's 2024 Annual Results Conference Call. Please note this meeting is being recorded. If you have any questions, feel free to hang up now. [Operator Instructions].
Now we'd like to invite Mrs. Zhou Min, Beauty Farm's Board Secretary and CFO, to host this meeting for us. Ms. Zhou, please.
Hello, everyone. Welcome to Beauty Farm's 2024 Annual Results Conference Call. Joining us today are Chairman of the Board, Mr. Li Yang; and Vice Chairman and CEO, Mr. Lian Songyong. Please note the meeting may contain forward-looking statements involving risks and uncertainties. Actual results may differ unless legally required, our company does not undertake to update forward-looking information. We will discuss non-IFRS financial metrics. Definitions are in today's annual performance announcement. The meeting includes management's presentation and a Q&A session.
Now let's have CEO, Mr. Lian speak.
Throughout history, economic cycles have come and gone, ups and downs. Exceptional companies can stand strong among all the changes, leading trends through these cycles. After 31 years Beauty Farm has witnessed industry's ups and downs becoming a leader in China's high-end beauty factor. And during 2025, we adapt to changing times aligned with economic trends, pursue steady organic growth and seize industry consolidation opportunities to enhance our market share and create value. We firmly believe our unique public platform, we believe in our strong brand influence as well as our leading industry position and flexible, resilient business model. They are the key to mitigating economic cycles for us.
In the year of 2024, we were encouraged as the capital market increasingly recognized our value. Over the past year, our market value rose by 60% against the trend, reflecting confidence in our future. Looking back at 2024, Beauty Farm followed a dual strategy of organic growth and external expansion. Notably, we completed a landmark acquisition in this industry investing RMB 350 million to acquire Naturade, a leader in China's intelligence, beauty and wellness sector. This milestone merger between #1 and #2 players scales up our business and marks our official entry into the wellness sector. It also represents a strategic update from our True Beauty model to a more comprehensive dual beauty and dual health model.
I personally led the post-merger integration of Naturade, gaining valuable experience in managing large-scale consolidation, which will support our future growth initiatives.
Next, I'd like to share our group's operational performance for 2024. In 2024, we saw a strong rise in food traffic at our self-operated stores reaching 1.52 million visits, a year-on-year increase of 20.4%. Many of these visitors became our loyal members. Our active membership base at self-operated doors grew to 137,000, a 46.3% year-on-year jump, driving both revenue and profit to new records. Our total revenue for the year reached RMB 2.57 billion, up 19.9% from the previous year, with our scale benefits our gross profit margin improved to 46.3%, up 0.7 percentage points year-on-year. Net profit reached RMB 253 million, an increase of 9.7%.
In terms of store expansion, we surpassed 554 stores for the first time with a net addition of 154 stores year-on-year. Our expansion strategy follows both organic and external growth. Organically, we focused on boosting single-store revenue and opened strategically branded locations. Externally, we pursued M&A opportunities to strengthen Beauty Farm's presence in key Tier 1 cities, Beijing, Shanghai, Guangzhou and Shenzhen.
Next, I will walk you through the performance of our 3 major business factors. First, Beauty and Wellness. In 2024, food traffic at sub-operated stores reached 1.4 million up 19.5% year-on-year. Among these, we had 131,000 paying customers, up 44.8%. Membership at franchise stores also grew strongly to 62,000, a 59% (sic) [ 57.9% ] increase. The solid customer base supported our stable revenue growth. Total revenue from Beauty and Wellness services reached RMB 1.44 billion, up 20.9% Y-o-Y. Gross margin improved to 40.7%, a 1 point increase. Many investors are concerned about how the macro environment affect our discretionary spending whether brand for Beauty services is weakening. What we are seeing is the upset more customers are choosing to work into our Beauty and Wellness sectors.
Our target customers are highly educated, intelligent women living in top-tier cities. They're among the most powerful consumer groups, balancing emotional needs with rational decision-making. On the emotional side, they often face pressure from both work and family, seek moments of physical and mental relief. A soothing, enjoyable beauty treatment is not just about enhancing appearance. It also brings emotional comfort and healing, offering both visible results and inner peace. That's why more and more loyal customers continue to choose Beauty Farm, choose to come to Beauty Farm. At the same time, these customers are highly rational. They seek share value not just in terms of price, it's not that simple. But in the overall experience, to them, value for money means alignment with brand values, cultural gap, emotional warm and service quality. It reflects a deep trust in what we stand for. We understand the weight of that trust. That's why we always put customer needs at the center and work to deliver a premium high-value experience that exceeds expectations, so we can continue to earn and honor that trust.
Specifically, we focus on 3 key areas. First, we are going back to the essence of membership value, creating thoughtful service and building a cohesive brand family. Our goal is to define high-end beauty services with what we call craftmanship service. That means driving for excellence in both products and techniques. And heart means truly listening to customers and delivering our warm attentive care beyond standard procedures. We want every customer to feel our quality from the very first visit and become a lifelong partner of Beauty Farm. We are also strengthening the Beauty Farm brand family. We want to ensure each sub-branch to have a strong presence in its niche and enhancing overall brand identity.
Second, we continue to invite around women's evolving needs for Beauty and Health. In 2024, we launched more body focused services, including the pain relief and [indiscernible] LPG program, which achieved over RMB 100 million in sales within 12 months. In the first half of 2025, all our Beauty and Wellness stores will roll out professional AI skin analysis devices, providing scientific insights into skin needs and enabling more accurate, dual beauty treatment plans. So we are boosting our ability and efficiency in acquiring new customers. In 2024, new membership in Beauty and Wellness grew by 27% year-on-year. This success was driven by stronger brand influence, improved digital marketing and effective M&A integration in the sector.
In particular, we made major breakthroughs in private domain traffic using digital segmentation, referral programs and live streaming to acquire new members. For example, in 2024, we launched over 2,000 segmented marketing campaigns via [indiscernible] and mini programs, reactivating dormant clients and converting long-term users. New members from private domain channels doubled year-on-year, accounting for 34% of new customer acquisition, excluding Naturade. This shift helped lower our acquisition costs. Our cost per new member dropped 8.9% in 2024.
In public domain marketing, we've continued to deepen our partnership with platforms like [indiscernible] and [indiscernible]. And this year, we will further expand collaboration with live streaming influencers.
Now let's look at Aesthetic Medical business. In 2024, competition in this sector intensified. Looking at the industry chain, we saw faster product approvals upstream, giving service providers more options and stronger bargaining power. Under service and providers focused on building more refined operations to improve both quality and efficiency. Against this backdrop, leading players thanks to scale, precise customer acquisition and efficient business model helped to drive continued consolidation in the industry.
In 2024, revenue from aesthetic Medical services reached RMB 930 million, up 9.1% year-on-year. The number of aesthetic medical clinics grew to 25 with a net addition of 3 clinics. Self-operated clinics recorded 91,000 visits, up 26.2% year-on-year. Active members rose to 34,000, a strong 37.4% increase, notably 24.9% of Beauty and Wellness members at self-operated stores also purchased aesthetic medical or subhealth services. Within Beauty Farm and Palaispa clinics, that figure was even higher, 28.7%, a 3.7 percentage point increase from last year.
Since the launch of the CellCare brands in 2010, we've been committed to setting the standard for high-end Aesthetic Medical services, upholding [ adopter ] first philosophy, scientific rigor and aesthetic excellence through our proprietary time. So [indiscernible] aesthetic system are delivered with warm thoughts for service. This has earned CellCare wider recognition in the industry.
In 2024, we made a major lead in professional medical capabilities. We launched CellCare's innovative 2 Tier, 5 level doctor development system building a high-caliber team led by 90 senior physicians and supported by more than 100 nurses and technicians. This strong multidisciplinary team ensure safe, reliable and natural experience for our clients. To further guarantee quality, introduced a 3-level medical quality control system which covers over 130 quality control measures stricter than industry standards, ensuring other staff of service process meets the highest levels of safety and precision.
On the digital front, in May, 2024, we launched the CellCare's Proprietary Aesthetic Medical Management System. This enables seamless collaboration across our dual beauty business and empowered our acquired entities with efficiency. In December, we also rolled out a dedicated subhealth mini program offering smarter user analysis and laying a solid transition for personalized data-driven engagement at scale.
Our subhealth medical services also delivered impressive results. This segment focuses on functional medicine and women's gynecological antiaging treatment was still in early stage of market development. Received the growth window and rapidly expanded. By the end of last year, our subhealth clinic network has grown to 11 locations. We experienced an explosive increase in foot traffic reaching 27,000 visits, a 62.5% jump year-on-year. Active members rose to 7,552, up 80.2%, driving total revenue to over RMB 200 million. An impressive 98.9% growth this reflects both strong demand and our ability to convert it efficiently.
On the business front, our subhealth medical services focused on 2 core areas: functional medicine and women's specialty care. Last year, we further refined our product offerings, increasing cell penetration from beauty clients, take our customized IV therapy program. The energy drink series, as an example. We expanded it from 6 individual treatments to 6, 4 categories with 31 specific offerings in which personalize options for our clients. At our women's specialty centers, we also launched a comprehensive lineup of professional medical grade gynecological anti-aging treatment. In 2024, revenue from this segment exceeded 100 million for the first time, making a year-on-year growth of over 300%.
That wraps up our 3 major business segments. Next, I'll share progress in industry consolidation. Last year marked a milestone for our consolidation in the Beauty Industry. We made a major breakthrough in our M&A strategy by completing the full acquisition of the Naturade brand in Guangzhou. This was a landmark deal representing the integration of the industry's #1 and #2 players. It has demonstrated our strong capabilities in managing large-scale acquisitions and integrations.
From July 1, Naturade financials were officially consolidated into our statement contributing RMB 287 million in revenue and RMB 21 million in net profit. Its net profit margin improved from 6.5% in 2023 to 7.3% post integration. After the acquisition, we conducted a full business review and introduced a clear strategy, leverage core strength, focused on profitability supported by a 3-phase integration plan.
First, Naturade focused on strengthening its smart beauty and wellness capabilities. By optimizing store layout and increasing per store revenue, we saw a clear improvement in performance during the second half of 2024. Second, we fully embedded Naturade into our true beauty business model, taking over its Aesthetic Medical and Subhealth operations. This led to a strong increase in value-added service revenue. The conversion rate from Beauty and Wellness members to subhealth services reached 13.5%, up 1.8 percentage points year-on-year. Third, we integrated Naturade back-end systems. Our group's digital center and supply chain capabilities now fully cover Naturade, enabling shared use of co-infrastructure and improving optional efficiency significantly.
Looking ahead, we will accelerate industry consolidation through both horizontal and vertical strategies. Horizontally, we will continue to deepen integration within the Beauty sector to expand our market share. Basically, we will explore upstream acquisitions and partnerships within the value chain which will help us enhance gross margins in our Beauty business and support expansion of our franchise model.
Lastly, I'd like to share some of our key capital market initiatives. In our first year, [indiscernible] IPO, we experienced market volatility. But that set the stage for a strong rebound in our second year thanks to solid business performance, consistent shareholder returns and increasingly optimize the capital structure. We achieved an impressive 60% increase in market value in 2024 against overall market trends. To further enhance our market value, capital market value and improve shareholder returns. Beauty Farm announced the 3 key initiatives in March 2025.
First, our shareholder returns, we commit to a long-term payout policy, starting from the date of the announcement for the next 3, 4 financial years. No less than 50% of net profit attributable to shareholders will be distributed as dividends. It demonstrates our strong belief in sharing our success with shareholders. Second, we will continue optimizing our shareholder structure by introducing long-term strategic investors. This will improve liquidity and bring sustainable momentum to the company's long-term growth. Third, we will launch an innovative long-term incentive plan, a stock-based compensation program. This will align management interest with our company performance. Our KPIs will focus on future revenue and profit targets aiming for sustainable growth and long-term value creation for shareholders.
Looking ahead, we have a clear 3-year road map, focusing on both scale and profitability. The new initiative -- the new incentive plan will fully align management interests, energize our team and drive acquisition with a strong sense of purpose. At a strategic level, we remain committed to our organic plus external dual-engine growth model.
On the organic side, on the internal side, we focus on 4 core capabilities. First, expand our customer base; second, deepened refined operations; third, accelerate forward-looking product R&D; four, advanced digital transformation to boost the per store revenue and overall efficiency by our group.
On the external side, Naturade serves as a strategic anchor for us as we build a scalable framework for large-scale M&A and integration. Our goal is to bring acquired companies in line with group level profit margins and then unlock synergies. We will also stay alert to shift in the market cycle, actively explore horizontal and vertical M&A opportunities creating a strong strategic moat for the group's long-term growth. With these strategic initiatives and a continued rise in our capital market value we are confident in building greater competitiveness and investor appeal paving the way for our next major goal, inclusion in the Stock Connect Program.
This concludes my presentation. Now I will hand it over to our CFO, Ms. Zhou Min, to walk you through the group's financial performance.
Thank you, Mr. Lian. Now I'd like to walk you through our financial performance for 2024. In 2024, Beauty Farm navigated macroeconomic changes with credence, staying committed to our dual-engine strategy of organic growth and external expansion, as a result, we achieved encouraging results.
Total revenue rose 20% to RMB 2.57 billion. Revenue from Beauty and Wellness services at self-operated stores grew 21% year-on-year to 1.31 billion. High-end Beauty services brought in 1.14 billion, up 6%, driven by improved per store performance. High-end Smart Wellness service led by Naturade contributed RMB 160 million after being consolidated into our group from July. Franchise and other service income reached 140 million, up 21%, mainly due to the addition of new Naturade franchised stores in the second half.
Aesthetic Medical revenue reached RMB 930 million, up 9% year-on-year, supported by both organic and external growth. Meanwhile, stronger member conversion from Beauty and Wellness to Medical Aesthetics also contributed to increase the traffic and membership. What more? Subhealth Medical services nearly doubled with revenue up 99% to 200 million, thanks to the addition of 4 new clinics and the continued success of our women's specialty care offerings. Cross-selling from Beauty to Subhealth services also improved significantly, driving revenue growth to a great extent.
In terms of gross profit, our gross profit rose from RMB 980 million in 2023 to 1.19 billion in 2024, a year-on-year increase of 21.8%. Overall gross margin improved from 45.6% to 46.3%, up 0.7 percentage points. This was mainly driven by 2 effects. First, the addition of High-end Smart Awareness services in the second half, which delivered a gross margin of 46.7%, lifting the group's average. Second, the 99% growth in our Subhealth Medical revenue helps dilute our fixed to cost and boosted that segments gross margin by 11.5 percentage points due to scale effect.
In terms of operating expense, our operating expense ratio came in at 34.4%. The ratio for our organic operations decreased by 0.37 percentage points. Naturade costs are expected to align with our group levels over time as integration progresses. Despite a RMB 12 million impact from reduced VAT benefit from the government. Our net profit still rose by 9.7% year-on-year, increasing from RMB 230 million to RMB 253 million. Adjusted net profit rose from RMB 240 million to RMB 253 million. We maintained a strong cash position throughout the year.
As of December 31, 2024. Total cash and cash equivalents reached to RMB 1.83 billion up 260 million year-on-year. Operating cash flow stood at RMB 800 million, a significant 27.4% increase. This solid cash reserve not can only support business growth, but also enables us to reward our shareholders.
Today, Beauty Farm formally announced the establishment of a long-term dividend policy starting from the announcement date for the next 3 full financial years, at least 50% of our net profit attributable to stakeholders will be distributed as dividends, underscoring our commitment to sharing growth with investors. Looking ahead, we will continue executing our strategic road map with a focus on scaling up and boosting profitability. For improving internal efficiency, we will stay alert to market opportunities to drive long-term growth for the group.
This concludes our presentation for today. Now let's move into the Q&A session.
[Operator Instructions]. 5693, number 5693. Please ask your question.
Hello, everyone. I'm [ Sung Daniel ] from [indiscernible] Securities. Thank you for giving me the opportunity. Congratulations on the management team, despite the macroeconomic environment and the market trends, you achieved a really remarkable result. Just hearing from Ms. Zhou and Mr. Lian.
I have a question I'd like to ask Mr. Lian. Just now you shared about your insights into the market, and you mentioned the company's overall plan for industry consolidation and the successful integration of Naturade. And could you elaborate on the specifics of this integration. For example, business synergies and resource allocation. How about the measures and the effects? Also, as the company emphasized a dual focus on organic growth and external expansion in 2024. And how does management and M&A opportunities in 2025? And are there any new plans to share with us? Thank you.
Thank you for your question. I'd like to answer your questions in the following aspects. First of all, in terms of the whole market, if you look at the whole market, we can see that currently, the Beauty industry has a lot of M&A opportunities. In 2024, we could see the overall market size of the Beauty industry remain stable, but the industry landscape is undergoing significant structural shifts.
According to the China Beauty Services report 2024, the store closure rate in the first half of the year reached to 37.8%, a record high in recent years. This actually reflects the acceleration of our market reshuffling, it also shows a valuable window of opportunity for the leading companies like us to drive consolidation.
Here, what's particularly noteworthy is the current lack of capital exit channels within the industry. As a result, customers employees and shareholders alike are increasingly inclined to rely on listed company platforms for better resource allocation and long-term stability. So against this backdrop, we have already engaged in, in-depth discussions with more than 10 high-quality beauty brands over the past year. So that's the first aspect I'd like to share with you about the market overall.
And I know that you all very concerned about Naturade, and let me share with you more insights. So in March, we announced the acquisition of Naturade self-operated stores in Guangzhou and Shenzhen. In August, we followed up with the acquisition of the remaining stores, which will be operated on the franchise model following the acquisition of 150 Naturade stores were brought change you our group's brand portfolio. As of the end of 2024, Naturade operated 145 stores and its financials will officially consolidate it into the group, into our group starting July 1, 2024.
In the second half of last year, Naturade contributed 287 million in revenue and 20.55 million in adjusted net with its net profit margin improving from 6.5% in 2023 to 7.2% in 2024. This reflects early success in cost optimization and efficiency improvements. Looking ahead, it's expected to continue trending towards our group overall level. And after the acquisition, whether we can make it better to have better results, well our whole group pays great attention to this acquisition, and I'm personally glad that the post-acquisition integration of Naturade.
So after the acquisition, I personally took charge of integrating Naturade and implemented the following information. First, on enhancing organizational capability, we've conducted a lot of work. First, at the top level, at a high level, we actually restructured Naturade to be more corporate like. And we've actually introduced a 3-year plan, we set goals for Naturade for the next 3 years and created a seamless connection between strategy formulation and execution. This allows every employee to understand the direction and objectives of our whole group.
Then at a store level, we optimized our employee incentive mechanism and upgraded promotion system for community stores and [ more ] stores. Revising our job design and salary structures to match different store sites. And this has energized the organization and the improved efficiency. It has actually activated the energy and efficiency of the organization.
What's more? We highlight the importance of training since we are in the beauty industry to enhance customer satisfaction and service quality. In 2024 we completed our reform from traditional Chinese medicine apprentice-based training to standardize service protocols. We will build our organization and the training system. We conducted 2 rounds of large-scale training to significantly improve our service quality. So that's our work at a top level, at a store level and at the training level.
What's more? We understand the importance of strengthening the core competencies of Naturade over the past 17 years. It's most valuable brand assets is Intelligent Wellness services, which combined Chinese medicine theory with beauty, wellness and pain management services. So we focused on reinforcing and expanding these capabilities of Naturade. Specifically, we are assessing these stores, and we are optimizing these stores so we've actually relocated and consolidated 20 stores. In the second half of 2024, the single store revenue increased by 5% with early signs of improved net profit margins.
Much more, we are enhancing our core business line. In 2024 for last year, Beauty Farm supported the facial beauty program development and introduced 2 flagship facial treatments. We are improving our R&D abilities, we've introduced these 2 flagship facial treatment, the oxygen therapy and [ Babel ]. So these new offerings have attracted a large number of our new facial customers from Naturade. In 2025, we plan to introduce product sales within the Naturade brand. Additionally, Naturade will be equipped by Beauty Farm's AI skin testing devices to improve our beauty service professionalism. This year, we will continue to enhance our core intelligent wellness services, strengthening existing treatments like Meridian Therapy and introducing new strategic offerings like body conditioning, depthness removal and blood circulation tailored to the preferences of clients in the Greater Bay Area in China. So we aim to solidify our position as the leading brands in Intelligent Awareness through R&D.
In addition to core business line enhancements was very important for us is that we understand it's very important to empower value-added services. Well, we officially took over Naturade Medical Aesthetics and Subhealth services. Therefore, against this backdrop, we would like to transform the company from a mere channel provider to a fully integrated institution offering true beauty solution services. So we want to keep the services, the Chinese traditional management services of Naturade. But meanwhile, we want to integrate it into our services to improve our service delivery.
So through these services, also these improvements in the second half of 2024, the penetration rate of value-add services among Naturade members reached 13.3%, a 1.9 percentage point increase. Of this 11.8% for Medical Aesthetic members of 0.7 percentage points. Our medium-term goal is to continue increasing this penetration with a long-term target of reaching 25.8%, the current level at Beauty Farm, there's great room for improvement. In Subhealth Medical services, our penetration reached 2.6%. In the second half of 2024, significantly up 1.8 percentage points. Naturade customers have a strong focus on body care with a high willingness to pay. The average spending per subhealth member in the first half of the year was 26,000, even higher than our group average. However, Naturade previously lacked a functional and regenerative medical services, which have now been integrated from the group, driving significant growth in medical service revenue.
In addition to enhancing the core business lines and empowering value-added services, we are also doing digital system empowerment. Starting in August 2024, Naturade began fully adopting our group's digital systems, including an integrated service platform for Beauty, Wellness and Medical Aesthetics, along with customer management system, a supply chain that connects all stores. We expect to complete full IT system integration by the first half of this year.
In terms of AI applications, as China's leading intelligent wellness brand, Naturade has a rich database and the proprietary Chinese medicine AI algorithms. Thus in 2025, Naturade will continue to connect the value-added business data to provide the customers with an integrated beauty plus health solution.
Well, in addition to digital system empowerment, we payed great attention to cost reduction and efficiency improvement. Naturade net profit margin increased from 6.5% in '23 to 7.2% in '24, showing the activeness of our assets. The primary sources of efficiency gains include labor cost optimization through organizational adjustments. Second, rent cost savings through store consolidation, renegotiating and reducing office space, we significantly reduced our rental expenses. Thirdly, we've made middle office capacity, we use and improvement. We integrated back office functions such as supply chain, digital systems, medical management and R&D, improving our operational efficiency. Notably digital capabilities, including store management system upgrades and targeted marketing through many programs have had a significant impact.
Looking ahead, we achieved a systematic integration in '24 and then in2025. We will continue to move forward to build a replicable, highly efficient service stores. So we will continue to increase our value-added services. And in 2025, we will continue the expansion of Naturade in China. So it's a relatively large scale consolidation, is a very well-known chain store brand. So by this half year integration, it has increased our confidence, we've achieved key learnings from the integration.
Looking forward, we will continue to deepen our industry consolidation from both horizontal and vertical dimensions. Horizontally, we will focus on the beauty service sector, accelerate integration of high-quality regional brands through M&As to expand market share. We currently have a lot of acquisition leads in the beauty industry. Basically, we will explore acquisition of partnership opportunities in the upstream skin care product sector to enhance our profitability and support franchise business expansion. This will help build a sustainable growth ecosystem for the group.
That's the answer. Thank you very much.
Thank you, Mr. Lian for a detailed answer. We look forward to the performance of Beauty Farm and Naturade in 2025. We look forward to your future progress of market consolidation. Thank you for the management team.
Thank you for your answer. Now 0622, number 0622, please mention your name and the agency you are from.
Hello, everyone. Dear management team, I'm [ Shiao ], from [ CICC ]. Congratulations, I'm very glad to meet you online, very glad to share that the company has achieved strong results. You've achieved great results internally and externally. So we've noticed that both financial revenue and operation food traffic saw a significant growth. And could you provide some insights into how much of this growth was driven organically versus how much came from M&A contributions?
Much more, while overall customer numbers increased, we've observed some changes in average transaction value per customer, particularly in Medical Aesthetics segment. Could you share the reasons behind? Has it been influenced by the broader consumption downgrades we've seen in the market?
Thank you for your question. You have 2 questions. So let me answer them one by one. First, let me talk about the internal and external growth, the basic situation. Our total revenue reached RMB 2.57 billion in 2024, up 19.9%. Revenue from the group's organic operations reached 2.28 billion, up 6.5% year-on-year. And the main driver was a 9.7% increase in active members at self-operated stores, which in turn, boosted same-store sales and naturally contributed 287 million in revenue in the second half of 2024.
Adjusted net profit, 20.55 million, adjusted net profit margin, 7.2%. So indicating early signs of improved efficiency post integration. And also, you mentioned the changes. The reasons for the decline in average annual spending per member. Well, through our -- we've had some observations, and we pay great attention and we are analyzing the reasons behind. Well, you can see for the internal -- for the internal members, actually, their performance is still very solid. There is still strong performance among our core organic members. Despite the overall decline, spending from them remain solid.
For Beauty Farm members, the average annual spending in 2024 was RMB 20,000, so showing stable consumer engagement. Breakdown by the segment you could see for the Subhealth Medical Services, the average annual spending, 21,000 was 24.5% year-on-year growth driven by the expanded women specialty offerings and ongoing consumer education, which improves our conversion, upselling and repurchase rates. Second, in terms of Beauty and Wellness service, average annual spending per member RMB 11,000 year-on-year decline, 3%. So the spending remained relatively stable. The slight drop was mainly due to for example, the 9% increase in self-operated active members. So there is a 9% increase in self-operated active members. It means we've attracted some new members, and it's -- so you see it has been a large influx of new members lowering the average.
Next, in terms of Medical Aesthetic services, our active members show 15.3% year-on-year, well above the industry growth rate. And the average annual spending per member, 30,000 year-on-year declined 13.2% and the decline is largely due to the new member additions. It's worth noting that the industry overall, so this 15% to 20% drop in the ticket size. In 2024, there was enhanced competition in the Medical Aesthetic services. So generally, there was this 15% to 20% drop in the average spending in the market due to the intense competition. So in contrast, selfcare clients maintain the high spending level, reflecting strong consumer quality and spending power.
As we incorporate Naturade, in 2024 the group added 34,000 new active members for Naturade self-operated stores. However, Naturade historical membership standards differ from our group. For example, there is also this dilution effect. For example, the minimum recharge threshold was only 1,500. This resulted in a dilution effect on the group's overall average spending per member. So additionally, Naturade member profile is younger, mostly post 1990s or 1980's consumers whose average spending is about 70% of our group's typical customer, resulting in the dilution effect. And in the second half of 2024, we see that Naturade's average spending per active member was around RMB 7,600. So that's my understanding of the average annual spending per member.
Thank you for sharing. Very clear, no more questions from my side. Looking forward to your better performance this year.
Next question 0196. Please mention your name and the institution you are from.
Hello, everyone. Hello management team, I'm [ Josie ] from [ Sander ] Securities. Thank you for giving me this opportunity. Thank you for the earlier responses. Looking at your announcement and hearing from your presentation, we can see a very clear point. We could see that you pay great attention to the capital markets and your emphasis on the market. So I'd like you to share more insights into this part. And in the future when -- how about your plan to enter the Stock Connector Program? You could see some of the movements of the shareholders, and we pay great attention. So taking this opportunity, taking this opportunity we've heard about your stock plan. So can you elaborate more on the strategy?
So talking about the stock market. Thank you for your question. So yes, we are facing these changes in the stock market and the Stock Connector Program is very important. We could see that's our goal in the stock market to answer, to be included in the Stock Connector market and the program. We look forward to it, and we have confidence in achieving this goal. But of course there are many changes and there are many requirements about the liquidity and about the valuation to enter the Stock Connect Program.
Just now, Mrs. Zhou and Mr. Lian introduced our performance and our data in 2024 and the challenges we face. You could see that we've adjusted our shareholder structure, the CPE adjustment. So through the transaction, there was already some transactions of the shares of the equities and these movements are likely to continue. We estimate that in the short term, we will finish this task in the short term. So of course, certainly for the shareholders, we want to diversify our shareholders and then their shareholding can be more diversified, and it would contribute to the liquidity of our group. So step by step, slowly, gradually, we are going to see this transformation.
And talking about evaluation. So we believe we will gradually demonstrate our value in the stock market. And we've been listed for 2 years. Over the past 2 years, over the past year period, we have demonstrated that we are a stable and transparent company with stable financial performance and transparent operation. So it has demonstrated our strength, and it has demonstrated our improvement in the next period. And we have confidence in the development over the next few years. After the acquisition of Naturade, we believe it has been a proof of our consolidation ability. It has enhanced our internal growth and our consolidation assets. So it has increased our abilities of both internal growth and external growth. It can further boost our growth in the future.
So dear investors, please rest assured for the next period, you are going to see similar movements and we take confidence in our performance.
And of course, there are some concrete measures. So we will efficiently make our efforts to enter the Stock Connector Program. Much more we will interact more with the stock market, we have some concrete measures. Just now we mentioned that our policies for dividend. So we'd like to establish this long-term value sharing value -- sharing mechanism for shareholders, we will distribute no less than 50% of our annual net profit attributable to shareholders as dividends over the next 3 years. This demonstrates our dedication to stable returns and long-term shareholder value. So we could see this positive connection makes us more confident to achieve our growth plan, our growth strategy. So this plan closely aligns our management's interest with the company's performance using both revenue and profit targets to drive sustainable growth and value creation.
So we will continue to move forward, and that's our answer to the question. Thank you very much.
Thank you, Mr. Lian for your answer. We have seen your confidence in entering the Stock Connect Program and also your strategies and your plans for achieving the goal. You will definitely deliver a good performance in the near future. We also have the confidence. Thank you.
Due to time limits. Now we move on to the last question. We'd like to [indiscernible] 0720. To ask your question, please mention your name and your institution.
Distinguished management team. Hello, everyone. Good evening, I'm [indiscernible] from [ Gohi ] Securities. Congratulations on your great results. Thank you for giving me the opportunity.
I'd like to ask a question about women's health. We've seen women's health and specialty care have shown strong demand and momentum recently with impressive performance in 2024. How does the company view the long-term potential of this segment? And what are your future plans for the [ yen ] brand? Will there be a strategic focus on -- in terms of resource allocation?
Well, thank you for your question. Indeed, we could see in 2024, we delivered great results in women's health and specialty care. In 2024, we've shown strong demand and momentum in the [ field ], let me share the industrial data with you. You could see that the global women's health market is showing explosive growth potential. There are a lot of data from leading industry research. It is projected to exceed USD 97.3 billion around 100 billion by 2030 with a compound annual growth rate of 16% over the next decade. So the market is now entering a strong growth phase and we have taken a forward-looking approach by making early strategic moves into the emerging gynaecology settlement since about 2 to 3 years ago. And we aim to secure a first mobile advantage and drive consumer education.
We could see that women's health awareness is evolving from a focus on purely physical awareness to a more multidimensional understanding, encompassing physical, mental, emotional, behavioral and relational well-being. The market is transitioning from traditional clinical services to holistic health solutions as well. There's a growing demand for personalized and professional health products and services. The emerging segments is gaining momentum and shaping up to be a promising blue ocean opportunity. In particular, we've observed that women in top-tier cities, driven by their rising health consciousness and emotional stress in their work, in their life, paying increasing attention to topics like a premature ovarian failure, highlighting significant unmapped needs in this space. For Beauty Farm, we have confidence in doing this work, and there are some logic behind. We have our core competitiveness. We have our customer strength and advantages.
You could see that we have 30 years experience in the private traffic. We have millions of the potential customer in the dual beauty and dual health business model, under this model our programs are very favorable for the promotion in the traffic -- in the private traffic sector. So we are able to reach the customer base in the sector. We have our private traffic strength in this regard.
Second, we have professional medical team in this regard as well. You could see that there are some -- so currently at the professional medical level, a large number of existing new gynecological service providers are delivered in Medical Aesthetic Plastic Surgery or Nonmedical Institutions which cannot ensure medical safety in the industry while taking into account the diversified needs of customers, but [ Yanan ] is a medical clinic with a professional medical license with store departments of Gynecology and Internal Medicine and is professionally delivered by a strong team of doctors.
At present, there are 40-plus doctors and 60-plus nurses graduated from the top universities and other institutions of higher learning. And the average practice time of our Gynecologist is 27.6 years and the Senior Professional title exceeds 55%. So this demonstrates our professional medical services and our expertise in this regard. We will continue to enrich our product blue print. For example, we will increase basic testing actions and we would lower the threshold for our customers to try the women specialty care programs. So we will get to know more of the data and lower the threshold for the customers to try this care program and to provide them with more comprehensive and efficient solution for women's anti-aging from the customers, gynecological, physical and other symptoms.
So based on our forward-looking layout of the industry, some channel advantages and professional medical level, it constitutes a differentiated competitive advantage of women's intensive care centers. In 2024, the revenue of our women care centers exceeded CNY 100 million for the first time, a year-on-year increase of more than 300%. And the number of customer in women's intensive care centers increased by 200% year-on-year. So there is great business potential of Naturade centers as well because it also has this advantage in the Greater Bay area, customers naturally have a strong demand for health conditioning. And we believe there's great potential for us in this sector. We have great confidence in this. Thank you very much.
Thank you for your detailed answer. We look at -- we hope that for [indiscernible] for Beauty Farm you can grow stronger and better. We would look forward, you see the increase in your evaluation to the next record.
That's all for the question part due to time limits. Thank you all for joining today's earnings call. Thank you for attending our annual results conference call. So after listening to our breakthroughs and achievements in 2024, you also listen to the future plans for 2025. So in 2025, we will continue to increase our craftsmanship, embrace technologies, improve our services to inject more vitality into the beauty sector. We look forward to working with you to write a beauty and a more prosperous chapter.
So thank you for listening and attending our session. Thank you all. See you next time.
Thank you for attending our meeting. The meeting has come to an end. Wish you a good life in Korea. See you next time.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
