CHENGDU, China, Feb. 1, 2011 /PRNewswire-Asia-FirstCall/ —
China SHESAYS Medical Cosmetology Inc. (OTC Bulletin Board:
CSAY) (“China SHESAYS” or the “Company”), which operates a
network of specialized medical cosmetology hospitals, clinics and
skincare centers in Sichuan province, China, today announces
preliminary unaudited results for fiscal year 2010 and provides an
update of its business outlook for investors.
For the fiscal year ended December 31, 2010, the Company expects
$12.3 million in revenue and $1.5 million in net income. These
preliminary results are lower than previously anticipated by the
Company’s management, largely due to the adverse market sentiment
resulting from a high-profile incident in which a famous singer
featured in the Super Girl contest in China died from complications
related to plastic surgery in a clinic unaffiliated with China
SHESAYS.
The 24-year-old singer, Ms. Bei Wang, suffered respiratory and
circulatory failure following plastic surgery at a medical
cosmetology clinic in Wuhan city of Hunan province in November
2010. As rumors state that the doctors performing the surgery
lacked plastic surgery qualifications, the Ministry of Health has
initiated an overhaul of the entire medical cosmetology industry in
China to weed out unqualified players. Such regulatory reforms may
lead to increased market concentration, ultimately benefiting
licensed operators.
“We are truly sorry for what happened to Ms. Wang and our
thoughts go out to her family. The effects of this unfortunate
incident on the general attitudes towards cosmetic procedures may
continue to negatively impact our top and bottom lines for the next
few quarters,” said Yixiang Zhang, Chairman and Chief Executive
Officer of China SHESAYS. “However, we anticipate a pick-up in
demand in the second half of 2011 after the general public
gradually reassesses the risks associat
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