Singapore-listed China Beauty Holdings said its has signed a letter of intent to pursue a licensing agreement with Japanese cosmetics producer JO Cosmetics Co Ltd. According to the deal, Beauty China will have the exclusive license in China to manufacture, use and sell certain finished and semi-finished cosmetics products using the technology and patents owned by JO Cosmetics. Beauty China said it also plans to expand its manufacturing services to include the supply of selected raw materials and semi-finished products such as lip gloss and eye mascara materials as well as cosmetics powder for its own brands and OEM customers, using JO Cosmetics' proprietary methods. The company said the move will strengthen the group's supply chain, secure customer relationship and improve margins. As of November, Beauty China said it had more than 50 mln hkd worth of new OEM contracts, most of which will be delivered next year. It said 47 mln hkd of the contracts were from two customers in Russia and France to manufacture approximately 21 mln units of skin-care, colour cosmetics and fragrance products for five popular mid-range cosmetics brands in these two countries. Shares of Beauty China were up 0.010 sgd or 2.9 pct at 0.350 sgd.