L'Oreal, the world's largest cosmetic maker, posted its first profit in 2003 in China after entering the mainland market in 1997, helped by a huge increase in sales. The company also plans to set up its fourth research and development center in China.

　　China was the fastest growing market in L'Oreal's global sales network last year, with sales soaring 69.3 percent to 1.5 billion yuan (US$181.22 million), according to the company's annual financial report.

　　"Although we didn't make money at the beginning, our investment in China is eventually rewarded," Paolo Gasparrini, president and managing director of L'Oreal China, said yesterday.

　　The firm has invested US$120 million in China since 1997, excluding the costs involved in the recent acquisitions of two local major brands Mininurse and Yue-Sai, which were covered by the L'Oreal group.

　　L'Oreal also announced that it will establish a research and development center in China which will undertake studies of the Chinese skin and hair. But it didn't disclose the exact date and the location. Currently L'Oreal has R&D centers in Paris, Tokyo and New York.

　　The firm is expected to introduce two more brands Shu Uemura and Matrix to the Chinese mainland market by the end of this year. Shu Uemura, a luxury cosmetic brand, will be imported while Matrix, a low-end hair product, will be manufactured locally.