Securities Times｜Harness the Beauty Economy: SSE-listed Cosmetics Companies Focus on Technology R&D and Product Innovation

The Q3 2024 Collective Performance Briefing for SSE-listed Beauty Companies with the theme of "Inheriting and Innovating, Redefining Eastern Beauty" was held on December 3. Proya, Marubi, Shanghai Jahwa, and Freda attended the performance briefing.

Proya achieved an operating income of 6.966 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 32.72%; the net profit attributable to the parent company reached 999 million yuan, with a year-on-year increase of 33.95%. The Chair of Proya said that the company has implement a sustainable and stable profit distribution policy. Since its listing, the company has paid cash dividends every year, with the cumulative cash dividends amount (from 2017 to 2023) reaching 1.341 billion yuan (tax-inclusive). The proportion of yearly cash dividends to the net profits attributable to shareholders of listed companies in the same year’s consolidated statements is consistently over 30%. In the future, the company will continue to create more investment returns and share its development achievements with its investors through operating performance improvement and consistent cash dividend payments.

Marubi achieved an operating income of 1.952 billion yuan in the first three quarters of 2024, marking a 27.07% year-on-year growth; the net profit attributable to the parent company reached 239 million yuan, with a year-on-year increase of 37.38%. The data indicates that the gross profit margin of the company's products is nearly 75%. The senior head of the company said that the satisfying improvement in gross profit margin was mainly owing to the strong performance of flagship products and the continuous optimization of product structure.

As one of the long-lasting domestic brands in China's daily cosmetics industry, Shanghai Jahwa achieved an operating income of 4.477 billion yuan in the first three quarters of 2024, representing a year-on-year decrease of 12.07%; the net profit attributable to the parent company reached 163 million yuan, with a year-on-year decrease of 58.72%. At the end of May this year, the company carried out a series of strategic reshaping and organizational changes, including reestablishing the corporate vision, sorting out the priority of different brands' development by tiers, focusing on resources, and redefining the brand value.

Freda achieved an operating income of 2.803 billion yuan in the first three quarters of 2024, indicating a year-on-year decrease of 17.45%; the net profit attributable to the parent company reached 171 million yuan, reflecting a year-on-year decrease of 28.09%. Currently, the company's cosmetics sector covers a variety of business formats such as skincare products, makeup, and fragrance. In recent years, the company has made significant efforts to promote "integrated" coordination across four dimensions within its internal industry chains.

Excerpt translated from Securities Times on December 3, 2024

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