At least 17 beauty-related companies have started the listing process or are seeking opportunities, covering the brands, ingredients suppliers, OEMs, digital marketing agencies, investment companies and so on.
In the last month of 2022, Chicmax successfully landed on the Hong Kong Stock Exchange, and its market value exceeded HK$10 billion (about $1.3 billion) on the first day of listing. On December 31, UNIASIA Technology submitted its initial public offering prospectus to the Shenzhen Stock Exchange, taking the listing process one step further.
Seeking to go public has long become the primary choice for beauty companies to expand their business scale and increase their market share. And according to CHAILEEDO incomplete statistics, including UNIASIA Technology, there are currently 17 companies in the industry, either successfully passed the review, or start a listing plan to catch the trend.
17 companies are lined up for listing
He who does not advance loses ground. Although the new consumer sector is underwhelmed by the capital market in the past few years, a number of beauty companies still seek capital expansion after the completion of the capital accumulation, which does not seem to be affected by the general environment.
Last year alone, there were seven beauty-related companies listed on the market, including Giant Biogene, Chicmax, Asia Aroma and Qingmu. And on the last day of 2022, after more than a year of listing counseling, UNIASIA Technology also officially submitted a prospectus to the Shenzhen Stock Exchange and intended to be listed on the Shenzhen Stock Exchange the second-board market. It is expected to impact the first A-share beauty stock in 2023.
CHAILEEDO found that, as of now, at least 17 beauty-related companies have started the listing process or are seeking opportunities, covering the brands, ingredients suppliers, OEMs, digital marketing agencies, investment companies and other upstream and downstream enterprises in the industry chain.
And from this year’s proposed listing, A shares are still the first choice for beauty companies to go public. It is worth mentioning that there are currently four companies choosing to list on the Beijing Stock Exchange, including Trauer, MISIFU, Jinbo and Bawei Corporation, exceeding the number of companies listed on the Shanghai Stock Exchange (3).
It is worth mentioning, CHAILEEDO found that among the companies lined up for listing this year, most of them have been established for more than ten years and already have stable supply chains, R&D systems and sales channels. “This is a group of companies that have survived and developed in the cracks of international brands. Their listing will undoubtedly have a positive impact on local cosmetic companies.” An industry source lamented in this regard.
Who will become the first stock of beauty in 2023?
In 2023, the enthusiasm of beauty companies to go public remains high. So, among these companies, who will take the title of “the first stock of beauty in 2023”?
CHAILEEDO found that the A-share listing process is mainly divided into four stages: listing counseling and filing, submission of a prospectus, review by the China Securities Regulatory Commission, and issuance and listing. while the Hong Kong Exchange IPO also mainly has five steps: submission of prospectus, hearing, road show, prospectus, and issuance and listing.
Generally speaking, after an enterprise has passed the review (i.e. passed the initial public offering) by the China Securities Regulatory Commission or Hong Kong Exchange, the IPO process is already half. Taking this as the standard, CHAILEEDO found that the five companies, namely MAOGEPING, Voolga, Beauty Farm, Data intelink and Tiantu Investment, are all expected to go IPO in the near future.
But in these companies, MAOGEPING passed the review of the China Securities Regulatory Commission in October 2021. But after that, it didn’t upgrade any process, which seems to stop its step. Voolga passed the audit through the second board market of Shenzhen Stock Exchange in September 2022. It then was embroiled in the negative review on the internet, saying that it invests less in research and development and more in marketing. It still has not been issued and listed.
And CHAILEEDO learned that Beauty Farm opened a prospectus on December 30 and is expected to close on January 6, 2023. According to this calculation, Beauty Farm will land on the Hong Kong Stock Exchange expected on January 16. It may be able to take the title of “2023 beauty first stock”.
Some industry analysts have analyzed that more and more companies are listed with the aura of “XX first stock”, which also marks the cosmetic industry gradually towards professionalism and segmentation, and consumer demand is further explored.
Chinese domestic beauty Top 10 usher in a big change
In the past two years under the influence of the epidemic, most companies need to raise funds more to expand production capacity or increase investment in research and development for building a competitive barrier in the industry.
For example, UNIASIA Technology said in the prospectus that the IPO undraising of 607 million yuan (about $89.5 million), of which, 405 million yuan (about $59.7 million) for brand construction and promotion projects, 107 million yuan (about $15.8 million) for intelligent manufacturing and information system upgrade projects, 55.46 million yuan (about $8.2 million) for R & D center upgrade projects, etc. Chicmax also said that the raise from its IPO will be used for brand building, enhancing R&D capabilities, strengthening production and supply chain capabilities, increasing the breadth and depth of its sales network, improving digitalization and information infrastructure, etc.
As mentioned above, the vast majority of the companies lined up to go public in 2023 are brands. With their IPOs and large capital injections, they will undoubtedly bring more changes to today’s Chinese beauty market.
CHAILEEDO found the main financial data of 15 listed Chinese beauty companies. In 2023, the Top 10 Chinese beauty companies may be reshuffled once again.
Taking 2021 revenue data as the standard, Chicmax and UNIASIA Technology’s 2021 revenue has surpassed Marubi’s, ranking the TOP7 and TOP8 of Chinese beauty companies. And Voolga is also among the TOP10 of Chinese beauty companies with revenue of 1.65 billion yuan (about $243.4 million).
In addition, from the above chart, it is easy to find that the revenue of Giant Biogene and Lushang Development (cosmetics segment) is not much different from that of Voolga and Marubi, but the revenue growth rate of the former two is much higher than that of the latter. If Giant Biogene keeps the same growth rate in 2022, its revenue may exceed 2 billion yuan (about $295 million), becoming the “new top 10” of Chinese beauty companies.
And from the point of view of net profit, Giant Biogene is ranked in the TOP 2 ranks of Chinese beauty companies with a net profit of 828 million yuan (about $122.1 million) in 2021, second only to BTN’s 863 million yuan (about $127.3 million).
Whether it’s the growing number of long-established Chinese companies seeking to make a difference in the capital market or the increasingly fierce competition in the beauty industry’s “first stock”, it reflects that the era of a major expansion of new brands may have passed. In the face of consumers’ increasing attention to product efficacy and ingredients, as well as increasingly segmented demand, more beauty companies may choose to actively embrace the capital market in 2023.