Shanghai Chicmax Cosmetics Ltd. submitted its application for listing hearing on the Hong Kong Stock Exchange
Shanghai Chicmax Cosmetics Ltd. submitted its application for listing hearing on the Hong Kong Stock Exchange on January 17, according to the disclosure document of the Hong Kong Stock Exchange.
The disclosure document shows that the adjusted profit of Shanghai Chicmax Group will be $18 million and $42 million in 2019 and 2020, respectively, The adjusted profit for the first three quarters of 2021 reached US$45 million, an increase of 45.3% compared with the same period of the previous year.
Revenue for 2019 and 2020 increased 17.6% to $453 million and $533 million, respectively, and gross profit increased 25.0% to $276 million and $345 million, respectively.
Revenues for the nine months ended September 30, 2020 and the same period in 2021 are $363 million and $409 million, respectively, an increase of 12.7%; gross profit is $235 million and $267 million, respectively, an increase of 13.7%.
According to the prospectus, Chicmax Group is the only Chinese cosmetics company with two skin care brands with annual retail sales exceeding $315 million in 2020, according to a Frost & Sullivan report. It ranked among the top five Chinese brand companies by retail sales for six consecutive years from 2015 to 2020. Its baby care brand, Baby Elephant, has exceeded $236 million in retail sales in 2020, ranking first in the Chinese market for domestic branded mother and baby care products.
According to the prospectus, Chicmax Group currently has several categories of cosmetic products including KANS, One Leaf and Baby Elephant, which together contribute 86.6%, 91.8% and 91.1% of the company’s total revenue, respectively.
In addition, the document mentions that the mid-to-high-end brands ARMIYO, One Page, and Yamada Cultivation will be launched in 2022.
By product category, the skin care category accounts for the highest percentage, accounting for 75.5% of total revenue of all categories in 2021 (as of September 30), while the baby care category accounts for 23.2%.
In terms of sales channels, Chicmax Group’s online sales in 2020 will be $401 million, up 69.0% year-over-year from 2019. For the nine months ended September 30, 2021, the Company ranked among the top three Chinese branded companies in terms of online retail sales.
In terms of financial ratios, Chicmax Group’s gross margin for the nine months ended September 30, 2021 was 65.2% and net margin was 9.6%.
In terms of product development, the prospectus shows that Chicmax Group’s global R&D team is led by Dr. Levy, who is responsible for the overall management of all key R&D activities and the development of R&D strategies for the dual research centers in China and Japan. A core R&D team of seven internationally renowned scientists has also been formed. As of September 30, 2021, the R&D team consisted of 227 people, 92 of whom hold a master’s degree or higher, accounting for approximately 40% of the R&D team.
It is reported that Chicmax Group previously submitted an application for overseas listing to the China Securities Regulatory Commission on December 30, 2021. The current submission of listing application by Chicmax Group means that its listing process in Hong Kong has officially started.