On March 29th, Guangdong Bawei Biotechnology Corporation (Bawei), a Chinese cosmetics ODM (Original Design Manufacturer) enterprise, debuted on the Beijing Stock Exchange with an opening price of 16.88 yuan, marking a significant surge of 192.55% relative to the issuance price. As of the time of writing, Bawei Stock’s price stands at 18.22 yuan, soaring by 216%, with a total market capitalization of 1.541 billion yuan.
The IPO proceeds of Bawei amounted to 84 million yuan, which will be fully allocated to projects including constructing intelligent production workshops, establishing research and development centers, and supplementary working capital.
In 2023, Bawei’s revenue grew by 2.02% year-on-year to 469 million yuan, marking five consecutive years of revenue growth by doubling its revenue over the past five years.
The company’s net profit in 2023 increased by 10.02% year-on-year to 41.489 million yuan, marking two consecutive years of net profit growth over five years, with net profit growing by 99% during that time.
Bawei’s main product categories include skincare products (excluding masks), masks, hair care, makeup and others, testing revenue, and other business revenue, with skincare products (excluding masks) contributing significantly to the company’s performance, accounting for 89.5% of revenue in 2023.
From 2019 to 2023, Bawei Stock’s R&D expenditure compound growth rate was 5.7%, with a year-on-year growth of 1.56% to 27.435 million yuan in 2023, and R&D expenditure accounted for 5.85% of revenue.
Bawei emphasizes investment in R&D and technological innovation, holding 129 patents as of June 30, 2023, with over 6,000 independently developed cosmetics formulas.
Public information indicates that Bawei was established in 2006 and is a cosmetics brand customer service provider integrating product planning, formula R&D, large-scale production, and efficacy testing. Its product categories include skincare, masks, hair care, and makeup. Additionally, it possesses independent cosmetics testing qualifications, with cooperative clients including Unilever, Renhe Jianxin, HBN, SKINTIFIC, and MARUBI.
