On the evening of April 28th, Ruoyuchen released the annual report for 2023 and the first-quarter report for 2024. In 2023, Ruoyuchen achieved a revenue of 1.366 billion yuan ($188.5 million), a year-on-year increase of 12.25%; the net profit attributable to shareholders of the listed company was 54.29 million yuan ($7.49 million), a year-on-year increase of 60.93%. With the double harvest in brand management and proprietary brand business, the company continues to maintain a trend of increasing both profits and revenue.
In 2023, the company’s business was divided into brand management, proprietary brand, and operational agency, based on brand authorization scope and different sources. Among them, the revenue from brand management business reached 160.49 million yuan ($22.15 million). The proprietary brand achieved a revenue of 263.28 million yuan ($36.34 million), a significant increase of 63.63% compared to the previous year, accounting for 19.27% of the company’s total operating income, and maintaining a joint growth in revenue and profit.
In the first quarter of 2024, the company achieved an operating income of 372.23 million yuan ($51.38 million), a year-on-year increase of 31.68%, and the net profit attributable to shareholders of the listed company was 12.82 million yuan ($1.77 million), a year-on-year increase of 86.40%. The revenue from proprietary brand business in the first quarter was 78.36 million yuan ($10.82 million), a year-on-year increase of 50.12%, with a revenue share increasing to 21.05%. The brand management business achieved a revenue of 116 million yuan ($16 million) in the first quarter, accounting for 31.04% of the total revenue.
Regarding brand management business, in 2023, Ruoyuchen reached deep strategic cooperation with brands such as Kangwang under Bayer Group and Aveeno under Johnson & Johnson. Kangwang business achieved sales of over tens of millions within five months, with significant success in both multi-channel influence and sales volume. Aveeno’s performance was also remarkable, with rapid growth within two months of project development, and it won the 2023 Tmall Double Eleven TOP Brand Award. In addition, the company also signed strategic cooperation agreements with overseas brands such as Floradapt and Grass & Co, taking full responsibility for the sales and promotion of the cooperative brands in the Chinese market. It focused on leveraging the company’s advantageous resources, deepening its brand management capabilities, and achieving a mutually beneficial and sustainable growth with the brands.
Regarding proprietary brand business, in 2023, Ruoyuchen’s proprietary brands continued to achieve double-digit growth on platforms such as Tmall, Douyin, and Xiaohongshu. The high-end natural plant-extract brand Zhanjia, with its outstanding products and services, has won wide acclaim from consumers. It has repeatedly ranked among the top positions on the Tmall platform in niche categories such as underwear laundry detergent and fabric care sprays, leading the development trend of these segments with several flagship products.
