Harbin Fuerjia Technology Co., Ltd. has moved one step closer to going public as the China Securities Regulatory Commission announced on June 8 that it has given its approval for the company’s initial public offering.
On June 8th, the China Securities Regulatory Commission (CSRC) announced on its official website that it has approved the registration application of Harbin Fuerjia Technology Co., Ltd. (referred to as “Fuerjia”) for its initial public offering (IPO) and listing on the ChiNext board. This means that after nearly two years of trying, Fuerjia has finally obtained official approval, and the A-share market will have one more cosmetics company listed.
According to Fuerjia’s previous prospectus, from 2020 to 2022, Fuerjia’s revenues were 1.585 billion yuan ($222.76 million), 1.65 billion yuan ($231.84 million), and 1.769 billion yuan ($248.64 million), respectively. Net profits were 648 million yuan ($91.07 million), 806 million yuan ($113.27 million), and 847 million yuan ($119.04 million), while non-GAAP net profits were 477 million yuan ($67.04 million), 774 million yuan (108.78 million), and 766 million yuan ($107.65 million).
While according to the review report issued by Da Hua CPAs LLP, Fuerjia achieved operating revenue of 373 million yuan ($52.35 million) in the first quarter of 2023, a year-on-year increase of 5.38%, and a net profit of RMB 159 million ($22.32 million), down 1.42%.
In terms of sales channels, Fuerjia’s online channels are divided into direct sales, distribution, and agency sales. Although it has been vigorously laying out e-commerce channels in recent years, offline sales remain its main method. It is worth mentioning that during this year’s 618 promotion, several Fuerjia masks entered Li Jiaqi’s live broadcast room. According to Tmall’s 5.26 4-hour presale results on that day, Fuerjia ranked second in the home appliance presale list.
It is worth noting that, according to the prospectus, in 2022, Fuerjia’s functional skincare products accounted for 51.05% of its cosmetics sales, exceeding 50% for the first time. During the reporting period, Fuerjia’s cosmetics revenue was 705 million yuan ($99.08 million), 722 million yuan ($101.47 million), and 903 million yuan ($126.91 million), accounting for 44.46%, 43.75%, and 51.05% of the total revenue, respectively.
In terms of product structure, at present, Fuerjia has 46 types of cosmetic products, far more than the number of medical device products, and among the cosmetic categories, masks are its core products.
In addition, Fuerjia also stated in its prospectus that based on research on sodium hyaluronate and collagen, the company has formed a three-dimensional product system with Class II medical device products suitable for mild to moderate acne and promoting wound healing and skin repair as the main focus, supplemented by various forms of functional skincare products.
Public information shows that Fuerjia is a company engaged in researching, developing, producing, and selling professional skin care products. Its products cover medical device class dressings and functional skincare products, focusing on dressings and patches, film products, and launching water, essence, lotion, spray, freeze-dried powder, and other products.