Today (August 27), Proya Cosmetics Co., Ltd. (hereinafter referred to as “Proya”) released its 2024 semi-annual report.
In the first half of this year, Proya achieved operating revenue of 5.001 billion yuan, a 37.9% increase compared to 3.626 billion yuan in the same period last year. The net profit attributable to shareholders of the listed company was 701 million yuan, a significant increase of 40.48% year-on-year. Meanwhile, the net cash flow generated by operating activities decreased by 43.95% year-on-year to 662 million yuan.
Looking at a longer timeline, from the first half of 2020 to the first half of 2024, Proya’s revenue was 1.38 billion yuan, 1.92 billion yuan, 2.63 billion yuan, 3.63 billion yuan, and 5.001 billion yuan respectively, with net profits attributable to shareholders of the listed company of 178 million yuan, 230 million yuan, 296 million yuan, 499 million yuan, and 678 million yuan.
By brand, in the first half of this year, all of Proya’s brands recorded revenue growth. Specifically, the Proya single brand remains the main brand, with revenue in the first half of this year recorded at 3.981 billion yuan, a 37.67% increase year-on-year, accounting for 79.71% of total revenue.
In the first half of this year, the makeup brand TIMAGE recorded revenue of 582 million yuan, an increase of 40.57% year-on-year, accounting for 11.66% of total revenue. Proya stated that this was mainly due to TIMAGE’s continued strengthening of its major product matrix in the facial makeup category, further expanding in the foundation sector with new products such as transparent setting powder, balancing soft light cushion (for combination skin), dry skin foundation cream, and lip gel. Among these, the “small round tube foundation” maintained a high growth rate across all channels and ranked first in the domestic foundation category on Tmall during the 618 shopping event, and third in the overall foundation category.
The hair care brand Off&Relax (OR) recorded revenue of 139 million yuan in the first half of this year, an increase of 41.91% year-on-year, while the skincare brand Yefuti’s revenue grew by 22.35% year-on-year to 161 million yuan. Notably, “OR Scalp Oil Control Serum” ranked first in the pre-wash scalp care category on Tmall, and Yefuti’s limited-edition mud mask ranked first on both Tmall’s “Top-Rated Mask List” and “Repurchase Mask List.”
Additionally, other brands like CORRECTORS and INSBAHA achieved a growth rate of 56.29%, with a total revenue of 132 million yuan.
From a channel perspective, in the first half of this year, Proya’s online channel revenue recorded 4.68 billion yuan, an increase of 40.01% year-on-year, accounting for 74.56% of total revenue. Offline channel revenue recorded 314 million yuan, an increase of 8.85% year-on-year. Among them, the offline daily chemical business decreased by 7.66% year-on-year to 223 million yuan.
In the first half of this year, Proya’s R&D expenses were 94.61 million yuan, an increase of 3.38% year-on-year. During the reporting period, the company continued to improve its R&D layout across all key stages from raw materials to finished products, focusing on skin mechanism research, active ingredient design and efficacy verification, as well as the research and development of new skincare, makeup, and hair care products.
In terms of supply chain, in the first half of this year, the newly added production workshop at the Huzhou production base was officially put into operation. The workshop is equipped with multiple sets of intelligent homogenizing emulsification equipment and several fully automated production lines, using a newly developed pre-process treatment system to reduce the risk of equipment misoperation.
It is worth noting that in Proya’s announcement of the resolutions of the 19th meeting of the third board of directors released today, it mentioned that 18 incentive recipients have resigned from the company and therefore no longer meet the incentive conditions.
