According to Bloomberg, informed sources have revealed that JALA Group is considering conducting its initial public offering (IPO) in Hong Kong, with a potential fundraising of up to $500 million. The sources state that JALA Group is collaborating with Huatai International and UBS Group for its first stock offering, with plans to list in Hong Kong as early as next year.
It is important to note that this move is currently in the preliminary stage of consideration, and details such as the scale and timing of the IPO may change. A representative from UBS declined to comment, and both Huatai and JALA Group have not immediately responded to requests for comment.
According to JALA Group’s official website, the company was founded in 2001 and owns several well-known beauty brands, including Herborist, MAYSU, Pechoin, CHANDO, Biorrier and so on. Among them, CHANDO is a leading domestic beauty brand and has repeatedly won the championship for domestic beauty brands in the Chinese Double 11 Shopping Festival.
It is worth mentioning that since July 2020, JALA Group has been actively promoting the digital transformation of the entire group through “digital retailing” and “one-stock strategy.” In fact, digitalization has been a driving force for JALA Group’s sustainable growth. Despite the significant impact of the pandemic, data shows that JALA Group’s sales revenue continued to grow year-on-year in 2022, achieving a 20% sales growth from January to May 2023. It maintained 43,000 retail terminals and acquired 15.04 million new consumer data assets.
In addition to digitalization, JALA Group has always emphasized its ability to master core technologies. As early as 2002, the company established the JALA Skincare Research Institute. Furthermore, ten years ago, JALA Group obtained the certification as a high-tech enterprise and has since built six research platforms aiming to develop high-tech materials and high-quality products with fully independent intellectual property rights. In 2022, the company’s research and development expenses increased to around 4.5% of revenue, with a total of 403 patent applications, including 226 invention patents, and 179 granted patents.
Furthermore, as a non-publicly listed beauty company, JALA Group has released its annual sustainability report for the 11th consecutive year. The company’s production base maintains green manufacturing standards year-round, achieving 100% performance management indicators for product qualification rates, noise standards, and wastewater treatment rates. As the first brand in China to develop products without animal testing, it has launched the innovative project of upgrading the packaging of Herborist Ice Crystal Hydrating Toner, which can reduce carbon dioxide emissions by up to 90%.
If successful in entering the capital market, it will undoubtedly benefit the development of JALA Group and further strengthen its competitive advantage. Looking ahead, with its leading global technological capabilities, JALA Group is committed to the goal of “building China’s own world-class brand” and will continue to make its voice heard as a domestic beauty company.
