On the evening of October 22, Nanjing Cosmos Chemical Co., Ltd. (also known as Cosmos) released its financial report for the third quarter of 2025.
According to the report, Cosmos recorded revenue of RMB 1.116 billion ($156.7 million) in the first three quarters, down 39.93% year-on-year, while net profit attributable to shareholders was RMB 77.93 million ($10.9 million), marking an 84.84% decline year-on-year. In the third quarter alone, revenue stood at RMB 395 million ($55.46 million), down 12.82% year-on-year, and net profit attributable to shareholders was RMB 12.64 million ($1.77 million), a sharp drop of 86.36% year-on-year.
Addressing the continued decline in revenue, Cosmos explained that this was mainly due to slowing demand growth in the sunscreen market and downstream customers’ efforts to digest previous inventory, leading to a year-on-year decrease in sunscreen agent shipments. Meanwhile, intensified customer destocking and heightened industry competition caused sunscreen agent prices to fall compared with the same period last year, reducing the company’s gross profit margin from its core business and further compressing overall net profit and earnings per share.
Public information shows that Cosmos, founded in April 2000, is one of the world’s leading manufacturers of sunscreen agents. The company specializes in the R&D, production, and sales of raw materials for daily chemical products, including cosmetic active ingredients such as sunscreen agents and synthetic fragrances.
Its main clients for cosmetic active ingredients include major multinational cosmetics and specialty chemical companies such as DSM-Firmenich, Beiersdorf, Procter & Gamble, L’Oréal, Merck, and Johnson & Johnson. For synthetic fragrances, its key customers include global fragrance and oral care giants such as Givaudan, IFF, Symrise, and Colgate. Cosmos has deeply integrated into the global mainstream supply chain.
In recent years, the company has strengthened its overseas competitiveness by establishing production bases closer to international clients. As early as 2023, Cosmos launched the construction of its Malaysia production base, aimed at developing a high-end sunscreen agent project with an annual capacity of 10,000 tons. According to the company’s response to investor inquiries, the Malaysia facility is currently under construction and is expected to be completed and operational in the second half of this year.
