Proya’s first financial report after the leadership change is here.
Today (October 24), after the market closed, Proya Cosmetics Co., Ltd. (hereinafter referred to as: Proya) officially announced its financial data for the first three quarters of 2024, showing continued growth in performance. The data shows that the company’s revenue from January to September reached 6.966 billion yuan ($977.5 million), a year-on-year increase of 32.72%; the net profit attributable to shareholders was 999 million yuan ($140.2 million), a year-on-year increase of 33.95%.
Proya’s revenue reached 7 billion yuan from January to September, marking eight consecutive years of growth.
This year, despite the overall domestic beauty market in China performing below expectations, Proya has maintained strong growth momentum. In the first three quarters of this year, the company’s revenue increased by 32.72% year-on-year, approaching the 7-billion-yuan mark, once again leading the beauty industry.
CHAILEEDO reviewed Proya’s performance over the first three quarters for eight consecutive years since its listing and found that Proya has consistently maintained an upward trend, with year-on-year growth rates exceeding double digits. Except for a 10.14% growth in 2020 and a 28.58% increase in 2018, all other years saw year-on-year growth rates above 30%.
As for net profit, it has also risen significantly. From 126 million yuan ($17.68 million) in the first three quarters of 2017 to 999 million yuan ($140.2 million) in the same period this year, net profit has increased eightfold, nearly reaching the 1-billion-yuan milestone. The financial report shows that in the third quarter of this year, Proya’s revenue was 1.965 billion yuan ($275.7 million), up 21.15% year-on-year, while net profit attributable to shareholders was 298 million yuan ($41.8 million), up 20.72% year-on-year. Notably, this marks the 18th consecutive quarter that Proya has achieved revenue and net profit growth.
Based on Proya’s revenue for the first three quarters of this year, and referencing last year’s fourth-quarter revenue of 3.656 billion yuan ($513 million), it is almost certain that Proya will surpass 10 billion yuan in revenue this year.
Second and third-tier brands ramp up efforts, with sales expenses increasing by 42.29% year-on-year.
Although Proya did not disclose sales data for individual brands in this financial report, the performance during the Double Eleven shopping festival indicates that Proya’s brands have performed well.
On the first day of the Double Eleven sale on October 14, Proya’s main brand continued to hold the top spot. The makeup brand Cai Tang under Proya achieved a GMV of 71 million yuan ($9.96 million) on the first day of pre-sales in Li Jiaqi’s livestream, a year-on-year increase of 48%, showing impressive results. Proya staff revealed to CHAILEEDO, “From the backend data, Proya was also the number one in pre-sales on the first day in Li Jiaqi’s livestream.”
According to the newly released cumulative transaction list for Tmall’s fast-moving consumer goods from October 21 to 23, 2024, Proya continues to outpace foreign brands like L’Oréal Paris, Lancôme, and Estée Lauder, firmly holding the top position. Similarly, in the total rankings for skincare brands during the Double Eleven sales event on Douyin (October 8 to 17, 2024), Proya was also ranked first. This demonstrates that Proya remains a leading brand in the domestic beauty market in China.
In fact, regarding the growth in the first three quarters of this year, Proya indicated that it was mainly due to the year-on-year increase in revenue from online channels and steady growth in smaller brands. In Proya’s key operating data for the third quarter, it mentioned that sales from the beauty makeup brand INSBAHA and the personal care brand Jing Shi had increased their share. This shows that, aside from the main brand Proya, the group’s subsidiary brands are also beginning to gain traction, with second and third-tier brands starting to take shape.
Additionally, CHAILEEDO found that Proya’s sales expenses in the first three quarters of this year increased by nearly 1 billion yuan, rising from 2.271 billion yuan ($318.7 million) last year to 3.232 billion yuan ($453.5 million) this year, a year-on-year increase of 42.29%. This may be related to the earlier timing of promotional events. Proya mentioned when explaining the decrease in net cash flow during the reporting period: “Sales expenses increased, as promotional payment dates were earlier than last year.” In the operational data for the third quarter, Proya also noted that due to the early sales promotion in Q3 2024, the company prepared stock in advance.
Proya stands at a new starting point
On September 12, Proya announced that its co-founder, Fang Yuyou, stepped down as general manager, with Hou Yameng taking over. Fang Yuyou will continue to serve as Proya’s co-founder and board advisor, assisting with the company’s strategic planning and operational management support. With this, Proya has officially completed its leadership change. The quarterly report released today is also the first financial report since this leadership transition, making it quite significant.
The question now is whether Hou Yameng can continue Proya’s current “glory” and lead the company forward, which is indeed filled with challenges.
On one hand, there is pressure from external competition. Take the domestic beauty brand Shangmei as an example; the group reported a revenue growth of 120.7% year-on-year to 3.502 billion yuan ($491.4 million) in the first half of this year, further narrowing the gap with Proya. According to Qingyan Intelligence data, in September this year, KANS’s GMV on Douyin increased by 53.79% year-on-year to 448 million yuan, maintaining its top position for 14 consecutive months. Another domestic brand, Kefumei, also put pressure on Proya with its performance during this year’s Double Eleven shopping festival; on the first day of pre-sales in Li Jiaqi’s livestream, Kefumei’s collagen sticks became the first product to surpass 100 million yuan. In the transaction rankings for Tmall and Douyin during Double Eleven, Kefumei ranks just behind Proya among domestic brands.
On the other hand, the beauty industry is still grappling with serious internal competition, a lack of traffic benefits, and high marketing costs. These challenges bring uncertainty to Proya’s future development.
However, it can be observed that Proya is continuously strengthening its competitive barriers. For instance, just last week, on October 16, Proya established a European Innovation Center in France, making it the first domestic beauty company to set up such a center in Paris. Furthermore, in its third-quarter financial report, it is evident that Proya’s R&D expenses have increased to 142 million yuan ($19.9 million), a year-on-year growth of 10.53%.
Additionally, Proya is gradually moving into the high-end skincare sector. For example, the Proya brand has launched a premium product line called the “Proya Energy Series,” with its energy mask reportedly ranking first in the new mask category on Tmall during Double Eleven. At the same time, Proya has also registered a fragrance category, which is seen as a signal of its intent to enter the perfume market. This demonstrates that Proya is continually expanding its thresholds and competitiveness in R&D, new products, and new categories.
Undoubtedly, Proya is standing at a new historical starting point. For the company, reaching 10 billion yuan in revenue seems almost within easy reach. However, the more important question is: where will Proya go after reaching this milestone? This may be what the industry is most looking forward to.
