On April 16th, Nanjing COSMOS Chemical Co., Ltd. (COSMOS) released its annual report for 2023. The company achieved an operating income of approximately 2.4 billion yuan in 2023, representing a year-on-year increase of 35.99%. The net profit attributable to shareholders of the listed company was approximately 734 million yuan, an increase of 89.02% year-on-year. Basic earnings per share were approximately 4.33 yuan, up by 88.99% year-on-year.
According to the financial report, COSMOS mainly researches, produces, and sells raw materials for daily chemical products, including active ingredients for cosmetics such as sunscreens and synthetic fragrances. Its products have entered the international mainstream market system. Major customers for cosmetics active ingredients include large multinational cosmetics companies and specialty chemical companies such as DSM, Bayer, and P&G. Major customers for synthetic fragrances include globally renowned flavor and fragrance companies such as Givaudan, IFF, and Colgate.
In terms of product breakdown, cosmetics active ingredients and raw materials recorded revenue of 2.07 billion yuan, an increase of 43.68% year-on-year, accounting for 86.27% of total revenue; synthetic fragrances recorded revenue of 308 million yuan, a year-on-year increase of 6.83%, accounting for 12.85% of total revenue.
COSMOS stated that the significant increase in operating income during the reporting period was mainly due to the continuous growth in downstream market demand for cosmetics active ingredients and raw materials.
Looking ahead to 2024, COSMOS stated that it will intensify its market expansion efforts, deepen the construction of its marketing system, and inaugurate the Shanghai Personal Care Products Application Research Center. Leveraging its regional advantages, the company aims to strengthen its responsiveness to and service capabilities for domestic top-tier brand customers.
Additionally, in the research of cosmetics applications and formulations, COSMOS expressed its commitment to increasing investment continuously. It plans to attract high-end talents in the field of formulation application and conduct fundamental research in the formulation application domain by collaborating with hospitals and research institutions in dermatology studies. Regarding project construction, the company will steadily advance the construction of the Anqing COSMOS High-end Personal Care Products and Synthetic Fragrances Project, as well as the project for the production of 10,000 tons of sunscreen products annually in Malaysia.
It is worth mentioning that COSMOS also released its first-quarter report for 2024. The company’s revenue in the first quarter of this year was approximately 712 million yuan, a year-on-year increase of 21.1%. The net profit attributable to shareholders of the listed company was approximately 220 million yuan, a year-on-year increase of 37.16%.
