Today (August 29th), Proya Cosmetics Co., Ltd. (referred to as “Proya Cosmetics”) released its financial report for the first half of 2023. In the first half of the year, Proya Cosmetics achieved operating revenue of 3.627 billion yuan ($497.4 million), a year-on-year increase of 38.12%. Net profit attributable to shareholders of the listed company was 499 million yuan ($68.43 million), an increase of 68.21%. Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 479 million yuan ($65.69 million), a year-on-year increase of 70.49%. Basic earnings per share were 1.25 yuan ($0.17) per share.
In addition, the R&D expenses in the first half of the year were 91.52 million yuan ($12.55 million), an increase of 30.45 million yuan ($4.18 million) compared to the same period last year, accounting for 2.52% of the operating revenue, compared to 2.33% in the same period last year. The R&D expense ratio for January-June 2023 was 5.10%.
In terms of brands, the company’s main brand achieved revenue of 2.891 billion yuan ($396.4 million) in the first half of the year, accounting for 79.87% of the total brand performance. TIMAGE achieved revenue of 414 million yuan ($56.77 million) in the first half of the year, a year-on-year increase of 78.65%, accounting for 11.45% of the overall revenue. HAPSODE achieved revenue of 132 million yuan ($18.1 million), accounting for 3.64% of the overall performance and ranking third in brand revenue. Off&Relax achieved revenue of 97 million yuan ($13.3 million) in the first half of the year, an increase of 94.17%.
In terms of distribution channels, online channels remained the main sales platform for Proya Cosmetics. The revenue from online channels in the first half of the year was 3.33 billion yuan ($456.6 million), a year-on-year increase of 44.23%, with direct sales channels reaching 2.659 billion yuan ($364.6 million) and distribution channels reaching 671 million yuan ($92 million). Offline channels generated revenue of 289 million yuan ($39.63 million), a year-on-year decrease of 5.81%.
Proya Cosmetics stated that during the reporting period, they continued to strengthen the “hero product strategy” of the Proya brand, focusing on Double Effect Brightening Essence, Deep Ocean Energy, and Advanced Original Repair series. TIMAGE continued to expand its market and improve its product category layout. Off&Relax continued to increase the market penetration rate of its star products. Offline, they utilized the advantage of the Proya brand to expand cooperation with new types of mall concept stores, further strengthen the construction of counters in department stores, and simultaneously promote direct cooperation with multiple retail systems nationwide.
