Shanghai Lily & Beauty Cosmetics Co., Ltd. (Lily & Beauty) released its annual report for 2023. In 2023, Lily & Beauty achieved operating revenue of 2.762 billion yuan, a decrease of 14.78% compared to the same period last year. The main reason was the impact of new consumer demand and new challenges. Net profit attributable to the parent company was 0.3 billion yuan, turning losses into gains compared to the same period last year. Lily & Beauty stated that this was mainly due to the rapid growth of the company’s emerging channel business, smooth progress of its proprietary brands, improvement in inventory structure, and overall expense control.
By product category, the operating revenue of beauty and personal care products in 2023 was 2.71 billion yuan, a year-on-year decrease of 15%.
Lily & Beauty stated that in 2023, the company made certain progress in the incubation of proprietary brands and the expansion of emerging channels. The operating revenue of proprietary brands incubated by the company increased by over 40% compared to the same period last year. Some brands are intensifying research and development of new products and expanding into new categories, laying the foundation for future expansion. During the reporting period, the proportion of revenue from emerging channels represented by Douyin continued to increase. By the end of the reporting period, revenue from emerging channels accounted for over 15% of the company’s total operating revenue, with the number of Douyin stores steadily increasing. By the end of 2023, the number of Douyin stores reached 48.
Looking ahead, Lily & Beauty stated that the company will continue to strengthen its core competitiveness, achieve efficient marketing, and explore sustainable business models on new platforms. In terms of brand incubation, some brands will expand their product lines, and it is expected that the proprietary brand strategy will achieve phased results. Meanwhile, the company will continue to maintain efficient operations and expansion momentum, enhance the matching efficiency between user demand and brand product positioning, actively adapt to changes in the market environment, and achieve sustainable growth.
