Retail Channel

On the evening of July 26, LVMH Group released its financial report for the first half of 2022. According to the financial report, as of June 30, 2022, LVMH Group achieved operating income of 36.7 billion euros (equivalent to about 251.788 billion yuan), a year-on-year increase of 28%; operating profit was 10.235 billion euros (equivalent to about 70.219 billion yuan), a year-on-year increase twenty three%.

Among them, the perfume and cosmetics business revenue increased by 20% to 3.618 billion euros (equivalent to about 24.822 billion yuan).

According to the financial report, Sephora (SEPHORA) showed a strong rebound in the first half of 2022, with more than double-digit growth compared to 2019 (before the outbreak of the new crown epidemic).

On August 3, MINISO (09896.HK) announced that it is expected that the company will record an adjusted net profit of not less than 200 million yuan in the quarter ended June 30, 2022, compared with the same period last year. Adjusted net profit was approximately RMB 142 million, a year-on-year increase of no less than approximately 40%.

On August 4, Watsons’parent company, Changjiang Hutchison Industries, released its financial report for the first half of 2022. During the period, Watsons’sales in the Chinese market was 9.685 billion Hong Kong dollars (about 8.334 billion yuan), a year-on-year decrease of 17%, and store sales decreased by 17.6% year-on-year. . Despite the obvious decline in revenue due to the impact of the epidemic, Watsons remained profitable as a whole, recording a profit before interest and tax of HK$623 million (approximately RMB 536 million) in the first half of the year, making it one of the few retailers that did not lose money in the first half of the year.

Yonghui Supermarket announced that the company plans to repurchase shares with 400 million to 700 million yuan for employee stock ownership plans or equity incentives. The number of repurchases shall not exceed 150 million shares, and the repurchase price shall not exceed 5 yuan.

Walmart released its financial report for the second quarter of 2022. According to the financial report, Walmart’s second quarter net sales in China increased by 15.9% year-on-year, and comparable sales increased by 14.1%.

Walmart's growth was mainly driven by Sam's Club and its e-commerce business. At the level of operating categories, the food business has an obvious leading role.

In the e-commerce business, in the second quarter, Walmart's China e-commerce net sales increased by 77% year-on-year, and e-commerce net sales accounted for 40% of China's net sales.

Authoritative Release

On July 20th, the raw material applied by Silkroad Company: polysiloxane quaternary ammonium salt-20 entered the raw material filing and testing period, and the raw material is a chemical raw material. The purpose of use of raw materials is hair conditioner, and the range of raw materials is all kinds of hair cosmetics. The maximum allowable concentration for cosmetic use is <3.0%. In addition, the feedstock needs to be avoided with oxidizing agents.

On August 1st, the official website of the China National Institute for Food and Drug Control issued a notice to solicit public opinions on the "Technical Guiding Principles for Special Cosmetics for Freckle Removal and Whitening (Draft for Comment)". This means that "freckle whitening cosmetics have a method".

On August 11th, in order to strengthen the management of cosmetics inspection institutions, the "Qualification Accreditation Conditions for Cosmetics Inspection Institutions (Draft for Comment)" formulated by the State Food and Drug Administration and the State Administration for Market Regulation was posted online. After the implementation of the new regulations, the demand for efficacy evaluation and product testing of cosmetics brands and manufacturers has soared, and the cosmetics testing and testing market has entered a stage of rapid expansion.

On August 17th, the General Department of the State Drug Administration released the "Measures for the Supervision and Administration of Online Cosmetics Operations (Draft for Comment)" for public solicitation. The draft has a total of 5 chapters and 34 articles, and made specific requirements on the management of cosmetics e-commerce platform operators, the management of cosmetics operators on the platform, and the supervision and management.

On August 19, the State Food and Drug Administration's announcement (No. 64, 2022) on the official implementation of the electronic registration certificate for cosmetics was posted on the Internet. According to the announcement, from October 1, 2022, electronic registration certificates will be issued for special cosmetics and new cosmetic ingredients approved for registration in accordance with the "Administrative Measures for Registration and Filing of Cosmetics", as well as special cosmetics for which registration certificates have been changed or renewed. The previously issued paper registration certificate will continue to be valid during its validity period.

Brand and Industry

From July 13th to July 19th, Proya and Tik tok created the Proya Tik tok Super Quality Day. The data shows that on this Tik tok E-commerce Super Product Day, Proya has achieved excellent results with a total GMV of over 70 million and an omni-channel exposure of more than 500 million.

U.S. luxury beauty sales rose 16 percent in the second quarter, or $6 billion, according to the NPD Group. Among them, the sales of cosmetics increased by 18% compared with the same period last year, exceeding the $2 billion mark, accounting for one-third of sales; perfumes increased by 13%. Prices rose by 6%;

Hair care is the smallest but fastest growing, up 24% to $781 million; in skin care, body care products are growing faster than facial skin care products, especially those containing ingredients such as vitamin C, retinol and algae, sun protection an increase of 52%.

The beauty brand Maybelline customer service said a few days ago that with the shift of strategic focus, the brand will gradually close all offline stores in China. After that, only the counters in Watsons will be retained offline, and the future will focus on online channel sales.

On July 21, Lushang Development released a briefing on the operation of the biopharmaceutical sector. From January to June 2022, Lushang Development's biopharmaceutical segment achieved a year-on-year increase in revenue, of which: the company's cosmetics segment achieved revenue of 1.001 billion yuan, a year-on-year increase of 61%; the company's raw materials and additives segment achieved revenue of 159 million yuan, an increase of 11% year-on-year.

According to statistics from Autoeo International Consulting, during the rolling year of MAT (July 2021 to June 2022) in June 2022, the sales of perfume products on the entire network will be 13.751 billion yuan, down 10.26% year-on-year. It was 117 million pieces, and the average transaction price was 117 yuan.

Recently, iResearch released the "2022 China Beauty and Skin Care Industry Investment Research Report" and "Global Skin Care Products Market Research Network Authoritative Survey Data", showing that the global functional skin care products market in 2020 will reach 55.6 billion US dollars (about 55.6 billion US dollars). RMB 355.6 billion), of which the market size of China's functional skin care products is 81 billion yuan. It is predicted that the market size of my country's functional skin care products will exceed 100 billion yuan in 2020-2025, and the expected growth rate will reach 15%~20%. It is expected to become one of the fastest growing sub-tracks in the skin care industry.

Recently, the information released by the beauty practice shows that there are a number of non-popular powerful ingredients in the market that are accelerating their application. Among them, dendrobium extract is the most representative. During the period from Q2 in 2021 to Q2 in 2022, users of this ingredient on the beauty practice platform The degree of attention increased by 1854.7% year-on-year.

Recently, Bawang (Guangzhou) Co., Ltd. was fined 550,000 yuan by the Guangzhou Municipal Bureau of Supervision for publishing false advertisements on some product promotion pages sold on its WeChat applet. Punishment information shows that Bawang's product promotion page is marked with functional promotional terms such as "ruddy skin", "farewell to the yellow-faced woman", "improve dark yellow", "conditioning whiteness" and "99% effective sterilization". The product belongs to ordinary cosmetics.

Recently, according to the official website of the State Food and Drug Administration, Shiseido's two new cosmetic raw materials named "Piperidinic acid" and "Hydroxyethylimidazolidinone" have completed the filing and are currently entering the monitoring period.

On August 7, the General Administration of Customs announced the national import and export customs data in July. Among them, the import of beauty cosmetics and toiletries in July was 36,617.9 tons, down 1.79% year-on-year; the import value was 11.97 billion yuan, up 5.18% year-on-year. From January to July, the cumulative import was 240,710.7 tons, a year-on-year decrease of 8.4%; the import value was 84.47 billion yuan, a year-on-year decrease of 4.3%.

Recently, Dezhixin announced its financial report for the first half of 2022. In the first half of the year, Dezhixin achieved double growth in sales and profits, of which sales increased by 18.5% to 2.2604 billion euros (about 15.933 billion yuan); EBITDA (earnings before interest, tax, depreciation and amortization) increased by 15.7% year-on-year to 4.855 billion euros (about 3.369 billion yuan); net income increased by 16.6% year-on-year to 228.8 million euros (about 1.586 billion yuan).

Recently, Edgewell Personal Care, the parent company of the well-known American brand Banana Boat (Banana Boat), has voluntarily recalled three batches of Banana Boat hair and scalp sunscreen sprays nationwide after some samples were found to contain low levels of benzene. SPF 3 (Banana Boat Hair & Scalp Spray SPF 30).

Recently, YES!IC, the second makeup brand launched by Chuangyuan Group, the parent company of Mariedalgar, broke the news of delisting.

On August 16, COSMAX, a Korean cosmetics ODM manufacturer, released its report for the first half of 2022. According to the financial report, COSMAX achieved revenue of 802.87 billion won (approximately RMB 4.158 billion) in the first half of the year, a year-on-year increase of 3.56%, achieved an operating profit of 309.69 billion won (approximately RMB 160 million), and realized a net profit of 15.51 billion won. (approximately RMB 80.3429 million).

According to the "2022 Functional Ingredient Insights" report released by Meilixiu Big Data, the two ingredients that have seen the fastest growth in consumer attention in the past year are ceramide NP and licorice root extract. Among them, the attention of licorice root extract ranks second among the 30 ingredients included in the statistics, second only to nicotinamide.

On August 15th, the National Bureau of Statistics released the retail sales data of consumer goods from January to July 2022. Data show that the total retail sales of consumer goods in July was 3,587 billion yuan, up 2.7% year-on-year; from January to July, the total retail sales of consumer goods was 24,630.2 billion yuan, down 0.2% year-on-year, and the decline was 0.5 percentage points lower than that in the first six months.

Among them, the total retail sales of cosmetics in July was 25.3 billion yuan, a year-on-year increase of 0.7%, and the total retail sales of cosmetics from January to July was 216.1 billion yuan, a year-on-year decrease of 2.1%, a decrease of 0.4 percentage points.

Electronic business platform

Yanshu (Hangzhou) Network Technology Co., Ltd. was fined 400,000 yuan for helping merchants conduct false propaganda on Little Red Book , which means that false "planting grass" will usher in a heavy blow.

On August 4, Alibaba released its financial report for the first quarter of the 2023 fiscal year ended June 30. The data shows that Alibaba’s revenue in the first quarter was 205.555 billion yuan, a slight year-on-year decrease; net profit was 22.739 billion yuan, a year-on-year decrease of 50%; Fine-tuned EBITA was 34.419 billion yuan, down 18% year-on-year.

China Youzan released its financial report for the first half of 2022. According to the financial report, China Youzan’s GMV in the first half of the year reached 47.9 billion yuan, which was the same as the same period in 2021, and the GMV of non-Kuishou channels increased by 25% year-on-year. In the first half of the year, Youzan's newly added paying merchants increased by 5% year-on-year, of which new paying merchants from store SaaS accounted for about 50%; existing paying merchants increased by 4% year-on-year, and store SaaS product merchants accounted for 40%, more than 40% year-on-year Doubled the growth, and the GMV from the store SaaS business was about 19.4 billion yuan, accounting for 41%.

On August 8, Alibaba Group announced that it had applied to the Hong Kong Stock Exchange for dual primary listing in Hong Kong and New York, and was confirmed by the Hong Kong Stock Exchange.

According to the big data of face makeup retailing on 17 e-commerce platforms on the whole network surveyed by Autoeo International Consulting, in June 2022 MAT (rolling year from July 2021 to June 2022) online face makeup sales exceeded 370 million 100 million yuan, a slight decrease of 4.89% year-on-year. Among them, cross-border e-commerce contributed 9.7 billion yuan in sales, accounting for nearly 30% of the total sales, and the average transaction price was 103.7 yuan.

According to relevant sources, Tik tok recently announced internally that part of the mid-waist business will be executed by the Tik tok e-commerce service provider team, and Tik tok e-commerce industry operations will be divided into two lines: content business and shelf business. In the future, Tik tok e-commerce will mainly be shopping malls and brands.

According to reports, as of July 2022, the Koala Overseas Purchase business team has shrunk from more than 400 people in 2021 to less than 20 people. In the future, it will focus on member e-commerce business mainly focusing on maternal and child and beauty. Products and technologies are only maintained and not upgraded.

International Group

On July 26, Unilever released its financial report for the first half of 2022, with a turnover of 240.576 billion yuan, a year-on-year increase of 14.9%. Basic sales increased by 8.1% to 29.6 billion euros. During the period, the group's sales in the Chinese market recorded a low-single-digit decline. However, driven by South Asia and Southeast Asia, sales in Asia, Africa, and the Middle East still gained. a 9% increase. Among them, e-commerce sales accounted for 14% of turnover.

On July 26, 2022, L'OCCITANE (L'Occitane) (00973.HK) announced that for the three months ended June 30, 2022 (the first quarter of fiscal 2023), the company's sales reached 416 million euros, according to the report Double-digit growth was recorded in both currency and constant currency terms, at 23.4% and 15.8%, respectively.

On a comparable basis (i.e. based on a comparable consolidated and constant currency range), the Group's sales growth was 5.1% compared to a high base of 27.7% growth in the same quarter last year.

Recently, Henkel announced its financial performance report for the first half of 2022. The group's organic sales in the first half of the year were 10.913 billion euros (about 75.2 billion yuan), an increase of 8.9%, and an increase of 10.7% after adjusting for EBIT.

On the evening of August 18, the Estee Lauder Group announced its results for the fourth quarter of fiscal 2022 and fiscal year 2022 (ending June 30, 2022). According to the financial report, Estee Lauder’s Q4 net sales were US$3.56 billion (approximately RMB 24.154 billion), a year-on-year decrease of 10%; net profit was US$50 million (approximately RMB 339 million), a year-on-year decrease of 95%.

For the full fiscal year of 2022, Estee Lauder’s net sales were US$17.74 billion (approximately RMB 120.35 billion), an increase of 9% from US$16.22 billion last year; but the company’s net profit fell from US$2.87 billion last year to US$2.39 billion (approximately RMB). 16.217 billion yuan), a year-on-year decrease of 16%.

Revlon recently announced its first financial report since bankruptcy. In the second quarter of 2022, revenue decreased by about 30%, and losses increased by about three times. The earnings release came as Revlon named a new CFO, Matt Kwada, who has 14 years of corporate restructuring experience.

According to the "Wall Street Journal" report on August 1, Estee Lauder is negotiating with fashion brand Tom Ford, and has the opportunity to incorporate it into the huge beauty family with at least 3 billion US dollars (about 20.3 billion yuan).

On July 29, L’Oréal Group released its first half of fiscal year 2022 performance report. Data show that as of June 30, the company's sales were 18.36 billion euros (about 126.27 billion yuan), a year-on-year increase of 13.5%; of which, the second quarter sales were 9.305 billion euros (about 64.03 billion yuan).

Operating profit increased from 2.988 billion euros (about 22.925 billion yuan) last year to 3.745 billion euros (about 25.76 billion yuan), a year-on-year increase of 25.3%, and the operating profit margin was 20.4%, an increase of 70 basis points.

On July 29, Procter & Gamble (P&G) released its fourth quarter and full fiscal year results for fiscal year 2022 (July 1, 2021 - June 30, 2022).

Procter & Gamble’s net sales in this fiscal year were US$80.187 billion (approximately RMB 540.220 billion), a year-on-year increase of 5%; net income attributable to P&G was US$14.742 billion (approximately RMB 99.317 billion), an increase of 3% year-on-year .

From April to June 2022, the sales of P&G were 19.515 billion US dollars (about 131.473 billion yuan), a year-on-year increase of 3%; the net income attributable to P&G was 3.058 billion US dollars (about 20.602 billion yuan), a year-on-year increase. up 5%.

On August 3, Kao Group released its financial report for the first half of 2022. In the first half of the fiscal year ended June 30, the company's total sales were 733.9 billion yen (about 37.282 billion yuan), a year-on-year increase of 8.7%; operating profit was 54.7 billion yen (about 2.779 billion yuan) , down 23.9%. Among them, the cosmetics business increased by up to 4.9% to 116 billion yen (about 5.893 billion yuan); operating profit was 2.2 billion yen (about 112 million yuan).

Recently, Beiersdorf released the first half of 2022 performance report: Group sales rose to 4.476 billion euros (about 30.92 billion yuan), a year-on-year increase of 10.5%, and the EBIT margin (excluding special factors) was 15.9%. The sales of the consumer business segment increased to 3.638 billion euros (about 25.13 billion yuan), an increase of 11.7% year-on-year. Among them, Nivea increased by 11.2% year-on-year, Derma increased by 26.6% year-on-year, and LaPrairie increased by 1.8% year-on-year.

Yesterday, South Korean beauty giant Amorepacific released its first-half 2022 performance report. The report shows that in the first half of the year, Amore’s revenue fell by 13.1% year-on-year to 2,110.8 billion won (about 10.923 billion yuan), operating profit reached 138.5 billion won (about 717 million yuan), and the company’s net profit fell by 57.9% year-on-year to 829 million won. 100 million won (approximately RMB 429 million). Among them, Amore’s revenue in the second quarter was 945.7 billion won (about 4.894 billion yuan), down 19.6% year-on-year, with a net profit loss of 37.2 billion won (about 193 million yuan), and its performance was dismal.

Revlon Inc. recently received permission from a U.S. bankruptcy judge to proceed with a $1.4 billion loan.

On August 8, Italian makeup giant Intercos announced its financial report for the first half of 2022. The financial report shows that Intertek ended the first half of 2022 with strong growth - achieving net income of 367.9 million euros (about 2.543 billion yuan), a year-on-year increase of 17%; adjusted EBITDA (that is, before interest, tax , profit before depreciation and amortization) also achieved double-digit growth, reaching 48.65 million euros (about 336 million yuan), an increase of 10.4% over the first half of the year. 

Tax free news

On the afternoon of July 27, CDFG (SH601888, stock price 214.83 yuan, market value 419.45 billion yuan) released its 2022 first half performance report.

According to the announcement, during the reporting period, China CDFG achieved a total operating income of 27.651 billion yuan, a decrease of 22.17% over the same period of the previous year; the net profit attributable to shareholders of the listed company was 3.938 billion yuan, a decrease of 26.49% over the same period of the previous year.

According to HKEx documents, China Tourism Group CDFG has passed the HKEx listing hearing.

On August 15th, China Tourism Group CDFG (China CDF, 601888.SH; 01880.HK) announced the issue price for its secondary listing in Hong Kong. The international offering and the highest offering price in Hong Kong were HK$165.5/share, totaling 165.5 Hong Kong dollars per share. 103 million shares of common stock issued. On the same day, China CDFG's H-share public offering began in Hong Kong. If the estimated expenses of the global offering are deducted and the minimum offering price of HK$143.5 is calculated, the amount of funds raised by China CDF in this Hong Kong listing will reach at least HK$14.424 billion. China CDFG's H-shares will be officially listed on the Hong Kong stock market on August 25th.