Retail Channel

On 3 July, Japanese drugstore chain Ain Holdings Inc. announced that it has agreed to acquire lifestyle retailer Francfranc Corp for 49.976 billion yen (Rs 2.256 billion).

The Body Shop has reached an exclusive agreement with investment group Auréa for the brand's management team to be led by Charles Denton, CEO of British beauty brand Molton Brown, it was confirmed by the co-managers of The Body Shop International. FRP Advisory, the management company handling the sale, said it plans to complete the deal in the coming weeks.

Authoritative Release

Recently, according to the State Drug Administration "on the implementation of toothpaste regulatory regulations and simplify the listed toothpaste filing information requirements and other related matters of the announcement" (No. 124 of 2023), simplify the filing of the toothpaste products, the label labeling content in line with the "Cosmetic Supervision and Administration Regulations" "toothpaste supervision and management measures" and "cosmetic labelling management approach" and other provisions of the requirements of the label label labeling only the format, etc. need to be regulated and adjusted, can be used in the simplified filing of the sales package has been listed on the label, and in July 1, 2024 before the completion of the requirements of the product label update.

Recently, the Ministry of Commerce issued a news release, the Mainland and Hong Kong, the Mainland and Macao in the "Closer Economic Partnership Arrangement" (CEPA) mechanism after consultation, agreed to increase from Hong Kong, Macao entry resident travellers to carry baggage items duty-free amount. At the same time, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly announced on 28th that the duty-free allowance for baggage items carried by resident travellers entering Hong Kong and Macao from Hong Kong and Macao has been increased to RMB 12,000. Previously, the relevant duty-free allowance was 5,000 yuan. Meanwhile, in the ports with duty-free shops, the above travellers are allowed to purchase a certain number of duty-free goods in the duty-free shops at the ports, together with the total value of personal reasonable personal use luggage items acquired outside the country within 15,000 yuan (including 15,000 yuan) will be released duty-free.

On 8 July, the State Drug Administration issued the interpretation of the Announcement on Further Clarifying the Relevant Requirements for Radiofrequency Therapeutic Apparatus Class Products (No. 84 of 2024), which provides detailed explanations on the background of the issuance, the policy description, and the implementation of the main responsibility of enterprises in three aspects. Among other things, the announcement clarifies that the radiofrequency therapeutic instrument and radiofrequency skin therapeutic instrument products in the radiofrequency therapeutic (non-ablative) equipment in 09-07-02 in the Annex of Announcement No. 30 shall not be manufactured, imported or sold from 1 April 2026 onwards without obtaining the certificate of registration of the medical device in accordance with the law.

On July 8, the State Drug Administration issued the "Announcement of the State Drug Administration on Matters Related to the Full Implementation of the Electronic Registration and Filing Data of Cosmetics and New Cosmetic Ingredients (No. 91 of 2024)", since September 1, 2024, the registrant of cosmetics and new cosmetic raw materials in the territory of cosmetics and new cosmetic raw materials, the registrant, the filing of the record, the responsible person in the territory of the person and the cosmetics manufacturer in the submission of the user information, cosmetics and new cosmetic ingredients Registration and filing information, only through the cosmetics registration and filing information service platform to submit the electronic version of the information, the relevant paper version of the information does not need to be submitted by the territory of the cosmetic and cosmetic new raw materials registrant, filer, responsible person in the territory, or cosmetic production enterprises to file their own. In accordance with the "Cosmetics Registration and Filing Information Management Regulations," "Cosmetics New Ingredients Registration and Filing Information Management Regulations," "Cosmetics Registration and Filing Information Submission Technical Guidelines (Trial)" and other provisions of the original information needs to be submitted, third-party proof of information and other paper version of the information, by the territory of the cosmetic and cosmetic raw materials registrant, the filing of new information, or the territory of the responsible person to sign to confirm the authenticity of the information and information service platform to submit the relevant electronic version of the data. Service platform to submit the relevant electronic version of the information.

Brand and Industry

Recently, the State Drug Administration cosmetic raw materials filing information platform shows that Yunnan Beitaini Biotechnology Group Co.

It is reported that the national beauty leader Mao Geping will start the second round of Hong Kong NDR in early July, IPO transaction size of about 200-300 million U.S. dollars, the goal of this year's official landing in September on the Hong Kong Stock Exchange.

Recently, according to the Credit Guangzhou official website, administrative penalties, Guangzhou Gome Biotechnology Co., Ltd. was fined 10,000 yuan for the alleged offence of operating ordinary cosmetics without filing.

German high-end skincare brand Augustinus Bader (Augustin Bader) is expected to achieve 40 per cent sales growth this year, according to Bloomberg.

Recently, international flavours and fragrances company IFF and its subsidiary SAS were fined €15.9 million ($124 million) by the European Commissioners for obstructing an antitrust inspection in 2023.

Recently, Kosmet announced that Kosmet Korea's sales of air cushion cosmetics in the first quarter of 2024 increased by approximately 28% year-on-year, while sales of its sunscreen air cushion category increased by approximately 234% during the same period.

Recently, the Shiseido Group released a report on the business initiatives of its premium brand Clé de Peau Beauté ("CPB") on its website. According to the report, CPB's net sales will reach 170 billion yen (RMB 7.677 billion) in 2023, with a double-digit compound annual growth rate from 2021 to 2023.

July 4, according to media reports, Shiseido Group's high-end skincare brand BAUM Baum due to strategic adjustments, decided to stop the sale of products in the Chinese market.

It is understood that the online channel, the current BAUM Program has been suspended service; BAUM Program Tmall flagship shop has also issued a closed shop announcement, the announcement shows, "BAUM Program Tmall official flagship shop on July 10, 2024 will no longer accept new orders, in the previous order of goods will be shipped normally. 10 August 2024 before zero point We will handle all kinds of after-sale needs for you properly." Offline channels, located in Shanghai Jing'an Temple Ruiou Department Store staff said, "BAUM Bao wood counters have been withdrawn at the end of June."

Recently, there is news that Maogoping will launch the second round of Hong Kong NDR (non-deal roadshow) in early July this year, with an IPO deal size of about $200-300 million (about RMB 1.452 billion-2.179 billion), targeting to formally log on the Hong Kong Stock Exchange in September this year. It is understood that from 2021 to 2023, Mogopian revenue was 1.577 billion yuan, 1.829 billion yuan and 2.886 billion yuan, respectively, with a compound annual growth rate of 35.3%; during the same period, the net profit was 331 million yuan, 352 million yuan and 664 million yuan, respectively, with a compound annual growth rate of 41.6%, while the net profit margin was 21.0%, 19.2% and 23.0%, respectively.

Recently, according to the official information of Mansuletown, the launch of medical repair patches of mechanical size, including a "medical recombinant Ⅲ humanised collagen repair patches" and a "medical sodium hyaluronate repair patches", the former focusing on the recombinant Ⅲ humanised collagen ingredients, claiming that it can be used in invasive medical aesthetics, and the former can be used in invasive medical aesthetics. The former focuses on recombinant type III humanised collagen ingredients, claiming that it can be used before and after invasive medical aesthetic projects, with the main repair in the early stages of use and scar prevention in the later stages; while the latter claims to adopt the new concept of three-order molecular matrix hyaluronic acid for wound healing, with the main focus on skin barrier repair. Currently, both products are online Tmall Mansion flagship shop.

Chilton recently launched Silybidiol™, the first globally compliant alternative to the iconic CBD (cannabidiol) molecule. Silybidiol™ is said to be extracted from the fruit of silymarin through "green fractionation" and is designed to combat the harmful effects of urban light pollution and promote skin health. It utilises the emerging concept of "oxidative inflammation", a vicious cycle between oxidative stress and inflammation, to provide a new holistic approach to anti-aging.

Recently, Foshan Telemetry Technology Co., Ltd. has released its 2024 Half-Yearly Results Preview. According to the disclosed data, for the period from 1 January 2024 to 30 June 2024, the total GMV of the live e-commerce business of Remote View Technology was 9.3 billion yuan, representing an increase of approximately 50% over the same period of the previous year. In addition, Remote View Technology is expected to report a net loss attributable to shareholders of the listed company for the period of 16,000,000 yuan - 21,000,000 yuan, compared with a loss of 207,961,100 yuan in the same period of the previous year; basic earnings per share in the loss of 0.1719 yuan / share - 0.2257 yuan / share.

Recently, AFP reported that the World Health Organization's International Agency for Research on Cancer (IARC) classified talcum powder as a class 2A carcinogen in its assessment study published in The Lancet-Oncology.

On 9 July, the State Drug Administration (SDA) issued a circular on 37 batches of non-compliant cosmetics. The substandard cosmetics category includes 9 batches of sunscreen and 28 batches of hair colouring creams, and the substandard items involve the detection of ingredients not indicated on product labels, inconsistencies between product labels and technical requirements set out in the registration data, and the non-detection of ingredients indicated in the technical requirements set out in the registration data, and so on.

Recently, Aoki Technology, the agency operator of Skin Spa and other brands, announced that it expects its net profit for the first half of 2024 to be 60 million yuan to 70 million yuan, an increase of 45.27% to 69.48% year-on-year. According to the official website of Qingmu, Qingmu Technology's service customers include a number of beauty brands such as L'Oreal's skincare brand Skin Spa, Spanish skin care brand Esteem, and French medical beauty skincare brand Filoca.

Recently, Jiangsu Zhiyuan Pharmaceutical Co., Ltd. updated its prospectus and announced its latest results. The prospectus shows that Zhiyuan Pharmaceutical's revenue in 2023 exceeded 1.031 billion yuan for the first time, and (Liv) Metronidazole Gel ranked No. 1 in the market share of acne medication e-commerce platforms from 2021 to 2023. As of the signing date of the latest prospectus, Zhihara Pharmaceutical and its subsidiaries have 53 cosmetic filings and 2 special cosmetic registrations. 2023, Zhihara Pharmaceutical's efficacious skincare products revenue of 139 million yuan.

Recently, Jinbo Bio (832982) announced that the company expects to achieve attributable net profit of 290 million yuan -310 million yuan in the first half of the year, an increase of 165%-183.28%.

Recently, the State Drug Administration cosmetic raw material filing information platform information shows that Guangdong Shuangjun Biotechnology Co., Ltd. research and development and production of vitamin K2 raw materials has completed the filing of the new raw materials, national cosmetic original preparation word for 20240045, the technical requirements have not yet been published.

Recently, Huaxi Biological led the revision of the QB/T 4576-2023 "sodium hyaluronate" industry standard formally implemented. It is reported that the new standard instead of QB/T 4576-2013 "sodium hyaluronate", officially "hyaluronic acid", "hyaluronic acid" and other commercial names into the standard document.

On 19 July, according to the official website of the Hong Kong Stock Exchange, Yingtong Holdings Limited (hereinafter referred to as "Yingtong Group") formally submitted a prospectus on 18 July 2024, to be listed on the main board, BNP Paribas and CITIC Securities as a joint sponsor.

In terms of financial data, according to the prospectus disclosure, from fiscal year 2022 to 2024 (as of March 31 of the following year, the same below), Yingtong Group's revenue was 1.675 billion yuan, 1.699 billion yuan and 1.864 billion yuan, respectively; during the same period, the net profit was 171 million yuan, 173 million yuan and 206 million yuan, respectively; the net profit margin was 10.2%, 10.2% and 11.1%, respectively. 11.1%.

Among them, perfume is the most important source of revenue for YINGTONG Group. from FY2022 to FY2024, YINGTONG Group's perfume category recorded $1.496 billion, $1.504 billion and $1.524 billion, with a revenue share of 89.3%, 88.5% and 81.7%, respectively.

Recently, the National Bureau of Statistics (NBS) released data showing that the gross domestic product (GDP) for the first half of the year amounted to RMB 61,683.6 billion, representing a year-on-year growth of 5.0 per cent at constant prices. On a quarterly basis, GDP grew 5.3 per cent year-on-year in the first quarter and 4.7 per cent in the second quarter. On the retail front, consumer goods sales increased by 2% to RMB4.073 trillion (US$626.49 billion) in June, a slowdown from the 3.7% increase in May and the lowest growth since December 2022. Online retail sales reached RMB7.099 trillion (US$1.09 trillion) in the first half of 2024, a 9.8% increase year-on-year. Cosmetics sales fell 14.6 per cent year-on-year to RMB40.5 billion (US$6.23 billion) in June.

Recently, the European Commission formally announced that it has made a preliminary anti-dumping ruling on titanium dioxide originating from China, and decided to impose anti-dumping duties on the products in question, with the duty rate ranging from 14.4% to 39.7%, and please refer to the attached duty table for detailed duty rates. The products involved in this ruling are coded ex 2823 00 00 and 3206 11 00 according to the EU's CN (Combined Nomenclature) classification standard (the TARIC codes are 2823 00 00 10 and 2823 00 00 30 accordingly). The dumping investigation spans from 1 October 2022 to 30 September 2023, while the injury investigation goes back to 1 January 2020 to the end of the dumping investigation period. The announcement is effective as of the day following its publication.

Recently, the Beijing Municipal Drug Administration released an announcement that in June 2024, a total of 47 Class II medical device products were approved for registration. These include medical recombinant collagen wound dressing from LPRC (Beijing) Technology Co. and medical recombinant collagen liquid dressing from Beijing Zemi Technology Co.

According to trade statistics released by the Korea Customs Service (Customs) on 17 July, Korea's cosmetic exports in the first half of this year increased by 18.1% year-on-year to 4.82 billion U.S. dollars (about 34.97 billion yuan), a record high for the same period of the previous year. The first half of cosmetics exports after three years exceeded the record high of 4.63 billion U.S. dollars (about 33.59 billion yuan) set in the same period in 2021.

Recently, according to the publicity platform of State Drug Administration, two new raw materials such as sessile ganoderma lucidum mycelium fermentation product filtrate and isopropylidene glycerol have completed the filing and entered the publicity stage. Sessile Ganoderma mycelium fermentation product filtrate (filing number: Guozhuangyuanbeizi 20240047), this is the first time to complete the filing.

On 26 July, Shangmei (02145) released a positive profit forecast.

The forecast shows that for the six months ending 30 June 2024, Shangmei's revenue for the first half of 2024 is expected to reach RMB3.4 billion - RMB3.6 billion, representing year-on-year growth of approximately 114.3% - 126.9% compared to 2023.

Along with the revenue surge, the company's earnings performance was equally strong. During the same period, Shangmei's net profit was approximately RMB390 million to RMB410 million, an increase of approximately 286.1%-305.9% from the same period in 2023.

Meanwhile, the announcement showed that the increase in revenue and profit of Shangmei shares may mainly come from the rapid multi-channel growth of the revenue of the main brand Hanbeam, and the significant increase in the sales performance of the second brand echelon newpage page.

Inter Parfums, the French perfume manufacturing distributor, has announced second quarter results figures, with the brand's net sales up 11 per cent to $342 million, and first half net sales up 7 per cent to $666 million, driven by sales of perfumed products from Jimmy Choo, Coach and Montblanc.

By region, net sales in Europe rose 14 per cent to $226 million, while net sales in North America rose 8 per cent to $120 million.

On 26 July, BASF released its second quarter 2024 financial results.

In the second quarter of this year, BASF sales fell 6.9% year-on-year to 16.1 billion euros (about RMB 126.6 billion); EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before special items recorded 2 billion euros (about RMB 15.7 billion), basically unchanged from the same period last year; the net profit was 430 million euros (about RMB 3,383 million), a year-on-year decline of 14%.

Segment perspective, cosmetics personal care, home care ingredients belonging to the nutrition and care business unit, sales recorded 1.667 billion euros (about 13.374 billion yuan), a year-on-year decline of 2.7%; EBITDA before special items, but a year-on-year increase of 31.1% to 183 million euros (about 1.44 billion yuan).

Specifically, sales of the care business recorded 1.164 billion euros (about RMB 9.161 billion), a slight decline of 0.9% year-on-year, while sales of the nutrition and health business fell sharply by 6.5% to 503 million euros (about RMB 3.959 billion). 

Recently, according to foreign media reports, Dolce & Gabbana (Dolce) CEO Alfonso Dolce (hereinafter: Dolce) declared to the public that it is considering an IPO.

Dolce further revealed that Dolce&Gabbana's turnover surged 17% to 1.871 billion euros (about 14.754 billion yuan) in the 2023-2024 fiscal year ending in March this year. It highlighted that the group has 72 shops in the U.S. market and four shops in Canada, with the two regions accounting for 28 per cent of total turnover, while the Chinese market accounted for 16 per cent of total revenue.

French beauty brand L'Occitane will be delisted from the Hong Kong stock exchange, valued at about 6 billion euros.

Recently, the State Drug Administration added a new cosmetic raw material filing information, to the parent company of Shanghai Chengmu Industrial Development Co., Ltd. of the new raw material "iris glycosides" to complete the record, the record number for the "national cosmetics original preparation word 20240049. At present, the technical requirements have not been announced.

On 22nd July, the goldenseal (ANOECTOCHILUS ROXBURGHII) extract of Guangzhou Yuanxiang Bio-technology Co., Ltd. has completed the filing of new raw materials on the official website of State Drug Administration, with the filing number of "Guozheng Yuan Bei Zi 20240053". This is the second time that goldenseal (ANOECTOCHILUS ROXBURGHII) extract is listed in the public announcement of new cosmetic raw materials, and the first record was completed in May 2024 by Fujian Pientzehuang Cosmetics Co.

On 19 July 2024, the new cosmetic raw material 10-hydroxy-2-decenoic acid (hereinafter referred to as royal jelly acid) filed by Forida Biological Co. was publicly announced by State Drug Administration, and its filing number is 20240052, which is the first successful filing of royal jelly acid as a raw material for cosmetic.

E-commerce platform

On 21 June, Baozun e-commerce announced the sales data of "618" this year. From 20 May to 20 June, there were 3 shops with sales over 1 billion, 21 shops with sales over 100 million, and 132 shops with sales over 10 million. At the same time, sales year-on-year over last year's shops reached 196, sales growth rate of 100% year-on-year over last year's shops a total of 39, sales growth rate of 200% year-on-year over last year's shops a total of 21. This year's "618" Baozun e-commerce co-operated with 249 brands, through the layout of platforms such as Jingdong, Tmall and Xiaohongshu, to achieve extensive coverage and in-depth co-operation.

According to FastMoss data, in the first half of 2024, TikTok Shop once again showed an amazing development speed. From the perspective of category development, beauty and personal care products ranked the first popular category of TikTok in the United States, occupying a share of about 20.95% of the total sales of goods; followed by women's clothing and underwear category, with a sales share of 11.44%; in addition, health care products category also rose to the forefront, becoming a new bright spot in sales growth, reflecting the importance of consumers to health and wellness. Overall, TikTok Shop U.S. has a more balanced distribution of sales across categories in the first half of 2024, with good performance in beauty, apparel, health and other categories.

Recently, WeChat video number released the publicity norms of the beauty and personal care category, clearly prohibited a large number of medical medical and health care related products and content, such as the prohibition of the release of beauty injections, private beauty and intimate care, medical and cosmetic tattoo consulting, prescription drugs and over-the-counter medicines and other products and services, and also prohibit the businessman to use the words of hospital line special, institutional exclusive, dean's pro-recommendation, etc., or through the image of medical celebrities, professional doctors, medical institutions or the It is also prohibited for merchants to use words such as "hospital line exclusive", "president's personal recommendation", or the image or name of medical celebrities, professional doctors, or medical institutions to recommend beauty care products, so as to prevent this kind of talk and endorsement from making consumers mistakenly believe that the products have medical or medical beauty effects. WeChat Video does not provide businesses with the right to operate intimate care, radiofrequency beauty devices, or laser hair removal products.

On 11 July, according to foreign media news, Xiaohongshu recently completed the E+ round of financing, and the amount of financing has not been disclosed for the time being. It is reported that the investors in this round include DSTGlobal, CITIC Capital, Boyu Capital, Sequoia Fund, Gao Tiling Capital, etc., and the post-investment valuation reached $17 billion. According to an earlier report by the Financial Times, Xiaohongshu's revenue last year was as high as $3.7 billion, with a net profit of $500 million, while its revenue in 2022 was $2 billion, with a loss of $200 million, of which the monthly active users in 2023 had reached 312 million, a rapid growth of 20 per cent compared with that of 2022.

International conglomerates

The L'Occitane Group has announced its full results for fiscal year 2024, with net sales up 19.1% year-on-year to €25.4bn for the year to March and operating profit down 2.5% year-on-year. According to the results, sales growth was mainly attributable to Sol de Janeiro and L'Occitane en Provence, which, with net sales up 167 per cent at constant exchange rates, became the group's second-largest brand and the largest contributor to earnings. In addition, at constant rates, the group's global retail sales grew by 3 per cent, thanks to the improved retail environment in China.

Unilever announced its H1 2024 results, in which the group's sales increased by 2.3% to €31.1bn, including a 2.2% increase to €16.1bn in the second quarter, with underlying sales up 4.1% and net profit up 3.5% to €4bn.

By division, Unilever's Beauty & Wellness division saw first-half sales increase by 5.1 per cent to €6.5bn, with second-quarter sales up 6.8 per cent to €3.4bn, with the division accounting for 21 per cent of total sales. The group's hair care business posted mid-single-digit growth, with double-digit growth at Sunsilk, the largest hair care brand, and high single-digit sales growth at Dove. Personal Care sales rose 5.6 per cent to €7.0bn and Home Care sales rose 3.3 per cent to €6.3bn.

By region, sales in Asia and Africa were €13.4 billion, in the Americas €11.4 billion, and in Europe €6.3 billion.

On 23 July, French luxury giant LVMH (LVMH) Group announced its first-half 2024 results.

In the first half of 2024, LVMH's sales revenue fell 1% year-on-year to 41.7 billion euros (about RMB 329 billion), up 2% on an organic basis, with a recurring operating profit of 10.7 billion euros (about RMB 84.4 billion), and an operating margin of 25.6%.

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