Authoritative Release
On September 14, the National Medical Products Administration (NMPA) issued the “Administrative Measures for Cosmetic Safety Risk Monitoring (Draft for Solicitation of Comments)” (hereinafter referred to as the “Draft for Solicitation of Comments”), and publicly solicited comments until October 8. The “Draft for Solicitation of Comments” consists of six chapters including General Provisions, Plan Formulation, Sampling, Inspection and Testing, Investigation and Handling, Application of Monitoring Results, and Supplementary Provisions, with a total of 30 articles. Article 8 clearly stipulates that, according to the needs of the work, seven types of risk substances will be the focus of monitoring: (1) Substances that are easily added to cosmetics and may cause harm to human health; (2) Substances added to or brought into cosmetics that have caused harm to human health abroad; (3) Substances added to cosmetics that are likely to have an impact on the health of key populations such as children; (4) Substances that may affect the safety of cosmetics found in regulatory practice and literature research; (5) Risk substances that may be generated or brought in during the process of bringing in cosmetic raw materials, as well as the production and use of cosmetics; (6) Items involved in the formulation and revision of cosmetic standards; (7) Other key monitoring items.
On September 18, the system of the National Medical Products Administration showed that the record - cancellation of three new raw materials and the record - cancellation of one new raw material were newly added. The new raw materials with cancelled records are: hydrolyzed α - glucan polysaccharide of International Flavors & Fragrances Group, galactomannan of Beijing Gua'er Run Technology Co., Ltd., and 5 - aminolevulinic acid HCI of Bloomage Biotechnology Corporation Limited. The new raw material with cancelled record is β - nicotinamide mononucleotide of Shenzhen Vicky Pharmaceutical R & D Co., Ltd. Among them, the “remarks” information of the hydrolyzed α - glucan polysaccharide and galactomannan with cancelled records is: “Managed as used cosmetic raw materials”. The other one cancelled - record raw material and one cancelled raw material have no remark information.
On September 14, according to the publicity platform of the NMPA, 3,4 - dihydroxyphenylethanol completed the record of new cosmetic raw materials (record number: Guozhuangyuanbei Zi 20240066), and was recorded by Shanghai Huamao Pharmaceutical Co., Ltd. 3,4 - dihydroxyphenylethanol, commonly known as hydroxytyrosol, is a polyhydroxyphenolic compound, mainly existing in the branches, leaves and fruits of the plant olive. It is also a phenylethanol derivative and belongs to an amphiphilic molecule.
Brands and Industry
On August 27, Proya released its performance in the first half of 2024. During this period, its operating revenue reached 5.001 billion yuan, a year - on - year increase of 37.90%; the net profit attributable to shareholders of the listed company was 702 million yuan, a year - on - year increase of 40.48%.
The official website of the Shenzhen Stock Exchange shows that Green Bio - technology Co., Ltd. (hereinafter referred to as "Green Bio") and its sponsor have respectively withdrawn their listing applications. According to relevant regulations, the Shenzhen Stock Exchange has decided to terminate the review of Green Bio's initial public offering of shares and listing on the GEM. This also means that Green Bio's IPO process has been terminated.
Ulta Beauty released the financial report data for the second quarter of fiscal year 2024. During the reporting period, Ulta Beauty's net sales increased by 0.9% year - on - year to $2.6 billion, lower than the $2.61 billion predicted by Wall Street; its operating income was $329.2 million, lower than $391.6 million in the same period last year; and its net profit was $252.6 million, lower than $300.1 million in the same period last year. According to Factset data, the diluted earnings per share were $5.30, lower than the $5.47 expected by analysts. Due to the second - quarter performance falling short of Wall Street expectations, Ulta Beauty has lowered its full - year performance expectations. It is expected that the net sales in this fiscal year will be between $11 billion and $11.2 billion, and the annual diluted earnings per share are expected to be between $22.60 and $23.50. Dave Kimbell, CEO of Ulta Beauty, attributed the decision to cut the forecast to two factors - consumers are increasingly focusing on cost - effectiveness and the competition in the beauty industry is becoming increasingly fierce.
Waldencast, the parent company of the makeup brand Milk Makeup, released the financial report data for the first half of 2024 and the second quarter. In the three months ended June 30, 2024, Waldencast's net revenue increased by 28.2% year - on - year to $63 million. In the six months ended June 30, 2024, Waldencast's net revenue was $131.6 million, a year - on - year increase of 23.1%. Among them, Milk Makeup's net revenue in the first half of the year increased by 20.8% year - on - year to $63.2 million. The financial report pointed out that Milk Makeup's performance was affected by stock - outs, but this situation was significantly improved at the end of the second quarter and showed momentum to drive the performance growth in the third quarter.
On the evening of August 27, Winona's parent company, Yunnan Botanee Bio - Technology Group Co., Ltd., released its semi - annual report. The company achieved revenue of 2.805 billion yuan in H1, a year - on - year increase of 18.45%; during the same period, the net profit attributable to the mother company was 484 million yuan, a year - on - year increase of 7.50%. Among them, the growth rate of the company's net profit is lower than that of revenue, which may be related to the decline in the company's gross profit margin. The sales gross profit margin of Yunnan Botanee Bio - Technology Group Co., Ltd. in H1 is about 72.59%, a year - on - year decrease of 2.79 percentage points. Focusing on the company's core brand, Winona generated revenue of 2.389 billion yuan, a year - on - year increase of 5.71%. Annual report data shows that in 2021, Winona's revenue exceeded 3.9 billion yuan, a year - on - year increase of more than 50%. Since then, the growth rate of this brand has gradually slowed down. In 2022 - 2023 and the first half of 2024, Winona's revenues were 4.885 billion yuan, 5.192 billion yuan and 2.389 billion yuan respectively, and the corresponding growth rates were 24.6%, 6.28% and 5.69% respectively.
Shanghai Jahwa United Co., Ltd. released its financial report for the first half of 2024. The financial report shows that in the first half of the year, the company's revenue reached 3.502 billion yuan, a year - on - year increase of 120.7%; the net profit was 412 million yuan, a year - on - year increase of 308.7%. From the business segment perspective, in the first half of the year, the revenue of the skin care segment of Shanghai Jahwa United Co., Ltd. was 3.108 billion yuan, a year - on - year increase of 142.3%, contributing 88.8% of the total revenue. Among the other business segments, the mother - and - baby care segment increased by 30.2% year - on - year to 337 million yuan in the first half of this year, and the other segments were 57 million yuan. From the brand perspective, in the first half of this year, the revenue of Kans increased by 184.7% to 2.927 billion yuan, accounting for an increase to 83.6%. The revenue of One Leaf in the first half of this year was 125 million yuan, the revenue of Red Elephant was 174 million yuan, and the revenue of newpage Yiye increased by 173.2% year - on - year to 161 million yuan.
On the evening of August 27, Lafang Jia Hua Co., Ltd., the "first private daily chemical stock", released its interim performance report. In the first half of the year, the company's revenue increased but profit did not. During the reporting period, Lafang Jia Hua achieved operating income of 428 million yuan, a year - on - year increase of 15.17%; the net profit attributable to shareholders of the listed company was 37.1797 million yuan, a year - on - year decrease of 31.64%, and the net profit attributable to shareholders of the listed company after deducting non - recurring gains and losses was 35.5487 million yuan, a year - on - year decrease of 29.83%; the net cash flow from operating activities was 117 million yuan, a year - on - year increase of 127.72%. In the first half of this year, Lafang Jia Hua's sales expenses increased by 60% year - on - year to 123 million yuan. With the guarantee of sales expenses, Lafang Jia Hua has topped the e - commerce list many times since this year. In the first half of the year, e - commerce and retail channels achieved operating income of 118 million yuan, a year - on - year increase of 33.11%. Currently, the proportion of online channels in operating income has reached 27.48%.
Marubi recently released the latest performance data. In the first half of the year, the group's revenue increased by 28% to 1.35 billion yuan, the profit increased by 35% to 170 million yuan, and the gross profit margin increased by 4.6 percentage points to 74.7%, thanks to the further optimization of the group's product structure and management.
Divided by brand, the revenue of the core brand Marubi increased by 25.9% to 930 million yuan. Among them, the revenue of Marubi's Tmall flagship store increased by 34.3%, the revenue of Marubi on Douyin and Kuaishou increased by 30%, and the revenue of PL Love Fire increased by 35.8% to 420 million yuan.
On the evening of August 29, Global New Materials International Holdings Limited (hereinafter referred to as: Global New Materials International) released its financial report for the first half of 2024.
In the first half of this year, Global New Materials International achieved performance revenue of 774 million yuan, an increase of about 66.8% compared with 463 million yuan in the same period last year; the gross profit was about 388 million yuan, a year - on - year increase of 72.8%; the profit attributable to the company's owners was 107 million yuan, a year - on - year increase of about 26.4%.
Recently, two new records of cosmetic raw materials have been added to the official website of the NMPA.
It is reported that the first one is the fermentation product filtrate of Schizophyllum commune recorded by Guangdong Marubi Biotechnology Co., Ltd. (hereinafter referred to as: Marubi), and the record number is "Guozhuangyuanbei Zi 20240060".
The other newly recorded raw material is sr - mussel oligopeptide - 1, and the record number is "Guozhuangyuanbei Zi 20240061", which is recorded by Shenzhen Bayin Biotechnology Co., Ltd. (hereinafter referred to as: Bayin Biotechnology).
On the evening of August 29, Harbin Fuerjia Technology Co., Ltd. (hereinafter referred to as: Fuerjia) announced its semi - annual report for 2024.
The financial report shows that in the first half of 2024, Fuerjia achieved revenue of 939 million yuan, a year - on - year increase of 8.17%; the net profit attributable to the mother company was 340 million yuan, a year - on - year decrease of 3.71%.
On August 29, Pinecone New Materials Co., Ltd., the parent company of Nosibel, released its financial report for the first half of 2024.
The financial report shows that in the first half of this year, Pinecone New Materials Co., Ltd. achieved operating income of 858 million yuan, a year - on - year decrease of 7.14%; the net profit attributable to shareholders of the listed company turned from a loss to a profit, reaching 6.85 million yuan, a year - on - year increase of 111.13%.
On August 28, Guilin Layn Natural Ingredients Corp., Ltd. (hereinafter referred to as: Layn), the "first stock in the domestic plant extraction industry", announced its financial performance in the first half of 2024.
The financial report shows that Layn achieved revenue of 725 million yuan in the first half of the year, a year - on - year increase of 41.65%; the net profit attributable to shareholders of the listed company was 64.89 million yuan, a year - on - year increase of 79.28%; the net profit attributable to shareholders of the listed company after deducting non - recurring gains and losses increased by 1548.95% year - on - year to 65.35 million yuan.
On August 29, the extract of Ceratostigma willmottianum (record number: Guozhuangyuanbei Zi 20240063) was recorded by Yunnan Botanee Bio - Technology Group Co., Ltd.; the extract of Abelmoschus manihot flowers (record number: Guozhuangyuanbei Zi 20240064) was recorded by Hangzhou Conba Pharmaceutical Co., Ltd.
On September 2, the publicity platform of the NMPA showed that disodium pyrroloquinoline quinone (record number: Guozhuangyuanbei Zi 20240065) was recorded by Runhui Biotechnology (Weihai) Co., Ltd. Disodium pyrroloquinoline quinone, also known as PQQ, as a plant raw material, has strong antioxidant effects, and because of its property of being both for makeup and food, it also has high safety and mildness.
On the evening of August 28, Baviphat Co., Ltd. (hereinafter referred to as: Baviphat) disclosed its semi - annual report for 2024.
In the first half of 2024, Baviphat achieved operating income of 266 million yuan, a year - on - year increase of 24.83%; the net profit attributable to the mother company was 14.7405 million yuan, a year - on - year decrease of 32.14%; the non - recurring net profit was 13.6863 million yuan, a year - on - year decrease of 28.48%; the net cash flow from operating activities was - 10.8715 million yuan, and the same period last year was 30.1501 million yuan.
In the second quarter, Baviphat achieved total operating income of 151 million yuan, a year - on - year increase of 29.71% and a month - on - month increase of 30.22%; the net profit attributable to the mother company was 6.8155 million yuan, a year - on - year decrease of 53.17% and a month - on - month decrease of 14.00%; the non - recurring net profit was 6.1978 million yuan, a year - on - year decrease of 50.74% and a month - on - month decrease of 17.24%.
On August 24, Freda released its semi - annual report. In the first half of 2024, the operating income was 1925 million yuan, and the net profit was 127 million yuan; the non - recurring net profit after deduction was 112 million yuan, a year - on - year increase of 77.19%. It is worth noting that the company's cosmetics business still shows strong development resilience under the situation of increasingly fierce market competition. The company's cosmetics business H1 revenue was 1186 million yuan, a year - on - year increase of 7.24%, reaching a new high again. Among them, the revenue of the Dr. YiLian brand was 447 million yuan, a year - on - year increase of 14.17%; the revenue of the Dr. Alva brand was 645 million yuan, a year - on - year increase of 7.82%.
As one of the earlier beauty e - commerce operation companies in China, Liren Lijiang once cooperated with more than 60 well - known brands such as Schwarzkopf and Lancôme. On September 9, it disclosed its semi - annual report for 2024. The report shows that in the first half of 2024, the company achieved revenue of 966 million yuan, a year - on - year decrease of 32.86%; the net profit attributable to the mother company was 2.6941 million yuan, turning from a loss to a profit year - on - year; the non - recurring net profit was 2.3505 million yuan.
According to the statistical data of the General Administration of Customs, from January to August this year, the total amount of domestic imported cosmetics dropped by 11.8% to 210,000 tons, and the import value dropped by 9% to 77.64 billion yuan. Among them, in August, the total amount of national imported cosmetics dropped by 9.2% to 27,000 tons, and the import value dropped by 9.6% to 9.03 billion yuan.
Recently, Kirin Holdings Co., Ltd. (hereinafter referred to as "Kirin Holdings"), a Japanese beer merchant, announced the completion of a tender offer for FANCL Corporation. The estimated acquisition amount is 230 billion yen (approximately 11.584 billion yuan).
On September 12, TAKAMI, a skincare brand under L'Oréal, officially closed its Tmall overseas flagship store. Before the store closed, the number of fans of the store was 357,000. Currently, on the Tmall platform, the brand's Tmall official flagship store remains in normal operation. L'Oréal China responded that "this store closure is a normal channel adjustment of the brand, and consumers can still purchase products through official channels such as Tmall, Douyin official flagship stores, and offline counters."
On September 11, according to the National Medical Products Administration: during the 2024 national cosmetics sampling inspection work, after inspection by units such as the Hunan Institute for Drug Control, three batches of cosmetics, including the Yuduo freckle - removing cream produced by the registrant/producer marked on the product label as Guangzhou Ruihu Cosmetics Co., Ltd., did not comply with the regulations, and prohibited raw materials specified in the "Cosmetic Safety Technical Specifications (2015 Edition)" were detected.
Recently, Puig, a Spanish beauty group, announced its performance in the first half of 2024. Its revenue increased by 9.6% to 2.2 billion euros (approximately 17.3 billion yuan), and its net profit decreased by 26% to 150 million euros (approximately 11.8 billion yuan). By department, the revenue of the skincare department increased by 11.6% to 260 million euros (approximately 20.4 billion yuan), which was the fastest - growing business department in the first half of the year. The revenue of the perfume and fashion department increased by 11% to 1.6 billion euros (approximately 125.8 billion yuan), while the revenue of the makeup department decreased by 1.8% to 300 million euros (approximately 23.5 billion yuan).
E - commerce Platforms
On September 2, Xiaohongshu grandly released the "2024 Makeup Industry Trend Inspiration Atlas" (hereinafter referred to as the "Atlas"). Xiaohongshu data shows that in the first half of 2024, the search growth rate of domestic makeup products increased by 36%, outperforming the market as a whole. The growth rate of domestic brands is significantly faster than the overall market growth rate, releasing strong new market vitality.
In the field of content e - commerce, domestic products account for as high as 60%. The empowerment of online content e - commerce has provided extensive marketing opportunities for domestic beauty brands, driving the brands to grow rapidly in a short period of time and establishing deep - level connections with consumers. With the recovery of offline channels, the sales trend of brand stores is good. Based on the market performance data analysis of 43 international beauty brands in 16 shopping malls, the "Atlas" pointed out that the average performance growth rate of the top 20 brands is close to double - digit figures, and 9 brands have a growth rate of more than 10%.
The luxury e - commerce platform Net - a - porter announced that it will close its internal beauty business in 2025 and shift to an alliance model. It will retain the beauty shopping section on its website, but will no longer manage its own beauty inventory. Instead, it will guide shoppers to brand sales channels to complete purchases. Net - a - porter has not yet announced the brands that will participate in the consortia model. The beauty categories it currently operates cover skincare products, makeup, and perfumes.
International Conglomerates
L'Occitane, a French beauty brand, recently announced its official delisting, ending its 14 - year listing on the Hong Kong Stock Exchange. Reinold Geiger, chairman of the group, proposed to acquire the L'Occitane shares he doesn't yet own at HK $34 per share. The transaction is valued at approximately €6 billion. Blackstone Fund and Goldman Sachs Alternative Investments have provided committed financial support of €1.551 billion for the privatization of L'Occitane, which is approximately 12.2 billion yuan in RMB.
The Shiseido Group recently announced the termination of acquisition negotiations with the American skincare brand OSEA. This deal once attracted extensive market attention, but ultimately the agreement was not reached for undisclosed reasons. Neither Shiseido nor OSEA has commented on the reasons for terminating the acquisition. Although the deal was not completed, there are reports that two private equity firms interested in OSEA may reconsider investing in it.
Duty - free Updates
The provincial drug supervision bureau recently announced that starting from September 1, for cosmetics sold through the Hainan offshore duty - free shopping channels, an electronic label method will be piloted for marking the Chinese labels of products. During the pilot period, offshore duty - free cosmetics can choose either the electronic label or the traditional label to mark the Chinese labels of products. The pilot period is tentatively set at 2 years.
According to the data of Haikou Customs on August 29, in July, Hainan's duty - free sales volume was 1.676 billion yuan, a year - on - year decrease of 35.9%; the number of offshore duty - free shoppers was 370,000 person - times, a year - on - year decrease of 20.7%; the number of duty - free shopping items was 2.059 million, a year - on - year decrease of 35.1%. Among them, the total amount of cosmetics in July was 651 million yuan, a year - on - year decrease of 34.1%.
On September 10, Global Blue, an overseas shopping tax - refund service company, released the duty - free shopping business situation in August 2024. Data shows that in August, the global in - store duty - free shopping sales increased by 17% year - on - year. The growth rate has slowed down compared with that in July (+ 25%) and the second quarter (+ 41%). In the Asia - Pacific region, in - store sales in August grew strongly by 37% year - on - year, which may benefit from a 38% increase in customer traffic. However, compared with the 94% year - on - year high growth in the previous three months (May - July), the year - on - year growth rate in August has already slowed down. The main reasons are the higher comparison base last year and the strengthening of the yen, especially against the Chinese yuan.
From the perspective of the origin markets, in the Asia - Pacific region, the in - store sales growth momentum of consumers from all countries/regions remains good. Among them, the duty - free consumption of consumers from mainland China continued to lead in August, with a year - on - year increase of 49%, and the customer traffic in mainland China during the same period increased by 71% year - on - year. In addition, the duty - free consumption of consumers from Northeast Asia increased by 37% year - on - year, and the duty - free consumption of consumers from Hong Kong and Taiwan of China increased by 34% year - on - year.
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