Authoritative Release

On October 30th, the official website of the National Medical Products Administration released a notice on incorporating 5 inspection methods, including the inspection method for azelaic acid and its salts in cosmetics, into the Cosmetics Safety Technical Specifications (2015 Edition). Among them, three inspection methods, namely "Inspection Method for Azelaic Acid and Its Salts in Cosmetics", "Inspection Method for Phenacetin in Cosmetics", and "Inspection Method for Hydroxydecanoic Acid in Cosmetics", are newly added cosmetic inspection methods and will be incorporated into the "Cosmetics Safety Technical Specifications (2015 Edition)" and come into effect on July 1st, 2025. The "Inspection Method for Asbestos in Cosmetics" and the "Inspection Method for 14 Raw Materials Such as Glucuronic Acid in Cosmetics" are revised cosmetic inspection methods, which will replace the original inspection methods in the "Cosmetics Safety Technical Specifications (2015 Edition)". Starting from July 1st, 2025, relevant inspections such as cosmetics registration, filing, and sampling inspections should adopt the above two inspection methods announced in this notice.

According to public information, phenacetin and asbestos are classified as Class I carcinogens by the World Health Organization. The update of this safety technical specification marks that China's cosmetics safety testing system has become more complete.

Brands and Industries

On October 30th, Bloomage Biotech released its report for the third quarter of 2024. The report showed that in the first three quarters, the operating revenue was 3.875 billion yuan, with a year-on-year decrease of 8.21%. The net profit attributable to the parent company was 362 million yuan, with a year-on-year decrease of 29.62%. Among them, in the third quarter, the operating revenue was 1.064 billion yuan, with a year-on-year decrease of 7.14%. The net profit attributable to the parent company was 20.2583 million yuan, with a year-on-year decrease of 77.44%. The report pointed out that the significant decline in the net profit attributable to the parent company in the third quarter was mainly due to the year-on-year decrease in operating revenue and the year-on-year increase in management expenses and R&D expenses. In addition, in the first three quarters, Bloomage Biotech continued to increase its investment in R&D. The R&D expenses increased by 12.99% year-on-year to 313 million yuan, accounting for 8.08% of the revenue. The sales expenses were 16.3 billion yuan, with a year-on-year decrease of 16.06%.

On October 30th, Water Babies Co., Ltd. disclosed its report for the third quarter of 2024. The data showed that in the first three quarters of the company, the revenue was 3.045 billion yuan, with a year-on-year decline of 9.84%. The net profit attributable to the parent company was 94.3563 million yuan, with a year-on-year decline of 47.60%. In the third quarter alone, the revenue was 752 million yuan, and there was a net loss of 11.4398 million yuan.

On October 26th, Marubi Co., Ltd., a leading domestic recombinant collagen company, announced its report for the third quarter of 2024. The data showed that in the first three quarters, the company's revenue was 1.952 billion yuan, and the net profit attributable to the parent company was 238 million yuan, with a year-on-year increase of 37.38%. The performance in the third quarter increased significantly, and the profitability continued at a high level. The net profit attributable to the parent company was 62.26 million yuan, with a year-on-year increase of 44.32%. The report stated that this was mainly due to the further optimization of the company's product structure, resulting in an increase in the gross profit margin, etc. While reducing costs and increasing efficiency, the company adhered to the coordinated development of online and offline channels, orderly promoted the launch of new products, and invested in the establishment of a research center.

On October 28th, Shanghai Jahwa United Co., Ltd. released its report for the first three quarters of 2024. In the first three quarters, its operating revenue was 4.477 billion yuan, with a year-on-year decline of 12.07%. The net profit was 1.63 billion yuan, with a year-on-year decline of 58.72%. Among them, in the third quarter, the operating revenue was 1.156 billion yuan, with a year-on-year decline of 20.93%. The net profit was a loss of 75.2997 million yuan, with a year-on-year decline of 180.85%.

On November 8th, Intercos Group, a world-renowned cosmetics OEM factory, announced its financial report for the third quarter of 2024. The financial report showed that as of September 30th, Intercos' net sales in the first nine months were approximately 6 billion yuan, with a year-on-year increase of 5.4%. The net sales in the third quarter were approximately 2.1 billion yuan, with a year-on-year increase of 11.6%. The adjusted net profit was approximately 3 billion yuan, with a year-on-year increase of 12.3%. The net sales profit margin was 14.3%. From a business perspective, in the first half of this year, the sales of the makeup business were approximately 2.2 billion yuan, with a year-on-year decline of 6.8%. However, the sales in the third quarter increased, with sales of approximately 1.32 billion yuan, with a year-on-year increase of 14.6%. Intercos pointed out in the financial report that the makeup business had fully recovered from the performance contraction caused by the cyber-attack in the first half of the year and achieved double-digit growth. The skin care product business continued to maintain double-digit growth (14.2% growth in 2023). Its sales in the third quarter were approximately 330 million yuan, with a year-on-year increase of 12.3%, thanks to the alleviation of the impact of the cyber-attack in the first quarter. The hair and body care business had sales of approximately 470 million yuan in the third quarter, with a year-on-year increase of 3.4%.

On October 29th, Bawei Co., Ltd. announced its report for the first three quarters of 2024. The company achieved an operating revenue of 471 million yuan in the first three quarters, with a year-on-year increase of 49.5%. The net profit attributable to the parent company was 29.05 million yuan, with a year-on-year decrease of 5.7%. Among them, in the third quarter, the company's revenue was 205 million yuan, with a year-on-year increase of 101.1%. The net profit attributable to the parent company was 14.31 million yuan, with a year-on-year increase of 57.5%. As of the end of the third quarter, the company's total assets were 793 million yuan, with an increase of 19.5% compared to the end of the previous year. The net assets attributable to the parent company were 383 million yuan, with an increase of 17.1% compared to the end of the previous year.

Oddity announced the financial data of its third-quarter financial report in 2024. In the three months ended September 30th, 2024, Oddity's net revenue increased by 26% year-on-year to $119 million, exceeding Wall Street's previous forecast of $116 million. The adjusted EBITDA was $25 million, and the net profit was $18 million, with a year-on-year increase of 362%. In the nine months ended September 30th, 2024, the net revenue increased by 27% year-on-year to $523 million. Lindsay Drucker Mann, the Chief Financial Officer of Oddity Global, said that the group was satisfied with the financial performance in the third quarter, and data such as revenue, gross profit margin, and adjusted EBITDA all exceeded expectations. Based on the overall performance in the third quarter and the first three quarters, Oddity has raised its full-year expectations for 2024 and expects the net revenue to be between $642 million and $644 million, with a year-on-year increase of 26% to 27%.

Puig announced its third-quarter financial report in 2024. The financial report showed that in the 9 months ended September 30th, Puig's net revenue increased by 10.1% according to the report to €3.428 billion, with a year-on-year increase of 9.6%. In the 3 months ended September 30th, Puig's net revenue increased by 11.1% according to the report to €12.57 billion, with a year-on-year increase of 11.6%.

By business segment, in the third quarter, the net revenue of the perfume and fashion department increased by 11.1% according to the report to €9.35 billion, the net revenue of the makeup department increased by 7.3% according to the report to €2.01 billion, and the net revenue of the skin care department increased by 18.6% according to the report to $125 million.

By region, in the third quarter, the net revenue in the EMEA region was €6.76 billion, with an increase of 13.6% according to the report. The net revenue in the Americas region was €4.77 billion, with an increase of 9.8% according to the report. The net revenue in the Asia-Pacific region was €1.04 billion, with an increase of 1% according to the report. The report pointed out that the perfume and fashion department continued to maintain a strong growth momentum in the third quarter, and the net revenue of this department in the first three quarters contributed 73% of the group's total net revenue in the third quarter.

Recently, the National Medical Products Administration approved the registration application for the new cosmetic raw material isobutyramidothiazolyl resorcinol submitted by the German headquarters of Beiersdorf AG. This new raw material is obtained through a chemical synthesis process. After the registrant organizes the verification of its efficacy and safety, it can be used as a whitening agent in leave-on cosmetics (except for products with possible inhalation exposure). Its approved registration has provided a new option for the research, development, and use of freckle-removing and whitening cosmetics in China.

According to data monitoring, Whoo, a top Korean court-style skin care brand under LG Household & Health Care, emerged suddenly and achieved sales of 415 million yuan in the big promotion in October, with a year-on-year high growth of 11,000%. With this rapid growth momentum, Whoo rose 83 places in a single month and ranked among the top 5 beauty brands on Douyin in October. The top four were Proya, Kans, L'Oreal, and Cofoe.

On the evening of November 6th, Eastern Time in the United States, e.l.f. Beauty disclosed its second-quarter financial report for fiscal year 2025. During the reporting period, e.l.f. Beauty's financial performance exceeded expectations, and its share price surged nearly 20% after hours. e.l.f. Beauty's net profit in this quarter was $19 million (approximately 136 million yuan). Its total sales increased by 40% to $301.1 million (approximately 2159 million yuan), exceeding the original expectation of $289 million (approximately 2073 million yuan). Based on its strong performance, e.l.f. Beauty has raised its full-year sales forecast to between $1315 million and $1335 million (approximately 94.33 million yuan to 95.76 million yuan). In the future, the company will continue to promote product innovation and expand its international market to enhance its global market position and support future growth.

On November 1st, 2024, according to the publicity platform of the National Medical Products Administration, four new raw materials, namely the extract of Camellia chrysantha leaves, dihydromyricetin, the extract of Cyclocarya paliurus leaves, and the extract of Selaginella uncinata, have been respectively filed by Guangzhou Huaxi Biotechnology Co., Ltd., Guangdong Bawei Biotechnology Co., Ltd., Shanghai Jahwa United Co., Ltd., and Yunnan Botanee Biotechnology Group Co., Ltd.

On October 28th, Freda disclosed its report for the third quarter of 2024. In the first three quarters of this year, the company achieved an operating revenue of 2.803 billion yuan and a net profit attributable to the parent company of 1.71 billion yuan. Among them, the company's cosmetics business revenue continued to grow. In the first nine months, the operating revenue of the cosmetics sector was 17.08 billion yuan, with a year-on-year increase of 3.25%, and the gross profit margin was 62.32%.

On October 31st, DSM-Firmenich Group, a global flavor giant, released its third-quarter financial report in 2024. The financial report showed that DSM-Firmenich's sales in the third quarter were 25.1 billion yuan, with a year-on-year increase of 7%. The adjusted EBITDA (EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization) was recorded at 4.2 billion yuan, with an increase of 32%, and the adjusted EBITDA margin was 16.7%. This was mainly due to the strong growth in organic sales, synergy effects, and the contribution of the vitamin transformation plan. Overall, DSM-Firmenich's sales in the first three quarters were 71.6 billion yuan, with a year-on-year increase of 4%. The adjusted EBITDA was recorded at 11.8 billion yuan, with an increase of 13%, and the adjusted EBITDA margin was 15.9%.

Recently, the International Cooperation Department of the China Securities Regulatory Commission disclosed that Maogeping Cosmetics Co., Ltd. has passed the IPO filing. The company intends to issue no more than 115 million overseas listed ordinary shares and list on the Hong Kong Stock Exchange. It is reported that in early January 2024, Maogeping's A-share listing was terminated, and then it switched to the Hong Kong stock market.

Recently, Intercos, a leading beauty OEM company, released its third-quarter financial report in 2024. From the financial report, it can be seen that in the third quarter, Intercos' net sales were €2.752 billion (approximately 2.11946 billion yuan), with a year-on-year increase of 12%. The adjusted EBITDA was €39.2 million (approximately 3.019 billion yuan), with a year-on-year increase of 12.3%, accounting for 14.3% of the net sales. In the first three quarters, Intercos' net sales were €7.751 billion (approximately 5.96945 billion yuan), with a year-on-year increase of 5.4%. The adjusted EBITDA was €1.032 billion (approximately 7.948 billion yuan), with a year-on-year increase of 0.9%, accounting for 13.3% of the net sales. Intercos has reversed the decline in performance due to the cyber-attack in the first quarter (a decline in the first quarter) and achieved double-digit growth in two consecutive quarters (good growth in the second and third quarters). If this growth momentum is maintained, Intercos' revenue will exceed 8 billion yuan this year.

Recently, Jiaheng Cosmetics Co., Ltd. (hereinafter referred to as "Jiaheng Cosmetics") released its financial report for the third quarter of 2024. In the third quarter of this year, Jiaheng Cosmetics' revenue was 268 million yuan, with a year-on-year decrease of 5.24%. The net profit attributable to the parent company was 7.66 million yuan, with a year-on-year decrease of 38.77%. In the first three quarters, Jiaheng Cosmetics' total revenue was 690 million yuan, with a year-on-year decrease of 5.16%.

On November 20th, Yixian E-commerce released its performance report for the third quarter of 2024. In the third quarter, it achieved a revenue of 677 million yuan. The combined net income of the three skin care brands, Clarins France, Dr. Morita, and EVE LOM, increased by 10.5% year-on-year, helping to steadily increase the skin care business and achieve a revenue of 268 million yuan, with a year-on-year increase of 3.6%.

Recently, the Cosmetics Raw Material Filing Information Platform of the National Medical Products Administration showed that the "Tremella aurantialba Fruit Body Extract" filed by Fank Biotechnology (Guangzhou) Co., Ltd. has completed the filing, and relevant technical requirements have not yet been disclosed. It is reported that Shanghai Jahwa United Co., Ltd. filed the "Tremella aurantialba Fruit Body Extract" (Original Cosmetics Raw Material Filing No. 20240073) in October, and Guangzhou Jiachuang Biotechnology Co., Ltd. filed the "Naematelia aurantialba Fruit Body Extract" (Original Cosmetics Raw Material Filing No. 20240040) in June.

Recently, Sytheon, an American company that was the first to file the new raw material "bakuchiol" in China, was acquired by Hallstar, an American producer of personal care and beauty specialty raw materials.

On November 11th, POLA ORBIS HOLDINGS (hereinafter referred to as "POLA Group") released its financial report for the first three quarters of 2024 ended September 30th. The financial report showed that POLA Group's net sales in the first three quarters of this year were 1253.95 billion yen (approximately 58.71 billion yuan), with a year-on-year decline of 1.1%. The operating profit was 108.17 billion yen (approximately 5.06 billion yuan), with a year-on-year decline of 9.2%.

COSMAX, a South Korean cosmetics OEM giant, achieved an operating revenue of 5298 billion won (approximately 27.44 billion yuan) in the third quarter of 2024, with a year-on-year increase of 15.6%. The operating profit was 434 billion won (approximately 2.25 billion yuan), with a year-on-year increase of 30.4%. The cumulative operating revenue in the first three quarters was as high as 16.081 trillion won (approximately 83 billion yuan), and it is expected to exceed 100 billion yuan for the whole year. The performance in the South Korean domestic market was strong, with sales increasing by 20.8% year-on-year and operating profit increasing by 52.7% year-on-year.

E-commerce Platform

On November 21st, Baozun E-commerce released its financial report for the third quarter of 2024 ended September 30th. The financial report showed that in the third quarter, Baozun E-commerce's total net revenue was 2.057 billion yuan, with a year-on-year increase of 12.8%. The operating loss was 115 million yuan, and the net loss attributable to the common shareholders of Baozun E-commerce Co., Ltd. was 88.1 million yuan.

As of the third quarter of this year, the product sales revenue of Baozun E-commerce's e-commerce business was 454 million yuan, with a year-on-year increase of 10%. Baozun E-commerce stated that this growth was mainly due to the strong performance of the beauty and cosmetics category. Meanwhile, the distribution business in the maternal and infant, home decoration and furnishing categories also achieved high double-digit growth.

International Groups

On October 31st, The Estée Lauder Companies disclosed its performance report for the first quarter of fiscal year 2025. The group's organic sales declined by 5%, and the net sales of the skin care category dropped by 8%, showing certain signs of pressure. The report indicated that in the first quarter of fiscal year 2025, the net sales decreased by 4% year-on-year to $3.361 billion (approximately 240.71 billion yuan). The operating profit in a single quarter turned from profit to loss, with a loss of $121 million (approximately 8.67 billion yuan). The net profit loss was $156 million (approximately 11.17 billion yuan), which was the first loss in five consecutive quarterly financial reports and also the third loss within ten quarters since the fourth quarter of fiscal year 2022. In terms of categories, the net sales of the four major businesses, namely skin care, makeup, perfume, and scalp care, all declined, with the decline rates being 8%, 2%, 1%, and 6% respectively.

The sales in the Asia-Pacific region decreased by 11% year-on-year, mainly due to the further weakness of the overall high-end beauty market in the Chinese mainland. The sales in the Hong Kong Special Administrative Region dropped by double digits, while the group's other markets achieved a 1% growth.

In addition, The Estée Lauder Companies lowered its outlook for fiscal year 2025 and modified the dividend payment. The reason was the continuous headwinds in China and its upcoming new leadership, which led to a 16% decline in its share price.

On November 7th, Coty announced its performance for the first quarter of fiscal year 2025. As of the end of September, the group's revenue was $1.67 billion (approximately 119.9 billion yuan), with a year-on-year slight increase of 2%, which was lower than market expectations. Coty pointed out that the sales growth was supported by the strong growth of perfumes at all price levels, while the demand for mass cosmetics in the US and Asian markets was weak, and retailers reduced their inventory. It is reported that the group expects the revenue growth rate in the first half of the year to be between 3% and 4% (previously expected to be between 6% and 8%), and it is unlikely that the business will improve in the second half of the year.

Recently, Amorepacific Group announced its financial report for the third quarter of 2024. The report showed that the group's sales in the third quarter reached 10,681 billion won (approximately 54.92 billion yuan), with a year-on-year increase of 10.9%. The operating profit reached 75 billion won (approximately 3.86 billion yuan), with a year-on-year surge of 160.5%. Amorepacific Group pointed out in the financial report that the significant growth in profit was mainly due to the profit improvement of the cosmetics department and the daily beauty business division, the outstanding performance of major brands, and the incorporation of COSRX's performance.

On October 24th, Unilever announced its performance for the third quarter and the first nine months of 2024. In the third quarter, Unilever's underlying sales grew by 4.5% to €15.2 billion (approximately 1,173 billion yuan), remaining the same as last year. In the first nine months of this year, Unilever's underlying sales grew by 4.3% to €46.4 billion (approximately 3,581 billion yuan). At a time when beauty groups are generally facing difficulties, Unilever has achieved positive sales growth for four consecutive quarters, and all of its business departments have achieved sales growth, showing a stable development trend. Among the five major businesses, the Beauty & Wellbeing division has once again achieved remarkable results. In the first nine months, the underlying sales were as high as €9.8 billion (approximately 756.4 billion yuan), with a year-on-year increase of 7%.

Recently, Beiersdorf AG, the parent company of the skin care brand Nivea, released its financial report for the first three quarters of 2024. In the first nine months of 2024, the group achieved an organic growth of 6.5% in sales, reaching €7.55 billion (approximately 582.9 billion yuan). This growth was mainly attributed to the strong performance of the North American market and the surge in the skin care field.

Shiseido recently announced its latest performance data. In the third quarter, its revenue dropped by 8% to 214.2 billion yen, falling short of analysts' expectations of 238.2 billion yen. The operating profit plummeted by 60% to 4.9 billion yen, while the EBITDA reached 21.9 billion yen, remaining the same as the previous year.

By region, the revenue in the Japanese market increased by 5%, the revenue in the Chinese market dropped by 13%, the revenue in the US market dropped by 9%, the revenue in the EMEA market dropped by 7%, and the revenue in the travel retail business dropped by 38%.

Based on the performance in the first three quarters, Shiseido has lowered its performance guidance for this fiscal year. It is expected that the revenue will be lower than previously predicted, and the operating profit will reach 34.7 billion yen, while the previous prediction was 54.6 billion yen.

On November 11th, Kose Corporation (hereinafter referred to as "Kose"), a Japanese cosmetics enterprise, released its financial report for the first three quarters of 2024. According to the financial report, Kose's net sales in the first three quarters were 238.7 billion yen (approximately 112 billion yuan), with a year-on-year increase of 9%. The operating profit was 18.8 billion yen (approximately 8.8 billion yuan), with a year-on-year increase of 17.4%. The net profit attributable to the parent company was 9.4 billion yen (approximately 4.4 billion yuan), with a year-on-year decline of 28.4%.