Authoritative Release

On February 6th, the National Medical Products Administration (NMPA) issued an announcement on several regulations supporting the innovation of cosmetic raw materials. The announcement shows that, in accordance with the requirements of relevant laws and regulations such as the Regulations on the Supervision and Administration of Cosmetics, the NMPA has organized and formulated the "Several Regulations Supporting the Innovation of Cosmetic Raw Materials" (hereinafter referred to as the "Regulations"), which came into effect as of the date of issuance.
According to the attached documents, there are a total of 9 measures in these Regulations. They are respectively: optimizing the classification technical requirements for the registration and filing of new raw materials, promoting the simultaneous declaration of new raw materials and related products, strengthening the innovation services, application and transformation of new raw materials, enhancing technical guidance, communication and exchanges regarding new raw materials, improving the management of the safety monitoring period for new raw materials, strengthening the technical guidance for the research work on cosmetic raw material standards, promoting the formulation and revision of cosmetic raw material standards, strengthening basic research related to raw materials, and enhancing the informatization construction of cosmetic raw materials.

In order to implement the requirements of the NMPA for optimizing the management of cosmetic safety assessment, the National Institutes for Food and Drug Control (NIFDC) updated the "Information on the Use of Raw Materials in Marketed Products" on February 9th, 2025. Based on the version in April 2024, this update has expanded the types of raw materials from 2,234 to 3,608, increased the usage information from 4,415 to 7,672, added new application sites such as body hair and fingernails (toenails), and optimized the reference usage principles.

Brands and the Industry

On February 5th, Shanghai Jahwa United Co., Ltd. issued an announcement stating that the company has repurchased a cumulative total of 232,8500 shares, accounting for 0.3464% of the total share capital. The total repurchase funds amounted to 36.24 million yuan, and the repurchase price range was between 15.33 yuan per share and 15.72 yuan per share. In the first three quarters of 2024, Shanghai Jahwa achieved revenue of 4.477 billion yuan and a net profit attributable to the parent company of 163 million yuan. It is worth noting that Shanghai Jahwa suffered a net profit loss of 710 million yuan to 880 million yuan last year, marking its first annual loss since going public.

Recently, MISTINE launched the limited "Peach Blossom Powder Cushion · Checkerboard Edition" specially developed for people with combination skin. This product adopts an exclusive "balanced formula" to precisely solve the problems of oiliness in the T-zone and dryness in the U-zone of combination skin. At the same time, the product innovatively combines "raspberry stem cell extract" with "zinc PCA" elements, which can break through the limitations of traditional oil-absorbing powders. While increasing the content of hyaluronic acid and collagen in the skin, it can effectively inhibit skin oil secretion, achieving oil control at the source and long-lasting moisture retention. Since its launch, this product has topped the beauty charts on multiple platforms, with cumulative sales exceeding 2.55 million pieces.

Recently, Bloomage Biotechnology Co., Ltd. (688363) released its 2024 annual performance forecast. It is expected that the net profit attributable to the company in 2024 will be between 146 million yuan and 175 million yuan. Compared with the same period last year, it will decrease by 418 million yuan to 447 million yuan, a year-on-year decrease of 70.47% to 75.36%.

Recently, Shuiyang Co., Ltd. issued an announcement predicting that the net profit attributable to the parent company in 2024 will be between 100 million yuan and 130 million yuan. Compared with 294 million yuan in the same period last year, it is expected to decline by 56% to 66%. The net profit after deducting non-recurring gains and losses is expected to be between 107 million yuan and 137 million yuan, a decrease of 50% to 61% compared with 273 million yuan in the same period last year.

Recently, two new palmityl-modified peptide raw materials have successively completed the filing process. They are Palmitoyl Pentacosapeptide-12 filed by Chengdu KJ Peptide Technology Co., Ltd. on January 20th, 2025, and Palmitoyl Heptapeptide-101 filed by Shanghai Resmate Biochemical Technology Co., Ltd. on February 5th, 2025. Up to now, there are a total of 3 new palmityl-modified peptide raw materials filed with the National Medical Products Administration.

Recently, Interparfums, a French perfume giant, released its sales data for the fourth quarter and the whole year of 2024: The sales in the fourth quarter exceeded 200 million euros (approximately 1.5 billion yuan) again; The sales in 2024 increased by 10.3% year-on-year to 880.5 million euros (approximately 6.6 billion yuan), achieving its annual target. The outstanding performance was still driven by its Montblanc, Jimmy Choo, and Coach perfumes.

On February 2nd, according to Korean media reports, Areteon, the Korean distributor of the German hair care brand Wella, notified more than 2,000 hair salons that due to a decision by the global headquarters, Wella will stop operating in the Korean market from February 2025. The main reasons for the withdrawal are the intensified market competition and the global strategic adjustment.

Recently, Sanofi, a French multinational pharmaceutical company, repurchased the shares of Sanofi previously held by the L'Oréal Group, approximately 29.6 million shares. The value of this round of transactions is approximately 3 billion euros (approximately 22.7 billion yuan).

Recently, Give Back Beauty, an Italian luxury perfume manufacturer, announced that it will acquire AB Parfums, a domestic competitor. This move will enable the company to obtain more production and distribution licenses.

Recently, Shanxi Jinbo Biotechnology Co., Ltd. announced that its recombinant type III humanized collagen has obtained a Brazilian invention patent authorization. This marks that Jinbo Biotechnology's innovative strength in recombinant humanized collagen technology has been continuously recognized internationally and also injects new impetus into its global market expansion.

Recently, Softto, a Chinese consumer goods retailer, publicly disclosed its prospectus to the U.S. Securities and Exchange Commission (SEC) and submitted an initial public offering (IPO) application to the SEC, planning to list on NASDAQ and raise 15 million US dollars (approximately 109 million yuan).

Puig announced its financial report data for the whole year of 2024 and the fourth quarter. The financial report shows that within the 12 months ended December 31st, Puig's net income increased by 11.3% as reported, reaching 4.79 billion euros, a year-on-year increase of 10.9%; within the 3 months ended December 31st, Puig's net income increased by 14.3% as reported to 1.362 billion euros, a year-on-year increase of 14.1%. By business segment, for the whole year of 2024, the net income of the perfume and fashion department increased by 13.6% as reported to 3.538 billion euros, the net income of the color cosmetics department decreased by 1.3% as reported to 763 million euros, and the net income of the skin care department increased by 19.8% as reported to 516.2 million US dollars; in the fourth quarter, the net income of the perfume and fashion department and the skin care department increased by 21.0% and 11.7% as reported, respectively, while the net income of the color cosmetics department decreased by 7.2% as reported.

Recently, according to the National Enterprise Credit Information Publicity System, Shanghai Xingyan Biotechnology Co., Ltd. underwent an equity change. Kidsland Children Products Co., Ltd. subscribed for a capital contribution of 18 million yuan, accounting for 60% of the shares, and became the largest shareholder of Xingyan Biotechnology.

Recently, a Xiaohongshu account named Shuiyi SHUIYI posted several posts about "store closing clearance sales". The account also accompanied a caption of "30 days countdown to store closing clearance" in the pinned video, revealing information about the upcoming end of business.

The German beauty enterprise Cosnova achieved remarkable financial results in 2024. Its sales exceeded 1 billion US dollars (approximately 7.28 billion yuan), and its revenue reached 954 million euros (approximately 7.21 billion yuan), a year-on-year increase of 17%. Cosnova has two core brands, Catrice and Essence, which contributed approximately 40% and 60% of the business, respectively. Christina Oster-Daum, the company's co-founder and president, said that it has a balanced development in the four major product categories of eyes, face, lips, and nails. In the past three years, Cosnova's sales have tripled, with a year-on-year growth of 30% in both 2022 and 2023. Its products have covered approximately 90 markets, and the global expansion momentum is strong.

On February 18th, four new raw materials, namely Polyurethane-102, Polyester-43, IPDI/ Di-C12-13 Alcohols Tartrate/ Bis-PEG-18 Methyl Ether Dimethyl Silane Copolymer, and Eleutherococcus Trifoliatus Leaf/Stem Extract, completed the filing process. Among them, Polyurethane-102 (Guozhuang Yuan Bei Zi 20250016), Polyester-43 (Guozhuang Yuan Bei Zi 20250017), and IPDI/ Di-C12-13 Alcohols Tartrate/ Bis-PEG-18 Methyl Ether Dimethyl Silane Copolymer (Guozhuang Yuan Bei Zi 20250018) were filed by Intercos S.p.A. Eleutherococcus Trifoliatus Leaf/Stem Extract (Guozhuang Yuan Bei Zi 20250019) was filed by Guangdong Perfect Life Health Technology Research Institute Co., Ltd. Currently, the technical requirements for these four new raw materials have not been announced.

On February 14th, Shenzhen Vicky Technology Co., Ltd. completed the IPO counseling filing with the Shenzhen Securities Regulatory Bureau and plans to conduct an IPO on the Beijing Stock Exchange. The counseling institution is Guosen Securities Co., Ltd. If Vicky Technology successfully goes public, it is expected to become the "first stock of polypeptide raw materials" in the cosmetics industry.

Recently, Maybelline New York announced that it will completely withdraw from the Korean market in the first half of 2025. This decision not only reflects the common challenges faced by international brands in the Korean market but also reflects the significant impact of the rapid rise of Korean local brands on consumers' preferences.

Recently, I-ne Co., Ltd. (hereinafter referred to as "I-ne Group"), Japan's "No.1 hair care group", released its annual and fourth-quarter performance reports for 2024. The financial report shows that in 2024, the sales of I-ne Group reached 45 billion yen (approximately 2.1 billion yuan), a year-on-year increase of 8.1%; the operating profit was 4.58 billion yen (approximately 218 million yuan), a year-on-year increase of 4.7%. Among them, the sales in the fourth quarter were 13.69 billion yen (approximately 650 million yuan), a year-on-year increase of 22.6%; the operating profit was 1.62 billion yen (approximately 77.11 million yuan), a year-on-year increase of 22.3%.

Recently, Fujian Qingsong Co., Ltd. (hereinafter referred to as: Qingsong Co., Ltd.), the parent company of Norson Biotech Co., Ltd., released its 2024 performance forecast: In 2024, the net profit attributable to the parent company of Qingsong Co., Ltd. was approximately 47 million yuan to 61 million yuan, a year-on-year increase of 168.77% to 189.26%; the net profit after deducting non-recurring gains and losses was 47.5 million yuan to 61.5 million yuan, a year-on-year increase of 187.41% to 213.18%. The expected annual revenue situation has not been disclosed yet. Prior to this, Qingsong Co., Ltd. had experienced three consecutive years of net profit losses, with a cumulative loss of up to 1.7 billion yuan.

On February 12th, the fruit body extract of Naematelia Aurantialba of Shenzhen Shanhai Innovation Technology Co., Ltd. completed the filing of a new raw material, with the filing number "Guozhuang Yuan Bei Zi 20250015". Naematelia Aurantialba, also known as golden tremella, yellow tremella, and Maoruoserbu (transliteration in Tibetan), belongs to the genus Tremella of the family Tremellaceae.

Recently, Symrise released its 2024 financial report. The financial report shows that in 2024, the group's sales were 4.999 billion euros (approximately 38.592 billion yuan), an increase of 5.7% in the reported currency. Excluding the impact of the portfolio and exchange rates, the organic growth reached 8.7%; the earnings before interest, tax, depreciation, and amortization (EBITDA) were 1.033 billion euros (approximately 7.975 billion yuan), an increase of 130 million euros (approximately 1.004 billion yuan) compared with 903 million euros (approximately 6.971 billion yuan) in the previous year, an increase of 14.4%.

Recently, Colgate-Palmolive announced its financial report data for the whole year of 2024 and the fourth quarter. Within the twelve months ended December 29th, 2024, Colgate-Palmolive's net sales were 15.5 billion US dollars (approximately 113.2 billion yuan), a year-on-year increase of 0.1%, and the organic growth was 1.5%; the net profit was 1.03 billion US dollars (approximately 7.51 billion yuan), a year-on-year decrease of 38%; in the fourth quarter of 2024, Colgate-Palmolive's net sales were 3.662 billion US dollars (approximately 26.686 billion yuan), a slight year-on-year decrease of 0.1%, and the organic growth was 1.7%; the net profit was 293 million US dollars (approximately 2.13 billion yuan), a year-on-year decrease of 10%.

In 2024, the turnover of the French beauty group Jacques Bogart was 288.4 million euros (approximately 2.1 billion yuan), a decrease of 1.6% compared with the previous year. Among them, the turnover of Bogart's beauty retail business decreased by 1.9%, while the business of Bogart's perfume and cosmetics department remained basically stable, with only a decrease of 0.4%.

Recently, Interparfums (Shanghai) Co., Ltd., a well-known domestic perfume brand management company, has submitted a listing application to the Hong Kong Stock Exchange and plans to list on the Main Board of the Hong Kong Stock Exchange. This is Interparfums (Shanghai)'s second attempt after its first application expired on July 18th, 2024.

On February 19th, according to media reports, FamilyMart Japan announced that it will take the lead in launching a new Korean color cosmetics brand "hana by hince" (Flower) in its stores across Japan on March 14th. This brand is a sister brand developed in cooperation with the Korean color cosmetics brand "hince" and will be sold as an exclusive product of FamilyMart.

Recently, according to foreign media reports, the US government has been cracking down on cosmetics in recent years. With the entry into force of the Modernization of Cosmetics Regulation Act (MoCRA) in December 2023, cosmetics companies are facing stricter regulations, including registering factories and products with the U.S. Food and Drug Administration (FDA). Recently, the FDA has started to revise sunscreen regulations, including conducting animal tests on chemical sunscreen ingredients.

International Large Corporations

On February 4th, the Estée Lauder Companies Inc. released its earnings report for the second quarter of fiscal year 2025 (from September 30th, 2024 to December 31st, 2024). During the reporting period, the net sales of the Estée Lauder Companies Inc. decreased by 6% to $4.004 billion (approximately 29.034 billion yuan), and it suffered a net loss of $580 million (approximately 4.2 billion yuan). In the same period of the previous fiscal year, the net profit was $574 million (approximately 4.162 billion yuan).

On February 7th, L'Oréal announced its sales data for the fourth quarter and the whole year of fiscal year 2024. Due to the continued weakness of the Chinese beauty market and the impact of demand forecasts in the United States, the sales in the fourth quarter were lower than expected. The sales in the fourth quarter were 11.08 billion euros (approximately 83.8 billion yuan), a year-on-year increase of 2.5%, slightly lower than the expected 11.1 billion euros (approximately 84 billion yuan). The annual sales were 43.48 billion euros (approximately 329 billion yuan), a year-on-year increase of 5.1%, compared with the expected 43.33 billion euros (approximately 327.9 billion yuan).

Recently, LVMH Group released its earnings report for fiscal year 2024. The report shows that its annual revenue decreased by 2% year-on-year to 84.7 billion euros (approximately 639.6 billion yuan), and the revenue in the fourth quarter increased by 1% year-on-year to 23.9 billion euros (approximately 180.8 billion yuan). However, compared with 2023, the operating profit and net profit income decreased by 14% and 17% respectively, while the cash flow increased by 29%. By department, the revenues of the fashion and leather goods department and the jewelry and watches department both decreased by 3%, and the wine and spirits department decreased by 11%. The revenue of the beauty and perfume department increased by 2% year-on-year, and the selective retail department, including the Sephora and DFS duty-free store businesses, also increased by 2%.

On January 22nd, Procter & Gamble released its financial report for the second quarter (October - December 2024) of fiscal year 2025. The net sales of the beauty department in the second quarter were $3.848 billion (approximately 28 billion yuan), remaining the same as the same period last year, and the net profit decreased by 10% to $780 million (approximately 5.6 billion yuan). The quarterly sales of the grooming department increased by 1% to $1.752 billion (approximately 12.76 billion yuan), and the net profit increased by 4% to $459 million (approximately 3.3 billion yuan).

On February 6th, Kao Corporation released its earnings report for fiscal year 2024. The report shows that from January 1st to December 31st, 2024, the net sales of Kao Corporation were 1,628.448 billion yen (approximately 77.714 billion yuan), a year-on-year increase of 6.3%; the operating income was 146.644 billion yen (approximately 7 billion yuan), a significant year-on-year increase of 144.3%; the net income was 110.374 billion yen (approximately 5.264 billion yuan), a year-on-year increase of 139.1%; the net profit attributable to the parent company was 107.767 billion yen (approximately 5.143 billion yuan), a year-on-year increase of 145.7%.

On February 6th, Amorepacific Group released its financial report for the fourth quarter and the whole year of fiscal year 2024. The report shows that in fiscal year 2024, the sales of Amorepacific Group increased by 5.7% to 3.89 trillion won (approximately 19.56 billion yuan, calculated according to today's exchange rate, the same below), and the operating profit increased significantly by 103.8% to 220.5 billion won (approximately 1.108 billion yuan).

On February 13th, Unilever released its full-year performance data for 2024. According to the financial report, in 2024, the group's turnover was 60.761 billion euros (approximately 461.48 billion yuan), reaching a historical high; the operating profit was 9.4 billion yuan (approximately 71.452 billion yuan), a year-on-year decrease of 3.7%. The net profit margin was 10.48%.

The 2024 financial report recently released by LG Household & Health Care shows that its annual sales were 6.81 trillion won (approximately 34.2 billion yuan), a year-on-year increase of 0.1%; the operating profit was 459 billion won (approximately 2.3 billion yuan), a year-on-year decrease of 5.7%; the net profit was 204 billion won (approximately 1.02 billion yuan), a year-on-year increase of 24.7%. The sales in the fourth quarter were 1.61 trillion won (approximately 8 billion yuan), a year-on-year increase of 2.7%; the operating profit was 43 billion won (approximately 200 million yuan), a year-on-year decrease of 20.7%. By region, the annual sales in China increased by 12.5%, and the sales in North America decreased by 13.2%. The annual sales of the beauty department were 2.85 trillion won (approximately 14.3 billion yuan), a year-on-year increase of 1.2%, and the sales in the fourth quarter were 699 billion won (approximately 3.5 billion yuan), a year-on-year increase of 5.4%. Among them, The Whoo brand performed outstandingly in the Chinese market and drove the sales growth in the fourth quarter.

On February 12th, Kose Corporation of Japan released its financial report for fiscal year 2024. In 2024, Kose's net sales reached 322.758 billion yen (approximately 15.367 billion yuan), a year-on-year increase of 7.4%; the operating profit increased by 8.6% to 17.364 billion yen (approximately 827 million yuan), but the net profit attributable to the parent company decreased by 35.6% year-on-year to 7.51 billion yen (approximately 357 million yuan).

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