[中报]珀莱雅(603605):珀莱雅化妆品股份有限公司2022年半年度报告（英文版）
原标题:珀莱雅:珀莱雅化妆品股份有限公司2022年半年度报告（英文版） Semi-Annual Report 2022 Important Notes I. The Board of Directors, Board of Supervisors, directors, supervisors and senior management of the Company warrant that the content of the Semi-Annual Report is authentic, accurate and complete, free from false records, misleading statements and major omissions, and shall be jointly and severally liable therefore. II. All directors of the Company attended the Board meeting. III. The Semi-Annual Report has not been audited. IV. HOU Juncheng, chairman of the Company, and WANG Li, CFO (and Head of the Accounting Department) of the Company represent and warrant that the financial report in the Semi-Annual Report is authentic, accurate and complete. V. Profit distribution plan or plan for conversion of capital reserve to share capital approved by the Board during the Reporting Period No profit distribution plan or plan for conversion of capital reserve to share capital during the Reporting Period. VI. Risk declaration for the forward-looking statements √ Applicable □ Not applicable The Report contains forward-looking statements which involve the future plans, development strategies, etc. of the Company, yet do not constitute substantive undertakings of the Company to investors. Investors should exercise caution prior to making investment decisions. VII. Are there any non-operating capital occupation by the controlling shareholder and its related parties？ No VIII. Is there any external guarantee provided in violation of the specified decision-making procedures? No IX. Are the majority of the directors unable to warrant the authenticity, accuracy and completeness of the Semi-Annual Report disclosed by the Company？ No X. Disclosure of major risks The Company has disclosed the existing risks in this Report. These risks are discussed in detail in (I) Potential risks, V. Other disclosures, Section III Management Discussion and Analysis. XI. Others □ Applicable√ Not applicable Contents Section I Definitions .......................................................................................................................... 4 Section II Company Profile and Key Financial Indicators ............................................................. 4 Section III Management Discussion and Analysis ............................................................................. 8 Section IV Corporate Governance ................................................................................................... 21 Section V Environmental and Corporate Social Responsibility ................................................... 23 Section VI Major Events ................................................................................................................... 25 Section VII Changes in Share Capital and Shareholders ................................................................ 52 Section VIII Information on Preference Shares ................................................................................. 59 Section IX Information on Bonds ..................................................................................................... 59 Section X Financial Report .............................................................................................................. 63
Section I Definitions In this report, unless the context otherwise requires, the following terms shall have the following meanings:
Section II Company Profile and Key Financial Indicators I. Company Information
II. Contact Details
III. Changes in General Information
IV. Changes in Information Disclosure and Places for Inspection
V. Stock Overview
VI. Other Relevant Information □ Applicable √ Not applicable VII. Key Accounting Data and Financial Indicators of the Company (I) Key accounting data Unit: Yuan Currency: RMB
Notes to key accounting data and financial indicators √ Applicable □ Not applicable 1. The year-on-year decrease in the three financial indicators namely basic earnings per share, diluted earnings per share and basic earnings per share after deducting non-recurring gains or losses, is due to the increase of 80,403,986 shares by issuing 4 shares for every 10 shares to all shareholders through capitalization of the capital reserve in accordance with the resolution of the Fifth Meeting of the Third Session of the Board of Directors of the Company in 2022 and the resolution of the Annual General Meeting of Shareholders in 2021. 2. The year-on-year increase of 195.63% in the accounts receivable turnover rate is mainly attributed to: (1) revenue in H1 2022 increased by 36.93% YOY; (2) accounts receivable as of the end of H1 2022 decreased by RMB64.62 million or 46.62% from the beginning of the year; thus increasing accounts receivable turnover rate. VIII. Differences in Accounting Data under Chinese and International Accounting Standards □ Applicable √ Not applicable IX. Items and Amounts of Non-recurring Profit and Loss √ Applicable □ Not applicable Unit: Yuan Currency: RMB
Explanation of non-recurring profit and loss items listed in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1--Non-recurring Gains and Losses as recurring gain and loss items. □ Applicable √ Not applicable X. Others □ Applicable√ Not applicable Section III Management Discussion and Analysis I. Description of the Industry in Which the Company Operates and Primary Businesses of the Company during the Reporting Period (I) Primary businesses and products The Company is committed to building a new domestic cosmetics industry platform, and is primarily engaged in R&D, production and sales of cosmetic products. Main brands owned by the Company include Proya, TIMAGE, Off&Relax, Hapsode, CORRECTORS, UZRO and Hanya. The Company's own brands cover fields such as popular skincare, makeup, body & hair, and high-efficiency skincare: 1. Popular exquisite skincare (1) Proya, focusing on skincare technology, is designed for young white-collar female customers. Its products are generally priced between RMB200-400, and sold both online and offline. (2) Hapsode, customized for young skin, focuses on college students and other young female customers. Its products are generally priced between RMB50-100, and mainly sold online. 2. Makeup TIMAGE, a professional make-up brand with a new Chinese style.Its products are generally priced between RMB150-200, and only sold online. 3. Body & hair Off&Relax, developed and produced in Japan, focuses on scalp care. Its products are generally priced between RMB150-200, and mainly sold online. 4. High-efficiency skincare CORRECTORS, a high-efficiency skincare brand, is generally priced at RMB260-600, and is only sold online. (II) Business models 1. Sales models Mainly online sales, supplemented by offline sales. Online sales are mainly conducted through direct sales and distribution. Direct sales are mainly based on platforms such as Tmall, TikTok, JD, Kwai, and Pinduoduo, and distribution is based on platforms including Taobao, JD, and Vipshop. Offline sales are mainly operated through dealers. Channels include cosmetics franchise stores, supermarkets, and single-brand stores. 2. Production/R&D models Self-production is the main production model of the Company, supplemented by OEM production. The skincare products of the Company are self-produced and OEM-produced. The Company has built skincare and make-up factories. Independent R&D is the main R&D model of the Company, supplemented by industry-university-research cooperation. The Company maintains R&D cooperation with front-end research institutions and high-quality raw material suppliers including Institute of Microbiology, Chinese Academy of Sciences, Zhejiang University of Technology, BASF China, Ashland China, DSM Shanghai, LIPOTRUE S.L., and Shenzhen Siyomicro Bio-tech. (III) Industry overview According to the Guidelines for the Industry Classification of Listed Companies by the CSRC, the Company falls under chemical raw material and chemical product manufacturing (classification code: C26); according to Industrial Classifications and Codes of National Economic Activities (GB/T 4754-2011), the Company falls under manufacturing of daily chemical products (C268) and further under manufacture of cosmetics (C2682). According to the National Bureau of Statistics, from January to June 2022, the total retail sales of consumer goods reached RMB21,043.2 billion, a YOY decrease of 0.7%; the total retail sales of cosmetics reached RMB190.5 billion, a YOY decrease of 2.5% (retail sales value from the businesses above a certain size). II. Analysis of Core Competitiveness during the Reporting Period √ Applicable □ Not applicable Where our core strength lies: We establish a precise operation management system highlighting "R&D, products, contents, operations". We keep developing and improving a portfolio of "hero products" based on efforts in improving independent R&D capabilities and integrating global R&D resources and our keen insight into consumer needs. We build a self-driven organization highlighting "culture-strategy-mechanism-talents". In addition, we develop a value-creation-oriented operation and performance management mechanism based on corporate culture and strategy to increase vitality and efficiency of our organization. III. Business Discussion and Analysis (I) Finance analysis 1. Year-on-year growth in operating income Operating income amounted to RMB2.626 billion, a YOY increase of 36.93% Of which: primary operating income of RMB2.616 billion, a YOY increase of 36.87% other operating revenue of RMB10.02 million Primary operating income: (1) Breakdown by channel
revenue. (2) Breakdown by brand
(3) Breakdown by category
2. Year-on-year growth in net profit The net profit attributable to shareholders of the listed company amounted to RMB297 million, a YOY increase of 31.33% The net profit attributable to shareholders of the listed company after deducting non-recurring profits or losses amounted to RMB281 million, a YOY increase of 27.52%
(II) Discussion and analysis of business conditions 1. New product strategy Proya: During the Reporting Period, we comprehensively optimized the product structure, continued to deepen the “hero product strategy”, and built a core product family to create a stronger brand. (1) Based on the increasingly mature digital management of the whole product life cycle, The Proya brand continuously upgraded and expanded the matrix of the existing hero products and related series, and launched a brand new series of hero products. We continuously strengthened the industry position of core hero products such as Deep Ocean Energy Essence, Elastic Brightening Youth Essence, PROYA Ultimate Repairing Ampoules (skin repairing), Elastic Brightening Youth Dual-Action Mask and Deep Ocean Energy Wrinkless and Firming Eye Cream, and upgraded the ingredients, formulas, and packaging materials of Deep Ocean Energy Wrinkless and Firming Moisture Cream and Elastic Brightening Youth Activating Eye Cream to launch version 2.0. Moreover, we focused on creating new hero products such as PROYA Ultimate Brightening Ampoules Serum (vitamin C serum), Advanced Original Repair Concentrating Essence Cream and Advanced Original Soothing Concentrating Mask. By enhancing the competitiveness of hero products and building a portfolio of different efficacy skincare products, we gradually built up product reputation and thus enhanced user loyalty and brand reputation. (2) We conducted more precise strategic adjustments in promotion, providing consumers with more valuable content to guide them in decision-making; optimized the whole process in terms of consumer reach, order fulfillment and after-sales; and deepened partnerships and broadened cooperation with influencers, identified more product use scenarios and selling points, and formed two-way and in-depth communication with target users. With our strong product competitiveness and a more efficient advertising model, Proya is shaping up to be a national product trendsetter and a new benchmark in the "scientific skin care" industry. Timage: During the Reporting Period, Timage continued to build its portfolio of facial makeup products and strengthen the consumer impression of the “professional makeup artist” with a number of innovative new products. (1) In terms of product types, we extended our brand strength in facial makeup and created two sub-segments, “contour” and “base makeup”, based on the major category of facial makeup. With our high-light powder hero products, “tri-color contouring compact” and “duo high-light powder compact”, we led a robust brand growth, deepened the penetration of such a product type in the market, whilst also taking a share of the market; as for the base makeup product line, we launched a Timage tri-color concealer compact and setting sprays designed for different skin types, deepening the brand image of the “professional”. In terms of product function, design and usage, from primer to foundation, and further on to concealer and powder, our goal is for Timage products to be part of every makeup step for users. (2) Leveraging the high-quality content of the personal IP of the founder “Tang Yi", we promoted the recognition of the product’s professionalism among consumers, thus enhancing consumer reach. In respect of product marketing, we promoted the confidence in Chinese products and highlighted the core of “Chinese makeup, original beauty” of our products combining product function, makeup effect and technique. In addition, we further developed and tapped into the Generation Z market. We selected influencers that fit the brand’s tone to produce promotional content recognized by the target users, and delivered the content in a multi-dimensional manner, so as to efficiently and precisely shape the brand image of Timage as China's “professional makeup artist”. 2. New marketing strategy Proya: During the Reporting Period, Proya continuously built its brand around the “spirit of discovery”, focusing on important social issues such as gender equality and mental health, and intimate relationships, and creating long-term brand content and mass communication on issues that are closely related to the target audience, such as the growth of young people. The Company carried out brand marketing events as follows: (1) “Next Stop, Decisive Turn” in January. In this event we held a poetry exhibition in a subway station, conveying good wishes for the New Year through poetry to the audience. (2) “Gender is not the Borderline, Prejudice is” on Women’s Day in March. In this event we once again Hexingtang Lion Dancing Team to participate in a documentary recording, striving for the vision of “Towards a Gender-equal World” using a practical approach. In addition, we cooperated with 7 brands to raise our voice. (3) “Visible Only to Moms” on Mother’s Day in May. In this event we did not only focus on “moms”, one of our brand’s key audience groups, we also extended our attitude and narrative towards all family members. We invited experts and scholars from different fields to participate in the discussion of the topic, which differs from our previous event, “Be Thankful to Mother”. “Visible Only to Moms” triggered a broader discussion on “family division of labor and responsibility”. Timage: During the Reporting Period, Timage comprehensively deepened the brand recognition of “Chinese makeup, original beauty” and communicated with Chinese female consumers with its distinctive professionalism and aesthetic attitude. Through a series of activities such as cross-field cooperation, cultural celebrity artists and brand events, we completed our brand strategy for this phase, enhanced brand image and figurative brand cognition, and conveyed our commitment to social responsibility. The Company carried out brand marketing events as follows: (1) “Unfiltered You” on Women’s Day in March. In this event we invited LUO Yang, an international female photography artist, to export the viewpoint of “original beauty”, raise the same voice as we do, interpreting original beauty from a female artist's perspective and presenting the brand concept and aesthetic tone of original beauty with “filter” as the starting point of insight. (2) “Witness the Original Beauty” in April. In this event we launched cross-field cooperation with HIMO, a professional photography company, to create “original beauty” ID photo makeup. HIMO set up exclusive makeup tables in its 180 offline stores, placed large screen ads offline in 5 major cities, and created trending topics online to encourage consumers to share their makeup before and after pictures during ID photo shoots over the years. (3) “Life Turns Out to be Beautiful” in June. In this event we started a topic online with One Way Street Library in which many literary artists, music critics, directors, writers and screenwriters shared and exported positive contents through their own experiences in the form of words and photos, etc. Timage also made scented candles and sent them to consumers in the areas affected by the pandemic, hoping to rekindle their passion for life. 3. New channel strategy Online: (1) Tmall flagship store: During the Reporting Period, we continued to consolidate the “hero product” portfolio strategy and create superstar hero products of the brand; implemented precise operation for store live stream; deepened the running of store membership to significantly improve the member repurchase rate and premium capacity; targeted users more carefully to improve the brand's share among first-and second-tier brands and the proportion of high-value users; and continued to optimize service experience and strengthen full-contact services to raise reputation among customers. During “38”(Women's Day) and the “618” shopping festivals, the gross merchandise volume (GMV) of Proya ranked fifth on Tmall Beauty, as well as for Chinese products on Tmall Beauty, was ranked first. (2) TikTok and Kwai: During the Reporting Period, we continued seize the opportunities that self live streaming presents, opened hero product portfolio accounts and transformed hero product operations on TikTok; conducted vertical field influencers, fully leveraging the combined effect of promotion and sales; and enhanced member and fan traffic on TikTok to increase sales of hero products and achieve continuous post-click business, building a healthy sales structure within the channel. During the “618” shopping festival, the GMV of Proya ranked first among Chinese Beauty products on TikTok. (3) JD: During the Reporting Period, we implemented the “hero product” strategy and further increased the proportion of sales of hero products through multi-platform operations; rebuilt the membership system to enhance the store's capability to attract new customers and promote repurchasing among previous buyers; and strengthened the precise operation in various traffic channels such as in-site search, paid promotion and self live stream. During the “618” shopping festival, the GMV of Proya ranked first among Chinese Beauty products on JD. Offline: (1) Cosmetics store channels: We classified our stores by sales level and city level, and provided different service content and activity programs according to different types of customer profiles, thus making sales more precise. We strengthened sales process management, increased business skills training, and tracked and reviewed the products for sale and sales process of various stores monthly, thus improving sales efficiency. (2) Supermarket channels: We enhanced cooperation with key retail systems and key stores. Driven by brand power and product power, we continued to explore new traffic, expand the young user base, and （未完）  |