[中报]珀莱雅(603605):珀莱雅化妆品股份有限公司2023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2023年半年度报告（英文版） Semi-Annual Report 2023 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 Based on the total share capital as at the record date on which equity distribution is implemented, the Company proposes to distribute to all shareholders registered a cash dividend of RMB3.80 (tax inclusive) per 10 shares. Based on the total share capital of 396,928,515 shares on June 30, 2023, it is estimated that the cash dividend to be distributed will amount to RMB150,832,835.70 (tax inclusive). No the capital reserve will be converted into share capital and no bonus shares will be given. In case of a change in the Company’s total share capital due to the conversion of convertible bonds before the record date for equity distribution, the Company maintains the said distribution ratios and yet adjusts the total distribution and conversion amounts. VI. Risk declaration for the forward-looking statements √ Applicable □ Not applicable The Report contains forward-looking statements that 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 grantee 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 ................................................................................................................................... 5 Section II Company Profile and Key Financial Indicators ......................................................................... 5 Section III Management Discussion and Analysis ...................................................................................... 9 Section IV Corporate Governance ............................................................................................................ 24 Section V Environmental and Social Responsibility ................................................................................ 26 Section VI Important Matters.................................................................................................................... 28 Section VII Shareholders and Changes in Shares ..................................................................................... 53 Section VIII Information on Preference Shares ........................................................................................ 59 Section IX Information on Bonds ............................................................................................................. 59 Section X Financial Report ....................................................................................................................... 64
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
(II) Key financial indicators
Notes to key accounting data and financial indicators □ Applicable √ Not applicable VIII. Differences in Accounting Data under Chinese and International Accounting Standards □ Applicable √ Not applicable IX. Items and Amounts of Non-recurring Gains and Losses √ Applicable □ Not applicable Unit: Yuan Currency: RMB
The reasons should be explained for the non-recurring gains and losses items defined by the Company according to the definition of Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1--Non-recurring Gains and Losses, and the non-recurring gains and losses items listed in Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1--Non-recurring Gains and Losses as recurring gains and losses 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 the R&D, production and sales of cosmetic products. Main brands owned by the Company include Proya, TIMAGE, Off&Relax, Hapsode, CORRECTORS, INSBAHA, UZERO and ANYA. The Company’s own brands cover fields such as popular exquisite skincare, make-up, 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 RMB200-500, 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 RMB50-150, and mainly sold online. 2. Make-up TIMAGE, a professional make-up brand with a new Chinese style, is generally priced between RMB150-300, and only sold online. 3. Body&hair Off&Relax, developed and produced in Japan, focuses on scalp health. 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 between RMB260-600, and 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 issued by the CSRC, the Company falls under chemical raw material and chemical product manufacturing (classification code: C26); according to Industrial Classifications for National Economic Activities (GB/T 4754-2017), the Company falls under the category of manufacturing of daily chemical products (C268), as well as manufacture of cosmetics (C2682). According to the National Bureau of Statistics, from January to June 2023, the total retail sales of consumer goods reached RMB22,758.8 billion, a YOY increase of 8.2%; the total retail sales of cosmetics reached RMB207.1 billion, a YOY increase of 8.6% (the retail sales value from the businesses above a certain size). II. Analysis of Core Competitiveness during the Reporting Period √ Applicable □ Not applicable In the face of rapid changes in the external market environment, the Company was firmly committed to the leadership and implementation of the 6*N Strategy. We established a precise operation management system highlighting “R&D, products, content, operations”, and built a self-driven organization highlighting “culture-strategy-mechanism-talent”. We continued to make our “hero products” more competitive, and developed and improved the portfolio of “hero products” based on our keen insight into consumer needs. This was possible because of our strong R&D strength and our ability to rapidly respond to internal organizational requirements. A self-driven agile organization was built to serve the second-brand product pipeline and the brands at the incubation stage. By building our own MCN team and content marketing team, we strengthened the internal circular ecology and fostered the external ecosystem of Proya brand. III. Business Discussion and Analysis (I) Finance analysis 1. Year-on-year growth in operating revenue Operating revenue RMB3.627 billion, a YOY increase of 38.12% Including: primary operating revenue of RMB3.619 billion, a YOY increase of 38.36% Other operating revenue of RMB8 million Primary operating revenue: (1) Breakdown by channel
revenue. (2) Breakdown by brand
The sales of OR and Hapsode were incorporated into other brands for 2021 and prior years, but they have been shown separately since 2022. (3) Breakdown by category
and prior years, but they have been shown separately since 2022. 2. Year-on-year growth in net profit The net profit attributable to shareholders of the listed company amounted to RMB499 million, a YOY increase of 68.21% The net profit attributable to shareholders of the listed company after deducting non-recurring profits or losses amounted to RMB479 million, a YOY increase of 70.49%
(II) Discussion and analysis of business conditions 1. New product strategy Proya: During the Reporting Period, we deepened the “hero product strategy” by focusing on three family series products, namely Elastic Brightening Series, Deep Ocean Energy Series and Advanced Original Repair Series. For the “Elastic Brightening Series”, the core hero product, Elastic Brightening Energy Essence, has been upgraded to version 3.0. The establishment of exclusive ingredient barriers has significantly enhanced the product’s efficacy and user experience. We have also improved its sustainability, thereby increasing its irreplaceability among young consumers. The Elastic Brightening Series make-up water and lotion cream have been upgraded and adjusted to better meet the efficacy needs of “young skin”, which have continuously reinforced the customer mindset of the Elastic Brightening Series. Regarding the “Deep Ocean Energy Series”, the Deep Ocean Energy Facial Mask and Deep Ocean Energy Firming Eye Cream have both launched 2.0 versions. The Deep Ocean Energy Moisture Lotion has also been upgraded to provide a more enriched product experience, catering to consumers’ diverse needs from multiple dimensions. In addition, the “Recycling Series” featuring moisturizing effects and the “Sun Around Skin Care Mineral Sunscreen Serum” single product for sensitive skin were launched. In the first half of 2023, the Proya brand ranked first in the essence category, second in the face cream category, second in the face mask category, and fifth in the eye cream category on the Tmall platform. TIMAGE: During the Reporting Period, TIMAGE constantly broadened market horizons and improved category arrangement. While maintaining a leading position in core hero products such as highlighters, contouring, concealers, primers, and setting sprays within the existing advantageous product categories, we continuously increased market share. In March, we introduced the brand new “Vigorous and Flowing Jade Series” and launched three new products: the “Tri-color Blush Palette”, the “All-in-one Brow Palette”, and the “Matte Lipstick”. Among them, the flagship product “Tri-color Blush Palette” has shown remarkable performance, ranking second in the blush category on Tmall in the first half of 2023. During the “618” shopping festival, we launched the all-new “Original Radiant Cushion Foundation” and upgraded the “Matte Glow Pressed Powder”, both of which received positive market feedback. Off&Relax (OR): During the Reporting Period, we continued to increase the market penetration of our star hero products, “OR Spa Shampoo Refresh” and “OR Spa Hair Mask”. During the “618” shopping festival, the shampoo ranked second on Tmall’s best-selling list for international imported shampoos, while the hair masque ranked first on the best-selling list for hair masques. We have continuously nurtured a consumer mindset that recognizes us as an “expert in scalp health”. We launched a new pre-shampoo category called “Purifying Scalp Cleanser” to meet the needs of middle-and high-end consumers who prioritize a superior cleansing experience for their scalp. During the “618” shopping festival, our “Purifying Scalp Cleanser” ranked second in the pre-shampoo category on Tmall. Hapsode: During the Reporting Period, we focused on building our product categories and enhancing consumer awareness that recognizes Hapsode as an “expert in oily skin care”. We introduced the upgraded products: Cleansing Honey 2.0, Multi-Acid Clay Mask 2.0 and Olive Oil Face Mask 2.0. We also re-launched three core products of our oil-control family: Oil Control Essence 2.0, Pore Refining Serum and Oil Control Loose Powder. These improvements aim to enhance the overall skincare routine for oily 2. New marketing strategy Proya: During the Reporting Period, the Proya brand has centered its brand strategy around two brand keywords: “youthfulness” and “technological prowess”. Embracing the “spirit of exploration”, the brand has addressed the multifaceted factors behind specific skin concerns. The following brand marketing initiatives have been undertaken: (1) “Thank You for Participation” in January. In this event, we expressed the most important “thank you” to our users through short films posted in user stories and offline user story exhibitions. We expressed our gratitude to them for their being with us throughout 2022. (2) “Just the Right Warmth of Love” on Valentine’s Day in February. In this event, we joined hands with Jingdezhen Royal Kiln Museum to create a customized collection of “Royal Kiln Duo Cups”. These cups are designed to deliver the perfect temperature to every perfect couple out there, and to anyone who dares to try something new. (3) “Gender is not the borderline, prejudice is” on Women’s Day in March. In this event, we created educational picture books focusing on gender equality, produced thematic short films adapted from real stories, and collaborated with law firms to launch the “Proya Public Welfare Labor Legal Consultation Service”. Through concrete efforts, we not only encouraged mention and discussion of “gender equality” on Women's Day, but helped push for the issues to be considered on all other days of the year. (4) On Mother’s Day in May, we showed care for mothers and acknowledged both the visible physical labor and the invisible mental labor they undertake in as they support their families. We mentioned that “Moms can take care of the family, but every family member can do the same”. Through the short film “More Than Just Moms”, we called on every family member to not only recognize the goodness of mothers but also collectively take on family responsibilities. (5) “Scientific Formulas, Scientific Choices for the Skin” in June. In this event, we organized 7 “Day Coffee and Night Alcohol Pop-Up stores” in 6 cities around China. The purpose of these pop-up stores was to communicate the brand’s concept of “scientific formulas” to consumers. Through offline interactions between the stores and consumers, participants had the opportunity for in-depth experience of the products and technological concepts. TIMAGE: During the Reporting Period, TIMAGE continued to present the concept of “Chinese make-up, original beauty” with craftsmanship and professionalism. TIMAGE carried out the following brand marketing events: (1) Newly launched the “Vigorous and Flowing Jade” series colorful brilliance products in March. In this event, we defined Chinese aesthetics. The concept advertisement of the new “Vigorous and Flowing Jade” series was unveiled. Instructor TANG Yi hosted a master class, collaborating with beauty bloggers to create the “Vigorous and Flowing Jade Make-up” and sparking a trend of imitation make-up. An offline Vigorous and Flowing Jade press conference was held in collaboration with celebrities GAO Ye and MA Sichun appearing in person to show their support. (2) “Beyond Love” in May. In this event, we joined hands with three couples who have been together for a long time to shoot a short film that explores how to draw energy from the inherent beauty of life in our fast-paced era, and how to better love our partners, ourselves, and life. We also launched the TIMAGE 520 gift box, which enabled the brand to convey emotions and provide special treatment, expanding the brand’s value. Off&Relax (OR): During the Reporting Period, OR conducted a series of brand activities centered around the brand philosophy of “Purifying from the skin to the body and mind”. These activities encompassed various aspects such as physical and mental well-being, and embracing nature. Relevant events are as follows: (1) In January, we joined hands with the “Cao Sichuan Ride-Hailing” app platform to launch the “Switching to off mode on the way home” event, allowing everyone to find release from the fatigue of the year and taking a relaxing trip back home. (2) In March, we introduced a limited edition Sakura Season package, and collaborated with young illustrator SUN Yijia to create it. Through the “Chasing Spring Blossoms, let’s set off immediately” campaign, we invited everyone to immerse themselves in nature and pursue the essence of spring. (3) In April, in celebration of Earth Day, we launched the “Off&Relax recycling program”. For this project, we collaborated with key opinion leaders (KOLs) and ordinary individuals to unlock the “second life” of empty bottles and transform them into a meaningful part of daily life through creative endeavors. We also advocated for the purchase of refillable products to reduce the generation of empty bottles. (4) In June, during the “618” shopping festival, we jointly launched the “Guide for Life Metabolism” campaign, advocating for busy urban people to instantly let their troubles go and reclaim their lives. In addition, we collaborated to launch the OffNight bar, a “life metabolism” book list, and sound meditation classes to provide everyone with various ways to “let it go”. （未完）  |