[中报]珀莱雅(603605):珀莱雅化妆品股份有限公司2024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2024年半年度报告（英文版） Semi-Annual Report 2024 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 meeting of the Board of Directors. III. The Semi-Annual Report has not been audited. IV. HOU Juncheng, chairman of the Company, and WANG Li, CFO, person in charge of Accounting Department (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. The profit distribution plan or the plan for capitalization of capital reserves for the Reporting Period approved by the Board of Directors No profit distribution plan or the plan for capitalization of capital reserves during the Reporting Period. VI. Disclosure of risks involved in 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. Whether there is any non-operating capital occupation by a controlling shareholder and other related parties No VIII. Whether there is any external guarantee provided in violation of specified decision-making procedures No IX. Whether the majority of the directors are 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 details in this Report. Refer to “(I) Possible 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 .............................................................................................. 24 Section V Environmental and Social Responsibility ................................................................. 26 Section VI Important Matters ..................................................................................................... 28 Section VII Shareholders and Changes in Shares ........................................................................ 81 Section VIII Information on Preference Shares ............................................................................. 86 Section IX Information on Bonds ............................................................................................... 87 Section X Financial Report ........................................................................................................ 93
Section I Definitions In this Report, unless the context otherwise requires, the following terms 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 Company defining items not listed in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 – Non-Recurring Gains and Losses as non-recurring gains and losses items of high value and defining the non-recurring gains and losses items listed in the same document 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 business The Company seeks to build 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, INSBAHA, UZERO and Anya. The Company's own brands have covered fields such as popular exquisite skincare, make-up, body & hair, and high-efficiency skincare: 1. Popular exquisite skincare brand (1) Proya, focusing on technology skincare, designed for young white-collar female customers, generally priced at RMB200 to RMB500, sold both online and offline. (2) Hapsode, positioned as an “expert in oily skin care”, focusing on college students and other young female customers, generally priced at RMB50 to RMB200, sold mainly online. 2. Make-up brand TIMAGE, a professional make-up artist brand customized for Chinese faces, generally priced at RMB150 to RMB300, sold mainly online. 3. Body & hair brand Off&Relax, positioned as an “expert in Asian scalp health care”, generally priced at RMB150 to RMB200, sold mainly online. 4. High-efficiency skincare brand CORRECTORS, a high-efficiency skincare brand, generally priced at RMB260 to RMB600, sold online. (II) Business models 1. Sales models Mainly online sales, supplemented by offline sales. Online sales are mainly operated through direct sales and distribution. Direct sales are mainly carried out through platforms such as Tmall, Douyin, JD, Kwai, and Pinduoduo, and distribution is based on platforms such as Taobao, JD, and Vipshop. Offline sales are mainly operated through dealers. Channels include cosmetics franchise stores and department 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 mainly self-produced while make-up products adopt both self-production and OEM production. The Company has self-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 Zhejiang University, Zhejiang University of Technology, Hangzhou Dianzi University, Jiangnan University, Beijing Technology and Business University, BASF China, Ashland China, DSM Shanghai, CRODA China, Evonik China, Spanish 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 daily chemical product manufacturing (C268), and further falls under cosmetics manufacturing (C2682). According to statistics from the National Bureau of Statistics, from January to June 2024, the total retail sales of consumer goods reached RMB23,596.9 billion, a YOY increase of 3.7%; the total retail sales of cosmetics reached RMB216.8 billion, a YOY increase of 1.0% (the retail sales value from the businesses above designated units). II. Analysis of Core Competitiveness during the Reporting Period √Applicable □Not applicable Facing the rapidly changing external market, the Company was firmly committed to the leadership and * implementation of the 6 N Strategy. We consolidated and deepened precise operation management system highlighting “R&D, products, contents, operation”, supplemented by a self-driven organization structure featuring “culture-strategy-mechanism-talents”. We flexibly responded to market development and changes, rapidly established our presence and invested in emerging channels. Meanwhile, we explored overseas development opportunities, seized the chance for Chinese brands to expand globally, and drove business growth with an expanded market scope and enhanced responsiveness. With a keen insight into consumers' needs, the Company continued to sharpen the strengths of hero products, as well as build and improve the matrix of core hero products based on our strong competence in R&D and backed by our quick-response internal organizational capabilities. In doing so, the Company kept expanding our brand appeal and vitality. A self-driven agile organization was built to serve the second tier brands and the brands at the incubation stage, forming a fledgling brand matrix in skincare, make-up, and personal care products. By building our own MCN team and content marketing team, the Company strengthened the internal circular ecology and fostered the external ecosystem of Proya brand. III. Business Discussion and Analysis (I) Financial analysis 1. Year-on-year growth in operating revenue Operating revenue amounted to RMB5.001 billion, up by 37.90% YOY Including: primary operating revenue was RMB4.994 billion, up by 37.99% YOY Other operating revenue was RMB7 million Primary operating revenue: (1) By channel
(2) By brand
The revenue from OR and Hapsode was incorporated into that of other brands for 2021 and prior years, but has been shown separately since 2022. (3) By category
category for 2021 and prior years, but has been shown separately since 2022. 2. Year-on-year growth in net profit Net profit attributable to shareholders of the listed company amounted to RMB702 million, up by 40.48% YOY Net profit attributable to shareholders of the listed company net of non-recurring profit and loss
(II) Analysis of business operations 1. New product strategy Proya: During the Reporting Period, Proya continued to consolidate the “hero product strategy”, focusing on upgrading hero products of the “Advanced Firming Nourishing Series” and “Advanced Original Repair Series”. The world's exclusive innovative ingredient “Recombinant Collagen Type XVII” was firstly applied in “Advanced Original Repair Cream 2.0”, further solidifying the brand's expertise in basal membrane repair and anti early-aging. In “Advanced Firming Nourishing Essence 3.0”, Proya applied “cyclic peptide”, the first patented raw material of the Chinese beauty industry, together with the special “Retinol + HPR” formula, and also adopted exclusive collagen activation technology, thus achieving advanced anti-wrinkle effects. Proya also launched a brand new product line, the “Sebum Control Purifying Series”, which marked a scientifically efficient solution for various oily skin issues by utilizing the exclusive oil-control technology “?SeboPlex?” and new fermented extracts. Additionally, Proya rolled out the “Illuminating Skin-Purifying Series” and a new-edition of Sun Around Protective Shield Sunscreen Serum, further expanding the brand's offerings in the brightening and sun protection categories. In the first half of 2024, Proya maintained its leading position in the essence and cream categories on Tmall, ranking first in both. Proya ranked second in sheet masks and facial care sets, and fourth in eye creams. The market shares for all core categories saw significant growth. TIMAGE: During the Reporting Period, TIMAGE continued to consolidate the hero product matrix in the facial make-up category, and made further efforts on base makeup front. Some new single products were launched, such as Porcelain Yarn Glow Pressed Powder, Balanced Soft Cushion Foundation and Concealer (For mixed skin), Cream Foundation for Dry Skin, and Vigorous and Flowing Jade Essence Glossy Lipstick. The “Small Round Liquid Foundation” continued to maintain strong growth across all channels. During the “618” shopping festival, it ranked first in the foundation category on Tmall among all domestic products, and third in the whole foundation category. The “Porcelain Yarn Glow Pressed Powder” rushed to eighth in the powder category on Tmall. In the first half of 2024, TIMAGE’ core hero products all ranked top in all categories. Among them, the “Tri-colored Contour Palette” ranked first in the highlighter category on Tmall; the “Dual-colored Highlighter Palette” ranked second in the highlighter category on Tmall; the “Master Make-up Primer” ranked first in the sun block/primer category on Tmall; the “Tri-colored Concealer Palette” ranked first in the concealer category on Tmall; and the “Tri-colored Blush Palette” ranked first in the blush category on Tmall. Off&Relax (OR): During the Reporting Period, Off&Relax deepened its brand image of an “Expert in Asian Scalp Health Care”. The brand continued to increase the consumer penetration of the hero product “OR Refresh Spa Shampoo” in an effort to make it be recognized by more people. Meanwhile, Off&Relax launched oil-control shampoos and repair shampoos for the second tier of hair care products, striving to expand the market shares of core categories. Additionally, Off&Relax endeavored to stabilize the ranking of its hair care series - hair mask category, and mainly promoted the new product OR Soft & Shine Hair Oil. During the “618” shopping festival, OR Soft & Shine Hair Oil ranked top 10 among the hair care essential oils on Tmall. In the first half of 2024, Off&Relax kept improving its brand image of professionalism. The “OR Purifying Scalp Cleanser” ranked first in the pre-shampoo category on Tmall, with a market share of more than 10% in this category. The second hero product “OR Medicated Hair Tonic” ranked second in the scalp essence best seller list on Tmall during the “618” shopping festival in 2024. Hapsode: During the Reporting Period, Hapsode continued to deepen its brand recognition as an “Expert in Oily Skin Care”. Co-branding with Loopy, an IP popular among young people, Hapsode rolled out Loopy limited edition of cleansing products (including Purifying Watery Cleansing Foam, Pore Purely Cleansing Mud Mask, Purifying Moisture Cleansing Mousse, Soft Purifying Cleansing Balm). Hapsode also launched a campaign with the theme of “Real me, So loopy”, hoping that the brand will become a sincere companion of young users in their daily lives. During the “38” shopping festival, the limited edition of Pore Purely Cleansing Mud Mask ranked first in both the “Tmall's Mud Mask Positive Feedback List” and “Mud Mask Repurchase List”. In the first half of 2024, the Ultra Soothing Serum achieved high growth in sales, earned a reputation of good efficacy for Hapsode. Some other products were newly launched, such as Anti-Acne Clarifying 2. New marketing strategy Proya: During the Reporting Period, Proya followed 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 Remembering” in January. In this event, Proya specially launched Thank you for remembering, a short film inspired by our users' true stories. At the same time, the MV for its theme song, Shufen, was released, showcasing the journey of a little girl named Tiantian as she searches for her grandmother, Shufen. The story conveys warmth, strength, and love. A user story exhibition themed Thank You for Remembering was held at Liuxia Metro Station in Hangzhou to expand the core of “thankfulness” and express our gratitude to users for their “remembering”. (2) “Infinite Space” Offline Pop-Up Event in March. In this event, Proya made the debut of its five “Infinite Space” pop-up stores simultaneously in Shanghai, Hangzhou, Chongqing and Chengdu. This event opened a new journey of discovery for “Scientific Formulation, the Scientific Choice for Skin” along with users. (3) “It's Gender, Not Border” on Women’s Day in March. In this event, Proya specially launched a TVC: We Are Just Different. In the silhouettes of more women's lives, people can see their courage in confronting “prejudice”, and learn their occupations, hobbies, ages, identities, and lifestyles. (4) The “Proya Empty Bottles Recycling Program” on May Day Holiday. In this event, Proya joined hands with the eco-friendly brand “Wuyuzaisheng”, a leader in sustainable lifestyle aesthetics, to launch the “Proya Empty Bottles Recycling Program”. This program aimed to integrate the concept of scientific skincare into daily life together with users, and to find out more possibilities of sustainable living. (5) On Mother’s Day in May, Proya released the short film Do You Hear. In this event, Proya showed that mothers are overshadowed by the judgments of others, highlighting their voicelessness in the role of “being a mom”. It calls on the public to recognize the struggles that mothers are facing and they can be what they want to be. TIMAGE: During the Reporting Period, TIMAGE continued to carry out marketing activities by following the “Chinese make-up, original beauty” brand philosophy. By launching and marketing new products through e-commerce channels, TIMAGE carried out the following marketing events to enrich the core of Chinese aesthetics: (1) In January, TIMAGE officially announced its first brand ambassador, CHEN Duling, and released a series of conceptual films and print ads. TIMAGE aimed to enhance the overall brand visibility and break through to new audiences, presenting the brand’s makeup effects to consumers. Leveraging the influence of the celebrity, TIMAGE expanded the appeal of the “Small Round Liquid Foundation”, and reinforced consumers' impression of TIMAGE as “a professional makeup artist brand”. The product has repeatedly trending across all platforms. (2) In March, TIMAGE launched the limited edition “TIMAGE & SUMMER PALACE” series. In collaboration with the national IP of “Summer Palace”, TIMAGE gave four hero products a new look and elevated the brand's aesthetic to new level. Online, TIMAGE released a new video of CHEN Duling, where she looks stunning wearing a fresh and unique makeup with mint green eyeshadow and watery lip effect. This further reinforced the products' image, makeup style and application techniques, accelerating SUMMER PALACE” series launch event at the Summer Palace in Beijing on March 25, attended by our brand founder Mr. TANG Yi, TIMAGE's brand ambassador CHEN Duling, and celebrity makeup artists. TIMAGE also broadcasted the entire event live on TIMAGE's Tmall livestream channel on Tmall Super Brand Day, boosting the overall brand visibility and sales. (3) In May, TIMAGE traced the origin of Celadon series, drawing inspiration from porcelain for makeup. Mr. MENG Qingyang and the brand founder Mr. TANG Yi were invited to co-star in a brand documentary themed around celadon, creating the concept of “Chinese Celadon Base Makeup” and showcasing the Chinese aesthetics expressed through the brand. With “Little Round Liquid Foundation” （未完）  |