2024-08-27-上交所-珀莱雅化妆品股份有限公司2024年半年度报告（英文版）_258页_2mb

Proya Cosmetics Co., Ltd. Semi-Annual Report 2024 Summary

Core Content Overview

This document is the Semi-Annual Report 2024 of Proya Cosmetics Co., Ltd., listed on the Shanghai Stock Exchange with stock code 603605 and bond code 113634. The report provides a comprehensive overview of the company's operations, financial performance, and strategic initiatives for the first half of 2024. It also includes details on the company's governance, risk disclosures, and key financial indicators.

Main Points

Company Profile

• Chinese Name: 珀莱雅化妆品股份有限公司
• English Name: Proya Cosmetics Co., Ltd.
• Stock Abbreviation: Proya
• Bond Abbreviation: Proya Convertible Bond
• Legal Representative: HOU Juncheng
• Registered Address: No. 588 Xixi Road, Liuxia Neighborhood, Xihu District, Hangzhou City, Zhejiang Province
• Postal Code: 310023
• Company Website: http://www.proya-group.com
• Email: proyazq@proya.com

Financial Performance

• Operating Revenue: RMB 5,001,465,470.72, up 37.90% YOY
• Net Profit Attributable to Shareholders: RMB 701,671,374.89, up 40.48% YOY
• Net Profit After Non-recurring Gains and Losses: RMB 678,996,518.33, up 41.78% YOY
• Net Cash Flows from Operating Activities: RMB 662,102,794.39, down 43.95% YOY
• Net Assets Attributable to Shareholders: RMB 4,541,679,882.42, up 4.42% YOY
• Total Assets: RMB 7,362,862,729.83, up 0.54% YOY

Key Financial Indicators

• Basic Earnings Per Share (RMB/share): 1.78, up 42.40% YOY
• Diluted Earnings Per Share (RMB/share): 1.72, up 38.71% YOY
• Weighted Average ROE (%): 15.34, up 2.05 percentage points YOY
• Weighted Average ROE After Non-recurring Gains and Losses (%): 14.85, up 2.11 percentage points YOY

Business Operations

• The company operates in the cosmetics manufacturing industry, classified under C2682 (cosmetics manufacturing) in the National Economic Activities Classification.
• Main Brands: Proya, TIMAGE, Off&Relax, Hapsode, CORRECTORS, INSBAHA, UZERO, Anya.
• Sales Model: Primarily online, with offline sales as a supplement.
  • Online Sales: Direct sales via Tmall, Douyin, JD, Kwai, Pinduoduo, and distribution via Taobao, JD, Vipshop.
  • Offline Sales: Through dealers and cosmetics franchise stores.
• Production/R&D Model: Mainly self-production, with OEM as a supplement. R&D is driven by internal teams and collaborations with academic institutions and raw material suppliers.

New Product Strategy

• Proya:
  • Upgraded hero products in the "Advanced Firms Nourishing Series" and "Advanced Original Repair Series".
  • Launched the "Sebum Control Purifying Series" and "Illuminating Skin-Purifying Series".
  • Introduced new products like Sun Around Protective Shield Sunscreen Serum.
• TIMAGE:
  • Launched new single products such as Porcelain Yarn Glow Pressed Powder and Balanced Soft Cushion Foundation.
  • Maintained strong growth in core hero products, including "Small Round Liquid Foundation".
• Off&Relax (OR):
  • Deepened brand image as an "Expert in Asian Scalp Health Care".
  • Launched oil-control shampoos and repair shampoos.
  • Introduced OR Soft & Shine Hair Oil, which ranked top 10 in hair care essential oils on Tmall.
• Hapsode:
  • Deepened brand recognition as an "Expert in Oily Skin Care".
  • Launched limited edition cleansing products and a campaign with IP Loopy.
  • Achieved high sales growth with the Ultra Soothing Serum.

Marketing Strategy

• Proya:
  • Focused on brand keywords: "youthfulness" and "technological prowess".
  • Launched the "Thank You for Remembering" campaign, featuring a short film and a theme song MV.
  • The brand emphasized emotional connections with users through storytelling.

Risk Disclosures

• The report includes detailed risk disclosures in Section III, covering possible risks, environmental and social responsibility, and other relevant disclosures.
• There are no non-operating capital occupation by controlling shareholders or related parties.
• No external guarantees were provided in violation of specified procedures.
• No major directors are unable to warrant the authenticity, accuracy, and completeness of the report.

Key Financial Highlights

• Operating Revenue Growth: Driven by strong online sales, particularly in direct sales channels.
• Net Profit Growth: Increased due to higher revenue and lower administrative expenses.
• Non-recurring Gains and Losses: The net amount was RMB 22,674,856.56, with government grants contributing significantly.
• Gross Profit Margin: Remained stable at 69.82% in H1 2024.
• Sales Expense Ratio: Increased to 46.78%, mainly due to higher image promotion fees.
• R&D Expense Ratio: Slightly decreased to 1.89%, while the parent company's R&D expense ratio was 3.82% for January to June 2024.

Conclusion

The report outlines the company's continued growth in the cosmetics industry, with a strong emphasis on brand development, product innovation, and strategic marketing. The 6*N Strategy has been effectively implemented, contributing to operating revenue and net profit growth. The company maintains a robust internal R&D system and collaborates with various institutions to support its product development. Additionally, it has expanded its market presence through online platforms and has shown resilience in its financial performance despite a decline in operating cash flows.