40 Year-Old Skincare Brand Pientzehuang Up 14.91% in H1 of 2022

Abstract: Pientzehuang, a long-established skincare brand in China, released a performance snapshot. The company achieved operating revenue of 4.423 billion yuan in the first half of 2022, up 14.91% year-on-year.

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According to the observation from CHAILEEDO, Pientzehuang subsidiary Pientzehuang Cosmetics is a Chinese high-tech enterprise integrating research and development, production, and sales, positioning "Chinese skincare with health industry". The company covers skincare, wash, and care products with products focusing on core efficacy such as spot removal, whitening, and anti-wrinkle.

Among international brands, there are multiple products with spot removal and whitening efficacy, such as OLAY Advanced Light-Perfecting Essence under P&G, Dr. CI:LABO Super White 377 VC Serum, SK-II Genoptics Aura Essence, Lancome Intense Whitening Spot Eraser, and other products from international brands are also recognized by the market in China.

For this financial report of Pientzehuang, specifically, the operating profit of Pientzehuang in the first half year is $237 million, up 18.73% year-on-year. The net profit attributable to shareholders of the listed company is $195 million, up 17.83% year-on-year. According to the announcement, the growth of the company's revenue is mainly due to the strengthening of market planning and expansion of sales channels and the increase of sales revenue of the company and its holding subsidiary Xiamen Pientzehuang Hongren Pharmaceutical Company Limited (consolidated).

The company's operating profit and net profit attributable to shareholders of the listed company both achieved double-digit growth, mainly because of the increase in sales of the company's core product Pientzehuang series products.

At present, Pientzehuang has not announced the detailed operation data yet, according to its 2022 first quarter performance report, its revenue from the cosmetics and daily chemical industry in the first quarter was $28.1 million, down 13.2% year-on-year, accounting for 8.09% of total revenue. The cost of business was $8.7 million, down 28.69% year-on-year and the gross profit margin was 69.09%, up 6.71% year-on-year.

In the Chinese aesthetic concept of "white is beautiful", "white" has always been a necessary element of beauty. Therefore, in the Chinese beauty market, how to "whiten" has been the topic inescapable. In terms of market size, the whitening market has also been growing in an upward trend. According to the data such as Bevol.cn, the market scale of the whitening industry was $40 billion in 2013, and the market scale of the whitening industry grew to $65.7 billion in 2018. The market scale of whitening spot removal reached $74.2 billion in 2021.

Queen brand under Pientzehuang Cosmetic Company started in 1980. As a firm inheritor of oriental beauty and skin care culture, the herbal skincare brand Queen started in 1980 and inherited the herbal beauty way since its birth. It is devoted to exploring the connotation of oriental beauty, and successively bred classic and star products such as Pientzehuang Queen Pearl Cream, Pientzehuang Queen Nutriv Ultimate Pearl Cream and Whitening and Spot Removal Cream.

Among them, the classic pearl cream has been sold in Hong Kong, Macao, Taiwan in China, and as well as worldwide in Japan, Korea, and Southeast Asia since it was born in the 1980s. It is known as a "beauty boutique" and has become a generation of Chinese classics with its excellent quality and outstanding skin care effect.

In 2013, on the basis of continuing the efficacy of classic pearl cream, the brand launched Pientzehuang Queen Nutriv Ultimate Pearl Cream, which won the "2020 Meiyi Award TOP-skin care category facial cream award", "High Popularity Cream Award" and "High Popularity Cream Award" of Ruili Fashion & Beauty Magazine Beauty Model.

It is understood that the revenue of Pientzehuang 2021 in the cosmetic/daily chemical industry is $124.6 million, down 7.05% year on year. The gross margin is 67.01%, up 6.49 percentage points. In 2020, the total revenue of Pientzehuang cosmetics reached $90.5 million, up 42% year on year. From 2017 to 2020, the total revenue is from $30 million to $90.5 million with a compound annual growth rate of 42.3% in three years. It can be seen that the gross profit margin of Pientzehuang cosmetics still keeps growing despite the epidemic raging in recent years and the difficulties of entity retail. It not only reflects the recognition of Pientzehuang cosmetics by the Chinese and international public but also verifies the sustainability of its strategic development goal of "leading brand of big health national cosmetics".