C-Beauty Company Chicmax landed in HKEx with HK$10 Bn Market Value
- Chaileedo Press
- Dec 22, 2022
- 3 min read
Chicmax is the only Chinese cosmetics company with two skincare brands with annual retail sales of over 1.5 billion yuan (about $215 million) in 2021, namely KANS and Baby Elephant, with retail sales of 1.631 billion yuan (about $234 million) and more than 1.8 billion yuan (about $258 million) respectively in 2021.
Shanghai Chicmax Cosmetic Co., Ltd. (hereinafter referred to as Chicmax) was listed on the Hong Kong Stock Exchange today (December 22, 2022) under the stock code "02145.HK", with a global offering of 36,958,000 shares. Chicmax opened at HK$25.2 per share, with a total market value of HK$10 billion (about $1.3 billion).
It is reported that Chicmax proposed to achieve listing in 2018 as early as 2015. However, it was not until February 2021 that Chicmax signed a listing counseling agreement with CITIC Securities Co. and filed with the China Securities Regulatory Commission, taking a substantial step towards IPO. On December 30 of the same year, Chicmax submitted an overseas listing application to the China Securities Regulatory Commission and started the road to go list in Hong Kong Stock Exchange. On December 4, 2022, Chicmax passed the listing hearing of the Hong Kong Stock Exchange.
The funds raised from the IPO of Chicmax will be used mainly for brand building activities, enhancing R&D capabilities, strengthening production and supply chain capabilities, increasing the breadth and depth of the sales network, and improving digital and information infrastructure.
Judging from the specific performance of Chicmax, it has been on a fast speed of development even more in recent years. According to the prospectus, from 2019 to the first half of 2022, Chicmax achieved revenues of 2.874 billion yuan (about $412 million), 3.382 billion yuan (about $485 million), 3.619 billion yuan (about $519 million) and 1.262 billion yuan (about $181 million), respectively. Its annual adjusted profit was 114 million yuan (about $16.3 million), 265 million yuan (about $38 million), 391 million yuan (about $56 million) and 84 million yuan (about $12 million), respectively.
It is easy to see that in the three years from 2019 to 2021, Chicmax's revenue and net profit showed a year-on-year increase, with a total revenue of 9.875 billion yuan (about $1.4 billion). Among them, the revenue of the enterprise in 2020 and 2021 increased by 17.68% and 7% respectively compared with the previous year, while the net profit increased by 132.46% and 47.55% year-on-year.
In terms of brand building, the performance of Chicmax in recent years is also remarkable. According to a report by Frost & Sullivan, Chicmax is the only Chinese cosmetics company with two skincare brands with annual retail sales of more than 1.5 billion yuan (about $215 million) in 2021.
Also according to the prospectus of Chicmax, the company's revenue is currently divided into two main segments: skincare and mother and baby care. As of the first half of 2022, the revenue of the skincare segment of Chicmax was 930 million yuan (about $133.3 million), accounting for 73.5% of the total revenue. The revenue of the mother and baby care segment was 321 million yuan (about $46 million), accounting for 25.4% of the revenue in the same period.
Specifically, the skincare brands KANS and One Leaf, which were born in 2003 and 2014, and Baby Elephant, which was launched by Chicmax in 2015 to focus on the field of maternal and infant care, are the main brands of the skincare segment and the maternal and infant segment. These three brands, which are also the three "trump cards" supporting the IPO of Shangmei, accounted for 86.6%, 91.8%, 92.2% and 93.0% of the Group's total revenue from 2019 to the first half of 2022, respectively.
By brand, KANS is the core cosmetic brand of Chicmax, with revenue of 920 million yuan (about $131.8 million), 1.333 billion yuan (about $191 million), 1.631 billion yuan (about $233.7 million) and 604 million yuan (about $86.6 million) from 2019 - 1H 2022, respectively, with relatively stable growth. And Baby Elephant retail sales exceeded 1.8 billion yuan (about $258 million) in 2021, topping the Chinese market for Chinese domestic brands of maternal and child care products.
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