China’s Aesthetic Medicine Skincare Brand Net Profit Rises Slightly Lower
- Chaileedo Press
- Sep 2, 2022
- 3 min read
Voolga company focusing on medical device-based dressing products and functional skin care products has maintained growth in both revenue and net profit.
On September 1(China Standard Time), Voolga announced the draft prospectus listing committee review meeting and updated the financial data for 2022. In the first half of the year, Voolga achieved revenue of 817 million yuan(about $118.4 million), a slight increase of 2.94% year-on-year and a net profit of 357 million yuan(about $51.7 million), an increase of 1.57% year-on-year.
Voolga mainly focuses on dressing and patch and film products and has launched other products such as toner, essence and lotion, spray and lyophilized powder, etc. So far, Voolga has several single products with annual sales of over 100 million yuan(about $14.5 million) - the sales of Voolga Collagen Water Brighting Repair Mask, which was launched at the end of 2018, achieved 178 million yuan(about $25.8 million), 212 million yuan(about $30.7 million), 156 million yuan(about $22.6 million) in 2019 to 2021 respectively. Voolga Astaxanthin Tranexamic Acid Repair Mask launched in 2019 sold 162 million yuan(about $23.5 million) and 160 million yuan(about $23.2 million) in 2020 and 2021 respectively. Voolga Asiatica Soothing and Repair Mask launched in 2019 sold 143 million yuan(about $20.7 million) and 204 million yuan(about $29.6 million) in 2020 and 2021 respectively.
During the reporting period, the company's sales revenue is mainly from the sales of its "Voolga" brand and its sub-brands "Voolga 1 Beauty" and "Voolga Flower Season". In the second half of 2021, the brand "Huihuxi" was launched, which is still in the brand cultivation stage.
According to the prospectus, the growth rate of net profit attributable to Voolga company is slightly lower than the revenue mainly because the company increased the investment in brand marketing and promotion. The growth of online revenue led to the increase in e-commerce platform promotion service fees and the increase in sales expenses. At the same time, the company increased its investment in research and development and increase research and development expenses.
Specifically, online revenue in the first half of the year was 315 million yuan(about $45.6 million), up 22.39% year-on-year. Offline revenue was 501 million yuan(about $72.6 million), affected by the COVID-19 and the Spring Festival holiday, down 6.42% year-on-year, of which channel distribution revenue was 119 million yuan(about $17.2 million), up 105.61% year-on-year.
In addition, the prospectus mentioned that from 2019 to 2021, the revenue of Voolga's therapeutic device products was 918 million yuan(about $133 million), 880 million yuan(about $127.5 million) and 928 million yuan(about $134.5 million) respectively. The revenue of cosmetic products will be 424 million yuan(about $61.4 million), 704 million yuan(about $102 million) and 722 million yuan(about $104.6 million) respectively, showing a slowdown trend in overall growth.
For the expected risks, Voolga said that in the future, if the company cannot solve problems like promoting revenue growth through an effective sales management system, the efficiency of converting sales expenses into revenue reducing, or the speed of product development, product differentiation and performance failing to market and consumer demand or take effective measures to continuously improve its own technological innovation and brand marketing capabilities, or the expansion of production capacity is not meet expectations, there is a risk that the growth rate will continue to slow down or even decline.
For the next quarter's performance expectations, the prospectus said that with the impact of COVID-19, some regional terminal channels can not operate normally resulting in sales growth has slowed down. From January to September, it is expected to achieve an operating income range of 1.265 billion yuan(about $183 million) to 1.315 billion yuan(about $190.5 million), an increase of 7.5% to 12.0% year-on-year. It is expected that its net profit attributable to the parent company will reach the range of 635 million yuan(about $92 million) to 670 million yuan(about $97.1 million), an increase of 8.85% to 14.5% year-on-year, mainly due to the company enjoyed the profits of the production chain after independent production resulting sales gross margin has improved.
It is worth mentioning that the Second Board Listing Committee will review the initial public offering of Voolga on September 8.
תגובות