Cosmetics ODM Green Pine Suffered $107 million Net Loss

Chaileedo Press
Apr 26, 2023
2 min read

Green Pine, the Chinese cosmetics ODM delivered 2.92 billion yuan ($421.32 million) in operating revenue in 2022, down 21.01% compared to 2021. While the company reported net loss of 742 million ($107 million).

FuJian Green Pine Co.,Ltd (Green Pine), the Chinese cosmetics ODM delivered 2.92 billion yuan ($421.32 million) in operating revenue in 2022, down 21.01% compared to 2021. While the company reported net loss of 742 million ($107 million).

Green Pine was established in 2001 and was listed on Shenzhen Stock Exchange in October 2010. The company is an cosmetics ODM company, primally engaged in the research and development, design, and manufacturing of cosmetics, with business operations covering areas such as facial masks, skincare products, wipes, nonwoven fabrics, and functional chemicals.

Green Pine’s cosmetics and related businesses are mainly operated by the company’s wholly-owned subsidiary NOX BELLCOW COSMETICS CO., LTD. During the reporting period, NOX BELLCOW achieved operating revenue of 2.08 billion yuan ($300 million), with a decrease of 17.17%. NOX BELLCOW’s reported net loss of 275.96 million yuan ($39.85 million).

Green Pine stated that the decline in the company's performance was mainly affected by macroeconomic and industry environment factors, with suppressed demand for facial masks and skincare products, and a shift from high growth to negative growth in the cosmetics retail market.

During the reporting period, demand for wipes products in overseas markets weakened, and high shipping prices led to a significant decline in export orders for wipes.

In addition, some wipes production for overseas customers was temporarily delayed and revenue was not confirmed. Meanwhile, due to factors such as rising commodity prices and supply chain shortages, the procurement costs of some key materials continued to increase, resulting in an increase in raw material costs compared to the same period last year, leading to an overall decline in gross profit margin due to a rise in unit costs.