L'Oréal Packaging Supplier JINSHENG Reported $3.258 Million Net Loss

JINSHENG, the Packaging Supplier of global beauty giant L'Oréal and Estée Lauder reported net loss of 22.51 million yuan ($3.26 million) in 2022.

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Zhejiang Jinsheng New Materials Co., Ltd. (hereinafter referred to as JINSHENG), the Packaging Supplier of global beauty giant L'Oréal and Estée Lauder released its 2022 annual report. JINSHENG’s revenue in 2022 reached 243 million yuan ($35.14 million), down 17.19% compared to 2021. While the company reported net loss of 22.51 million yuan ($3.26 million).

According to previous data, from 2020 to 2022, since its listing in SZSE 2020, JINSHENG’s revenue were 259.6 million yuan ($37.57 million), 293.2 million yuan ($42.43 million), and 242.8 million yuan ($35.14 million), respectively, and the net profit attributable to the parent company reached 34.49 million yuan ($4.99 million) in 2020 and 10.59 million yuan ($1.53 million) in 2021. The company reported net loss of 22.51 million yuan ($3.26 million) in 2020. This is not only the third consecutive year of significant decline in net profit but also the first loss since its listing.

Regarding the loss, JINSHENG stated that in 2022, affected by multiple factors in the economic and social environment, the willingness and ability of consumers to travel declined, and the use of cosmetics was affected, and the consumption market was impacted. The downstream customers of the industry engaged in by the company, such as cosmetics manufacturers, were greatly affected.

It is worth noting that JINSHENG ' fundraising project, the "Annual Production of 45 Million Sets of New Cosmetic Packaging Container Project," has been completed. The company stated that it will use this project's automated workshop as an opportunity to leverage its own strengths and experiences to expand production scale while improving product technical content; increase market development efforts and expand world-class customers.

Public information shows that JINSHENG mainly engages in the research and development, production, and sales of plastic packaging containers for cosmetics, with its main products being cosmetic containers. Its customers include well-known cosmetics companies such as L'Oréal, Estée Lauder, Dior, Pechoin, Kans, MARUBI, and Wetherm.