Lafang Operating Revenue Down 19.43% in 2022
- Chaileedo Press
- May 5, 2023
- 2 min read
Lafang, the Chinese cosmetics producer, reported operating revenue of 887.12 million yuan ($128.35 million) in 2022, down 19.45% compared to 2021. The net profit attributable to shareholders of the listed company reached 59.23 million yuan ($8.57 million), representing a 14.21% year-on-year decline.
Lafang China Co.,Ltd (Lafang), the Chinese cosmetics producer, reported operating revenue of 887.12 million yuan ($128.35 million) in 2022, down 19.45% compared to 2021. The net profit attributable to shareholders of the listed company reached 59.23 million yuan ($8.57 million), representing a 14.21% year-on-year decline. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses reached 15.25 million yuan ($2.21 million).
In terms of brand revenue composition, "Lovefun" and "Raclen" remain the company's pillar brands, with operating revenue of RMB 675 million ($97.67 million), accounting for 76.17% of the total operating revenue. Sales revenue for "REPACELL" was RMB 77.82 million ($11.26 million), a year-on-year increase of 66.48%.
It is reported that in 2022, Lafang continuously optimized and adjusted its supply chain and marketing channels, deepened the "personal care + beauty" product matrix, comprehensively promoted product innovation and upgrades, and strengthened its core competitiveness, resulting in a relatively stable performance. In the first quarter of 2023, the ongoing benefit of channel optimization has significantly improved the company's profit structure, allowing it to enter a stage of high-quality development.
According to the annual report, in terms of channel construction, in 2022 Lafang actively developed online channels such as Douyin and live streaming platforms, in addition to collaborating with well-known domestic shopping platforms such as Tmall, JD.com, Pinduoduo, and Meituan, achieving continuous expansion and optimization of its channels.
Lafang online channels experienced high-speed growth. Its imported brand " REPACELL," which is the main agent for high-end skincare products, effectively increased its brand awareness and penetrated the high-end market through precise marketing across multiple online and offline channels. Sales on Douyin alone increased by 503% year-on-year.
In the future, Lafang will continue to focus on the development strategy of "high quality, high conversion, and high efficiency," and concentrate on its main brand while cultivating its sub-brands. With customer needs at the center, the company will continue to innovate its operating model, enhance its product research and development capabilities and product quality, and further strengthen its sales channel construction and promotion efforts to provide consumers with sustainable and high-quality services. The company aims to increase customer loyalty and trust, achieve business sustainability, and maintain a focus on long-term growth.
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