Lushang Development's Cosmetics Sells $198M in the Last 9 Months
- Chaileedo Press
- Oct 28, 2022
- 3 min read
Thanks to the strong growth of Rellet and Dr.ALVA from Freada under Lushang Development, the operating revenue of the cosmetics segment in the first three quarters increased by 43.9% year-on-year.
On the evening of October 27, Lushang Development announced its financial results for the third quarter of 2022. The report showed that the enterprise's revenue in the first three quarters was 8.529 billion yuan(about $1.2 billion), up 34.33% year-on-year. The net profit attributable to the parent company was 154 million yuan(about $21.3 million), down 69.44% year-on-year. The third quarter revenue was 3.694 billion yuan(about $511 million), down 61.89% year-on-year, but the net profit attributable to the parent company plunged 118.45%, a loss of 350 million yuan(about $48.4 million).
Lushang Development is named Shandong Commercial Group Co. Ltd., which is a large state-owned enterprise established by Department of Commerce of Shandong Province at the end of 1992. The company is positioned as a leading integrated operator in the Chinese domestic health industry, and its subsidiary, Shandong Freda Pharmaceutical Group Co. Ltd. is involved in the field of cosmetics, including some cosmetic brands such as Rellet, Dr.ALVA and others.
During the reporting period, in cosmetics, from January to September 2022, Lushang Development's cosmetics segment generated revenue was 1.429 billion yuan(about $198 million), with a gross margin of 58.56%, up 43.9% year-on-year. From January to September 2021, the operating revenue of Lushang Development's cosmetics segment was 993 million yuan(about $137.2 million). Among them, Rellet achieved a revenue of 540 million yuan(about $74.6 million) from January to September 2022, and Dr.ALVA achieved a revenue of 745 million yuan(about $103 million) from January to September 2022. It can be seen that the cosmetics segment has increased significantly this year.
According to the financial report, in the last quarter, Shandong Freda Biological Co., Ltd. further strengthened its scientific research strength, officially opened the R&D innovation center, held the third skin microecology conference, and launched the industry's first skin microecology scientific skincare platform. It jointly launched its first co-branded gift box with the famous IP Minions.
In terms of products, Rellet and Dr.ALVA of Freda were awarded the 2022 National Trendy Brand of the Year in China. and Rellet was awarded the 2022 Beauty V Award by the Chinese social media platform Weibo. Dr.ALVA won the Tmall Beauty Awards.
It is worth noting that in recent years, Rellet is growing rapidly with its hyaluronic acid and rapidly expanding its market share.
In 2021, Rellet's main product HA Moisturizing Spray won the Tmall Beauty Annual Lotion Awards. During that year's "Tmall Brand Day", it also won the "Super Lotion of the Year" award in the toner category. In addition, it ranked first in the toner category in terms of sales, repurchase rate and good review rate during the "Tmall Brand Day". In the first half of 2022, the product was upgraded in terms of ingredients, efficacy and packaging, and the Hyaluronic Acid Mist 2.0 upgrade product Rellet Hyaluronic Acid Deep Hydrating Spray was launched and 20,000 bottles were sold on the day of launch. In addition, Rellet's Hyaluronic Acid Rescue Mask sold over 600,000 boxes, making it the top 2 product of Rellet.
In addition, according to the financial report of Lushang Development, the parent company of Freda, Rellet achieved an annual revenue of 646 million yuan(about $89.3 million) in 2021, an increase of 73.08% year-on-year. In the first half of 2022, Rellet achieved a sales revenue of 388 million yuan(about $53.6 million), an increase of 43.53% year-on-year, which is much higher than the market growth rate.
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