80% of consumers do not reject the choice of unisex beauty.

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.

Another brand has screwed up due to the lowest price on the whole network. Recently, the positioning of girls' makeup Flower Knows debuted new products Strawberry Rococo Series in Tmall and Tiktok China’s official flagship store. On August 27, Flower Knows cooperated with the anchor Meishuimeimei, who has 1.517 million followers in Tiktok China and put their exclusive new product gift box up for selling in Meishuimeimei’s live e-commerce. And Meishuimeimei claimed that was the lowest price in the whole online channels, priced at 298 yuan ($43.17). But in the early hours of the morning, some fans found that in the live e-commerce of another anchor with 356,000 fans in Tiktok China "Yaojiayou", the same gift box is priced at only 248 yuan ($35.93). As the incident prevailing, Flower Knows and Meishuimeimei responded separately. Both parties emphasized that the brand was unaware of the broken price (i.e., below market price) caused by the self-subsidization of other anchors. Meanwhile, according to Meishuimeimei, she signed a price guarantee agreement with the brand, and lower price than it cannot be received on the whole platform within 90 days. However, the anchor "Yaojiayou" said that the brand was aware of his price-breaking behavior, and on August 28, uploaded an "internal verification letter" from Flower Knows on the matter. In this regard, an innovative skincare brand manager told CHAILEEDO that the top anchors who can get the lowest price will not allow this subsidy breaks their price, even if other anchors have the idea of self-subsidized, this is generally not permitted. In this way, this break price fiasco shows that there are loopholes in the live stream control and price guarantee constraints of Flower Knows. In fact, "the lowest price online" has caused a lot of controversies. For example, in last year's Double 11 shopping festival, Li Jiaqi and Viya had a falling out with L'Oreal Paris over the "lowest price online of L'Oreal Paris mask" event. In 2020, Luo Yonghao was also named by the Chinese Consumers Association for claiming that a product was " the lowest price online", while it was actually more expensive than JD, Tmall, and other platforms. The top anchors have been relying on "the lowest price online" to attract attention and win traffic. The rest of the small and medium anchors, in pursuit of lower prices, do not hesitate to subsidize by themselves, to gain a sense of existence. The aforementioned innovative skincare brand manager also said that to strengthen live stream control and price guarantee constraints, anchors will not recklessly make disorderly price behavior. The brand has to have a bottom line, and it also has to work out accounts in terms of cooperating with anchors. Such a phenomenon has also attracted the attention of the relevant departments. On July 13, the Shanghai Administration for Market Regulation issued the Shanghai Webcasting Marketing Activity Compliance Guidelines. It is clearly pointed out that operators in the platform should not be required to sign the "lowest price agreement" or other unreasonable exclusivity mandatory terms. The introduction of the policy was supported by many brands. Although it is a local policy, it means the attitude of the relevant departments, which has a profound impact on the orderly development of the industry. All signs show that is because too many marketing "tricks" lead consumers to lose trust in the brand. If this situation is not improved, the brand must be affected.

"China's No.1 daily chemical stock" Guangzhou Lonkey's first half-year revenue rose 3.78% year-on-year and net profit loss narrowed 48.62% year-on-year. On August 30, Lonkey announced its interim financial report for 2022. In the first half of the year, Lonkey recorded revenue of 1.313 billion yuan(about $190.3 million), up slightly by 3.78% year-on-year. Its net profit attributable to the parent company was 0.34 billion yuan(about $49.3 million), narrowing by 48.62% year-on-year. Its net profit attributable to the parent company was 0.33 billion yuan(about $47.8 million), narrowing by 50.08% year-on-year. Its total assets were 2.366 billion yuan(about $343 million), down by 12.62% year-on-year. Lonkey can be said to be a time-honored brand in China. As the "first stock of Chinese daily chemical", Guangzhou Lonkey was listed in Shenzhen Stock Exchange in 1993 and became the first batch of standardized listed joint-stock company in Guangzhou. But in 2020, Guangzhou Lonkey ushered in the “Darkest Hour” with a series of problems such as pre-loss performance, criminal involvement of its executives, investigation of the company, and exposure risk of inventory goods with a book value of 572 million yuan(about $82.9 million), etc. In early 2021, Guangzhou Lonkey received a delisting risk warning from the Shenzhen Stock Exchange. The financial report said that on May 26, 2022, the company's stock was officially withdrawn from the delisting risk warning and other risk warnings and the stock abbreviation was changed from "*ST Lonkey" to "Guangzhou Lonkey". Overall, Lonkey's revenue and profitability have improved. Guangzhou Lonkey also said that in the future, it will keep the production and operation stable and develop its own brand become bigger and stronger. It also tends to enhance the brand value of the total brand of "Lonkey" of the company's daily chemical. Moreover, Lonkey said it was also actively promoting the company's non-public A-share issuance project in the first half of the year. Lonkey disclosed the 2022 Non-public Issue of A-share Shares Proposal on April 30, in which Guangzhou Light Industry and Trade Group Ltd. subscribed all the shares of this issue with RMB 600 million(about $86.9 million) in cash. At present, the work of the non-public issue project is being actively and orderly promoted. In terms of R&D, Lonkey's R&D expenses in the first half of the year were 9.01 million yuan(about $1.3 million), up 345.18% year-on-year. For daily-use chemicals, the company obtained 2 patent authorizations in the first half of the year and completed the development and listing of new products. The company launched 2 microencapsulated perfume laundry gel beads and completed the pre-development of several new products. For the future risks faced by the company, Lonkey said, since 2022, the dramatic fluctuation of commodity market prices and ingredients prices have great uncertainty. The company faces the risk of ingredients shortage and price increase. For this risk, Lonkey will actively strengthen cooperation and communication with ingredients manufacturers and adjust ingredients inventory in time to ensure a stable supply of raw materials. It also continuously optimizes product structure for reducing the risk of rising ingredients prices. On the other hand, it aims to make full use of the hedging function of the futures market for hedging and reducing the business risks caused by fluctuations in ingredients prices, which ensure the relative stability of product costs and reduce the impact on normal production and operation.

Meitu, which mainly focus on beauty camera app in China, reported total revenue of 971 million yuan(about $ 141 million) for the first half of the year, up 20.49% year-on-year. It has a loss of 282 million yuan(about $40.9 million) for the period, expanding 104.54% year-on-year. Meitu's main business is to launch a variety of solutions for the imaging industry and launch SaaS services for the beauty industry based on a large number of users. Its revenue mainly comes from online advertising, VIP subscription business, SaaS and related business, Internet value-added services, etc. As of June 30, 2022, Meitu's main product "Meitu Xiu Xiu" had 125 million monthly active users, an increase of 8.7% year-over-year, while "Beauty Camera" had 56.08 million monthly active users, a slight decline of 1.4% year-over-year. As of June 2022, Meitu's apps had more than 5 million active paid subscribers. According to the report, Meitu's revenue grew 20.49% in the first half of the year, driven by strong growth in its key business segments, particularly its VIP subscription business and SaaS and related businesses. Among them, the VIP subscription business grew 61.4% year-on-year. The SaaS business, which focuses on helping cosmetic retailers discover popular cosmetic products and purchase them at competitive prices promptly, generated revenue of 227 million yuan(about $32.9 million), up 1,542.3% year-on-year, It accounted for 23.3% of total revenue, up from 1.7% last year. In the first half of the year, while online advertising and VIP subscription services remained Meitu's main source of revenue, Meitu is expanding growth in other business areas to reduce its reliance on advertising revenue. As of the reporting period, its ERP solution has served more than 10,000 cosmetic companies in more than 250 regions in China. To further expand its supply chain management SaaS business, Meitu said it will adopt a two-step plan. The first is revenue maximization, which aims to increase the volume of purchases made through supply chain management SaaS by continuing to expand its selection of big-ticket items at competitive prices and by covering more brands and product categories. The second is to expand gross margins. As its market share and influence grow, Meitu may launch premium products with higher gross margins, such as niche products, functional skin care products, and customized products. In addition, in terms of AI skin measurement and related SaaS services, Meitu mainly provides SaaS solutions based on AI skin analysis technology to global skincare brands, medical institutions and salons through Meitu Yifu and EveLab Insight brands to help them accurately assess customers' skin quality to provide customized skincare solutions. Looking ahead, Meitu expects continued revenue growth, which will come mostly from its VIP subscription business as well as its SaaS and related businesses. It will also adjust net profit. Meitu expressed cautious optimism that it will remain profitable for the full year of 2022.

In the first half of the year, China's listed beauty companies generated revenue of 14.187 billion yuan(about $2.06 billion), up 7.4% from 13.206 billion yuan(about $1.9 billion) in the same period last year. This year, the general environment is more challenging than last year, though half of the companies' growth momentum remains strong. From the brand side, more billion-yuan players such as QuadHA and Dr. Alva are about to make their appearance, ushering in a golden development period for the efficacy cosmetics market. Total 14.2 billion and the ranking of companies has changed CHAILEEDO sorted through the first half-year financial data of seven major Chinese beauty listed companies, including Shanghai Jahwa, YSG, PROYA, Botanee Group, Marubi, Bloomage Biotech (functional skincare products) and Lushang Development (cosmetics business). We found that the cosmetics revenue of the seven companies totaled about 14.187 billion yuan(about $2.06 billion), up 7.4 percentage points from 13.206 billion yuan in the same period last year. Specifically, the 2 companies, Bloomage Biotech and Lushang Development, had the highest growth rate of revenue in the first half of the year, up 77.17% and 62.31% respectively. PROYA and Botanee Group also both had revenue growth rates of over 30%. The performance of YSG, Shanghai Jahwa and Marubi declined. By revenue scale, in the first half of this year, Shanghai Jahwa (3.715 billion yuan, about $538 million), PROYA (2.626 billion yuan, about $381 million), Bloomage Biotech (2.127 billion yuan, about $308 million) ranked the top three. Botanee Group, YSG, Lushang Development, and Marubi ranked 4 to 7 in that order. With continued high revenue growth, Bloomage Biotech has ranked third, up two places from last year's ranking. Moreover, in the first half of this year, PROYA also recorded the highest revenue in the past five years and ranked second. From the point of view of net profit, in addition to YSG, the other six companies are profitable, of which Botanee Group's net profit value (395 million yuan, about $57.2 million) and growth rate (49.06%) are the highest among the seven companies. As for the brands the companies own, the brand PROYA will step into the 4-billion-yuan club this year following Winona exceeded 4 billion yuan(about $580 million) last year. In the first half of this year, the revenue of the two brands, Winona and PROYA, achieved more than 2 billion(about $290 million). Meanwhile, according to the current development speed, more 1-billion-yuan players such as QuadHA and Dr. ALVA will be unveiled. Star single product is the key to growth It is not difficult to quickly create explosive products with the huge traffic method. What is difficult is the sustainable user stickiness, and repurchase, which is often mentioned in the industry "star single product". Whether it is Coca-Cola in FMCG, or the beauty field Estee Lauder, Lancome, Shiseido, etc., the star single product has helped the brand to establish a position in the minds of consumers. Chinese beauty brands are becoming more and more skilled in this strategy. In the annual report, the companies also named praise for the role of star single product to promote the company's performance. The revenue of PROYA’s star single product accounted for more than 35% of the revenue of the brand continuing to deepen the star single product strategy in the first half of this year. Its star product was equivalent to the sale of 745 million yuan(about $108 million). The revenue of its star products has accounted for more than 65% of the total revenue of the brands on the Chinese e-commerce platform Tmall and more than 50% on the TikTok China platform. The star single product of PROYA contains 11 products such as Proya Deep Ocean Energy Serum, Proya Elastic Brightening Youth Essence, Proya Advanced Original Repair Concentrating Essence and Proya Ultimate Repairing. Similarly, four major functional skincare brands from Bloomage Biotech also benefit from the star single product strategy, resulting in performance growth. The financial report shows that the four major brands enjoy 6 single products achieving 100 million yuan(about $14.5 million) in sales revenue including Bio-MESO Saccharomyces Rice Radiant Essential Toner, QuadHA Superior Antioxidant Concentrate Essence, QuadHA Single Use Salicylic Acid Anti-acne Essence, QuadHA Refreshing Multi-Recovery Soothing Oil Essence, Biohyalux HA Aqua Single Use Essence, Biohyalux HA Barrier Conditioning Single Use Stoste in the first half of the year. Bloomage Biotech said, "the company in recent years plans to the extent to star single product for increasing revenue." In the transformation of YSG, its efficacious skincare brands DR.WU Daily Renewal Serum and DR.WU Triple Action Repair Serum also made important contributions to the performance with the former reigning as NO.1 on the list of removing-acne essence on Tmall and the latter winning NO.1 on the pop-up list of repair essence on TikTok China. With the excellent performance of several efficacious skincare brands, YSG's skincare business grew by 56% over the same period in the first half of last year. Marubi said in its earnings report that the company set up a joint team to promote unified pop-up plans online with Marubi Single Use Essence, Marubi Retinol Firm Desalt-wrinkle Eye Cream, Marubi Multiple Peptide Anti-wrinkles Eye Cream and Marubi Multiple Peptide Firm Anti-wrinkles Eye Mask respectively. Star single product often carries a higher repurchase and higher gross margin and Chinese brands have gradually realized the importance of star single product for the brand. They gradually embarked on the "era of star single product". This has achieved double growth in performance and word of mouth. What to fight in the second half of the year? Efficacy! In today's industry background of "Skincare Must Involves Efficacy", many companies applied the approach that penetrates its targeted category by promoting strong efficacy, which is a trend in the Chinese beauty market. For example, when mentioning sensitive skincare, people will think of Winona. It continuously educates consumers and iterates the product. Winona’s parent company became the "first stock of effective skincare" and after the listing, it still maintained the performance of consecutive years of growth. Not only Winona, but also major brands are building the perception of professional efficacious skincare brands in various ways to maintain their voice in areas such as anti-wrinkle, oil control, and acne. For consumers, the purpose of skincare is to maintain healthy and youthful skin. As consumers become more aware of skincare, the market outlook for efficacious cosmetics is also favored. Therefore, in the second half of this year, the above-mentioned companies also said that they will continue to make efforts in the efficacy of skincare. In addition, the building of multi-brand matrix is also an essential part of the Chinese enterprises to take the group and find growth points. For example, the recent launch of the new Bio-MESO Saccharomyces Rice Radiant Softening Cream is intended to further expand the brand's market share in the efficacy of skincare. PROYA also said it hoped to launch anti-aging products and brands for larger age groups in 5-10 years to further expand its brand matrix. Winona also said that the company will take the "Winona" brand as the core and gradually develop the "Sensitive Skin PLUS" product line to sunscreen, whitening, anti-aging, and effective primer for sensitive skin, etc. Winona is aim to provide consumers with more refined product choices with multi-brand concentration. It is worth mentioning that in June this year, Botanee Group also invested in the Chinese foundation brand "FUNNYELVES". In short, successful efficacy will win the future. driven by the new regulations, Chinese beauty brands develop high-quality brands. It will deepen the effectiveness, and open the development trend of star single product strategy. It will also set up a new chapter of industry competition.

S’YOUNG released the global high-end beauty collection store brand SHUIYANGTANG, and created firstly the one show, one store new retail growth model. On August 31, an exhibition of 100 year’s beauty collection of SHUIYANGTANG and SHUIYANGTANG’s brand launch was held in Changsha Niccolo Hotel. At this meeting, S’YOUNG officially announced the launch of the high-end beauty digital new retail collection store SHUIYANGTANG. "SHUIYANGTANG is a global high-end positioning beauty collection store brand." said Muxiang, president & co-founder of S’YOUNG. It is known that SHUIYANGTANG is positioned with an average transaction value of 2000-5000 yuan ($289.58-723.96). In terms of the brand, SHUIYANGTANG will introduce niche high-end brands such as EviDenS de Beauté, CELLEX-C, Mesoestetic, and Juice Beauty. Meanwhile, SHUIYANGTANG will also present 999 high-end niche salon fragrances with a unique "perfume museum". Furthermore, SHUIYANGTANG will also create nine exclusive collaborations for the offline debut of high-end beauty brands. Then, what are the advantages of SHUIYANGTANG compared to other beauty collection stores in the market? "It is still in the process of experimentation, and is also intended to form an implementation closed loop for the partner brands," Muxiang believed that "compared with other beauty collection stores, SHUIYANGTANG positioning as a high-end beauty collection store. At the same time, it created a new model of one show, one store." According to the introduction, through the one show, one store model, SHUIYANGTANG attracts flow with exhibitions and converting with stores, introducing consumers to the unique concepts, stories, and product advantages of global beauty brands, shaping a high-end brand tone and rich brand image. However, for the store expansion plan and specific operation strategy, there is no further disclosure from S’YOUNG. "SHUIYANGTANG has certain advantages, but it also depends on the specific market operation," an industry veteran believed that S’YOUNG's resources in terms of channels, supply chain, and capital will help the stores take root. Also, the multiple brands it holds allow the stores to guarantee the products. But, at present, the main problem facing the physical stores is still the customer flow, and this depends on how SHUIYANGTANG solves it. It is reported that the SHUIYANGTANG Changsha concept store, with an investment of nearly 70 million yuan and located on the second floor of Parkson Beauty in IFS, will officially open on October 1, 2022, and its Tmall international flagship store and Weixin official mini-program will also open on the same day.

The Chinese makeup brand QYAN is under the spotlight for allegedly copying Estee Lauder's brand. According to CHAILEEDO, on July 22 this year, QYAN released a post on Xiaohongshu about the product improvement. QYAN said: the previous QYAN 24-color eyeshadow palette triggered hot controversy about its design. Now the brand was now urgently discussing the product re-shelf upgrade program. In response, some netizens commented, "The package is copied from Too Faced, exactly the same". In response to the plagiarism, the brand QYAN recently issued a clarification statement emphasizing that the product design is completely original. In the statement, QYAN gave evidence of the filing and release dates of the two products. QYAN 24-color eyeshadow palette was filed in November 2019 while the release date of Too Faced Born This Way 16-shade Eyeshadow Palette is likely to be February 9, 2020. From the available information, the two eyeshadow products are relatively similar in design and layout and are being questioned by netizens for this reason. Under this statement, some netizens expressed their support for QYAN but many also questioned the evidence presented in the statement as not too rigorous. One is the time of filing and the other is the time of product launch. The two points should not be compared with equal. At the same time, the release date of Too Faced products provided by QYAN is from a third party, neither the official time disclosed by the brand, nor does it specify whether it is the release date in the Chinese market or the global release date. "Comparing the filing date of your own brand with the release date of the other party does not prove that there is no plagiarism. It normally takes several months from filing to release, and there also exists Too Faced's filing earlier than QYAN." Some netizens pointed out. For the sequential issue of time, CHAILEEDO conducted some investigation. On February 9, 2020, Too Faced on its official Instagram did announce the debut of Too Faced Born This Way 16-shade eyeshadow palette. However, this only proves that the Too Faced eyeshadow palette was launched later than the filing time of the QYAN 24-shade eyeshadow palette. In practice, the time of filing and the time of listing are often not equal, so it is difficult to convince the public based on this alone. Public information shows that Too Faced is a well-known makeup brand in the U.S. The brand is favored by a host of Hollywood stars in the U.S. for its rich colors and personalized designs, and now has more than 12.8 million fans on social media Instagram. In 2016, Estee Lauder acquired Too Faced for $1.45 billion and was once the seventh most famous cosmetics brand in the U.S. On July 20, 2020, Too Faced opened an overseas flagship store on Tmall in China, which has now been cleared out. While QYAN is a makeup brand of Nanjing Shierchai Company. The company was established in September 2018. CHAILEEDO noted that QYAN has been stationed in major Chinese mainstream e-commerce platforms at present. In QYAN flagship store on Chinese e-commerce platform Taobao, the products currently have 23 SKUs with product unit prices ranging from $2.8 to $33.2, of which, the highest sales are QYAN 6-shade Yueguang Huaying Highlighting Palette with monthly sales volume of about 1,000 pieces. However, CHAILEEDO noticed that there was no QYAN 24-shade eyeshadow palette in the flagship store. Investigation in the National Medical Products Administration's general cosmetics record information platform, it revealed that QYAN 24-shade eyeshadow had been written off on March 31 this year. The store's customer service said, "About six months ago, this product was taken off among all e-commerce platforms. Because the product was liked by many consumers, it was optimized and will probably be new at the end of September this year." The reason why Chinese brands are always on the downside and become the object of questioning. It is also true that too many Chinese products have previously occurred to copy the big brands, factory brands copy the emerging brands. "At present, many cosmetic packaging containers and cartons. Many brands only have appearance patents. In Chinese laws and regulations, if the brands make some changes in size, or make some microscopic adjustments, it is equivalent to a different patent. Many have no recourse." The brand director of a cosmetic company in Shanghai told CHAILEEDO. The person in charge of a well-known Chinese cosmetic packaging materials company said "in terms of the cosmetics industry, our development is relatively slow compared to some foreign countries. Like food, drugs, cell phones, TV and other industries, they all has long entered the normative area and now are taking the road of independent innovation. The cosmetics industry, on the other hand, has a relatively low threshold for starting a business and it is more difficult to make a different product in a sea of brands." However, for the moment, cosmetic companies are also increasing their awareness of their rights. For example, Perfect Diary has set up a special intellectual property team responsible for intellectual property registration, layout as well as counterfeiting and rights protection. Florasis has set up a chief counterfeiting officer, etc. Overall, it seems obvious that by imitating the design of famous brands is not a good move. Not only is it easy for consumers to spot these tricks at a glance, but with a series of supporting regulations in place, the cosmetic market is becoming more strictly regulated. Copycats will pay a greater price. So it's time to stop this bad trend.

Hunan Resun reported operating revenue of 1.323 billion yuan(about $192 million) in the first half of the year, up 9.59% year-on-year. Its cooperating brands include Procter & Gamble, L'Oreal, etc. Its main business is surfactants and detergents. On August 30, Resun Industries announced its 2022 interim results report. In the first half of the year, Resun Industries recorded a total revenue of 1.323 billion yuan(about $192 million), an increase of 9.59% year-on-year. The net profit attributable to the parent company of the first half of the year was 50.5578 million yuan(about $7.34 million), a decline of 46.78% year-on-year. Its net profit attributable to the parent company of the deducted non-net profit was 44.1235 million yuan(about $6.4 million), a decline of 52.06% year-on-year. CHAILEEDO learned that the company is known as Hunan Resun Industries Co., Ltd., founded on November 24, 1997. It was listed on the Shenzhen Stock Exchange on October 15, 2021 with main business of research and development, production and sales of surfactants and detergents. In response to the revenue growth, Resun Industries said that it was mainly due to the increase in ingredient prices and the increase in sales prices of major products. In addition, in the first half of the year, Resun Industries operating costs rose by 18.92% to 1.167 billion yuan(about $169 million), mainly due to the increase in ingredient prices. The main business of Resun Industries is the research and development, production and sales of surfactants and detergents. In the first half of 2022, surfactants accounted for 90.85% of the main business revenue which achieved 1.202 billion yuan(about $174.4 million), an increase of 10.35% over the same period last year. The product is the core ingredients for personal care and household detergents such as shampoo, body wash, hand soap, laundry detergent, laundry powder. The company's existing surfactant products include AES, LAS, K12, ammonium salts, AOS, alkanolamides, amino acids and other series with natural oils and fats as the core raw materials, which are mostly located in the middle and high-end detergent care market. Its customers include P&G, Blue Moon, Nice, Walch, Wipro, Jinlongyu Jiejin, L’Oreal, Schwarzkopf, Coty, Colgate, Lipton, FYOU, Adolph, Bawang, Yunnan Baiyao, Uniasia Technology, Reckitt Benckiser, Opal, Di Hua Zhi Xiu and so on. At present, it has three production bases in Changsha, Shanghai and Dongguan with an annual production capacity of more than 300,000 tons of surfactants. Its leading products ranked among the top three in China in 2021. For detergents, against the backdrop of substantial price fluctuations of major ingredients and the continued spread of the epidemic, the company's total sales of surfactants and detergents fell 6.13% year-on-year. The total revenue of detergent products was 90.5483 million yuan(about $13.14 million), down 6.78% from the same period of the previous year, accounting for 6.85% of the total revenue. The main source of revenue was its own brands including Ma Tou, Guang Hui and Bei Hua. It is worth mentioning that on June 7, Resun Industrial announced that the initial public offering of shares to raise funds for the investment project "150,000 tons of green surfactant project of Guangdong Resun Aowei Industrial Company". The trial production period is from June 6, 2022 to March 5, 2023 and the current trial production situation is generally good.

Abstract: In the first half of this year, Proya's revenue exceeded the 2 billion yuan ($291 million) mark for the first time. Proya Cosmetics Co., Ltd.(hereinafter referred to as "Proya") released its semi-annual report for 2022 today (August 25). According to the data, the company achieved revenue of 2.626 billion yuan ($383 million) in the first half of this year, an increase of 36.93% year-on-year. Net profit attributable to shareholders of the listed company was 297 million yuan ($43.3 million), up 31.33% compared to the same period last year. It is worth mentioning that in the first half of this year, Proya's main brand "Proya" topped the "No. 1 Chinese beauty" in Tmall, TikTok, and Jingdong during the 618 promotion, standing out from the crowd of Chinese cosmetics. This is also enough to reflect the ability of Proya shares going across the industry cycle. Proya sold 2.128 billion yuan ($310.4 million) for its single brand Chaileedo combed through the semi-annual reports of Proya shares in the past five years and found that, except for 2020, when its revenue and net profit increased by single digits due to the epidemic, Proya shares have maintained a double-digit increase in performance since 2019. In the first half of this year, its revenue even exceeded the $2 billion yuan ($291 million) mark for the first time. Also according to Proya shares, in the first half of this year, the company's main business achieved revenue of 2.616 billion yuan ($381.6 million), an increase of 36.87% year-on-year. According to the financial report, at present, the main brands of Proya are Proya, Timage, Off&Relax, Hapsode, and other brands. According to the brand split, the sales of Proya in the first half of this year reached 2.128 billion yuan ($310.4 million ), up 43.12% year-on-year, accounting for about 81.36% of the main business revenue. As the mainstay of Proya's revenue, the brand continued to focus on the "Large Single Product Strategy" in the first half of this year, continuously upgrading and expanding the existing large single products and related series. For example, the Ruby face cream and Night Light eye cream were upgraded in terms of ingredients, formulations, and packaging materials, and version 2.0 was launched. At the same time, continuing to strengthen the position of the core big single products in the industry, such as Ruby Essence and Double Anti-Essence, to lay a solid foundation of product power for the brand to win the market. In addition, the earnings report also showed that the color cosmetics brand Timage achieved sales of 232 million yuan ($33.8 million). While maintaining a high growth rate of more than 100%, the share of Timage in the main business of Proya shares has also increased year by year, rising from 3.23% and 5.33% in 2020 and 2021 to 8.87% in the first half of 2022. Obviously, the importance of Timage to Proya's shares is increasing year by year. By category, the revenue of skin care products in the first half of this year reached 2.264 billion yuan ($330.2 million ), accounting for 86.54% of the total revenue of the main business. The growth rate outperformed the "Global Top 10" It is worth mentioning that the continued implementation of the Large Single Product Strategy and the improvement of the income of the Timage, also allows the Proya shares of the product sales unit price to increase significantly. According to the key operating data for the second quarter of 2022 previously announced by Proya shares, the average selling price of the company's skincare products was RMB 39.07 per unit ($5.69 per unit) in the second quarter of 2022, up 41.56% from RMB 27.6 per unit ($4.026 per unit) in the second quarter of 2021. It is worth mentioning that in Proya's 2021 annual report, it said that in 2022 it will focus on multi-category and multi-brand matrix construction; R&D construction as well as refined operations. And the actions of Proya shares in the first half of this year also fit with it, such as doubling the revenue of Choi Tong and rising 94.66% in R&D investment… In addition, Chaileedo noted that, from the viewpoint of revenue growth, Proya shares in the first half of this year have comprehensively outperformed the "Top ten global cosmetics companies". According to Chaileedo's previous statistics, in the first half of this year, the fastest business growth rate of the Top ten global cosmetics companies was LVHM, which reached 20%, while the revenue growth rate of Proya shares in the first half of this year reached 36.93%. As can also be seen in the financial reports of the Top 10 global cosmetics companies, the blockade brought about by the recurring epidemic in China has made the brand's supply chain and logistics hampered, making it one of the main factors affecting the cosmetics sales of major companies. In the context of the domestic epidemic and the international raw material shortage, Proya relied on the "New Supply Chain Guarantee", which systematically integrated data and information from various information platforms to meet the balance of terminal sales and production capacity, providing a strong back-end guarantee for this year's 618 Promotion. The fact that Proya has been able to continue to deliver impressive results in a challenging cosmetics market shows that its initiatives have laid a solid foundation for the company to achieve sustained growth. Likewise, it also reflects the fact that Proya has forged the ability to cope with industry cycles over a long period of time in the market.

Winona's parent company BTN's revenue increased 45.19% year-on-year and the main source of revenue is still its iconic brand Winona, accounting for more than 98%. On August 28, Winona's parent company BTN released its 2022 semi-annual report. The report showed that the company achieved operating revenue of $296 million in the first half of the year, up 45.19% year-on-year. Its net profit attributable to shareholders of the listed company was $57.1 million, soaring 49.06% year-on-year. Under the dual impact of uncertain fluctuations in the macro environment at home and abroad and COVID-19, BTN still achieved high double-digit growth. Its iconic brand Winona achieved sales of about $290.5 million in the first half of the year. Financial data show that despite of revenue and net profit attributable to the listed company being 45.19% and 49.06% growth, respectively, BTN’s net profit attributable to the listed company was $51.3 million, an increase of 40.50% year-on-year. BTN said that the revenue growth driver is mainly the company's sales scale increased during the reporting period compared with the same period of the previous year.

Abstract: Perfect Diary's parent company YSG achieves revenue of $266 million in the first half of 2022. Its second-quarter revenue declined 37.6% year-on-year and skincare increased 49.2% year-on year. Lately, YSG released its second quarter results for the period ended June 30, 2022, showing that the company achieved revenue of $137.6 million, down 37.6% year-on-year, but its skincare business rose 49.2% year-on-year to $46 million. As we all know, in the second quarter of this year, the global economic recession trend is obvious. Especially the repeated epidemic in China resulted in China's consumer beauty market can be said to have fallen to the bottom. According to the data released by the National Bureau of Statistics, in the second quarter of this year, the total retail sales of consumer goods fell by 4.6% year-on-year. In addition, Unilever, Estee Lauder, LG Life Health and many other international beauty companies have also mentioned the negative impact of the domestic epidemic on their Asian market performance or group results in their first half-year financial reports.