According to data from China’s e-commerce platform JD Worldwide, as of May 2022, the turnover of “clean skin care”and “micro-ecological skin care”related categories has increased by 135% year-on-year. Among them, products such as essence, facial cleanser, toner, and sunscreen are most concerned by consumers. Under the trend of globalization, cross-border e-commerce has become a consumer window for more and more young people in China. "The cross-border e-commerce platform, which is developing rapidly against the trend, is building a scene to connect global goods and consumers for more and more consumers. Data show that in 2020, China's cross-border consumer users have exceeded 200 million people, along with the introduction of favorable policies, the future market growth is also expected to be considerable. During the 618 promotion, China's cross-border e-commerce platform JD Worldwide released imported beauty and personal care consumption trends. In imported beauty and personal care consumption, six imported beauty and personal care categories, including clean beauty, micro-ecological skin care, friendly color cosmetics, scalp balance care, oil-based body care, and skin care black technology, have become popular trends. In recent years, the concept of clean beauty has been sought after by Chinese consumers. As of May 2022, on JD Worldwide, the turnover of related categories of "clean skin care" and "micro-ecological skin care" has increased by 135% year-on-year. Among them, essences, cleansers, toners, sunscreens and other products featuring natural, organic and non-allergenic ingredients are the most concerned by Chinese consumers. Data shows that in May 2022, the turnover of imported personal care categories increased by more than 100% year-on-year, of which products related to body care and scalp balance care accounted for more than 70% of the new increase. This shows that Chinese consumers' awareness of scalp care has gradually formed, which has promoted the growth of the scalp care market and has also driven the growth of sales of natural and healthy ingredients such as shampoo, conditioner, and scalp nutrients. With the trend of skin care with oil, personal care subdivisions are diversified, and personal care products in the form of oil are increasing. Chinese cross-border consumers choose oil-based care products to maintain, moisturize and soothe their skin. Under the influence of the concept of "green sustainable development", "friendly makeup" with organic and natural traceable raw materials, sustainable packaging, clean processing methods, and no added ingredients that are burdensome to the skin has become a new trend in consumption. In 2022, the year-on-year growth of JD Worldwide "Friendly Makeup" related products is three times that of other beauty products. Among them, SUQQU, ZELENS and Shiseido INTEGRATE are the most popular among Chinese consumers. With the increasing investment of Chinese consumers in the field of skin care and the development of beauty and skin care technology, beauty salon care, aesthetic medicine, and beauty instruments have become the choices of more and more consumers. In May 2022, the turnover of imported household beauty instruments increased by 103% year-on-year. Among them, beauty instruments accounted for 45% of the imported 3C home appliances category. The use of beauty instruments has become a new trend in effective skin care. On the whole, Chinese consumers now pay more attention to the "sustainability" of skincare products, and imported beauty and personal care consumption trends have entered the "green and sustainable development" stage. In the choice of skincare and personal care products, Chinese consumers are more willing to buy products with natural, organic and healthy ingredients. Their product concept has become more scientific and rational, respecting the actual needs of the skin, and focusing increasingly on improving the overall skin ecology for skin care.

As an essential skincare product, the market for facial masks has been growing rapidly. With the advent of the era of efficacy, Chinese consumers' demand for facial masks has shifted from basic efficacy to higher-order efficacy such as whitening and spot reduction, repair and soothing. Under the influence of the concepts of "beauty economy", "self-pleasing consumption" and "womenomics", skin care products have become a necessity in daily life, and facial masks are favored by Chinese consumers due to their quick effect and convenience. Data shows that from 2016 to 2019, the compound growth rate of China's facial mask market was 24%. In 2020, affected by the epidemic, the growth rate of China's facial mask category market slowed to 5.1%. In 2021, the mask market gradually recovered, and the market size increased by 11% year-on-year to $5.498 billion; in 2025, the size of the Chinese mask market is expected to reach $8.217 billion to $8.964 billion. From September 2020 to September 2021, the GMV contribution rate and GMV ranking of facial masks ranked in the top 2 in the first-level category of skin care on the Tao Department platform. And facial mask ranked first among the top20 sub categories of sales volume of China's short video e-commerce platforms Kwai and Tik Tok China beauty live broadcast. With the development of China's economy, the increase of residents' disposable income, and the expansion of consumer groups, it is inevitable that the scale of China's facial mask market will continue to expand, and the facial mask category has become a hot-selling category on various platforms in China. In this fiercely competitive market, in addition to the most basic moisturizing and hydrating effects, facial mask brands have put more resources and energy into the iteration of product safety, efficacy and ingredients. Especially after the outbreak of the epidemic, safety has become the primary factor for Chinese consumers to choose cosmetics, who are now more concerned about the efficacy and ingredients of the products. From October 2021 to December 2021, among the top 10 brands in China's recommending social platform, Xiaohongshu, with the amount of interaction in the mask category, there are 6 brands that focus on repairing effects. The main ingredients are resurrection grass, hyaluronic acid, ceramide, Curacao aloe vera, Bifida Ferment Lysate, centella asiatica extract, etc. In 2021, China's network-wide patch mask market share is 78%, while there are 7 masks with hydrating and moisturizing effects in the TOP 10 patch mask products with sales on Taobao family platform, and 7 masks with whitening and spot-lighting, repairing and soothing, anti-aging and other higher-order effects (some have compound effects). It can be seen that Chinese consumers have a large demand for facial mask with high-level efficacy such as repair, and high-level efficacy facial mask have become a hot trend and a new growth point in the Chinese facial mask market. In addition, according to the observation of Qeyes, the price polarization of mask products on Taobao family platform and Douyin platform is quite obvious. In the past year, among the top 10 sales of mask products on the Taobao family platforms, there are 5 models below 100 yuan (about $15), and 2 models above 300 yuan (over $45). In December 2021, among the top 10 sales of Tik Tok China, there are 8 models with a price of more than 250 yuan (over $37), of which there is also a mask with a price of more than 1,000 yuan (over $149). Among them, L'Oreal Paris and Dr.alva are on the two lists, ranking 2nd and 9th respectively on the Taobao family platforms and 6th and 7th on the Tik Tok China. The product of L’Oreal Paris on the Taobao family platform list is the “Fresh Mix Ampoule Smoothing Mask (20 Pieces)”, which is priced at $54 and focuses on moisturizing; while the one listed on the Tik Tok China is"Fresh Mix Ferment Pre-essence Mask (5 Pieces) + Fresh Mix Ampoule Smoothing Mask (10 Pieces)", with a unit price of 45 US dollars. Among them, the pre-essence mask focuses on anti-aging and brightening the skin while the ampoule mask focuses on moisturizing and strengthening the barrier. Dr.alva, founded in 2018, is a new Chinese innovative brand entering the mask track. Both on the Taobao family platforms and Tik Tok China, the listed product is "Probiotics Professional Deep Repairing Mask", with a price of 13 US dollars for repair and moisturizing. Nowadays, facial masks have become the category that Chinese consumers are most willing to try, and various forms of facial masks have emerged. With the rising demand of Chinese consumers for product safety and freshness of ingredients, according to the survey, 63.27% of consumers are willing to buy membrane-liquid separation masks, which gave birth to freeze-dried technology and dual-chamber freshness locking technology, and freeze-dried mask was born one after another. In addition, clean beauty concept is also gradually prevailing in China, and high concentration of essence ingredients instead of water mask is also increasingly popular in the market. According to a research 69.44% of Chinese consumers are willing to buy such masks. With high concentration of essence ingredients instead of water, the efficacy of mask products is amplified, making it easier for consumers to trust.

On June 9, 2022, BST, Suzhou Misifu Cosmetic Limited Company(hereinafter referred to as "MISIFU") announced that it has entered the counseling stage of listing on the Beijing Stock Exchange. As CHAILEEDO observation, as early as 2016, MISIFU completed its listing on the National Equities Exchange and Quotations. In May this year, MISIFU was transferred to the innovation layer. After a month, MISIFU officially announced that it would enter the Beijing Stock Exchange. According to the policy of the Beijing Stock Exchange, one of the admission criteria mentions that the expected market value is not less than $30 million, the net profit for the last two years is not less than $2.2 million and the weighted average return on net assets is not less than 8% on average. As of today's close, the market capitalization of MISIFU is $214 million, its net profit for the last two years is above $2.24 million, and its weighted average return on net assets is 23% in 2021, compared to 32.51% in the same period last year, much higher than the 8% required by the rules. Founded in 2011, MISIFU focuses on single-brand cosmetic store cosmetic sales and the operation and management of the MISIFU brand and single-brand stores. Its products cover skin care, color cosmetics, skincare facial masks, and other categories. Its revenue in 2021 reached 148 million yuan ($22 million), up 16.98% year-on-year with a gross margin of 46%. Between 2019 and 2021, MISIFU's revenue continued to rise, achieving $18.4 million, $19 million, and $22.1 million respectively. In 2021, MISIFU's revenue increased by 16.98% year-on-year, the highest increase in the past three years. Even in 2020 when the pandemic hit the industry hard, MISIFU's revenue maintained a 2.99% increase. The brand's official website showed that since the founding of the first single-brand store in 2012, MISIFU stores have been upgraded to version 5.0. According to the official website, the number of MISIFU stores exceeded 100 in 2014, and 500 in 2020. By 2025, the number of MISIFU stores is planned to exceed 2,000, with 1.5 million+ members. In 2016, MISIFU Smart Store was launched and officially entered the online market. Nowadays, in terms of sales and operation mode, MISIFU mainly builds its sales network through single-brand stores and constructs a "trinity" operation and management model based on offline physical stores, online stores, and data operation. In terms of back-end management, MISIFU has built a data management platform for user skin data management, membership data management, and store operation data management with the aim of gaining insight into consumer preferences and improving satisfaction and repurchase. According to MISIFU's big data statistics, the sales contribution rate of its store members reaches 85%, the sales contribution rate of customers with 10 years of consumption history reaches 10%, and the contribution to the performance of customers with more than 5 years of consumption accounts for 50%. In addition, in the standardized operation section, MISIFU has formulated 8 store standardized management guidebooks and 16 store standardized retail management tools. The 5.0 version of the store was launched positioning the store in the fashionable new traditional Chinese style. The back counter of the store was upgraded from the original single style and function to a regular skin care area, a key skincare area, a star product area, a mask area, a color cosmetics area, and other sub-regional and multi-level settings. The product display also made a breakthrough in the framework of small categories and color cosmetics and made a multi-point display of key skincare products according to the distribution of consumers browsing in the store. It is worth mentioning that in 2021, MISIFU started to invest in R&D. Prior to that, MISIFU had zero R&D expenses. This means that until 2021, MISIFU's products come from ODM, OEM or OBM factories. However, in 2021, it spends $426 thousand on R&D, accounting for 1.92% of revenue. In the same period, MISIFU's selling expenses accounted for 15.93%, up 21.23% year-on-year. Among its partners, MISIFU has assembled cutting-edge global cosmetic raw material suppliers, production and R&D institutions, and renowned research institutes such as BASF, Firmenich, Korea Kolmar, and Italy Intercos, and has entered into close strategic cooperation with them, aiming to continuously provide users with high-quality skin care.

Hainan Yipin Supply Chain Management Co., Ltd., a wholly-owned subsidiary of Perfect Diary's parent company Yatsen, invested in private equity funds for the first time. The investment company is Suzhou Yuexiang Equity Investment Partnership. The investment amount has not been disclosed. In addition to its own brands such as Perfect Diary and Pink Bear, Yatsen also acquired international brands such as EVE LOM and Galenic. Recently, Hainan Yipin Supply Chain Management Co., Ltd., a wholly-owned subsidiary of Perfect Diary's parent company Yatsen, has added a new external investment. The investment company is Suzhou Yuexiang Equity Investment Partnership(hereinafter referred to as “Suzhou Yuexiang”). The investment amount has not been disclosed. It is reported that Suzhou Yuexiang’s approved establishment date is June 7, 2022, BST (all times in this article are Beijing time). Its main business scope includes private equity funds engaged in equity investment, investment management, asset management and other activities. According to public information, this is the first foreign investment of Hainan Yipin after its establishment in March 2022. But in fact, Yatsen has never stopped investing abroad. At present, the own brands of Yatsen have been launched such as Perfect Diary, Abby's Choice, Pink Bear, etc., but also acquired high-end skin care brands EVELOM, Galenic, and DR.WU (business in mainland China), micro-ecological skin care brand Eantim, makeup brand Little Ondine. As China's local beauty companies are listed one after another, more and more companies have begun to invest in investment funds. Last month alone, two Chinese companies, China's leading daily chemical company Lafang China Co., Ltd and global hyaluronic acid giant Bloomage Biotech, both announced their participation in the establishment of investment funds. On May 19, Lafang China Co., Ltd announced that the equity investment funds it participated in had completed the private investment fund filing procedures with the Asset Mangement Association of China and obtained the Private Investment Fund Filing Certificate. Among them, Lafang China contributed 8 million yuan(about $1.1952 million), with a shareholding ratio of 43.96%. On May 24, the investment fund Hainan Haixi Private Equity Investment Fund Partnership (Limited Partnership), was jointly established by the global hyaluronic acid giant Bloomage Biotech, with a total fundraising scale of 123.3 million yuan (about $18.31 million), targeting investments in the fields of dermatology and life sciences. This is also the first private equity fund that Bloomage Biotech has participated in since its A-share listing. In recent years, the wave of new consumption swept in, which has given rise to a large number of new brands but also attracted capital. Although beauty investment has cooled down compared to the previous two years, it is still a popular investment and investment funds have become standard for listed beauty companies. According to incomplete statistics from CHAILEEDO, these Chinese listed beauty companies have participated in the establishment of more than 10 funds, with a total size of more than 1.5 billion yuan (over 224 million US dollars). Although various listed companies in China have a wide range of investments, they mainly focus on three tracks: new consumption, technology, and the Internet. In this way, the investment targets, in addition to brands, also extend to production enterprises, raw material enterprises, MCN institutions, advertising and marketing companies, etc. in the industrial chain. According to the observation of Qeyes, among the investment targets of the four listed Chinese beauty companies, Marubi, S'Young, Proya, and Lafang, there is basically an MCN institution. According to data from China Internet Network Information Center(CNNIC), as of June 2021, the number of e-commerce live broadcast users in China was 384 million, a year-on-year increase of 75.24 million. In 2021, the transaction scale reached $0.33 trillion, a year-on-year increase of 83.3%, maintaining a high-level speed up. It is estimated that in 2023, the scale of China's e-commerce live broadcast will exceed $0.73 trillion. Obviously, Chinese beauty listed companies do not want to miss the opportunity trends of short videos and live broadcasts. With China's unpredictable market and increasingly stringent regulations, Chinese beauty listed companies are looking to expand into new business areas and seek growth points to enhance their own competitiveness while also receiving the most direct return on investment.

To celebrate World Oceans Day, P&G China shared its secret to plastic reduction in express delivery - air capsules. The packaging is made from a single recyclable material and can be 100% recyclable. In addition, P&G China said it "wants to share the results with the entire beauty industry" and welcomes other Chinese cosmetics companies to purchase from its Shanghai-based manufacturer. In celebration of World Oceans Day, P&G China recently shared on its official WeChat how the company is "reducing plastic" in its courier packaging to provide more feasible solutions to prevent express plastic packaging from entering the ocean. Currently， the Chinese use mainly cartons and plastic to express packaging, with the former accounting for about 87% of the total weight of supplies and the latter for about 10%. The recycling rate of cardboard boxes is high, so pollution and waste are mainly reflected in plastic packaging, of which plastic bags, plastic tape, and express internal plastic cushioning are known as the express industry's "three major pollutions". To target the problem at the source, the supply chain packaging innovation director of P&G Greater China Yang Wanmin led the team to launch the air capsule. It is understood that Yang Wanmin launched a series of e-commerce packaging since 2017 to solve the problem of secondary packaging. According to P&G China, this air capsule uses 100% polyethylene material, which does not require a cardboard sleeve, tape closure, or cushioning material when packing. After use, it does not have to go to the incineration plant, but can return to the recycling plant, and be downgraded to be rebuilt into new plastic packaging or filler. In February this year, the air capsule was awarded the "Double Easy Certification" ("Double Easy" means easy to recycle and easy to regenerate) by the China Petroleum and Chemical Industry Federation and the China Materials Recycling Association, which made it become the first express packaging product in China to receive this certification. Yang Wanmin said he will next lead his team to study how to reduce the cost of air capsules and try to achieve true recycling, including the use of more diverse single materials (such as sugar cane and other renewable resources). After the air capsule debuted at the Shanghai Fair last November, Yang Wanmin's team has been preparing for its mass production. The new production line they have developed is located in Shanghai. Otherwise, the mass production of air capsules started immediately upon resumption of production in Shanghai. Although the air capsule has been awarded 12 patents worldwide, P&G does not intend to use the product exclusively, but "wants to share the results with the entire beauty industry" and welcomes other Chinese cosmetics companies to purchase from its Shanghai manufacturer. It is worth mentioning that reducing packaging waste is also part of P&G China's "Mission 2030", which was launched in 2020. Specifically, "Mission 2030" has three major environmental goals: the first is to achieve carbon neutral operations, reduce greenhouse gas emissions by 50%, use 100% renewable energy in China factories, and reduce carbon emissions by 50% per kilometer of transportation; the second is to achieve 100% recyclable or reusable packaging, and eliminate secondary packaging for 80% of e-commerce products; the last is to improve water efficiency in production by 35%. 3. 35% more efficient use of water for production.

Yunnan Baiyao Toothpaste, a well-known Chinese brand, has announced Chinese actress Zhao Liying as the spokesperson for oral health with 8,992,400 followers on Zhao's Chinese social media platform Weibo. In 2021, Yunnan Baiyao toothpaste gained over 23% of the market share maintaining the No.1 in the industry market share. The Yunnan Baiyao is well known in China and abroad as a century-old brand of products that stop bleeding and heal wounds, reduce swelling and pain, activate blood circulation, and resolve blood stasis. Yunnan Baiyao Toothpaste is an oral care and health care product developed with toothpaste as a carrier, drawing on international advanced oral care and health care technology. Yunnan Baiyao Toothpaste contains Yunnan Baiyao active ingredients. It has the ability to help alleviate gum problems (bleeding gums, sore gums), repair mucosal damage, nourish gums, and improve periodontal health. The Chinese dental care industry entered a period of rapid development in the 1990s when two international toothpaste giants, Colgate and Crest, entered China. In 1998, Chinese toothpaste production reached 2.807 billion units. In 2000, the production reached 3.6 billion units and the annual per capita usage increased to 2.8 units. However, Yunnan Baiyao Group found that after the national oral environment research, the brushing rate of the Chinese population is 85.65%, but only 0.22% of adults achieve good oral hygiene indicators, and the prevalence of periodontal disease reached 99.4%. Gum bleeding, gum swelling and pain, mouth ulcers, periodontal disease, and other symptoms have become the common oral disease of many Chinese people. Coupled with the differences in dietary and oral concepts between the East and the West, traditional toothpaste with the appeal of anti-cavity, whitening and cleaning cannot meet the increasingly diverse and complex oral demands of Chinese people. Therefore, Yunnan Baiyao Group, with the purpose of "integrating traditional Chinese medicine into modern life", has embarked on the exploration of improving the oral health of the Chinese people. According to the Forward Research Institute, China's toothpaste market will grow at a rate of 7%-9% in the next few years. The growth of the toothpaste industry is slowing down, and the market capacity of simple toothpaste is limited. Also according to CBNData report, oral care is showing the demand for diversified taste, segmented efficacy, and refined care. Moreover, when it is difficult to make breakthroughs in the toothpaste market, manufacturing upgrades and product and category innovation have become key grips for Yunnan Baiyao to break through the bottleneck. On the one hand, Yunnan Baiyao's intelligent toothpaste factory with an annual capacity of 500 million tubes of toothpaste was put into operation in 2019, and toothpaste production opened the Industry 4.0 era. On the other hand, it caught up with new consumption and new Chinese trends through new products such as active peptide repair toothpaste and IP cooperation. However, in Yunnan Baiyao Toothpaste's flagship store on the Chinese e-commerce platform Tmall, classic flavors of toothpaste are still its most competitive products, and children's toothpaste and the active peptide repair toothpaste launched last year have been relatively flat. In addition, as the market penetration of mouthwash continues to rise, Yunnan Baiyao has also entered the market to expand oral care products represented by mouthwash. It is noteworthy that earlier this year, Yunnan Baiyao released its 2021 annual report, achieving annual revenue of $5.45 billion in 2021, up 11.09% year-on-year and its net profit attributable to shareholders of listed companies was $420 million, down 49.17% year-on-year. The reason for falling into this dilemma of increasing revenue without increasing profit comes from the loss of nearly $300 million in stock speculation during the reporting period, which became the main reason for the decline in net profit. This is also the first year-on-year decline in net profit attributable to Yunnan Baiyao in 20 years. The annual report shows that in 2021, Yunnan Baiyao invested in 9 stocks including Xiaomi Group, Tencent Holdings, Yili Shares, etc., all with varying degrees of loss, including a loss of more than $209 million in Xiaomi Group, $20.1 million in Tencent Holdings and $18.9 million in Yili Shares. Compared to the overly aggressive securities investment, Yunnan Baiyao's performance in the main business is very flat. Financial data show that in 2021, the health products subsidiary with Yunnan Baiyao toothpaste as its core achieved revenue of $885 million, up 9.7% year-on-year, a further slowdown in growth compared to the previous year. However, the toothpaste category still captured more than 23% of the market share in 2021, maintaining the industry's top market share position.

Relevant Chinese customs anti-smuggling departments successfully cracked a case of offshore duty free business cosmetics in Hainan, arrested 2 suspects, and seized a batch of high-end cosmetics with a value of 1.04 million yuan (about $157,000). Since July, 2020, the gang has organized its family members to Hainan for many times to purchase duty-free commodities from Hainan, and then resell them on e-commerce platforms for profit. A few days ago, the anti-smuggling department of Gongbei Customs District P.R.China successfully cracked a case of smuggling cosmetics from Hainan's offshore duty free "Set Purchase". During the operation, the anti-smuggling department successfully destroyed a smuggling gang, arrested 2 suspects, and seized a batch of high-end cosmetics with a case value of 1.04 million yuan (about $157,000). The seized cosmetics brand products include NARS, ANESSA, Elizabeth Arden, MAKE UP FOR EVER, etc. After investigation, the suspects adopted "family-style" smuggling, using the family's "capital" quota, to organize family members to go to Hainan to buy offshore duty free goods many times, and then sell them again on e-commerce platforms for profit. In addition, recently, Zhanjiang Customs District P.R.China has cooperated with the Hainan Provincial Anti-Smuggling Comprehensive Management Office and other departments to carry out an operation. A total of 12 professional smuggling gangs of "contained purchasing" were destroyed, 12 criminal cases were filed, and 22 criminal suspects were arrested. On the spot, 1,033 pieces of suspected smuggled offshore duty free cosmetics and foreign wine were seized. The case is worth about 50 million yuan (about $7.48 million), and the suspected tax evasion is about 10.5 million yuan (about $1.5708 million). The so-called "Set Purchase" refers to the act of purchasing duty-free goods for others or reselling the purchased duty-free goods in the Chinese market for the purpose of profit, or the act of organizing and using the qualifications and quotas of others to purchase offshore duty-free goods and seek illegal benefits. The illegal behavior of Hainan's "Set Purchase" comes from the preferential offshore duty free policy of Hainan. In June 2020, the Ministry of Finance of the People's Republic of China and other departments jointly issued the "Announcement on Hainan's Offshore Duty Free Shopping Policy", requiring passengers leaving Hainan to have a duty-free shopping quota of 100,000 yuan per person per year (approximately $15,000), with unlimited times. As a result, the illegal act of "Set Purchase" breeds, forming a black industry chain: upstream members line up to buy goods in Hainan duty-free shops, while mid-stream members leave Hainan to pick up the goods, and downstream members would distribute and sell the goods at higher prices to others. It is reported that individuals who purchase and smuggle duty-free goods in China will be included in their credit records and cannot purchase offshore duty-free goods within three years; and those that constitute smuggling or violate China's customs supervision regulations will be dealt with by General Administration of Customs P.R.China based on relevant regulations; if a crime is constituted, criminal responsibility will be investigated according to law. In order to crack down on the illegal acts of "Set Purchase", relevant Chinese departments have also launched many special crackdown actions. In June 2021, Hainan Province held the launching ceremony of a special campaign to combat and control offshore duty-free "Set Purchase" smuggling, and launched a one-year special campaign against this kind of behavior; in January 2022, in order to effectively prevent "Set Purchase" Smuggling risks to ensure the sustainable and healthy development of duty-free shopping consumption, Hainan Province launched a 3-month offshore duty-free "Set Purchase" special campaign to crack down on winter and spring... In addition, Hainan Province has also implemented a "traceability management system", which is affixed with traceable source code sales for three categories of offshore duty-free perfumes, cosmetics, drinks and mobile phones. The traceable source code has a unique global number, which is the unique identification of duty-free commodities in Hainan Free Trade Port. In addition, the product label contains graphic information, exclusive Hainan duty-free logo and duty-free commodity traceability. The law enforcement officers of China Customs can inquire about the products, sales, delivery and other information just by scanning the commodity traceability source code. The traceable source code also adopts an anti-tear damage design. If it is forcibly torn up, it will destroy the overall packaging of the product. Even if it is torn by hand or scraped with a knife, it is difficult to destroy the traceable source code, and even if a small part remains, traceability can be achieved.

Shenzhen Soocas Technology Limited Company(hereinafter referred to as "Soocas") has updated its prospectus to continue the process of listing on the Second-board Market with China Merchants Securities as the sponsor. Founded in 2015, Soocas entered the personal health care market with electric toothbrushes and later expanded its product categories to beard care and hair care. At present, Soocas focuses on the head care scenario and formed three product categories of oral care, beard care, and hair care. Its products are divided into private brand products and Xiaomi custom home brand products. Its brands include its main private brands "Soocas" "AIRFLY "and "Pinjing". The main business revenue of Soocas in the term of product category mainly includes oral care products, which accounted for 61.71%, 59.2%, 59.31%, and 58.12% of revenue in the reporting period (from 2019 to 2021) respectively. This category is the main source of revenue. Among them, the main product electric toothbrush sales from Xiaomi's brand accounted for 59.86%, 53.74%, and 45.85%, respectively. According to CHAILEEDO observation, the IPO of Soocas was accepted by the Shenzhen Stock Exchange in November 2021, and in March 2022, the status of Soocas IPO in the Second-board Market was changed to "suspended". In the prospectus, Soocas Technology said that the amount and proportion of affiliated sales in the reporting period is relatively high, and if the Xiaomi Group's future purchases from it drop significantly, its business and operating results will be adversely affected. It is reported that Soocas is one of the Xiaomi ecological chain enterprises focusing on personal care and small home appliances, Xiaomi Group is the company's largest customer in the reporting period. The company and Xiaomi Group-related sales amounted to $94.03 million, $124.4 million, and $156.3 million, accounting for 61.31%, 60.60%, and 55.81% of the current operating income, respectively. The amount and proportion of related sales in the reporting period are relatively high. In recent years, Soocas has quickly become the trendy brand among influencers in the electric toothbrush category. Same as most trendy small appliances, Soocas has highlighted the drawbacks of marketing rather than R&D. During the reporting period, Soocas Technology, the company's sales expenses were $20.17 million, $39.09 million, and $65.94 million, respectively, and the sales expense ratio was 13.15%, 19.04%, and 23.54%, respectively, and the sales expense ratio increased more rapidly. Among them, advertising and marketing expenses became the main part of selling expenses. During this period, the amount of advertising and marketing expenses of Soocas Technology were $9.9 million, and $27.8 million, and $48.8 million, accounting for 49.11%, 71.1%, and 74.03% of the operating revenue respectively. The prospectus shows that Soocas creates new marketing through various forms, which is an important reason for the year-on-year increase in the amount of advertising and marketing expenses. On marketing channels, Soocas mainly reaches different consumer groups through in-station promotion tools of Tmall and other platforms and online new media promotion tools such as TikTok, Xiaohongshu, WeChat, Weibo, etc., and creates new marketing in various forms including a live broadcast by influencers, and KOLs. In this regard, Soocas explained that, along with the diversification of online marketing channels and forms, brand awareness has become a key element for the company to participate in market competition. Increased investment in marketing is an inevitable requirement to enhance the visibility of its own brand and expand its business scale, and how to define, and communicate the brand connotation and gain consumer recognition has become the key to performance growth. However, from 2019 to 2021, the investment in R&D of Soocas is only about 1/6 of the sales expense, and the R&D expense ratio never exceeds 5%, and the R&D investment from 2019 to 2021 is 4.88%, 3.35%, and 3.55% respectively. And the perennial low R&D expense ratio may have a non-negligible impact on product quality. It was found that in the Heimao complaint platform, the quality of the product complaints about the Soocas product problems frequently, including but not limited to "electric toothbrush charging fire", "hair dryer after the warranty is bad", "water floss false marketing "and so on. Under the consumer upgrade, small personal care appliances are constantly facing more diversified needs of consumers, and need to accurately judge the market trend, and grasp the trend of consumer demand promptly. Based on this constantly launching product with new shapes, new functions and new experiences, Soocas should meet the market demand in order to consolidate its competitive advantages and market position. In the prospectus, Soocas' stated that if the key technologies are not broken through during the research and development process, the performance indicators do not meet the expectations, the trend of market demand is misjudged, or the market demand changes significantly at that time, or the competitor with similar functions is launched first, it will lead to the new product market acceptance is not as expected and the initial investment is difficult to be recovered, which will have an adverse impact on the performance and market competitiveness.

Chinese fragrance brand TSICY has launched a new fragrance of the Ta Xiang series, Jasmine Heart, which is a citrus-floral fragrance that claims to last for 8 hours. The product is sold on a WeChat mini program for 399 yuan ($60). The brand's products are positioned as Chinese characteristic botanical fragrances. Its chief perfumer has 30 years of experience in perfumery and has worked for famous fragrance companies like Givaudan. The series debuted in March 2022, and its collaboration with internationally renowned independent perfumer, and perfume industry "Oscar" FIFI award winner Nathalie Feisthauer. The inspiration for the first fragrance "Pei Lan Dang Gui" is "Peilan attracts butterflies", which compares a long-staying butterfly to a wanderer who is missing his hometown, meaning "when living in another country, but his heart has a hometown", while Pei Lan is a precious Chinese medicinal herb. The perfumer combined the scent of angelica, bay leaf, mugwort, and many other oriental herbs to create a sense of leisure and fun in the spring. The bottle design of the "Stone in the Stream" is inspired by the stacked pebbles in the stream, which is the original design of the brand, signifying "the natural scent drawn from the forest stream". The outer packaging of the product uses Chinese characters as the elements, combining the beauty of natural dynamics such as wind, fog, and smoke, interpreting the brand's positioning of "writing oriental, plant fragrance". China is an ancient aromatic country, with the reputation of being "the land of fragrance". China's aromatic culture has a long history of more than 5,000 years and is one of the genes of oriental life aesthetics. In this context, the main oriental plant fragrance brand TSICY was officially launched in June 2020, and the brand has achieved rapid and steady development in just one year, entering the TOP list of perfume subcategories on many platforms. Several of the founders of TSICY are industry veterans and serial entrepreneurs: MAX is a former executive of P&G and SC Johnson Max and the founder of the book-sharing platform "Reading on the Road". Ding Bangqing was the president of the No. 1 Chinese advertising stock, the provincial broad group, and is also China's top brand strategy expert; Liu Xiongjian is a P&G alumnus and co-founder of Plant View, and also the vice chairman of Guangdong Cosmetic Association. They also have a common label: Chinese aroma culture enthusiasts. Compared to general perfume brands, TSICY's brand barriers lie in the advantages of the whole industry chain in raw materials, technology and product development - TSICY(similar pronunciation of Qixi), which belongs to the Qixidi Fangxiang Group, has a wild aromatic plant base covering an area of 8 million square meters and the only commercial fragrance science and technology research institute in China, and the intangible cultural heritage Lingnan ancient incense-making techniques. It can be said that Qixidi is the origin of the TSICY. With 327 species of wild aromatic plants, Qixidi is a natural treasure trove of aromatic raw materials, providing a rich source of inspiration and materials for fragrance creation. Qixidi's thousand-year heritage of oriental fragrance culture also allows the brand's products to incorporate more oriental aesthetics and cultural expression. These resources offer TSICY a unique advantage in user understanding, scent inspiration, and fragrance innovation. The brand is dedicated to the heritage of Chinese aromatic culture following the ancient method of making natural incense and is committed to creating more oriental characteristics of fragrance. "We have the heritage of non-heritage incense-making skills, and we will spare no effort to do this. We think this direction should be one of the creative directions for oriental fragrances." The head of the brand was introduced. TSICY's positioning is very clear and focused, only doing things related to "fragrance". At present, the brand mainly focuses on perfume but also has other categories such as aromatherapy and perfume candles. Among them, the star product of TSICY is the "Oriental Love Letter Gift Box", a series of Yijing jointly created by the brand and WeChat's head self-media "Shu Dan", which was launched on Chinese Valentine's Day to convey the idea of "reading love in the scent". Inspired by Chinese reading culture, the gift box is shaped like a book and contains three fragrances: Peach Blossom Sandalwood with floral and fruity woody notes, Snow Dipped Camellia with floral notes, and Misty Moon and Bamboo Shadow with herbal and woody notes. The team took the poem as inspiration when creating the fragrance, and joined hands with international fragrance giants Givaudan and others to jointly create the fragrance, interpreting the beauty of different Eastern moods. It is worth noting that for TSICY, online and offline channels are both interrelated and empowering to each other, so the brand is also developing in a two-pronged way in parallel. At present, TSICY has been entered in Tmall, TikTok, and Xiaohongshu platforms. In offline channels, it has also been sold in a number of beauty collection stores and life goodies collections and occupies the TOP list of segmented perfume categories in each channel.

Recently, Chongqing Dencare, the parent company of one of China's traditional toothpaste brands, "Leng Suan Ling", submitted a prospectus and plans to be listed on the main board of the Shenzhen Stock Exchange. According to the prospectus, the company's revenue was $170 million in 2021, a year-on-year increase of 10.97%. Its core brand, Leng Suanling, has become the second largest Chinese toothpaste brand in offline retail. Recently, Chongqing Dencare, the parent company of one of China's traditional toothpaste brands, "Leng Suan Ling", submitted a prospectus and plans to be listed on the main board of the Shenzhen Stock Exchange, with China Securities as the sponsor. According to public information, Dencare was established in 2001 and is mainly engaged in the research and development, production and sales of oral care products. It owns brands such as Lengsuanling, Medipair, KechiKechi, and Monyum. Its categories include toothpaste, mouthwash, toothbrush, etc. As the core brand of Dencare, the prospectus shows that from 2019 to 2021, Leng Suanling accounted for 60.08%, 61.00% and 59.61% of the Chinese offline market in the anti-allergic segment respectively. According to Nielsen's offline retail statistics in 2021, Leng Suanling toothpaste ranks fourth in the industry and second in China's local brands in terms of retail sales in China. According to the prospectus, from 2019 to 2021, Dencare's revenue and net profit have maintained a steady upward trend, with revenue of $141 million, $154 million and $171 million respectively, and net profit reached $9 million, $14 million and $18 million respectively. From the perspective of sub-categories, from 2019 to 2021, the sales of adult toothpaste category were $116 million, $126 million and $134 million US dollars, accounting for 82.14%, 81.92% and 78.90% of the main business income respectively. It is worth noting that although the revenue of adult toothpaste is relatively large, its proportion is declining year by year. Dencare explained in the prospectus that the sales volume of adult toothpaste is increasing year by year, but with the continuous enrichment of the product matrix and the continuous improvement of product structure, the proportion of income contributed by adult toothpaste is decreasing year by year. On the contrary, the sales revenue of children's toothpaste shows an increasing trend every year. From 2019 to 2021, the sales of children's toothpaste are $6.0858 million, $9.0173 million and $11.1419 million respectively, with a compound growth rate of 35.31%. Toothpaste has become Dencare's fastest growing toothpaste segment. Dencare explained in the prospectus that there are two reasons: on the one hand, the company is actively deploying the Chinese children's oral care product market, increasing the integrated communication of "KechiKechi" children's toothpaste, the distribution coverage of online and offline channels, and terminal promotion activities; On the other hand, due to the improvement of the company's children's toothpaste product matrix and product upgrades, the sales unit price of high-end new products has increased. According to Nielsen retail research data, in 2021, the retail sales of "KechiKechi" children's toothpaste increased by 27.54% compared with 2020, leading the industry in growth rate. In 2021, the company's children's toothpaste China offline retail market share was 7.15%, ranking fifth in the industry. In addition, in terms of product research and development, from 2019 to 2021, Dencare's research and development expenses were $4.527 million, $4.7354 million and $5.3064 million respectively, accounting for 3.21%, 3.08% and 3.11% of the current operating income, respectively. As of 2021, Dencare had obtained 170 authorized patents in China, including 14 invention patents, 35 utility model patents, and 121 design patents. It is reported that the Dencare IPO raised $99 million, of which $33 million was used for intelligent manufacturing upgrading and construction projects, $55 million was used for omni-channel marketing network upgrades and brand promotion projects, $5.229 million was used for oral health research center construction project, and $5.229 million for digital management platform construction project.

Chinese makeup brand Amortals has launched a new space powder, which uses the concept of space and weightlessness to create a lightweight casing and claims to be super hydrophobic and oleophobic, which is Amortals' seventh foundation, priced at $13.5 in its official flagship store on the Chinese e-commerce platform Tmall. Amortals specializes in beauty tools and makeup. In its official flagship store, the highest sales is Amortals powder puff, which sells for $4.5 with monthly sales of 90,000 units. The puff enjoyed patented innovation technology of the "double raincoat". This research took as long as 5 years. In order to solve the pain points when user makeup, the use of waterproof and oil-resistant ingredients will wrap up powder in 360 degrees as if a waterproof and oil-resistant double raincoat for the user's makeup. Because of the super hydrophobic and oleophobic, oxygen permeable, breathable, film-forming, and non-clogging pores, it solves the pain point of users sweating off their makeup in summer. Amortals is an exquisite niche beauty tool brand created in South Korea, and founded in 2014. In 2016, Amortals decided to especially extend the Chinese market and it changed its brand and its production line to China, while the brand strategy shifted from skincare to the direction of beauty tools. With the design concept of "start from the heart, make every product", it pursues the ultimate in luxury, low-profile, and high-gloss design style, carefully selects products and materials, and constantly explores products suitable for Chinese women, and diligently pursues simple but extraordinary perfection with the spirit of craftsmanship. In 2018, Amortals broke the stereotypes and launched an innovative product - Star Beauty Makeup Sponge, which was handpicked as the "best beauty egg" by multiple Chinese stars such as Zhang Jia Ni, Cai Wenjing, Sun Jian, Ming Dao, and Yu Wenwen and some beauty bloggers such e are dedicated to it. At the same time, it is also a must-have product for celebrity makeup artists such as Gao Jin, Yang Shan, and others. After gaining a reputation, in the whole network channel, you can see Amortals products almost everywhere. In the online channel, Amortals is available on more than 50 platforms, including the Tmall flagship store, Jingdong, Vipshop, Xiaohongshu, Amazon, and so on and it has as many as 5000 distributors. For 3 consecutive years, Amortals was the No.1 in the beauty tools category on the Internet. The following year, Amortals entered the makeup field, and its makeup products, such as mascara, loose powder and isolation, were highly recommended by celebrities and bloggers, and were ranked in the TOP of 2020 Beauty Awards in 2020. To date, the entire brand and production line of Amortals is produced in China. With the increasing influence of the brand, Amortals, which is determined to deepen its brand influence and maintain its long-term development, started to expand its market offline. In just over a year, Amortals has reached 30,000,000 offline sales outlets, covering mainstream offline channels such as fast fashion chains, CS stores, KA and so on Sales director He Xu from Hangzhou Chuanxi Technology Co., Ltd. (hereinafter referred to as "Chuanxi"), the offline general agents of Amortals, said, "The precipitation and accumulation of the brand depend on offline, which is an important channel for product updates and iterations." In its offline channel, the new consumer brand Amortals has worked with the Chinese social platform Xiaohongshu to create pop-up stores and invited beauty influencers on Xiaohongshu to experience its offline stores and share their trial experience. In its online, Xiaohongshu Beauty Intelligence Bureau has joined hands with the four main broadcasters to sell its products in their live streaming. The brand has not only gained all-around exposure and GMV growth but also completed the precipitation of brand assets on Xiaohongshu. In the mainstream social media platforms where young people gather, such as Xiaohongshu, Weibo, TikTok China, and Bilibili, Amortals is almost everywhere. Searching for "Amortals" on Xiaohongshu, there are more than 430 related products and over 50,00 notes. Amortals respect every small and exact need and provide users with practical solutions to the pain points of foundation makeup. Instead of following the footsteps of popular products in the market and being only a producer, it has become a product developer, giving each member of the Amortals exclusive branding. In the future, Amortals will also always stick to its original intention to create better, more realistic, and comprehensive products to meet the public's demand for exquisite makeup.

To celebrate World Environment Day, L'Oréal (Hong Kong) and global beauty and personal care retailer Watsons plan to collect 250,000 empty bottles within one year of the campaign’s launch. As of December 2021, L'Oréal (China) has recycled more than 150 tons of empty bottles in China. To celebrate World Environment Day on June 5, L'Oreal (Hong Kong), Watsons, a global beauty and personal care retailer, and V Cycle, a Hong Kong-based environmental company, jointly launched the "Continue Beauty" recycling program. Empty bottles of cosmetics and skin care products of all brands can be recycled at 170 Watsons stores in Hong Kong, China, and consumers can also send these empty bottles to more than 100 independent stores and department store counters of L'Oreal (Hong Kong). After all the empty bottles are collected, V Cycle will sort them, decomposes them, and then converts them into new materials. It is reported that the goal of the program is to collect 250,000 empty bottles within a year since the launch of the campaign. Having been developing deeply in China for 25 years, green and sustainable development has always been a vital part of the L'Oreal Group's strategy. In 2015, L'Oréal (China)'s Tianmei factory in Yichang became the first carbon-neutral factory of the L'Oréal Group in China by using hydroelectric power. In 2019, the Suzhou Shangmei factory achieved carbon neutrality by using solar, wind, and biomass energy to power and heat the factory. In addition, L'Oréal (China) adheres to the principle that China needs local procurement in China, and successively uses green power in multiple operating sites. As of 2019, L'Oréal (China) has achieved the goal of "carbon neutrality" for all operating facilities including factories, distribution centers, R&D centers, and offices. It is reported that all products and packaging of L'Oreal (China) involve 1,600 kinds of plant-based materials, and the raw materials are taken from more than 100 countries and about 350 different plant species. In order to protect biodiversity, L'Oreal (China) continuously improves the conversion rate of raw materials through new biotechnology, fermentation, green chemistry principles, etc., and insists on R&D innovation to increase the proportion of renewable ingredients in products. In addition, L'Oreal (China) brand also adopts sustainable alternative packaging, and plans to achieve 100% plastic packaging by 2025. And all the plastic packaging will be secondary filled, reusable, recyclable, or made into fertilizer; Meanwhile, since 2018, L'Oreal (China) has launched empty bottle recycling projects in more than 400 brand stores in China. By December 2021, the total amount of empty bottle recycling has exceeded 150 tons. In 2022, L'Oreal (China) released the "Beauty OneHealth Project" plan. In order to realize the implementation of the plan, L'Oreal (China) adopted a "green science" approach to comprehensively transform product raw materials, active ingredients and formula combinations, and is committed to creating beauty products that respect the environment. Today, 59% of L'Oréal's raw ingredients come from renewable plant sources, and 80% are readily biodegradable. To facilitate the sustainable transformation of L’Oréal (China)’s upstream and downstream value chains, L’Oréal (China) will also start cooperation with 100 suppliers in China this year, sharing L’Oréal Group’s experience in energy conservation and emission reduction, and invite representatives from other companies, energy management or renewable energy experts on solutions to reduce carbon emissions. At the same time, L'Oréal Group will also invite consumers to participate in sustainable actions, such as recycling packaging, to help consumers build awareness.