Pientzehuang Sold ￥350m of Cosmetics & Daily Chemicals in 2022 H1, Dropped About 20%
- Chaileedo Press
- Aug 23, 2022
- 3 min read
Updated: Aug 29, 2022
Abstract: Pientzehuang 2022 achieved revenue of 4.423 billion yuan in the first half year, up 14.91% year-on-year. Among them, the Cosmetics and Daily Chemical Industry achieved revenue of 350 million yuan, down 19.08% year-on-year.
Recently, Zhangzhou Pientzehuang Pharmaceutical Company Limited (hereinafter referred to as "Pientzehuang") released 2022 interim financial data. In the first half of the year, Pientzehuang achieved revenue of 4.423 billion yuan, up 14.91% year-on-year. Operating profit was 1.598 billion yuan, up 18.73% year-on-year; net profit attributable to shareholders of the listed company was 1.314 billion yuan, up 17.83% year-on-year. Basic earnings per share are 2.18 yuan/share.
Public information shows that Pientzehuang's Cosmetic business includes multiple brands such as "Pientzehuang" and "Queen", among which the "Queen" brand has started the high-end upgrade brand to build an affordable luxury Herbal skincare brand. In addition, its Daily Chemical business also includes the company's holding subsidiary Zhangzhou Pientzehuang Shanghai Jahwa Oral Care Co., Ltd., which mainly promotes Pientzehuang toothpaste and launches toothpaste and mouthwash categories with "heat-clearing" as its core positioning.
The financial report shows that in the first half year, Pientzehuang Cosmetics and Daily Chemical Industry achieved revenue of 350 million yuan, down 19.08% year-on-year; operating cost was 122 million yuan, down 7.55% year-on-year; gross profit margin was 65.2%, down 4.34 percentage points compared with last year.
It is worth mentioning that the financial report shows that the construction in progress of Pientzehuang in the first half year is 40.5171 million yuan, rising 171.17% year-on-year, mainly due to the increase of investment in the Pientzehuang Science and Technology Building Construction Project and Pientzehuang Cosmetics Phase III Project. The projects are divided into two projects of Pientzehuang Great Health Intelligence Manufacturing Industrial Park and Pientzehuang Health Beauty Park. Among them, the product scheme of the Healthy Beauty Park project is special efficacy skin care products such as Skin Whitening Flawless Moisturizing Series, Age-locking Firming Series, Barrier Repairing Moisturizing Series, and Queen Series (cream type).
In fact, Pientzehuang's footsteps of increasing investment in the cosmetic business have never stopped, and its total equity investment in the first half year is 340 million yuan, up 1751.27% year-on-year, including 158 million yuan invested in subsidiary Pientzehuang Cosmetics and sub-subsidiary Fujian Pientzehuang Cosmetics Co., Ltd., accounting for 46.65% of total investment in the first half of the year.
As early as 2014, Pientzehuang proposed to focus on traditional Chinese medicine production and extend to two major fields of Daily Necessities Cosmetics and Food and Health products. At present, Daily Necessities and Cosmetics roughly account for 10%-15% of the company's revenue and 13%-18% of gross profit.
Of course, the "Time-honored brand" is a resource, but it may also become an obstacle to the brand revival. In fact, Pientzehuang also noticed this point and tried to reshape its brand image by increasing marketing investment. In 2020, its sales expense is 646 million yuan and its R&D expense is 97.55 million yuan, accounting for 1.50% of total revenue. In 2021, its sales expense was 650 million yuan and R&D expense increased to 199 million yuan, accounting for 2.49% of total revenue.
The online channel has now become the main position of Pientzehuang Cosmetics. Focusing on brand rejuvenation and upgrading, in terms of spokesman matrix, besides Qin Hailu, the spokesman of Pientzehuang Cosmetics, Queen Cosmetics signed Chen Shu and Bai Lu as spokesman in 2021. On August 10, Pientzehuang Cosmetics officially announced Chen Du Ling as the spokesman of the Age-locking Firming Series.
At the same time, at the end of last year, Pientzehuang launched a new product of Men's Oil-controlling Fresh Series again after 25 years of precipitation in the men's cosmetic field to expand its share in the men's market.
In fact, the brand awareness and brand heritage of century pharmaceutical enterprises are advantages that new brands cannot buy with money. But in order to have a breakthrough in the cosmetics industry, it is important to develop more good products.
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