Symrise’s Ingredients Supplier Slips 8.28% in Cosmetics Business
- Chaileedo Press
- Feb 22, 2023
- 2 min read
Updated: Apr 3, 2023
SINOHIGHCHEM is the exclusive supplier of HAP products sourced by Symrise in China.
Recently, cosmetic raw material supplier SINOHIGHCHEM disclosed its annual report. The annual report shows that in 2022, the company achieved an operating revenue of 398 million yuan ($57.7 million), up 16.39% year-on-year. Its net profit achieved 107 million yuan ($15.5 million), up 61.32% year-on-year.
Public information shows that SINOHIGHCHEM is mainly engaged in the research and development, production and sales of aromatic ketones, and its products involve special engineering plastics, light-curing materials, cosmetics and pharmaceuticals, pesticides and many other fields.
The company's cosmetic-related business involves HAP products, which, as a functional cosmetic ingredient with multiple effects such as antioxidant, soothing, emulsion stabilization and anticorrosion, have been included in the Inventory of Existing Cosmetic Ingredients in China 2015 (2015 edition).
Due to the restriction of traditional cosmetic preservatives by relevant policies and regulations and the increase in consumers' demand for product safety, new functional cosmetic ingredients represented by HAP have been increasingly recognized and welcomed by the market in recent years.
SINOHIGHCHEM is the exclusive supplier of HAP products sourced by Symrise in China. CHAILEEDO notes that in its annual report, SINOHIGHCHEM reiterates the importance of its successful cooperation with Symrise over the years and believes that it will have a positive effect on future cooperation in other product areas.
It is worth noting that SINOHIGHCHEM's cosmetic ingredients business generated revenue of 46,444,000 yuan ($6.734 million) in 2022, while this business generated revenue of 50.634 million yuan ($7.3 million) in 2021, representing an 8.28% decrease in revenue year-on-year. On the basis of the overall breakthrough in performance, why did the cosmetic ingredients business of SINOHIGHCHEM decline?
The explanation given by SINOHIGHCHEM during a survey conducted by some investors on 26 September 2022 was that "due to the fluctuation of raw materials, the price of HAP products will be adjusted periodically according to the price of raw materials and other factors. The fluctuation in gross margin of this product in the first half of the year was mainly affected by fixed cost sharing." According to public information, SINOHIGHCHEM plans to add 2,000 tons of HAP production capacity, which is nearly half of the total existing business capacity of 4,200 tons.
At the same time, regarding the company's future outlook in the field of cosmetic ingredients, SINOHIGHCHEM said that it will work closely with downstream customers and research institutes to focus on the downstream application scenarios of cosmetic ingredients and produce products with greater development potential in order to develop new profit growth.
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