Xiefuchun Reported Net Loss for Three Consecutive Years

On April 24th, Xiefuchun reported 14.67 million yuan ($2.12 million) net loss in 2022. The company reported net loss for three consecutive years.

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On April 24th, the well-established domestic brand JIANGSU XIEFUCHUN CHINESE CLASSICAL COSMETICS CO.,LTD (Xiefuchun) released its 2022 financial report. In 2022, Xiefuchun's revenue reached 20.2 million yuan ($2.92 million) a decrease of 47.62% compared to the same period last year. The company reported 14.67 million yuan ($2.12 million) net loss in 2022. In 2021 and 2020, Xiefuchun reported losses of 6.15 million yuan ($0.89 million) and 3.91 million yuan ($0.57 million), respectively.

In terms of the main products, modern skincare ranked first in revenue, with revenue of 8.15 million yuan ($1.18 million) last year, a decrease of 40.17% year-on-year. The revenue of the intangible cultural heritage category last year reached 5.41 million yuan ($0.78 million), a decrease of 53.79% compared to the same period of 2021. The makeup category revenue decreased by 51.65% to 4.18 million yuan ($0.60 million). The newly established fragrance category product revenue last year was 180,000 yuan ($26014), with a gross profit margin of 58.63%.

Xiefuchun stated that in 2022, due to the continuous downturn in the macroeconomic factors, the domestic consumer market demand remained sluggish. The company's stores were mainly located in well-known tourist attractions, which were more affected. The offline channels were relatively narrow, and the market's ability to resist risks was weak. The emerging market channels have not yet been fully opened, but with the comprehensive recovery of the domestic market economy in 2023, the company's operating income will significantly increase.

According to public information, Xiefuchun was founded in the tenth year of the Qing Emperor Daoguang (1830) and has been around for nearly 200 years. It is also the first cosmetics company in China and was listed on the stock market in 2015. Its "Xiefuchun Duck Egg Powder" is famous for its duck egg-like appearance and is also its most popular cosmetic product.