CHICMAX released its 2023 interim results, with net profit increasing significantly by 60.7%

SHANGHAI, Sept. 5, 2023 /PRNewswire/ -- On August 30, 2023, CHICMAX Co., Ltd. (hereinafter referred to as "CHICMAX ") (02145.HK) released unaudited interim results for the six months ended June 30, 2023. The double growth in revenue and net profit during the reporting period was mainly due to the promotion of its multi-dimensional development strategies such as grasping new channels, building new brands, and continuing to invest in scientific research.

Achieve double growth in revenue and net profit:

Revenue was 1.59 billion yuan, a year-on-year increase of 25.7%; Gross profit was 1.10 billion yuan, a year-on-year increase of 33.7%; gross profit margin increased from 64.9% in the first half of 2022 to 69.0% during the reporting period; Net profit was 100 million yuan, a year-on-year increase of 60.7%.

Operating cash has improved significantly, and earnings per share have increased:

The company's operating cash changed from an outflow of 74.6 million yuan in the first half of 2022 to an inflow of 170 million yuan during the reporting period; EPS increased from 0.18 yuan in the first half of 2022 to 0.25 yuan during the reporting period, an increase of 38.9%.

The proportion of DTC and online business has increased significantly:

DTC revenue proportion increased from 70% in 2022 to 83% during the reporting period; The proportion of online revenue increased from 75% in 2022 to 81% during the reporting period.

Multi-brand efforts, the growth rate of Kans is impressive, and the new page of the new brand has a strong growth

CHICMAX. is a multi-brand cosmetics company that focuses on the R&D, manufacturing and sales of skin care products, maternal and infant care and toiletry products. Since its establishment more than 20 years ago, it has focused on implementing a multi-brand strategy and successfully created Kans, One Leaf and The Baby Elephant and other popular cosmetics brands meet the diverse needs of different consumers. Today, CHICMAX is one of the leaders in China's cosmetics industry with comprehensive multi-brand development, operational capabilities and professional knowledge.

In the first half of 2023, the revenue of Kans, One Leaf, The Baby Elephant and other brands accounted for 64.8%, 12.8%, 11.9% and 10.5% of the total revenue respectively.

Among them, Kans's revenue in the first half of 2023 was 1.028 billion yuan, a year-on-year increase of 70.3%, mainly due to the brand's explosive performance on the Tik Tok channel. According to public data, in the first half of 2023, the 20-year-old super brand Kans won the Tik Tok beauty brand sales ranking of TOP1 in the domestic product list and TOP2 in the overall list. The sales volume of Kans's core explosive red waist series in all channels reached 1.5 million+ sets, repeatedly on the repurchase list TOP1.

In recent years, Tik Tok has become an emerging traffic platform in the beauty market. CHICMAX is keenly aware of this trend and quickly adjusts its business strategy to respond to market changes. In 2019, CHICMAX took the lead in deploying Tik Tok channels, and now has a unique methodology to help brand sales grow.

Newpage, a Chinese infant and child skin care brand that focuses on the mid-to-high-end market, is also a highlight of its performance. newpage was launched in May 2022. Within one year of listing, newpage achieved rapid growth and performance breakthroughs, growing exponentially. Sales in the first half of 2023 were more than double that of the whole year of 2022, which has become a new growth curve for the group.

Newpage's rapid breakthrough in the infant and child care industry is inseparable from the strong support of its "medical research co-creation" innovation model and its product strength. As the industry's first truly "co-creation of medical research" brand, newpage was co-founded by well-known actress Zhang Ziyi, parenting expert Cui Yutao, and scientist Dr. Huang Hu, closely combining clinical experience and scientific research technology. At present, the newpage has laid out three major directions: skin care, washing and cleaning. In terms of channels, in addition to its online e-commerce platform, newpage also enters offline channels such as Watsons, maternal and infant offline stores, and confinement centers.

R&D investment leads the industry, with cost-to-income ratio reaching 3.4%

In the first half of 2023, CHICMAX scientific research expense ratio will be 3.4%, and 24 new patents will be added. Among them, the self-developed Chinese anti-aging ingredient-"cyclopeptide", has better anti-aging and anti-aging properties than ordinary linear peptides. Fine lines, firming skin and other effects. At present, cyclic peptide has applied for 6 patents, helping the rise of Chinese ingredients.

In the domestic beauty and cosmetics industry, R&D strength has gradually become the key to the success of the company's future development. As a leader in domestic cosmetics, CHICMAX has deployed independent research and development since its establishment in 2003. In 2016, CHICMAX began to enter into basic research, and now has built a R&D team of 200+ people, created two major scientific research centers at home and abroad, and has obtained about 200 patents and multiple basic research results, with fruitful results. Nearly 20 years of independent scientific research have accumulated strong R&D advantages for the company.

In addition, CHICMAX actively cooperates with universities and professional institutions to form a closed-loop link of industry-university-research. In the first half of 2023, CHICMAX and Shanghai Jiaotong University will jointly establish a "Joint R&D Center for Skin Care Functional Raw Materials", and will make new attempts in the fields of biomolecular design and plant molecular transformation in the future.

As the "No. 1 domestic beauty cosmetics stock in Hong Kong stock market", the growth history of CHICMAX for more than 20 years is also a portrayal of the growth of Chinese cosmetics brands. Multi-brand strategy, creating leading scientific research, rooted in China, facing the world, and committed to building a world-class cosmetics group.

About CHICMAX

CHICMAX Co., Ltd. (stock code: 02145.HK) was established in 2002. It is a multi-brand domestic cosmetics industry leader empowered by scientific research. Its many well-known brands include Kans, One Leaf, The Baby Elephant, etc. The layout is multi-category and multi-channel. The main business covers the three major tracks of skin care, mother and baby, and washing and care. It has two scientific research centers at home and abroad and an international supply chain.

Adhering to the corporate culture values of "Because I like it", "Diversity, Optimism, Innovation, and Inheritance", CHICMAX is committed to being a world-class influential cosmetics company and making products that are loved by consumers around the world.

On December 22, 2022, CHICMAX was listed on the Hong Kong Stock Exchange.

For more information, please log on to the company's official website for more consultation: http://www.chicmaxgroup.com/ 

Investor contact information:

CHICMAX Investor Relations Team:
[email protected] 

SOURCE CHICMAX Co., Ltd.