Shanghai Chicmax Cosmetic (2145) H1 2023 earnings summary

Executive summary

• H1 revenue rose 25.7% YoY to RMB1,586.8 million; gross profit increased 33.7% to RMB1,095.5 million, and profit for the period grew 60.7% to RMB100.9 million.

• Growth was led by KANS and online direct sales, particularly through Douyin; One Leaf and Baby Elephant revenue declined amid brand repositioning and competition.

Financial highlights

• Revenue was RMB1,586.8 million versus RMB1,262.4 million; gross profit was RMB1,095.5 million versus RMB819.5 million.

• Profit attributable to owners was RMB100.965 million versus RMB65.339 million; basic and diluted EPS was RMB0.25 versus RMB0.18.

• Selling and distribution expenses rose to RMB850.6 million from RMB607.9 million; marketing and promotion expense increased to RMB629.7 million from RMB409.7 million.

• Operating cash flow was RMB171.6 million, versus RMB74.6 million used in H1 2022; cash and cash equivalents were RMB581.0 million at 30 June 2023.

Outlook and guidance

• Priorities include strengthening KANS, One Leaf and Baby Elephant, developing new brands, and investing in anti-aging and skin-barrier R&D.

• Plans include expanding online and offline distribution, deepening Douyin activity, improving Tmall/Taobao performance, and developing international R&D, business presence and brand awareness.

• KANS will pursue advanced anti-aging technologies; One Leaf plans R&D in plant extraction and skin-barrier repair; Baby Elephant targets safe, additive-free products.