Core Insights - The core viewpoint of the article highlights the significant slowdown in the growth of Proya, a leading domestic beauty brand, with a notable decline in both revenue and net profit in the third quarter, raising concerns about its marketing-heavy strategy and lack of technological innovation [1][3][16]. Financial Performance - In the first three quarters, Proya achieved revenue of 7.098 billion yuan, a year-on-year increase of 1.89%, and a net profit of 1.026 billion yuan, up 2.65%. However, these growth rates have significantly slowed compared to the first half of the year [3][5]. - The third quarter saw a dramatic decline, with revenue dropping 11.63% year-on-year to 1.736 billion yuan and net profit plummeting 23.64% to 227 million yuan, marking a rare double-digit negative growth for the company [3][5]. - The main brand, Proya, reported a slight revenue decrease of 0.08% in the first half, which is the first negative growth in five years, indicating a troubling trend for the brand that contributes over 74% of total revenue [5][9]. Marketing and R&D Expenditure - Proya's sales expense ratio reached a historical high of 49.66%, meaning nearly half of every 100 yuan in revenue is spent on marketing, while R&D expenses accounted for only about 2% of revenue, highlighting a significant imbalance [1][7][9]. - In the first half of 2025, Proya's sales expenses amounted to 2.659 billion yuan, with a sales expense ratio of 49.59%, which did not improve in the third quarter [7][9]. - The company’s R&D expenses were only 141.89 million yuan in the first three quarters, representing about 2% of revenue, which is significantly lower than other domestic beauty brands and international giants [9][12]. Market Position and Consumer Behavior - Proya's attempt to transition to high-end products has been met with challenges, as consumer preferences are shifting towards medical beauty solutions rather than high-priced skincare products [1][16]. - The brand's reliance on low-margin categories like hair care to maintain growth reflects a weakening competitive position in its core skincare segment, which accounts for 78.31% of revenue [5][12]. - The average selling price of skincare products decreased by 1.37% year-on-year, indicating a need to lower prices to drive sales [6][9]. Corporate Governance and Market Reactions - Proya's announcement of its application for a Hong Kong listing raised questions about its financial health, especially given the frequent turnover of senior executives, including the resignation of the financial head just three months before the listing plan [1][19]. - The market reacted negatively to the listing news, with Proya's A-share price dropping over 4% following the announcement [19]. - Notably, Proya's executives and shareholders have collectively cashed out over 5 billion yuan, equivalent to the company's total net profit from 2016 to the third quarter of 2024, raising concerns about the company's commitment to its growth strategy [19].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][20] Core Views - The company's Q3 performance faced pressure due to seasonal factors and increased marketing expenses ahead of the Double 11 shopping festival, but it maintains a strong long-term growth outlook through strategic adjustments and brand positioning [1][4] - The main brand, Proya, continues to lead in sales on major platforms, indicating strong market presence despite short-term challenges [1][4] - The company has submitted an application for listing H shares on the Hong Kong Stock Exchange, which could enhance its capital structure and market reach [1] Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 7.098 billion, a year-on-year increase of 1.89%, and a net profit of 1.026 billion, up 2.65% year-on-year [1] - In Q3 alone, revenue was 1.736 billion, down 11.63% year-on-year, with net profit decreasing by 23.64% to 227 million [1] - The gross margin for Q3 was 74.68%, an increase of 3.96 percentage points year-on-year, while the net margin was 13.19%, a decrease of 2.01 percentage points [3] Brand and Channel Performance - The main brand Proya saw a slight decline in revenue, while sub-brands like Caitang and OR experienced double-digit growth [2] - Online revenue growth was low single digits, while offline revenue saw a high double-digit decline [2] Cost and Efficiency Metrics - The company has optimized its cost structure, leading to improved gross margins despite increased marketing expenses [3] - Inventory turnover days decreased to 119 days, a reduction of 10 days year-on-year, indicating better inventory management [3] Future Earnings Forecast - The forecast for net profit for 2025-2027 has been slightly adjusted downwards to 1.644 billion, 1.751 billion, and 1.835 billion respectively, reflecting increased marketing investments [4][5] - The projected PE ratios for the same period are 18, 17, and 17 times [4]

Core Viewpoint - The company has released its third-quarter report for 2025, detailing financial performance and operational updates, including a decision to postpone certain fundraising investment projects due to practical considerations [10][33]. Financial Data Summary - The third-quarter financial report is unaudited, covering the period from January to September 2025 [3]. - The company reported a decrease in average selling prices for skincare, beauty makeup, and hair care products due to changes in product sales mix [20][21]. - Key raw material prices showed mixed trends, with some prices decreasing while others increased, reflecting market dynamics [22][23][25][27][29]. Shareholder Information - As of the end of the reporting period, the company held 2,210,825 shares in its repurchase account, accounting for 0.56% of the total share capital [5]. Board Meeting and Resolutions - The fourth board meeting was held on October 30, 2025, where several resolutions were passed, including the approval of the third-quarter report and the postponement of certain fundraising projects [9][10][12]. - The board confirmed the members of the audit and nomination committees, with specific individuals designated as conveners [15][16]. Fundraising Project Updates - The company decided to postpone the "Information System Upgrade Project" to December 31, 2026, due to the complexity of system adjustments and increased customization needs [36][38]. - The total amount raised from the convertible bond issuance was approximately 751.71 million RMB, with net proceeds after expenses amounting to about 744.51 million RMB [34]. Investor Relations - An investor performance briefing is scheduled for November 10, 2025, to discuss the third-quarter results and address investor inquiries [41][42].

Core Viewpoint - The financial performance of Proya in Q3 2025 showed significant declines, with revenue and net profit falling sharply compared to the previous year, indicating a concerning trend for the company [1][3]. Financial Performance - Q3 2025 revenue was 1.736 billion yuan, a year-on-year decrease of 11.63% [2][3]. - Net profit for Q3 2025 was 227 million yuan, down 23.64% year-on-year, marking the largest quarterly decline in recent years [1][3]. - Basic earnings per share for Q3 2025 were 0.57 yuan, a decrease of 24% compared to the same period last year [3]. Year-to-Date Performance - For the first three quarters of 2025, total revenue reached 7.098 billion yuan, reflecting a modest year-on-year growth of 1.89% [2][4]. - Year-to-date net profit was 1.026 billion yuan, with a growth of 2.65% compared to the same period last year, indicating a significant slowdown in growth [2][4]. Brand Performance - The main brand, Proya, showed signs of stagnation, with revenue of 3.979 billion yuan in the first half of 2025, a slight decline of 0.08%, marking the first negative growth in five years [5]. - The main brand accounted for 74.27% of total revenue, and its stagnation has directly impacted overall performance [5]. Marketing and R&D Expenditure - High marketing expenses are a key factor affecting profits, with sales expenses in the first half of 2025 amounting to 2.659 billion yuan, resulting in a sales expense ratio of 49.59% [5]. - R&D expenditure was only 95 million yuan in the first half of 2025, with an R&D expense ratio of just 1.77%, significantly lower than marketing expenses [5]. Strategic Developments - Proya is actively pursuing a listing in Hong Kong, having submitted its application to the Hong Kong Stock Exchange, with plans to issue H-shares not exceeding 15% of the total share capital post-issue [6][8]. - The funds raised will be allocated to R&D, brand building, supply chain enhancement, and global expansion, reflecting a need for a shift from a marketing-driven to a product-driven strategy [8].

北京商报讯（记者 张君花）10月30日，珀莱雅发布2025年三季度财务报告称，前三季度实现营业收入 70.98亿元，同比增长1.89%；归母净利润10.26亿元，同比增长2.65%。 ...

Core Viewpoint - The domestic beauty brand leader Proya has experienced a significant decline in quarterly performance, with a sharp drop in both revenue and net profit, indicating potential challenges ahead for the company [2][5]. Financial Performance - Proya's Q3 revenue was 1.736 billion yuan, a year-on-year decrease of 11.63%, while net profit fell to 227 million yuan, down 23.64%, marking the largest quarterly decline in recent years [3][5]. - The basic earnings per share for Q3 was 0.57 yuan, reflecting a 24% decrease, which is greater than the declines in revenue and net profit [6]. - For the first three quarters, total revenue reached 7.098 billion yuan, a slight increase of 1.89%, and net profit was 1.026 billion yuan, up 2.65%, indicating a significant slowdown in growth compared to the previous year [6]. Brand Performance - Proya's main brand showed signs of stagnation, with a revenue of 3.979 billion yuan in the first half of the year, a slight decline of 0.08%, marking the first negative growth in five years [8]. - The main brand accounted for 74.27% of total revenue, and its growth stagnation has directly impacted overall performance [8]. Marketing and R&D Expenditure - High marketing expenses have been a key factor affecting profits, with sales expenses in the first half of 2025 reaching 2.659 billion yuan, resulting in a sales expense ratio of 49.59% [9]. - The marketing strategy heavily relies on online channels, which has led to increased customer acquisition and sales costs due to diminishing internet traffic benefits and intensified competition [9]. - In contrast, R&D investment remains low, with only 95 million yuan spent in the first half of 2025, resulting in an R&D expense ratio of just 1.77%, significantly lower than marketing expenses [9][10]. Future Plans - Proya is actively pursuing a listing in Hong Kong, having submitted an application to the Hong Kong Stock Exchange, with plans to issue H-shares not exceeding 15% of the total share capital post-issuance [12][14]. - The funds raised will be allocated towards R&D and product innovation, brand building, supply chain enhancement, and global expansion, among other strategic investments [14][15].

Core Insights - The leading domestic beauty brand, Proya, experienced a significant decline in its quarterly performance, with Q3 2025 revenue dropping to 1.736 billion yuan, a year-on-year decrease of 11.63%, and net profit falling to 227 million yuan, down 23.64%, marking the largest quarterly decline in recent years, exceeding market expectations [2][3][4]. Financial Performance - Proya's Q3 revenue decline of 11.63% and net profit decline of 23.64% are notably worse than market forecasts [2][3]. - The basic earnings per share for Q3 was 0.57 yuan, a decrease of 24% compared to the previous year, surpassing the declines in revenue and net profit [4]. - For the first three quarters of 2025, total revenue was 7.098 billion yuan, a slight increase of 1.89% year-on-year, while net profit reached 1.026 billion yuan, up 2.65%, indicating a significant slowdown in growth compared to the previous year [4]. Brand Performance - The main brand, Proya, accounted for 74.27% of total revenue, and its stagnation directly impacted overall performance. In Q2 2025, revenue growth for the main brand fell to 6.49%, a decline of over 30 percentage points compared to the same period in 2024 [5]. - In the first half of 2025, Proya's main brand revenue was 3.979 billion yuan, showing a slight decline of 0.08%, marking the first negative growth in five years [4][5]. Marketing and R&D Expenditure - Proya's high marketing expenses are a key factor affecting profitability, with sales expenses in the first half of 2025 reaching 2.659 billion yuan, resulting in a sales expense ratio of 49.59%. The promotional expenses alone accounted for 2.399 billion yuan, or 44.05% of revenue, significantly exceeding industry averages [5]. - In contrast, R&D investment remains low, with only 95 million yuan spent in the first half of 2025, resulting in an R&D expense ratio of just 1.77%, which is over 20 times less than sales expenses [5]. Strategic Developments - Proya is actively advancing its plan for a Hong Kong listing, having submitted its application to the Hong Kong Stock Exchange, with CICC and UBS serving as joint sponsors [6]. - The company plans to issue H-shares not exceeding 15% of the total share capital post-issuance, with potential for an additional 15% in over-allotment options. The raised funds will be allocated towards R&D, brand development, supply chain enhancements, and global expansion [8].

Core Viewpoint - Proya Cosmetics Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, with CICC and UBS serving as joint sponsors [1] Company Overview - Proya is a Chinese multi-brand beauty group focused on building a world-class cosmetics industry platform, offering high-quality cosmetic products that combine technology and quality [4] - The company ranks fifth among the top five groups in China's cosmetics industry by retail sales in 2024 and is the only domestic cosmetics group in this ranking [4] - Proya has maintained its position as the largest domestic cosmetics group in China for four consecutive years from 2021 to 2024 based on retail sales [4] Product Portfolio - Proya has developed a diverse portfolio covering skincare, color cosmetics, and personal care, with flagship brand Proya being the only single brand in China with two essence products exceeding 1 billion RMB in retail sales [4] - The company has multiple brands, including skincare brands "Proya," "Yuefuti," and "Kruif," color cosmetics brands "Caitang" and "Yuanse Bota," and personal care brand "Off&Relax" [4] - By 2024, Proya has four super products with retail sales exceeding 1 billion RMB, and it leads in the number of brands exceeding 500 million RMB in retail sales among domestic cosmetics groups [4] Sales and Distribution Model - The company primarily utilizes online platforms for sales while enhancing brand reach through offline channels, including online direct sales and distribution [5] - Proya is one of the earliest beauty groups to strategically develop online channels, achieving a significant leading position in this area [5] Production Capacity - As of October 24, 2025, Proya operates a production base in Huzhou, Zhejiang, with 66 production lines dedicated to skincare products [5] - The company is also constructing a smart factory in Huzhou, designed to have a production capacity of 400 million units [5] Financial Performance - Proya's revenue for the six months ending June 30 for the years 2022 to 2025 is as follows: approximately 6.385 billion RMB in 2022, 8.905 billion RMB in 2023, 10.778 billion RMB in 2024, and 5.362 billion RMB in 2025 [6][7] - The corresponding net profit figures for the same periods are approximately 831 million RMB in 2022, 1.231 billion RMB in 2023, 1.585 billion RMB in 2024, and 826 million RMB in 2025 [6][7]

Core Insights - The company reported a revenue of 7.098 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 1.89% [1] - The net profit attributable to shareholders reached 1.026 billion yuan, with a year-on-year increase of 2.65% [1] - The gross profit margin improved to 73.69%, up 3.62 percentage points from 70.07% in the same period of 2024, while the net profit margin was 14.86% [1][7] Brand Performance - The flagship brand, Proya, has maintained a strong market position, leading the Tmall beauty category during the Double Eleven shopping festival [4] - Multiple brands under the company, including Off&Relax and others, are experiencing rapid growth and complementing each other in market coverage [2] Research and Development - The R&D expense ratio was stable at 2.00%, with R&D investment amounting to 142 million yuan, supporting the synergy between R&D and profitability [7] - The company has established a diverse R&D system, focusing on technological innovation, including a partnership with Sichuan University to research mitochondrial anti-aging [7] Strategic Outlook - The company has demonstrated resilience and strategic clarity through consistent revenue growth, improved profitability, and ongoing commitment to R&D and multi-brand strategies [8] - Future prospects include enhanced R&D innovation, digital capabilities, and accelerated globalization, positioning the company to continue leading the domestic beauty industry [8]

Core Viewpoint - Proya (603605) has submitted its listing application to the Hong Kong Stock Exchange, with CICC and UBS serving as joint sponsors [1] Company Overview - Proya is a Chinese multi-brand beauty group focused on creating a world-class cosmetics industry platform, offering high-quality and technologically advanced cosmetic products [5] - The company ranks fifth among the top five groups in China's cosmetics industry by retail sales in 2024, being the only domestic cosmetics group in this ranking [5] - Proya has been the largest domestic cosmetics group in China for four consecutive years from 2021 to 2024 based on retail sales [5] - The flagship brand Proya has two essence products exceeding 1 billion RMB in retail sales, making it the only single brand in China with such a portfolio [5] Product Portfolio - Proya's product matrix includes skincare, color cosmetics, and personal care, with brands such as "Proya," "Yuefuti," "Kruif," "Caitang," "Yuanshe Bota," "Off&Relax," and "Jingshi" [5] - By 2024, Proya has four super products with retail sales exceeding 1 billion RMB, and it leads in the number of brands exceeding 500 million RMB in retail sales among domestic cosmetics groups [5] Sales and Distribution - The company primarily utilizes online platforms for sales while enhancing brand reach through offline channels, including direct sales and distribution [6] - Proya is one of the earliest beauty groups to strategically develop online channels, holding a significant lead in this area [6] Production Capacity - As of October 24, 2025, Proya operates a production base in Huzhou, Zhejiang, with 66 production lines dedicated to skincare products [6] - A new smart factory is under construction in Huzhou, designed to have a production capacity of 400 million units [6] Financial Performance - Proya's revenue for the six months ending June 30 for the years 2022 to 2025 is approximately 6.385 billion RMB, 8.905 billion RMB, 10.778 billion RMB, and 5.362 billion RMB respectively [8][9] - The corresponding profits for the same periods are approximately 831 million RMB, 1.230 billion RMB, 1.585 billion RMB, and 826 million RMB respectively [8][9]