Core Viewpoint - The financial performance of Liren Lizhuang (605136) in the 2025 mid-year report shows significant declines in net profit and revenue, indicating potential challenges in its business model and market conditions [1][3]. Financial Performance Summary - Total operating revenue for 2025 is 831 million yuan, a decrease of 13.98% compared to 2024 [1]. - The net profit attributable to shareholders is -32.76 million yuan, reflecting a staggering decline of 1315.98% year-on-year [1]. - The gross profit margin stands at 39.7%, an increase of 14.28% from the previous year, while the net profit margin is -4.11%, a decrease of 2404.43% [1]. - Total expenses (selling, administrative, and financial) amount to 318 million yuan, accounting for 38.28% of revenue, which is an increase of 12.95% [1]. - Earnings per share are -0.08 yuan, a drastic decline of 900% compared to the previous year [1]. Changes in Financial Items - The change in trading financial assets is 69.49%, attributed to increased investments in financial products [3]. - Other receivables increased by 49.02% due to advances made to brand partners and increased platform balances [3]. - The decrease in right-of-use assets is -40.07%, resulting from the termination of some lease agreements [3]. - The increase in intangible assets by 63.45% is due to the acquisition of trademark rights [3]. - The net cash flow from operating activities decreased by 54.27%, primarily due to a decline in overall revenue and reduced repayments from brand partners [4]. Business Model Evaluation - The company's performance heavily relies on marketing-driven strategies, necessitating a thorough examination of the underlying factors influencing these drivers [4]. - Historical data indicates a median Return on Invested Capital (ROIC) of 13.11%, with the worst year being 2022 at -5.88%, suggesting a fragile business model [4].

Core Viewpoint - Shanghai Liren Lizhuang Cosmetics Co., Ltd. reported a significant decline in performance for the first half of the year, with revenue dropping and net profit turning into a substantial loss, indicating ongoing challenges in the market [2][3][4]. Financial Performance - The company recorded a revenue of 831 million yuan, a year-on-year decrease of 13.98% [3]. - The net profit attributable to shareholders was a loss of 32.76 million yuan, a staggering year-on-year decline of 1315.98% [3][4]. - Revenue has been on a downward trend since its peak of 4.155 billion yuan in 2021, with a 37.44% decline in 2024 to 1.728 billion yuan [4]. Market Challenges - The decline in performance is attributed to the termination of partnerships with key brands and a general consumer spending slowdown, leading to pressure on traditional e-commerce [3][5]. - The company heavily relies on e-commerce platforms for revenue, with 91.12% of its main business revenue coming from online retail, primarily through Tmall [4]. - Increased competition in the beauty industry and changing consumer preferences have further complicated the market landscape [5]. Management and Strategic Issues - The company faces internal challenges, including a lack of diversification in brand and platform reliance, which has increased operational risks [5]. - The divorce of the controlling shareholder has raised concerns about the stability of the company's ownership structure and its potential impact on strategic decision-making [6][8]. Future Growth Strategies - In response to declining performance, the company has initiated efforts to enter the Douyin market by establishing a dedicated Douyin division to create live-streaming opportunities for partner brands [11]. - The company aims to enhance its core competitiveness by leveraging data analysis and consumer insights to optimize online sales [4].

Core Viewpoint - The financial performance of Liren Lizhuang (605136) in the 2025 mid-year report shows significant declines in net profit and revenue, indicating potential challenges in its business model and market conditions [1] Financial Performance Summary - Total operating revenue for 2025 is 831 million yuan, a decrease of 13.98% year-on-year [1] - Net profit attributable to shareholders is -32.76 million yuan, a decline of 1315.98% year-on-year [1] - Gross profit margin stands at 39.7%, an increase of 14.28% year-on-year, while net profit margin is -4.11%, a decrease of 2404.43% year-on-year [1] - Total expenses (selling, administrative, and financial) amount to 318 million yuan, accounting for 38.28% of revenue, an increase of 12.95% year-on-year [1] - Earnings per share is -0.08 yuan, a decrease of 900.0% year-on-year [1] Changes in Financial Items - Significant increase in trading financial assets by 69.49% due to increased investment in financial products [3] - Other receivables increased by 49.02% due to advances made to brand partners [3] - Other current assets rose by 46.82% also due to increased financial product investments [3] - Decrease in right-of-use assets by 40.07% due to the termination of some lease agreements [4] - Increase in accounts payable by 104.92% due to higher payable amounts for goods and logistics [3] Revenue and Cost Analysis - Revenue decreased by 13.98% due to unmet expectations from cooperative brands and the termination of some Korean brand partnerships [5] - Operating costs decreased by 20.52% in line with the drop in revenue [5] - Sales expenses slightly decreased by 0.38%, while management expenses decreased by 7.5% [5] Cash Flow and Investment - Net cash flow from operating activities decreased by 54.27% due to overall revenue decline and reduced collections from brand partners [10] - Net cash flow from investing activities increased by 65.37% due to cash recovery from financial investments [11] - Net cash flow from financing activities increased by 65.53% due to reduced dividend distributions [11] Business Model Evaluation - The company's historical return on invested capital (ROIC) median is 13.11%, with a poor performance in 2022 at -5.88% [12] - The business model relies heavily on marketing-driven strategies, necessitating further investigation into the underlying factors [12]

Core Viewpoint - The recent divorce case involving the founder of Liren Lizhuang has concluded, resulting in significant changes in the company's shareholding structure, while the company faces declining financial performance and challenges in its business model [1][29]. Financial Performance - Liren Lizhuang reported a revenue of 831 million yuan for the first half of 2025, a year-on-year decrease of 13.98% [2][6]. - The net profit attributable to shareholders was a loss of 32.76 million yuan, a staggering decline of 1315.98% compared to the previous year [2][6]. - The total profit for the period was a loss of 40.50 million yuan, down 730.94% from a profit of 6.42 million yuan in the same period last year [2]. Stock Performance - Since its peak stock price of 54.89 yuan in September 2020, Liren Lizhuang's stock has plummeted nearly 80%, closing at 10.37 yuan on the day of the report [3][6]. - The company's market capitalization has shrunk by over 80%, now standing at approximately 4.15 billion yuan [3]. Business Model and Revenue Sources - The company's revenue model primarily consists of e-commerce retail and brand marketing services, with e-commerce retail accounting for 91.12% of total revenue, generating 757 million yuan [5][6]. - Liren Lizhuang's reliance on platforms like Tmall is significant, with Tmall domestic and international revenues at 516 million yuan and 27 million yuan, respectively [8][10]. Brand Development - The company's self-owned brands have seen a sales increase of over 80% year-on-year, although they still represent a small portion of total revenue [11][12]. - Liren Lizhuang operates six self-owned brands, with the brand Yuyongchu achieving top sales in its category shortly after launch [11]. Challenges and Market Position - The termination of partnerships with major Korean brands has put additional pressure on Liren Lizhuang, contributing to its financial struggles [2][36]. - The company faces intense competition from emerging platforms and other traditional TP companies that have successfully adapted to market changes [10][30]. - The recent divorce case of the founder has been linked to the company's declining performance, with significant operational disruptions during the legal proceedings [17][29]. Future Outlook - The company must accelerate its strategic transformation and enhance its core competitiveness to survive and thrive in a competitive market environment [36].

Core Insights - Liren Lizhuang (605136.SH) released its semi-annual report for 2025 on August 27, 2025, indicating significant institutional investor interest [1] Institutional Holdings - As of August 26, 2025, five institutional investors disclosed holdings in Liren Lizhuang A-shares, totaling 107 million shares, which represents 26.83% of the company's total equity [1] - The institutional investors include Beijing Linlang Huancai Consulting Partnership, Shanghai Liren Venture Capital Partnership, Shenzhen Lingyu Jishi Equity Investment Partnership, UBS AG, and Barclays Bank PLC [1] - Compared to the previous quarter, the total institutional holding percentage increased by 0.10 percentage points [1] Social Security Fund - In this reporting period, one social security fund was disclosed, specifically the Huatai PineBridge Fund Management Co., Ltd. - Social Security Fund 1802 Portfolio, which remained unchanged from the previous quarter [1]

Core Viewpoint - The company, Shanghai Liren Lizhuang Cosmetics Co., Ltd., has reported significant financial activities, including asset impairment provisions and guarantees for its subsidiaries, reflecting its cautious approach to financial management and operational expansion [5][30]. Group 1: Company Overview - The company held its fourth board meeting on August 25, 2025, where all directors were present, and the meeting complied with relevant regulations [2][5]. - The board approved the 2025 semi-annual report and its summary, which has not been audited [5][6]. Group 2: Financial Data - The company plans to recognize a total asset impairment provision of RMB 36,791,082.86, which includes inventory impairment losses of RMB 35,997,886.95 and other receivables impairment losses of RMB 873,168.56 [7][23]. - The impairment provision represents 150.78% of the absolute value of the net profit attributable to the parent company for the year 2024 [23]. Group 3: Guarantees and Subsidiary Operations - The company will provide a guarantee of RMB 15 million for its wholly-owned subsidiary, Lily & Beauty (Hong Kong) Limited, to support its e-commerce operations on various platforms [9][30]. - The guarantee is necessary for the subsidiary to establish new cross-border stores and conduct advertising on platforms like Taobao and Douyin [32][34]. Group 4: Operational Performance - As of June 30, 2025, the company operated 281 stores, an increase of 16 stores from the previous quarter, with new stores added on platforms such as Tmall and Douyin [39]. - The company plans to hold a performance briefing on September 17, 2025, to discuss its operational results and future plans with investors [42][43].

Core Viewpoint - The company, Liren Lizhuang, announced that it or its subsidiaries will provide guarantees for a Hong Kong company to open new brand stores on major e-commerce platforms and conduct daily operations, with a guarantee amount of 15 million yuan and a term until June 30, 2026 [1] Summary by Relevant Sections - **Company Actions** - Liren Lizhuang will issue relevant statements or guarantee letters for a Hong Kong company [1] - The company expects a guarantee amount of 15 million yuan [1] - The guarantee period is from the approval of the second meeting of the fourth board of directors until June 30, 2026 [1]

上海丽人丽妆化妆品股份有限公司 董事会提名委员会议事规则 第一章 总则 第一条 为建立和规范上海丽人丽妆化妆品股份有限公司（以下称"公 司"）提名制度和程序，根据《中华人民共和国公司法》、《上海丽人丽妆化妆品 股份有限公司章程》（以下称"《公司章程》"）、《上海丽人丽妆化妆品股份有限 公司董事会议事规则》（以下称"《董事会议事规则》"）的相关规定，公司董事 会设立提名委员会（以下称"委员会"），并制定本规则。 第二条 委员会是董事会按照《公司章程》设立的专业工作机构，主要负 责对公司董事及由董事会聘任的高级管理人员的人选、选择标准和程序进行选择 并提出建议。委员会依照法律法规、上海证券交易所规定、《公司章程》和董事 会授权履行职责。除另有规定外，委员会的提案应当提交董事会审议决定。 第三条 本规则适用于委员会及本规则中涉及的有关人员和部门。 第二章 委员会组成 第四条 委员会由 3 名董事组成，其中至少包括 2 名独立董事。 第五条 委员会委员由董事长或三分之一以上董事或二分之一以上的独 立董事提名，经董事会选举。 第六条 委员会设召集人一名，由独立董事担任。召集人由公司董事长提 名，并经董事会任命。 （二） ...

上海丽人丽妆化妆品股份有限公司 董事会秘书工作细则 （一）具有良好的职业道德和个人品质； 第一章 总则 第一条 为提高上海丽人丽妆化妆品股份有限公司（以下简称"公司"）治理 水平，规范公司董事会秘书的选任、履职、培训和考核工作，根据《中华人民共 和国公司法》（以下简称"《公司法》"）、《中华人民共和国证券法》《上市公司治 理准则》、《上海证券交易所股票上市规则》（以下简称"《上市规则》"）、《上海证 券交易所上市公司自律监管指引第 1 号——规范运作》等法律、行政法规、规章、 规范性文件以及《上海丽人丽妆化妆品股份有限公司公司章程》（以下简称"《公 司章程》"）的有关规定，制订本制度。 第二条 公司董事会秘书为公司高级管理人员，对公司和董事会负责，应忠 实、勤勉地履行职责。 第三条 公司董事会秘书是公司与上海证券交易所之间的指定联络人，可以 以公司名义办理信息披露、公司治理、股权管理等其相关职责范围内的事务。 第二章 选任 第四条 公司董事会应当在原任董事会秘书离职后三个月内聘任董事会秘 书。 第五条 董事会秘书是公司的高级管理人员，由董事长提名，由董事会聘任 或解聘，对董事会负责。 第六条 担任本公司董事会 ...

Core Insights - The company, Liren Lizhuang, reported a revenue of 831 million yuan for the first half of 2025, representing a year-on-year decline of 13.98% [1] - The net profit attributable to shareholders turned negative at -32.76 million yuan, indicating a shift from profit to loss compared to the previous year [1] - The basic earnings per share were reported at -0.08 yuan, reflecting the company's current financial challenges [1] Financial Performance - Revenue for the first half of 2025: 831 million yuan, down 13.98% year-on-year [1] - Net profit attributable to shareholders: -32.76 million yuan, a significant decline from previous profits [1] - Basic earnings per share: -0.08 yuan, indicating losses for the period [1] Strategic Insights - The decline in net profit is primarily attributed to a reduction in overall profit and the ongoing strategic investment phase for the company's proprietary brands [1]