Proya(SH:603605) Hua Xia Shi Bao·2025-05-21 14:33Core Viewpoint - Proya, a leading domestic beauty brand, is facing challenges in achieving its strategic vision of entering the top ten global cosmetics industry within the next decade, amid a slowdown in domestic beauty consumption and mixed results from previous overseas acquisitions by peers [2][5][8]. Management Changes - On May 19, Proya announced the resignation of Wang Li, who served as the Vice President, Board Secretary, and Financial Head for seven years, citing personal career development as the reason [3][4]. - Wang's departure leaves several key positions temporarily filled by other executives, with the company planning to appoint new leaders for these roles soon [3][4]. - Proya has experienced frequent management changes recently, with notable departures including the Marketing Director and Chief Scientific Officer [3][4]. Financial Performance - In 2023, Proya's revenue surpassed Shanghai Jahwa, reaching 10.778 billion yuan, a 21.04% increase year-on-year, with a net profit of 1.552 billion yuan, up 30% [4]. - For Q1 2025, Proya reported a revenue of 2.359 billion yuan, an 8.13% year-on-year increase, and a net profit of 390 million yuan, up 28.87% [4]. Brand Growth and Market Position - Proya's main brands, Proya and Caitang, accounted for 79.69% and 11.07% of revenue in 2024, respectively, but both are experiencing slowing growth [6]. - The company is focusing on expanding its product lines, particularly in high-end segments, to stimulate growth [6][7]. Strategic Direction - Proya aims to achieve its "double ten" strategic vision of entering the top ten global cosmetics industry within the next decade, but this goal is complicated by current market conditions [5][8]. - The domestic beauty market is undergoing structural adjustments, with a slight decline in cosmetics revenue in 2024 [7][8]. Overseas Acquisition Plans - Proya is considering overseas acquisitions to introduce new brands into the domestic market, particularly in underrepresented categories such as baby care, fragrances, and men's skincare [2][8]. - The company is in the early stages of this acquisition strategy, with plans to utilize its existing brand assets and distribution channels to facilitate the integration of new brands [8][9]. - However, previous acquisitions by peers in the industry have not significantly boosted their performance, indicating potential challenges ahead for Proya [8][9].