JAHEN(SZ:300955) Xin Lang Zheng Quan·2025-09-12 09:24Core Insights - The skincare and daily chemical industry in A-shares has shown a high gross profit margin but low net profit margin, with over 80% of companies having a gross profit margin above 50% and more than half having a net profit margin below 10% [1][4] - The significant gap between gross and net profit margins is attributed to high sales expenses, which consume profits, with Marubi Biological's sales expense ratio reaching 56.5%, making it the highest in the industry [1][6] Financial Performance - The top three companies in terms of gross profit margin for the first half of 2025 are Jinbo Biological (90.68%), Fulejia (81.47%), and Beitaini (76.01%) [2] - Only four companies reported a gross profit margin below 50%, with figures of 49.26% for Lafang, 32.05% for Kesi, 17.51% for Qingsong, and 14.98% for Jiaheng [2] Marketing and R&D Expenditure - The industry is characterized by high marketing expenditures, with many companies spending over 40% of their revenue on marketing, leading to a focus on brand marketing over product development [6][9] - Marubi Biological's sales expense ratio is 56.5%, while its R&D expense ratio is only 2.3%, indicating a heavy reliance on marketing rather than innovation [8] Industry Challenges - The heavy emphasis on marketing has resulted in severe product homogeneity, limiting true innovation and hindering brand development [8] - The industry faces ongoing price wars and promotional activities that further erode profitability, creating a vicious cycle [9] - Companies must find a balance between marketing and R&D expenditures to transition from a marketing-driven approach to a product-driven strategy [9]