Proya(SH:603605) Sou Hu Cai Jing·2025-10-22 05:42Core Viewpoint - The beauty brand Proya's recent financial report reveals a significant slowdown in growth, leading to a decline in stock prices and raising concerns about its marketing-heavy strategy over research and development [1][3][18] Group 1: Financial Performance - Proya announced a revenue growth of only 7.21% in its 2025 mid-year report, marking the first time in five years that growth has fallen below double digits [3][18] - The main brand, Proya, experienced a slight decline in revenue of -0.08%, which is a concerning trend for the company [3][18] - Despite the slowdown, Proya declared a substantial mid-term dividend of 315 million yuan, which accounts for nearly 40% of its net profit [5][18] Group 2: Marketing vs. R&D - Proya's marketing expenses have surged to nearly 50% of its revenue, with over 2.6 billion yuan spent in the first half of the year on advertising [11][18] - Research and development expenditures have remained below 2%, indicating a heavy reliance on marketing rather than innovation [11][18] - The company's strategy has been criticized for being more focused on marketing than on developing a technological edge, likening it to selling pre-packaged meals at gourmet prices [9][13] Group 3: Leadership Changes and Market Sentiment - The transition of leadership to the second generation, with Hou Yamen taking over as general manager, has raised concerns among investors, especially as key founding members have been selling off shares [16][18] - The departure of several senior executives, including the financial officer and chief marketing officer, has further fueled market anxiety regarding the company's stability [16][18] - The overall sentiment in the market reflects a growing frustration with Proya's inability to balance its marketing-heavy approach with necessary investments in research and development [14][18]