Core Viewpoint - Proya (603605.SH) has become the first domestic beauty brand to surpass 10 billion in revenue but is currently facing pressure from slowing performance [1][2] Financial Performance - In the first half of 2025, Proya reported revenue and net profit attributable to shareholders of 5.362 billion and 799 million respectively, representing year-on-year growth of 7.21% and 13.8% [1] - The second quarter showed a significant slowdown, with revenue of 3.003 billion, a year-on-year increase of only 6.49%, down over 30 percentage points compared to the same period in 2024 [1] - The main brand's revenue declined slightly by 0.08% to 3.979 billion in the first half of 2025, compared to a growth rate of 38% in the same period last year [5] Marketing Strategy - Proya has significantly increased its marketing expenditures, signing at least three top celebrities as brand ambassadors in 2025, which is more than the total of the past five years [1][9] - Marketing expenses reached 2.659 billion in the first half of 2025, a year-on-year increase of 13.64% [7] - The company is focusing on cost control, with operating costs down over 5% year-on-year to 1.427 billion [1][11] Competitive Landscape - Proya is set to compete with its peer, Shiseido's parent company, Up Beauty (2145.HK), which reported a revenue growth rate of 16% in the first half of 2025 [3][15] - Proya's market share is currently around 2%, indicating significant room for growth compared to mature markets [6] Future Plans - Proya is planning to list on the Hong Kong Stock Exchange, aiming to enhance its international strategy and financing capabilities [13][14] - The company has identified potential acquisition targets to boost its performance, with a goal of increasing its overall revenue to 35 billion from its own brands and 15 billion through acquisitions over the next decade [15][16]