Core Insights - The Chinese color cosmetics industry is experiencing growth driven by increasing consumer recognition of domestic brands and a shift towards high-end products [6][8]. Group 1: Industry Overview - Color cosmetics are a significant category within the cosmetics industry, primarily used for enhancing facial features and covering skin imperfections [2]. - The makeup process typically includes skincare, base makeup, eye makeup, contouring, and lip makeup, with a focus on creating a flawless finish suitable for various skin types [4]. Group 2: Market Trends - There is a rising acceptance of domestic color cosmetics brands, with 78.6% of consumers finding domestic beauty products attractive and 49.6% willing to support them due to their creativity [6]. - The trend towards functional and skincare-oriented color cosmetics is becoming prominent, indicating a potential for growth in the high-end segment of the market [6]. Group 3: Industry Structure - The color cosmetics industry supply chain consists of upstream raw material suppliers and manufacturers, midstream brand owners, and downstream sales channels [8]. - The cost of packaging materials is significant for midstream color cosmetics brands, with some brands allocating over 30% of their costs to packaging design [10]. Group 4: Research and Reports - The Huajing Industry Research Institute has released a report analyzing the current state and competitive landscape of the color cosmetics industry, highlighting market trends and future potential [12].

Core Viewpoint - Shangyang Technology plans to delist from the New Third Board to focus on production operations, improve efficiency, and reduce operational costs, despite facing a decline in revenue and net profit in the first half of the year [1][2][3]. Company Overview - Shangyang Technology, established in July 2005, specializes in the design, production, and sales of cosmetic tools, and has developed a competitive advantage in the makeup brush segment [2]. - The company has established long-term partnerships with major cosmetic brands such as L'Oréal and Sephora [2]. Financial Performance - In the first half of the year, Shangyang Technology reported a 19.28% decrease in revenue to approximately 107 million yuan, and a 29.07% decline in net profit to about 14.59 million yuan [3]. - The main revenue source, cosmetic tools, generated 102.49 million yuan, down 20.96% year-on-year, accounting for over 95% of total revenue [5]. - The gross margin for cosmetic tools decreased by 1.29% to 32% [5]. Product Segmentation - Revenue from other products increased by 89.64%, but the cost surged by 287.15%, leading to a gross margin drop to -31.12% [5]. - Revenue from blister packaging grew by 30.9% to approximately 3.46 million yuan, with a gross margin of about 13.73% [5]. Customer Concentration - The top five customers accounted for approximately 84.9% of revenue, with Sephora being the largest customer, contributing about 56.47% of total sales [6]. - The revenue concentration among the top five customers increased to 85.22% in the first half of the year [6]. International Expansion - Shangyang Technology is focusing on expanding its own brand internationally, with plans to establish a manufacturing facility in Indonesia and a subsidiary in New York for promoting its own brand products [11]. - The company aims to tap into the Asia-Pacific market and enhance its e-commerce sales in the U.S. [11].