Core Insights - HuazhiXiao, a domestic cosmetics brand, has completed a Series B financing round exclusively funded by Proya, with Chishan Capital serving as the long-term exclusive financial advisor [2] - Proya's investment reflects its alignment with HuazhiXiao's long-term commitment to product quality and innovation, appealing to the Gen Z consumer demographic [2] - HuazhiXiao, founded in 2016, focuses on original design and targets young consumers, becoming a popular brand amid the rise of domestic products [2] Company Development - HuazhiXiao has completed three rounds of financing, with previous rounds led by Tiantu Investment and Kunyan Capital, raising nearly 100 million yuan in the A round [2] - The brand positions itself in the affordable market, with product prices generally under 100 yuan, and is projected to achieve over 1 billion yuan in revenue by 2025 [2] International Expansion - HuazhiXiao has made significant strides in international markets, entering Japan in 2019 and establishing a presence in over ten countries, including the U.S. and Southeast Asia [3] - The brand's overseas revenue currently accounts for 10% of its total revenue, with the recent financing aimed at further global expansion and supply chain integration [3] Strategic Partnerships - Proya's investment is seen as mutually beneficial, enhancing HuazhiXiao's competitive edge in the cosmetics sector while allowing Proya to leverage HuazhiXiao's international experience [4] - Proya is also pursuing its own international strategy, planning to issue H-shares for listing in Hong Kong to accelerate overseas business development [4] Market Trends - The domestic beauty market is becoming increasingly competitive, prompting many local brands to seek growth opportunities abroad [4] - The current investment climate has shifted, with a cooling in financial institution investments in the consumer sector, presenting opportunities for industry-specific investments in brands like HuazhiXiao [4]

Group 1: Investment and Financing - HuazhiXiao, a domestic cosmetics brand, has completed a Series B financing round exclusively invested by Proya, a leading domestic beauty group [1] - The funds from this financing will be used for global expansion, supply chain integration, and content innovation [1] - HuazhiXiao has only had two rounds of financing since its establishment in 2016, with the previous rounds being a Pre-A round led by Tiantu Investment and an A round in 2021 led by Kunyan Capital [1] Group 2: Market Trends - The domestic cosmetics market has shown signs of recovery in the first half of the year, with retail sales reaching 229.1 billion yuan, a year-on-year increase of 2.9%, significantly improving from the previous year's 1% growth [1] - Only three domestic cosmetics brands have reported formal financing in the first half of this year, indicating a still cautious investment environment in the sector [1] Group 3: Brand Strategy and Market Positioning - HuazhiXiao focuses on integrating two-dimensional culture and youthful aesthetics, targeting a young demographic with its original design cosmetics [3] - The brand has successfully entered international markets, starting with Japan in 2019 and expanding to over ten countries, including the U.S. with a presence in Urban Outfitters in 2024 [4] Group 4: Proya's Strategic Moves - Proya reported a revenue of 5.362 billion yuan in the first half of the year, a year-on-year increase of 7.21%, but with a noticeable decline in growth rate compared to previous years [4] - The company plans to list on the Hong Kong Stock Exchange to accelerate its international strategy and enhance overseas financing capabilities [4] - Proya's chairman has indicated a focus on overseas acquisitions, particularly in the fields of children's products, perfumes, and men's skincare, as a strategy to seek new growth opportunities [4]