Core Viewpoint - Oriflame has appointed Robert Bensoussan as the new chairman to lead the company through a critical transformation phase after years of declining performance [1][5]. Group 1: Leadership Change - Robert Bensoussan has been appointed as chairman of Oriflame Holding AG and Oriflame Investment Holding AG, succeeding Alexander af Jochnick, who remains on the board [1]. - Alexander af Jochnick, a member of the founding family, expressed optimism about Bensoussan's leadership during this pivotal time for the company [1][5]. - The leadership change is seen as a crucial step in Oriflame's self-rescue and transformation efforts [1]. Group 2: Robert Bensoussan's Background - Bensoussan has over 20 years of experience in the luxury and beauty sectors, having previously served as CEO of Jimmy Choo, where he led significant international expansion [2][4]. - He successfully sold Feelunique.com to Sephora for £132 million (approximately RMB 1.24 billion), showcasing his ability to drive brand growth and transformation [5][4]. - His expertise in brand repositioning and operational growth aligns with Oriflame's current needs for performance improvement and brand rejuvenation [5]. Group 3: Financial Performance - Oriflame's sales for 2024 are projected at €604.2 million (approximately RMB 4.98 billion), reflecting a 20% decline year-on-year [6]. - For the first three quarters of 2025, the company reported sales of €33.34 million (approximately RMB 0.27 billion), down 7% from the previous year, with adjusted EBITDA dropping 98% to €0.03 million (approximately RMB 0.25 million) [6][9]. - The third quarter of 2025 saw sales of €10.38 million (approximately RMB 0.84 billion), a 4% decline, with significant losses in adjusted operating profit and net profit [6][7]. Group 4: Regional Performance - Sales in Latin America, Europe, and Asia have been declining, with the most significant drop in Asia, where sales fell from €58.5 million (approximately RMB 0.48 billion) in Q3 2021 to €26.46 million (approximately RMB 0.22 billion) in Q3 2025 [11][12]. - However, Turkey and Africa showed resilience, with a 9% increase in sales in Q3 2025, driven by new employee recruitment and productivity improvements [11][12]. Group 5: Strategic Initiatives - Oriflame is implementing a capital restructuring plan to reduce approximately €550 million (approximately RMB 4.5 billion) in debt and improve its balance sheet [14]. - The company is transitioning to a lighter asset model by closing its Polish manufacturing facility and partnering with high-end European manufacturers [14][15]. - Oriflame is also embracing digital transformation through initiatives like the "Health and Beauty Community Model" and partnerships with technology firms to enhance marketing and operational capabilities [13][15].

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company reported a revenue of 7.1 billion yuan for the first three quarters of 2025, a year-on-year increase of 1.9%, with a net profit attributable to shareholders of 1.03 billion yuan, also up 2.7% year-on-year [1]. - In Q3 2025, the skincare segment saw a significant decline in revenue by 20.4%, while the hair care segment experienced remarkable growth of 137.7% [2]. - The gross margin for the first three quarters improved by 3.6 percentage points to 73.7%, while the expense ratio increased by 3.6 percentage points to 55.3% [3]. Summary by Sections Financial Performance - Q3 2025 revenue was 1.74 billion yuan, down 11.6% year-on-year, with net profit at 0.23 billion yuan, down 23.6% year-on-year [1][2]. - The gross margin for Q3 2025 was 74.7%, reflecting a year-on-year increase of 4.0 percentage points [3]. Profitability Forecast - The net profit forecasts for 2025, 2026, and 2027 have been revised downwards by 15%, 14%, and 13% respectively, with projected net profits of 1.53 billion, 1.79 billion, and 2.07 billion yuan [4]. - The earnings per share (EPS) estimates for the same years are 3.86, 4.52, and 5.22 yuan, with corresponding price-to-earnings (P/E) ratios of 20, 17, and 15 [4]. Cash Flow and Inventory Management - Operating cash flow for the first three quarters of 2025 was 1.2 billion yuan, an increase of 196.7% year-on-year [3]. - Inventory as of September 2025 increased by 47.6% from the beginning of the year to 0.98 billion yuan, while accounts receivable decreased by 38.5% to 0.32 billion yuan [3].

Core Viewpoint - Chinese cosmetics brand "Florasis" has launched its skincare line "Qi Se Shuang Sheng" in Japan, aiming to penetrate a market dominated by local and international brands [2][4]. Group 1: Product Launch Details - The new skincare series is based on traditional Chinese herbal beauty concepts and includes six products targeting issues like dull skin and sagging [2][4]. - The products include a toner priced at 6050 yen (approximately 283 RMB) and a day/night cream at 8690 yen (approximately 406 RMB) [4]. - The initial sales will occur on e-commerce platforms, with plans to launch in the flagship store "GINZA SIX" by the end of October [4]. Group 2: Market Strategy and Background - Florasis, established in 2017 in Hangzhou, China, has rapidly grown through live-streaming e-commerce, focusing on traditional cultural elements in product design [4][6]. - The brand previously focused on color cosmetics but is now expanding into skincare, with plans to promote these products to existing color cosmetic customers [6]. - The strategy mirrors that of Korean cosmetics, which typically start with color cosmetics before moving to skincare and haircare products [6]. Group 3: Market Context and Future Prospects - In the Chinese market, domestic brands have increased their market share to 56%, although the overall market is projected to decline by 3% in 2024 [6]. - Despite a low market share in Japan and Southeast Asia, Florasis is gaining recognition in the broader Asian market, with some years seeing its share surpass that of the Japanese brand "KATE" [6]. - If the new skincare products are well-received in Japan, it could significantly boost Florasis's sales growth across Asia [6].

Core Viewpoint - The company Mao Geping (01318) has shown strong financial performance in the first half of the year, with significant increases in both revenue and net profit, indicating a positive growth trajectory in the high-end cosmetics market [1]. Financial Performance - In the first half of the year, Mao Geping achieved revenue of 2.588 billion yuan, representing a year-on-year increase of 31.28% [1]. - The net profit for the same period was 670 million yuan, reflecting a year-on-year growth of 36.11% [1]. Market Position and Strategy - According to Zheshang Securities, the company's high growth in performance is attributed to its high-end positioning and the rarity of Eastern aesthetic appeal [1]. - The company is recognized as a scarce high-end makeup brand in China, currently in a brand momentum rising phase, as noted by招商证券 [1]. - The product strategy includes driving sales through popular products and establishing a second-tier product matrix, while the channel strategy focuses on steady expansion of offline stores and strengthening online operations [1]. Growth Potential - The company has increased customer repurchase rates, indicating higher customer loyalty and suggesting significant growth potential in the future [1].

Core Viewpoint - The company Mao Geping (01318) has shown significant growth in its financial performance for the first half of the year, indicating strong market positioning and potential for further expansion [1] Financial Performance - In the first half of the year, Mao Geping achieved a revenue of 2.588 billion yuan, representing a year-on-year increase of 31.28% [1] - The net profit for the same period was 670 million yuan, reflecting a year-on-year growth of 36.11% [1] Market Positioning - According to Zheshang Securities, the company's high growth in performance is attributed to its high-end positioning and the rarity of Eastern aesthetics in the market [1] - The company is recognized as a scarce high-end makeup brand in China, currently in a brand momentum phase [1] Product and Channel Strategy - The company benefits from a product strategy that includes the development of blockbuster products and a second-tier product matrix [1] - There is a steady expansion of offline stores and a strengthening of online channel operations, which increases customer repurchase loyalty [1] - The brand is expected to have significant growth potential due to its multi-category and multi-channel collaborative efforts [1]

Core Viewpoint - The article highlights the strategic growth and international expansion of the brand "Hua Zhi Xiao," emphasizing its appeal to Generation Z consumers and its recent B-round financing led by Proya, aimed at enhancing supply chain integration and global brand presence [3][4][5]. Group 1: Financing and Strategic Partnerships - Hua Zhi Xiao recently completed a B-round financing exclusively from Proya, which will be used for global expansion, supply chain integration, and content innovation [3]. - The brand has previously undergone a share restructuring in 2024, bringing in strategic investments from long-term partners, including Shanghai Zhenchen Cosmetics Co., which has 18 years of experience in product customization [3]. - The establishment of Huai'an Hua Zhi Xiao E-commerce Co., Ltd. in April 2025 aims to enhance supply chain capabilities through local investments in facilities and equipment [3]. Group 2: Market Presence and Performance - Founded in 2016, Hua Zhi Xiao has quickly become one of the most favored makeup brands among Generation Z consumers, leveraging a unique aesthetic and highly content-driven operations [3]. - The brand has expanded its reach to over ten countries and is recognized as one of the most influential Chinese makeup brands on social media globally [4]. - In 2024, Hua Zhi Xiao entered the U.S. retail market through Urban Outfitters, marking a significant milestone as the first Chinese makeup brand in mainstream U.S. retail channels [4]. - The company anticipates annual revenue to exceed 1 billion RMB in 2024, with the U.S. market projected to surpass Japan as its largest overseas market [4]. Group 3: Brand Philosophy and Future Outlook - The co-founder and CEO of Hua Zhi Xiao, Yang Zifeng, emphasizes that the brand's core philosophy revolves around "少女心" (girl's heart), aiming to create a dreamy and surprising makeup world for consumers globally [4]. - Proya recognizes Hua Zhi Xiao's commitment to product innovation and quality control, aligning with its own long-term brand philosophy [5].

Core Viewpoint - Huazhi Xiao, a domestic cosmetics brand, has completed a Series B financing round exclusively invested by Proya, aiming to enhance its global expansion and supply chain integration [1][2]. Company Overview - Founded in 2016, Huazhi Xiao focuses on original design and targets the young demographic with its unique aesthetic that combines secondary dimension culture and feminine beauty [1]. - The brand has successfully completed three rounds of financing, with previous rounds led by Tiantu Investment and Kunyuan Capital [1]. Financial Performance - Huazhi Xiao's products are positioned in the affordable market, with individual product prices generally under 100 yuan. The brand is projected to achieve overall revenue exceeding 1 billion yuan by 2025 [1]. International Expansion - Huazhi Xiao 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 [2]. - The brand's overseas revenue currently accounts for 10% of its total revenue, with the recent financing aimed at furthering its global expansion and content innovation [2]. Strategic Partnerships - Proya's investment is seen as mutually beneficial, allowing Huazhi Xiao to enhance its brand structure and competitive edge in the cosmetics sector while Proya gains insights into international market development [3]. - Proya is also pursuing its own international strategy, recently announcing plans to issue H-shares for listing in Hong Kong to accelerate its overseas business growth [3]. Market Trends - The domestic beauty market is becoming increasingly competitive, prompting many local brands, including Proya, to seek growth opportunities in international markets [3]. - 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 Huazhi Xiao [4].

Summary of the Conference Call for Mao Geping Cosmetics Co., Ltd. Company Overview - **Company**: Mao Geping Cosmetics Co., Ltd. - **Industry**: Cosmetics and Beauty Key Points and Arguments Financial Performance - In the first half of 2025, the company achieved a revenue of **2.588 billion RMB**, a year-on-year increase of **31.3%** [3] - Net profit reached **670 million RMB**, up **36.1%** year-on-year, driven by improved operational efficiency and reduced sales and administrative expenses [3] - The net profit margin was **25.9%**, an increase of **0.9 percentage points**, while the gross margin was **84.2%**, a decrease of **0.7 percentage points** [3] Sales Channels - Online sales accounted for **51.4%** of total revenue, growing **39%** year-on-year, while offline sales made up **48.6%**, with a growth of **26.6%** [5] - The company reported an increase in offline repurchase rate to **30.3%** and membership growth to **5.6 million** [2][5] - Online repurchase rate was **24.1%**, with registered users reaching **13.4 million** [5] Product Performance - Makeup products contributed **56.4%** to total sales with a growth rate of **31.3%**, while skincare products accounted for **43.1%** with a growth of **33.4%** [6] - Newly launched fragrance products generated **11.41 million RMB**, representing **0.5%** of total sales [2][6] Expansion Plans - The company plans to expand into international markets including **Singapore, Hong Kong, Japan, South Korea, and France**, starting with a store opening in Hong Kong on **October 1, 2025** [3][30] - The company aims for a **30%** compound annual growth rate over the next three years, projecting revenues of **5 billion RMB** and profits of **1.2 billion RMB** for 2025 [3][41] Training and Education Initiatives - Mao Geping operates **9 makeup art institutions** and is preparing to open a **10th** in Guangzhou [8] - The company invested in upgrading facilities in existing schools to enhance educational experiences [8] ESG Initiatives - The company donated **5 million RMB** to Akesu Vocational and Technical College to establish a beauty art education exchange center, supporting local employment and aligning with rural revitalization strategies [9] Brand Strategy - The company is focused on enhancing its brand image through collaborations with cultural institutions and events, which has positively impacted brand recognition and reduced sales expenses [19][20] - Future product launches will include high-end skincare and makeup lines, with a focus on consumer value rather than just increasing average transaction value [27][38] Marketing and Consumer Engagement - The company emphasizes a multi-channel marketing strategy, leveraging platforms like Douyin and Tmall, while also exploring new e-commerce opportunities [34] - The target demographic for online sales is primarily younger consumers, while offline sales attract a more diverse customer base [35] Challenges and Opportunities - The company acknowledges the challenges in the competitive cosmetics market but sees significant growth potential in both makeup and skincare categories [17][18] - The company plans to maintain a balance between online and offline growth, with a focus on enhancing customer experience and loyalty [15][40] Future Outlook - The company is optimistic about maintaining a strong growth trajectory, with a focus on sustainable practices and long-term brand value [41][42]

Core Insights - The company reported a revenue of RMB 2.5882 billion for the first half of 2025, representing a year-on-year growth of 31.3% [1] - The net profit for the same period was RMB 670.4 million, showing a year-on-year increase of 36.1% [1] Revenue Breakdown - The sales revenue from color cosmetics reached RMB 1.4223 billion, with a year-on-year growth of 31.1% [1] - The sales revenue from skincare products amounted to RMB 1.0872 billion, reflecting a year-on-year increase of 33.4% [1] Product Innovation and Market Expansion - The company launched two new high-end perfume series, "Guoyun Ningxiang" and "Wendao Dongfang," expanding its product offerings into the fragrance market [1] - The new series emphasizes the company's philosophy of Eastern aesthetics, utilizing high-quality raw materials and craftsmanship [1] Brand Presence and Customer Engagement - As of June 30, 2025, the company has established brand counters in over 120 cities across China, including 405 self-operated counters and 32 distributor counters [2] - The company employs over 3,100 beauty consultants at its counters, making it one of the largest service teams among domestic and international beauty brands in China [2]

Core Viewpoint - Estée Lauder reported a significant net loss of approximately $1.13 billion (around 81 billion RMB) for the fiscal year 2025, with a net sales decline of 8% [3][8]. Financial Performance - For the fiscal year 2025, net sales reached $14.33 billion, down from $15.61 billion in 2024 and $15.91 billion in 2023 [4]. - The operating loss was $785 million, with a net loss of $1.13 billion, marking the third consecutive year of declining net sales [3][4]. - The gross margin improved by 2.3 percentage points to 74% due to enhanced operational efficiency and better pricing strategies [5][6]. Market Analysis - The decline in net sales was primarily driven by a 28% drop in the global travel retail segment, which accounted for two-thirds of the overall sales decline [12][13]. - The Asia-Pacific market, including China, saw a 21% decrease in net sales, reflecting broader challenges in the travel retail sector [12][13]. - The Chinese mainland market's net sales were $2.741 billion, down 6%, highlighting its significance as it constitutes nearly 20% of the company's total sales [8][10]. Strategic Adjustments - Estée Lauder has restructured its management to emphasize the importance of the Chinese market, establishing it as a separate reporting segment [9][10]. - The company plans to report performance based on the new regional structure starting from the first quarter of fiscal year 2026, aiming for clearer accountability [10]. - The company is optimistic about the recovery of organic net sales in the Chinese market for fiscal year 2026, with signs of growth in the latter half of fiscal year 2025 [11]. Future Outlook - The CEO expressed confidence in achieving organic sales growth in fiscal year 2026 after three years of decline, with a goal of restoring operational profitability and achieving a stable double-digit operating margin in the coming years [7][11]. - Estée Lauder is focusing on innovation and product development to drive sales, with plans to increase the proportion of innovative products to over 25% by fiscal year 2026 [11].