Core Viewpoint - The Chinese beauty market in 2025 is undergoing a cyclical adjustment, with consumers becoming more rational, international giants facing pressure, online traffic growth slowing, and offline channel dynamics being reshaped [2][4]. Financial Performance - In the first half of 2025, the company reported a revenue of 5.36 billion yuan, a year-on-year increase of 7.21%, and a net profit attributable to shareholders of 798 million yuan, up 13.80% year-on-year [6][8]. - Operating cash flow reached 1.29 billion yuan, a significant increase of 95.34% year-on-year, reflecting improved operational efficiency and profitability [6][7]. Channel Performance - Online revenue was 5.11 billion yuan, a year-on-year increase of 9.17%, accounting for 95.39% of main business revenue [9][10]. - Offline revenue was 247 million yuan, a year-on-year decrease of 21.49%, but the company is focusing on high-end lines and deepening collaborations in department stores to ensure stable development across channels [9][10]. Brand Strategy - The company has a multi-brand strategy that includes core brands, secondary brands, and emerging brands, which collectively support its resilience during industry cycles [11][20]. - The core brand, Proya, generated 3.98 billion yuan in revenue, accounting for 74.27% of total revenue, focusing on product iteration and marketing strategies [11][19]. Research and Development - R&D expenses reached 95 million yuan in the first half of 2025, an increase of 41.26 million yuan year-on-year, with a focus on enhancing product capabilities [22][23]. - The company has a robust patent portfolio, with a total of 240 patents, including 124 invention patents, reflecting its commitment to innovation [23][25]. Capital Actions - The company announced a high interim dividend plan, proposing a cash dividend of 8 yuan per 10 shares, totaling 315 million yuan, marking the highest interim dividend in its history [30][31]. - The company has initiated preparations for issuing H-shares and listing on the Hong Kong Stock Exchange, signaling a new phase in its internationalization strategy [31][32]. Strategic Vision - The company aims to rank among the top ten global cosmetics companies in the next decade, with a focus on long-term value rather than short-term gains [32].

Core Viewpoint - The domestic beauty brand Proya is accelerating its globalization efforts, as evidenced by its strong financial performance and plans for an H-share listing in Hong Kong, which could make it the first A+H listed beauty company in China [1][6]. Financial Performance - Proya reported a revenue of 5.36 billion yuan for the first half of 2025, marking a year-on-year increase of 7.21% [2]. - The company's net profit attributable to shareholders reached 799 million yuan, up 13.80% year-on-year, with operating cash flow increasing by 95.34% to 1.29 billion yuan [2][4]. - The net profit margin improved to 15.41%, and the gross profit margin increased by 3.56 percentage points to 73.38% [1][2]. Dividend and H-share Listing - Proya announced its highest-ever interim dividend plan, proposing a cash dividend of 8.00 yuan per 10 shares, totaling an estimated 315 million yuan [4][5]. - The company is preparing for an H-share listing on the Hong Kong Stock Exchange, which is expected to enhance its capital strength and competitiveness [6][30]. Brand Performance - The main brand Proya generated 3.98 billion yuan in revenue, accounting for 74.27% of total revenue, while the color cosmetics brand Cai Tang achieved a revenue of 705 million yuan, growing by 21.11% [9][16]. - The brand Off&Relax saw a significant revenue increase of 102.52% to 279 million yuan, driven by new product launches and market expansion [21][22]. Research and Development - Proya maintained a steady investment in R&D, applying for 35 new patents in the first half of 2025, with a total of 240 patents held [29][30]. - The company is collaborating with various institutions to enhance its research capabilities and product innovation [30][31]. Digital Transformation - Proya's digital strategy is advancing, with projects aimed at integrating data across multiple brands and channels, enhancing customer service efficiency through AI, and supporting product innovation [31].

Core Viewpoint - The article discusses the transformation of the brand HAPSODE under Proya, emphasizing its shift from being an "oil skin care expert" to a "young skin research brand," targeting the Z generation's desire for high efficacy and emotional resonance in skincare products [3][22]. Group 1: Brand Transformation and Strategy - HAPSODE has undergone a comprehensive rebranding, introducing the YOUTHLAB research laboratory to focus on young skin issues and develop personalized solutions [3][26]. - The new brand declaration "Young Research, Vitality" encapsulates Proya's multi-brand strategy and aims to decode the skincare challenges faced by the Z generation [3][22]. - The brand's visual identity has been revamped to convey professionalism and vitality, appealing to the emotional and rational needs of young consumers [23][24]. Group 2: Scientific Research and Product Development - Proya's research indicates that the complexity of young skin is influenced by emotional factors, with the skin acting as an "emotional organ" [5][21]. - The YOUTHLAB has developed a "dual oil sensitivity control system" targeting overactive sebaceous glands, which are identified as the root cause of various skin issues [5][6]. - The flagship product, the "Redness Repair Essence 2.0," features 98% high-purity Kava extract and aims for rapid redness reduction and oil control [6][8]. Group 3: Market Position and Financial Performance - HAPSODE's revenue reached 332 million yuan in 2024, marking a 9.41% year-on-year growth, highlighting its role in Proya's youth-oriented brand strategy [33]. - The brand targets a diverse demographic, including trend-loving Z generation consumers and quality-seeking professionals, with a price range that offers strong value [33]. - Proya's commitment to R&D is evident, with a budget of 210 million yuan for 2024 and a growing number of patents, reinforcing its innovative capabilities [17]. Group 4: Emotional Engagement and Consumer Connection - The brand recognizes that skincare issues are often reflections of emotional states, leading to a focus on emotional communication in marketing strategies [22][32]. - Collaborations with popular youth icons, such as Ricky from the boy band ZEROBASEONE, aim to create relatable brand ambassadors that resonate with the target audience [27][30]. - The brand's approach combines scientific efficacy with emotional support, aligning with the Z generation's values of self-fulfillment and mental well-being [32][33].