Core Viewpoint - Despite pressure in the beauty industry, Proya (603605.SH) demonstrates resilience with a revenue of 5.362 billion yuan in the first half of 2025, reflecting a year-on-year growth of 7.21% and a net profit of 799 million yuan, up 13.80% [1] Revenue Performance - Proya's main brand contributed 3.979 billion yuan in revenue, marking a slight decline of 0.08%, the first revenue drop in five years [4] - The main brand had previously shown consistent revenue growth from 2021 to 2024, with growth rates of 31.44%, 43.12%, 35.86%, and 37.67% respectively [4] Brand Portfolio - Proya's brand portfolio includes "Proya," "Caitang," "Off&Relax," "Yuefuti," "CORRECTORS," "INSBAHA," and "Jingshi," covering various beauty segments [3] Growth of Secondary Brands - Secondary brands such as Caitang and Off&Relax continue to show growth, with Caitang generating 705 million yuan in revenue, a year-on-year increase of 21.11% [6][7] - Off&Relax contributed 279 million yuan, with a remarkable growth rate of 102.52% [9] International Expansion Plans - Proya is planning to issue H-shares and list on the Hong Kong Stock Exchange to accelerate its international strategy [2][10] - The appointment of Xue Xia as the new company secretary is aimed at leveraging her extensive capital market experience to facilitate the Hong Kong listing [12][13] Market Positioning - If successful, Proya will become the first domestic beauty company with dual listings (A+H), enhancing its brand image and market reach [11] - The Hong Kong listing is expected to improve Proya's access to global investors and strengthen its presence in the Asia-Pacific market [11]

Investment Rating - The report maintains a "Buy" rating for Proya and a "Hold" rating for other companies in the beauty and personal care sector [5][9]. Core Insights - The beauty and personal care sector has shown mixed performance, with Proya launching new medical-grade collagen products and Lin Qingxuan preparing for an IPO in Hong Kong [2][20][23]. - The Tmall 618 pre-sale rankings for beauty products show Proya, Lancôme, and L'Oréal leading the market, indicating strong brand presence [20][21]. - The overall market performance for the week ending May 30, 2025, saw the retail sector increase by 0.69%, while the beauty care sector decreased by 0.72% [12][14]. Summary by Sections Market Performance - For the week of May 26 to May 30, 2025, the retail sector increased by 0.69%, social services by 0.18%, and beauty care decreased by 0.72%, ranking 12th, 14th, and 25th among 31 primary industries respectively [12][14]. - The professional chain, general retail, and professional services sectors saw the highest gains, with increases of 2.24%, 1.72%, and 0.92% respectively [14]. Key Industry Events and News - Proya launched a new medical-grade collagen patch, approved as a Class II medical device, aimed at treating superficial wounds and post-procedure care [23]. - Lin Qingxuan submitted its IPO application to the Hong Kong Stock Exchange, with significant sales figures for its signature camellia oil product [20]. - Tmall's 618 pre-sale rankings for beauty products remained stable, with Proya, Lancôme, and L'Oréal maintaining their top three positions [20][21]. Company Announcements - Proya's new medical product is priced at 198 yuan for a box of five patches, indicating a strategic move into the medical beauty segment [23]. - Ji Hong Technology announced its H-share listing, with a global offering of 67.91 million shares at a price of 7.68 HKD per share, aiming to raise approximately 420 million HKD [27].