Core Viewpoint - The article highlights the competitive landscape of the Chinese cosmetics market, focusing on the success of local brand Proya, which is preparing for an IPO in Hong Kong while facing challenges from both international and domestic competitors [1][23]. Company Overview - Proya, established in 2006 and listed on the Shanghai Stock Exchange in 2017, is headquartered in Hangzhou and has a market capitalization of approximately 29.2 billion RMB [5][9]. - The company has a diverse product range covering skincare, makeup, and personal care, with its main brand contributing over 70% of its revenue [11][23]. Market Trends - In 2024, local cosmetic brands are projected to hold a market share of 49.9% in China, an increase from previous years but still lower than South Korea and Japan [1]. - The per capita spending on cosmetics in China is around 664 RMB, significantly lower than that in developed Asian countries, indicating potential growth as income levels rise [1][21]. Financial Performance - Proya's revenue has shown a growth trend, with figures of approximately 6.39 billion RMB in 2022, 8.90 billion RMB in 2023, and projected 10.78 billion RMB in 2024 [19][20]. - The gross profit margin has remained around 70%, but the company reported a decline in third-quarter performance for 2025, with revenue dropping by 11.63% year-on-year [19][20]. Sales Channels - Over 70% of Proya's revenue comes from online direct sales, with a significant reliance on platforms like Tmall and JD.com [16][17]. - The company has experienced a compound annual growth rate of 44% in online sales from 2019 to 2024, surpassing leading foreign skincare brands [8]. Competitive Landscape - Proya is the only domestic brand among the top five cosmetics brands in China, holding a market share of 1.3% [23]. - The company faces intense competition from international giants like L'Oréal and Shiseido, as well as domestic brands such as Shanghai Jahwa and Huaxi Biological [23]. Future Outlook - The Chinese cosmetics market is expected to grow at a compound annual growth rate of 6.6% from 2024 to 2029, driven by increasing consumer demand for skincare and makeup products [21][23]. - Proya's upcoming IPO aims to raise funds for research and development, brand building, and digital transformation, reflecting its ambition for expansion [9][23].