Core Viewpoint - Proya, a leading Chinese beauty brand, has submitted an application for H-share listing on the Hong Kong Stock Exchange after eight years of being listed on A-shares, despite facing challenges such as declining net profits [1][10]. Company Development - Proya was founded in 2003 by Hou Junchen and his brother-in-law Fang Youyou, launching its first brand in 2006 [2]. - The company went public on the Shanghai Stock Exchange in 2017, marking a significant milestone in its growth trajectory [2]. - Proya has expanded its brand portfolio from a single brand to multiple brands, including Proya, Yefuti, Kuirufu, Caitang, Yuansheng Bota, and Off&Relax, with four key brands projected to exceed 500 million yuan in retail sales by 2024 [2][3]. Market Position - Proya ranked 15th among domestic cosmetics groups in 2019, became the largest domestic cosmetics group in 2021, and is projected to rank 5th in 2024, maintaining its position as the top domestic cosmetics group for four consecutive years [3]. - In 2024, Proya became the first Chinese cosmetics group to surpass 10 billion yuan in sales revenue [3]. Sales Channels - The rapid growth in Proya's retail sales is attributed to its focus on online sales channels, which accounted for over 90% of revenue since 2022, reaching 95.4% in the first half of 2024 [4]. - Online direct sales made up 75.5% of total online revenue, while online distribution accounted for 19.6% [4]. Financial Performance - In Q3 2023, Proya reported revenue of 1.736 billion yuan, a year-on-year decline of 11.63%, with net profit dropping by 22.30% [14][15]. - The company's stock price has been on a downward trend, with a decline of over 12% since the beginning of the year [10]. Leadership Transition - In September 2024, Hou Yameng, born in 1988, succeeded Fang Youyou as the general manager, marking a generational shift in leadership [9]. - Under Hou Yameng's leadership, Proya aims to implement a "Double Ten" strategy to enter the top ten global cosmetics companies within the next decade [9]. IPO Objectives - Proya's H-share IPO aims to enhance global brand visibility, attract international investors, and support its international expansion strategy [16]. - The funds raised will be allocated to R&D, brand building, and digital transformation initiatives [16].

Core Viewpoint - Proya Cosmetics Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, with CICC and UBS serving as joint sponsors [1] Company Overview - Proya is a Chinese multi-brand beauty group focused on creating a world-class cosmetics industry platform, offering high-quality and technologically advanced products [5] - The company ranks fifth among the top five groups in China's cosmetics industry by retail sales in 2024, being the only domestic cosmetics group in this category [5] - Proya has maintained its position as the largest domestic cosmetics group in China for four consecutive years from 2021 to 2024 based on retail sales [5] Product Portfolio - Proya has developed a diverse portfolio with multiple brands and categories, covering skincare, color cosmetics, and personal care [5] - The flagship brand, Proya, is notable for having two essence products each exceeding RMB 1 billion in retail sales, making it the only single brand in this category [5] - The company operates several brands, including skincare brands "Proya," "Yuefuti," and "Kruif," color cosmetics brand "Caitang," and personal care brand "Off&Relax" [5] Sales and Distribution - The company primarily utilizes online platforms for sales while enhancing brand reach through offline channels [6] - Proya is one of the earliest beauty groups to strategically develop online channels, achieving a significant leading position in this area [6] Production Capacity - As of October 24, 2025, Proya operates a production base in Huzhou, Zhejiang, with 66 production lines dedicated to skincare products [6] - A new smart factory is under construction in Huzhou, designed to have a production capacity of 400 million units [6] Financial Performance - Proya's revenue for the six months ending June 30 for the years 2022 to 2025 is as follows: RMB 6.385 billion in 2022, RMB 8.905 billion in 2023, RMB 10.778 billion in 2024, and RMB 5.362 billion in 2025 [8][9] - The corresponding profits for the same periods are approximately RMB 831 million in 2022, RMB 1.231 billion in 2023, RMB 1.585 billion in 2024, and RMB 826 million in 2025 [8][9]