Maogeping, a high-end beauty brand, rushed to the Hong Kong Stock Exchange, setting off an upsurge of attention to domestic brands in the capital market.
Recently, Maogeping Cosmetics Co., Ltd. (hereinafter referred to as "Maogeping Company") submitted a prospectus to the Hong Kong Stock Exchange. As early as December 2016, Mao Geping Company had already rushed to A-share market, becoming the first cosmetics company to apply for listing on the A-share main board. Over the next seven years, in order to develop its brand, Maogeping Company remained determined to go public. Along with the pace of the reform of the registration system, it changed from waiting for approval at the meeting to waiting for approval at the exchange. Due to the "Nine Tripod System", it has not been successful. After removing "Jiuding System" from the list of shareholders, Mao Geping Company embarked on the capital journey again.
This time, Mao Geping Company has made adequate preparations and its shareholders have become more stable, which undoubtedly has laid a "centering pin" for the development of the company. Mao Geping, this name not only represents a renowned makeup artist in the industry, but also represents a national brand that adheres to the spirit of ingenuity and deeply engages in the field of beauty.
In 2000, Mao Geping created the cosmetics brand - MAOGEPING with his own name. Artists and famous designers created a brand of the same name, which is the path that many top international designers and world-class brands have chosen at the same time. In the field of domestic cosmetics, Mao Geping is the "first person". From the day when the name was printed on the product, he regarded his own development and brand growth as one. More than 20 years later, he has never changed his original intention to become a high-end beauty brand for Chinese people.
In order to meet consumers' demand for "beauty", Maogeping Beauty Makeup starts from the skin texture and skin color of Oriental people. Through unique light and shadow aesthetic concept, excellent product quality, and professional makeup skills, it is delivered to consumers by way of experience, so that consumers can really feel the quality of products before spending. This set of effective concepts has won more and more loyal users, and has also enabled Maogeping Company to forge a highly competitive development path in the fierce market environment.
In recent years, the stable business strategy and efficient R&D investment have kept Maogeping Company in a leading position in the fierce market competition. According to Frost Sullivan, Mao Geping is the only Chinese company among the top ten high-end beauty groups in the Chinese market, ranking eighth in terms of retail sales in 2022. From the performance in 2023, its ranking may be further improved.
As a benchmark in the industry, the luxury sponsor team behind Mao Geping's application for Hong Kong shares reflects the capital's high recognition of its brand value and market potential. Since then, how to achieve steady growth and win the favor of consumers and investors through high-end strategy, cultural integration and market adaptability has become the focus of the industry.
Modern Deduction of Oriental Aesthetics
With the progress of Maogeping's capitalization, the oriental aesthetics will further shine on the world stage.
Let the world see Oriental beauty is the belief that Mao Geping has always adhered to since its inception. With its profound understanding of oriental aesthetics and keen insight into modern aesthetics, Mao Geping has become a benchmark for high-end brands.
In 2018, the Maogeping brand launched in-depth cooperation with the Palace Museum Cultural Creativity, and developed and launched the "Qiyun Oriental" series of products in five phases. The biggest feature of this series is the artistry of makeup products, which explains the oriental beauty in Chinese traditional culture. However, it is not purely a copy of ancient elements, but a refinement and sublimation of modern fashion aesthetics. For example, the calligraphy, bamboo painting, double color high CD, which is taken from the elements of the Cursive Script of Thousand Words and the White headed Bamboo Painting of Emperor Huizong of the Song Dynasty, and the dark fragrance, thin shadow, and condensed face powder, which is modeled on the plum blossom and embroidered eye painting of the Song Dynasty.
Behind the inspiration is tireless study and ingenuity. Through a lot of research on the collections of the Forbidden City, the brand of Mao Geping has extracted its own "oriental aesthetics" gene. How to transform and express Chinese traditional cultural symbols in a fashionable way through beauty carriers, so that the new generation of consumers can accept and like them, is the pursuit of brands and the mission of Guochao.
Many insiders said that the products of Mao Geping's "Qi Yun Oriental" series not only demonstrated the essence of oriental culture, but also an important sample of the integration of modern aesthetics and traditional culture. The products represented by the "Qiyun Oriental" series not only revitalize the products, but also enable Mao Geping to stand out in the competitive market.
According to the data disclosed in the company's prospectus, from 2021 to 2023, the revenue of Mao Geping Company will be 1.577 billion yuan, 1.829 billion yuan and 2.886 billion yuan respectively. In 2023, the revenue will grow 57.8% year on year, with a compound annual growth rate of 35.3%. In the same period, the net profits of Maogeping Company were 331 million yuan, 352 million yuan and 664 million yuan, respectively, with a compound annual growth rate of 41.6%.
The researcher of Minsheng Securities pointed out in the research paper that, with years of experience in the cosmetics field and continuous research on the aesthetics of oriental women, Mao Geping's products are based on the oriental aesthetic concept, aiming at the characteristics of oriental people's skin color, skin texture, facial contour, facial features and structure, and using special products such as base makeup, highlight, shadow, etc. as tools, The combination of western light and shadow stereoscopic techniques and oriental colors can strengthen the natural porcelain white skin while improving the three-dimensional contour of the face, and create a beautiful makeup that conforms to the oriental temperament.
Strengthen R&D and empower beauty
According to the prospectus, from 2020 to 2022, Maogeping Company will continue to increase its R&D investment, and the R&D expenses will increase from 10.6704 million yuan to 14.562 million yuan, with a compound annual growth rate of 16.82%.
At present, Maogeping Company has a professional research and development team, focusing on the research and development of cosmetics raw materials, biotechnology, cosmetics configuration process, and focusing on the six link processes of "direction determination, competitive product analysis, product development, function testing, sample trial, and mass production". Since 2023, the company has been more active in the R&D field and continuously strengthened its R&D strength.
In April 2023, the foundation of Maogeping Beauty Research and Development Factory has been laid in Hangzhou. The project has a floor area of 44838 square meters, and is expected to be officially operated in 2026, with an annual design capacity of about 15.4 million pieces. The project will focus on the two keywords of "digital+green" to build an innovative high-end cosmetics research and development factory integrating R&D and production center, product aesthetic design center and consumer visit center, and continue to promote the high-quality route and international development of domestic cosmetics products.
In October of the same year, Mao Geping acquired the equity of Huamei Kangyan (Suzhou) Biotechnology Co., Ltd. through its subsidiary. The company is famous for its R&D strength, and its founding team comes from Yingteli, a cosmetics OEM giant. The solid R&D foundation and strong R&D team make the R&D strength of Maogeping Company go to a higher level. At the beginning of 2024, Mao Geping invested in a technology enterprise again, demonstrating its determination to strengthen R&D investment.
It is reported that in the past 22 years of development, the development mode of Maogeping Company has focused on brand building, that is, Maogeping Company is responsible for developing and designing products, formulating standards, and entrusting the production process to high-quality manufacturers, which is conducive to the brand focusing on playing its core competitiveness in the early stage of development. Today, an important reason for its self built factory is that the enterprise has reached a new stage of development and needs to match the development plan.
In the future, Maogeping Company will still increase R&D investment. In its prospectus, it clearly stated that it planned to establish a headquarters R&D base and set up R&D centers overseas to promote the sustainable development and innovation of the brand.
In addition to R&D plus, in terms of marketing mode, thanks to good consumption experience and high-quality products, the Maogeping brand adheres to the biggest feature of "cosmetic experience service", which is the offline sales, and continues to deepen the offline middle and high-end department store channels. The prospectus shows that in 2021, 2022 and 2023, Mao Geping's revenue from offline sales channels will be 966 million, 1081 million and 1602 million respectively, accounting for 64.6%, 60.8% and 57.6% of the overall sales revenue of the same year.
In recent years, the brand has actively embraced the Internet and strengthened the exploration of online sales potential. Through active interaction on social media and e-commerce platforms, it has successfully built a communication bridge with young consumers.
According to the prospectus, in 2021, 2022 and 2023, the online sales channel revenue of Mao Geping Company will be 529 million, 694 million and 1.18 billion, respectively, expanding from 35.4% to 42.4%.
"The company plans to further strengthen its online and offline sales capabilities and expand its sales network." According to the prospectus data, 25% of the proceeds from this IPO will be used to expand its sales network.
Financial Stability Begins New Chapter of Capital
Maogeping Company, whose performance is booming, always insists on sharing development dividends with shareholders. In the process of development, Maogeping Company implemented the cash dividend policy to repay shareholders and show confidence in the company's profitability.
According to the information in the prospectus, Mao Geping Company distributed dividends of 40 million yuan and 250 million yuan to all shareholders in March 2021 and May 2023, respectively. In March 2024, the company again paid a dividend of 500 million yuan to all shareholders, and announced at the subsequent general meeting that it would pay another dividend of 500 million yuan.
These dividend measures not only reflect Mao Geping's attention to the interests of shareholders, but also demonstrate the company's good cash flow and profitability.
From 2021 to 2023, the cash and cash equivalents of Maogeping Company will be 492 million yuan, 888 million yuan and 1.138 billion yuan respectively, showing a growing trend year by year. Robust financial data also provide a solid foundation for the company's dividend policy.
While paying cash dividends, Mao Geping is also actively investing in future development, including expanding sales network, brand building, overseas expansion and acquisition, and strengthening production and supply chain capabilities. This strategy of balancing short-term shareholder returns with long-term development investment will help the company maintain a leading position in the beauty market with fierce competition and achieve sustainable development.
At the industry level, China's cosmetics market is in a rapid development stage. In the wave of development, Mao Geping has also taken the opportunity of growth.
Data shows that the market scale of China's cosmetics industry has expanded rapidly. From 2011 to 2022, the market scale will grow from 230.944 billion yuan to 616.433 billion yuan, with a compound growth rate of about 9.3%. It is expected that in the next five years, China's cosmetics market will continue to maintain its leading position in the global cosmetics industry. The market size is expected to reach 937.4 billion yuan, with an average annual growth rate of 7.11% from 2023 to 2028.
In addition, the competition pattern of China's cosmetics industry is also constantly optimizing, and the advantages of the leading enterprises are fully displayed.
The domestic brands represented by Mao Geping are accelerating their breakthrough and gradually increasing their market share through product innovation, brand building and effective marketing strategies. With the diversification and personalization of consumers' demand for beauty products, and the increasing recognition of high-quality domestic products, the head domestic cosmetics brand is expected to occupy a more important position in the future market.
In the future, Mao Geping will use its lead Position and market competitiveness, strengthen the core advantages of the brand. In addition, the company will continue to adhere to the high-end strategy, constantly consolidate and enhance brand influence through product innovation and market expansion, and create more value for consumers and investors.
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