FAST NEWS: Chicmax’s profit skyrockets on growth of Kans brand

The Latest: Skincare products maker Shanghai Chicmax Cosmetic Co. Ltd. (2145.HK) reported Thursday its net profit surged more than three times to 412 million yuan ($58 million) in the first half of this year, mainly due to a big increase in sales for its core cosmetics.

Looking Up: The company’s revenue rose 121% to about 3.5 billion yuan, of which the Kans brand benefited from growth of its e-commerce platform, with revenue for that line soaring 185% to 2.93 billion yuan, accounting for 83.6% of the total.

Take Note: Its selling and distribution expenses jumped 137% to 2.02 billion yuan, accounting for 57.6% of total revenue, as it spent more on brand exposure and promotion, and invested in new and existing channels.

Digging Deeper: Chicmax was founded in 2002 and launched its core Kans brand the following year. The brand, together with the newer One Leaf and Baby Elephant brands, are the company’s three main product lines, accounting for the big majority of its revenue. The company has grown rapidly in recent years on the establishment of new sales channels over social media platform Douyin and e-commerce platform Tmall. In the first half of this year, revenue from its online channels amounted to 3.17 billion yuan, accounting for 90.6% of its total.

Market Reaction: Chicmax’s shares fell on Friday, closing down 4.6% at HK$33.25 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by A. Au

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