BRIEF: Shanghai Chicmax’s profit surges nearly 70%, growth slows in second half

Cosmetics company Shanghai Chicmax Co. Ltd. (2145.HK) announced on Thursday its revenue rose 62.1% year-on-year to 6.79 billion yuan ($206 million) last year. Its net profit for the year increased 69.4% to 781 million yuan, which, while strong, represented a sharp slowdown from the 213% profit growth it recorded in 2023.

The company’s flagship brand Kans brand contributed 5.59 billion yuan in revenue last year, up 80.9% year-on-year, accounting for 82.3% of the total. The growth was mainly driven by an overall upgrade of the Kans brand and rapid expansion across sales channels. Meanwhile, marketing and promotional expenses rose 90% year-on-year to 3.32 billion yuan, though that was slower than the 169.2% growth recorded in the first half of last year.

In the second half of last year, Chicmax reported revenue of 3.29 billion yuan, down from 3.502 billion yuan in the first half — marking the first time since its listing that second-half revenue fell below the first half. This year’s second-half revenue figure was up just 26.3% year-on-year, a sharp slowdown from the 120.7% year-on-year revenue increase in the first half.

Shanghai Chicmax’stock opened 2.6% higher at HK$45.70 on Friday and fell 1.12% to HK$44 by the midday break.

By Lee Shih Ta

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