Chicmax 1H26: Profit Slumps 77% on Weaker KANS Sales, Newpage and ARMIYO Surge; Post-period Boost from Shanghai Yiye Stake Buy

Bulletin Express09-18

Shanghai Chicmax Cosmetic Co., Ltd. (Chicmax) reported mixed first-half 2026 results, with revenue slipping and profit contracting, while certain emerging brands delivered rapid growth.

Financial Performance • Revenue fell 8.6% year on year to RMB3.76 billion. • Gross profit declined 7.1% to RMB2.88 billion; gross margin improved 1.2 ppts to 76.7 %. • Net profit attributable to shareholders dropped 79.4% to RMB108.18 million; EPS decreased to RMB0.27 from RMB1.32. • Selling & distribution expenses rose 6.2% to RMB2.48 billion and consumed 66.1 % of revenue (1H25: 56.9 %). • R&D spend increased 36.4% to RMB140.57 million, reflecting the group’s focus on peptide and anti-aging research. • Operating cash inflow reached RMB312.52 million, down from RMB385.63 million a year earlier. • Cash and cash equivalents stood at RMB686.04 million; net gearing climbed to 25.9% (FY25: 22.0%). • No interim dividend was declared (1H25: RMB0.50 per share).

Brand Breakdown • KANS revenue fell 20.4% to RMB2.66 billion, representing 70.8 % of group sales, as periodic market factors weighed on volumes. • newpage surged 59.9% to RMB0.64 billion, lifting its contribution to 16.9 % of revenue on stronger infant and youth skin-care demand. • ARMIYO almost doubled sales to RMB0.14 billion (+89.3%), aided by its redness-relief products. • Baby Elephant slipped 29.1% to RMB0.11 billion amid brand restructuring. • Other nascent labels, including KYOCA and oneleaf, generated RMB0.21 billion.

Segment Mix • Skin-care revenue dropped 27.6% to RMB2.48 billion (66.0 % of total). • Maternity & childcare products rose 34.4% to RMB0.75 billion (19.9 %). • Other categories, including wash & care and makeup, expanded to RMB0.53 billion (14.1 %).

Operational Highlights • R&D strategy upgraded to focus on photobiology, neurobiology and aging biology; 30 new patent applications filed in 1H26. • Employee headcount reached 2,926, with staff costs up 41.6% to RMB523.70 million. • Capital expenditure totaled RMB208.70 million, mainly for new production facilities.

Post-period Development On 11 August 2026 Chicmax’s subsidiary Shanghai Qingdao agreed to acquire an additional 29% stake in Shanghai Yiye Biotechnology for approximately RMB383.96 million, raising its holding to 80%. An option to buy a further 5% (capped at RMB500 million) was also secured.

Outlook Management reaffirmed the “six-six” strategy, aiming to rebuild KANS growth, accelerate multi-brand expansion across six core beauty segments, deepen AI-driven R&D, and enhance intelligent manufacturing, while maintaining disciplined investment in talent and digital infrastructure. No further guidance was provided.

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