CHICMAX H1 2026: Revenue Slips 8.6%, Net Profit Falls 77% as KANS Stumbles; newpage and ARMIYO Accelerate

Shanghai Chicmax Cosmetic Co., Ltd. (CHICMAX) reported a sharp earnings contraction for the six months ended 30 June 2026, as weakness in flagship brand KANS outweighed strong double-digit growth from emerging labels newpage and ARMIYO.

Financial Performance • Revenue declined 8.6% year on year (YoY) to RMB 3.76 billion, driven by lower KANS sales. • Gross profit fell 7.1% YoY to RMB 2.88 billion; the gross margin edged up 1.2 percentage points to 76.7% on product-mix optimisation. • Net profit dropped 77.4% YoY to RMB 125.70 million, cutting net margin to 3.4% from 13.5% a year earlier. • Basic earnings per share slipped to RMB 0.27 (1H 2025: RMB 1.32). • Operating cash inflow decreased to RMB 312.50 million (1H 2025: RMB 385.60 million); cash and cash equivalents stood at RMB 686.04 million at period-end. • The board withheld an interim dividend (1H 2025: RMB 0.50 per share).

Brand-Level Dynamics • KANS revenue contracted 20.4% to RMB 2.66 billion, equal to 70.8% of group turnover, amid “periodic market factors”. • newpage surged 59.9% to RMB 635.20 million, lifting its sales share to 16.9%, supported by leadership in premium baby moisturisers and expansion into teen skin-care lines. • ARMIYO nearly doubled sales, up 89.3% to RMB 139.50 million, on strong demand for its sensitive-skin products. • Baby Elephant retreated 29.1% to RMB 112.70 million during a restructuring phase. • Other emerging brands contributed RMB 207.70 million, up 54.9% YoY.

Channel & Category Mix • Online platforms remained dominant at 94.1% of revenue (RMB 3.54 billion), down 7.2% YoY. Offline sales fell 34.3% to RMB 176.50 million as the group explored new retail formats. • Skin-care sales dropped 27.6% to RMB 2.48 billion, while maternity & childcare grew 34.4% to RMB 748.20 million, reflecting newpage’s expansion.

Cost Structure • Selling & distribution expenses rose 6.2% to RMB 2.48 billion, lifting the cost ratio to 66.1% (1H 2025: 56.9%). • Administrative expenses increased 18.9% to RMB 181.70 million. • R&D investment climbed 36.4% to RMB 140.60 million, underpinning the group’s “AI-driven skin system science” roadmap and 30 new patent applications.

Balance Sheet & Liquidity • Debt-to-asset ratio improved modestly to 40.7% (end-2025: 42.1%). • Interest-bearing borrowings rose to RMB 361.00 million, pushing the gearing ratio to 25.9%. • Capital expenditure totalled RMB 208.70 million, mainly for new plant and equipment.

Strategic Outlook Management reaffirmed the “six-six” strategy: talent development, R&D leadership, AI-enabled operations, omnichannel marketing, intelligent manufacturing, and platform-based brand incubation across six core segments (mass skin care; maternal, baby & teen care; cleansing & personal care; makeup; dermocosmetics; premium skin care).

Post-Period Development On 11 August 2026, CHICMAX agreed to acquire an additional 29% stake in subsidiary Shanghai Yiye Biotechnology for approximately RMB 383.96 million, which will lift its holding to 80% upon completion and deepen its presence in efficacy-driven skin-care solutions.

No material litigation, share buy-backs, or further significant investments were reported during the period.