Beijing Stock Exchange once again ushered in the corporate impact of "the first beauty stock". Recently, Guangdong Bawei Biotechnology Co., Ltd. (hereinafter referred to as "bawei ") issued an announcement for application for public issuance of shares and listing guidance on Beijing Stock Exchange . The guidance agency for this listing is Wanlian Securities . The Guangdong Securities Regulatory Bureau will accept the application materials submitted by the company for public issuance of stocks to unspecified qualified investors and listing guidance and filing on the Beijing Stock Exchange.
ODM model is the main model, and it cooperates with cutting-edge domestic products HBN
. According to Tianyancha data, Bawei listed on the New OTC Market in 2016. After the listing, there were three private placements in 2017, 2021, and 2022.
According to the performance previously disclosed by Bawei in the directional stock issuance prospectus, the operating income in 2019 and 2020 was approximately 230 million yuan and 310 million yuan, with the latter increasing by 34.8% compared with the same period last year. Revenue in the first half of 2021 was approximately 180 million yuan, an increase of 42.6% over the same period last year. From the perspective of product structure, cream products contribute the largest proportion of revenue to the company, but the revenue growth rate is faster than that of personal care products, exceeding 100%.
But in fact, Ba Wei’s is not a beauty company that started with its own brand business. Its business model clearly mentions: Bawei Co., Ltd. 's business is mainly divided into three modes for development: ODM full managed processing mode; semi-finished product supply; OBM. The above three production models are the company's main sources of revenue. Bawei Co., Ltd. is currently committed to the entire managed ODM processing model, providing brand owners with integrated services including planning, design, research and development, production, quality control, packaging material ordering, and testing and filing. Its brand customers exceed 1,000, and the well-known ones include: Unilever , Fanmiline , Lafonjiahua , HBN, Guerlain Beauty, Renhe Craftsmanship, Dora Doshang , etc. Among them, Unilever is a very important international brand customer, and the "Cheese Peach" shower gel customized for it has become a hot item.
A product of cooperation between Bawei and Unilever.
Bavi's latest semi-annual report for 2021 shows that the company is currently also co-developed with the new domestic skin care brand HBN, a retinol firming and revitalizing night cream, which uses the company's patented micro-bead technology. The product is listed on the " Tmall 618 night cream" "Hot-selling list" TOP1.
In addition, even though the ODM model is the mainstay, Bawei's current product sales channels are becoming increasingly diverse, covering daily chemical lines, professional lines, e-commerce, micro-business, TV shopping, direct sales, Internet celebrity live broadcasts, etc. In 2020, Nandu reporters visited Bawei. The channel changes they experienced since they were founded in 2006 can be said to be a microcosm of the development of the domestic beauty market. At that time, Bawei sales director Gao Yi told Nandu reporters: "In the initial stage, traditional daily chemical channels were mainly used, that is, supermarkets and beauty industries; starting from 2012 to 2013, with the emergence of Taobao brands, we expanded to online E-commerce channels. From 2014 to 2015, we began to operate self-operated e-commerce and micro-commerce channels. In 2019, the live broadcast channel began to rise. "They found that after the rise of e-commerce, the number of popular products increased, but the number of single products developed decreased. Although live broadcast channel products also follow the logic of hot-selling products, they will be more segmented in comparison, and the demand for personalized products will increase.
Spend money to build factories and create cosmetics industry chain services
Therefore, the project construction raised in 2021 will mainly be used to increase the company’s production capacity of cosmetics, toiletries and other products, among which the innovation center and industrial base projects will mainly be used for Produces creams, facial masks and cleaning products; the Bawei biological research and production base project is mainly used to produce skin care, personal care (shampoo, shower gel , etc.), makeup (lipstick, eye shadow, blush, etc.), disinfectant Brand size products (disinfection spray, no-wash hand sanitizer, etc.), large daily chemical products (laundry detergent, laundry beads , etc.). The company is committed to creating cosmetics industry chain services.
From the perspective of net profit, the company achieved a net profit of 28.24 million yuan for shareholders of listed companies in 2020, an increase of 35.46% over the same period last year, mainly due to the growth in revenue. The announcement also explained that although gross profits decreased and government subsidies decreased, at the same time Due to the scale effect of revenue growth, fixed expense ratios decreased during the period, and net profit growth was slightly higher than revenue growth.
In the first half of 2021 (January-June), the company achieved a net profit attributable to shareholders of the listed company of 11.16 million yuan, and a net profit after non-compliance deductions of 10.5 million yuan, an increase of 21.81% and 32.97% respectively from the same period last year, which was lower than Revenue growth. The main reasons include the decline in gross profit margin; the scale effect brought about by the growth of sales volume, the dilution of fixed expenses in administrative expenses and R&D expenses, which partially offset the impact of the decline in gross profit margin; the need for investment in new factories and working capital, the growth of loans, the increase in financial expenses, and financial management Structural financial management income decreased; government subsidy income decreased. It is worth noting that as to the reason for the decrease in gross profit margin, the financial report mentioned the adjustment of customer structure, focusing on developing cooperation with domestic and international well-known brand customers. The order amount is large. The company appropriately lowers product prices, achieves rapid revenue growth, accelerates scale expansion, and profit value. steady improvement. It can be seen that the scale of Bawei’s cooperation with Unilever is gradually expanding.
In addition, Nandu reporters learned that in addition to Bavi, its peers in the industry, Zhuhai Yisijia Technology Co., Ltd. and Shenzhen Lanting Technology Co., Ltd. , have also been included in the special new directory. The former Last year, it also submitted an application for listing on the Beijing Stock Exchange to the China Securities Regulatory Commission. We will wait and see whether Bavi can successfully hit the "No. 1 beauty stock" on the North Exchange.
Written by: Nandu reporter Xu Bingqian
