On October 5, Shanghai Shangmei Group, a parent company of Hanshu , submitted prospectus to the Hong Kong Stock Exchange, intending to list in Hong Kong.
This is not the first time that Shangmei Group has made an IPO. In January this year, Shangmei Group submitted a statement to the Hong Kong Stock Exchange, but it was unsuccessful. In February last year, Shangmei Group signed a listing guidance agreement with CITIC Securities , intending to log in to the A-share capital market, but it was not successful in the end. What changes and unchanges have happened to Shangmei Group compared with the IPO at the beginning of the year?According to the prospectus, the most obvious change in Shangmei Group is the rapid decline in performance data. In the first half of this year, Shanghai Mei Group's revenue fell by 31%, and its profit shrank by more than 60%. In contrast, the performance data for the first three quarters of 2019, 2020 and 2021 showed an increasing trend. What remains unchanged is its over-reliance on marketing and its weak growth in high-end products., a traditional cosmetics company that was once named "the first micro-business", can become the first beauty listed company in Hong Kong this year.Online channel revenue accounts for 73%
In the context of declining performance, Shangmei Group is still urgently advancing the listing process.
prospectus shows that Shangmei Group achieved revenue of 1.262 billion yuan in the first half of the year, compared with 1.832 billion yuan in the same period last year, a year-on-year decrease of 30%.
also performed poorly in terms of profits. In the first half of the year, Shangmei Group's net profit was 63 million yuan, a decrease of more than 60% from 174 million yuan in the same period last year.
Shangmei Group attributed its performance decline to the epidemic. "The epidemic has an impact on the company's production and delivery in Shanghai." said Shanghai Mei Group.
not only has its profits declined, but the gross profit margin of Shanghai Mei Group also showed a downward trend. In the first half of 2022, the gross profit margin of Shanghai Mei Group was 64.9%, down 1.7 percentage points from 66.6% in the same period last year.
Among them, the online self-operated gross profit margin is 72.3%, the online retailer gross profit margin is 63.4%, the online distributor gross profit margin is 46%, the offline retailer gross profit margin is 81.1%, and the offline distributor gross profit margin is 49.6%.
prospectus shows that Shangmei Group mainly engages in the development, manufacturing and sales of skin care products and maternal and child care products. Frost & Sullivan's report shows that in 2021, Shanghai Mei Group achieved retail sales of 7.556 billion yuan, accounting for about 1.7% of the market share of domestic cosmetics and 0.8% of the market share of domestic cosmetics.
2002, Lu Yixiong came to Shanghai with a team of 8 people to start the dream of a daily chemical empire. It took more than ten years to establish well-known daily chemical brands such as Han Shu, Yiyezi, Wuzun , Soweiya , Red Xiaoxiang , and Han Fanshijia. A turning point in the growth process of the U.S. Group was in 2010, when the micro-business industry was very popular, and Han Shu began to lay out micro-business channels. In 2015, Han Shu built a complete set of product sales channels of offline agents + TV shopping + e-commerce platforms + micro-businesses.
From the perspective of channel, Shangmei Group's sales channels are still mainly online.
prospectus shows that Shangmei Group mainly distributes products through online channels and offline channels, among which the proportion of online channels has gradually increased.
In the past three years and the first half of this year, the revenue from Shanghai Mei Group's online sales was RMB 1.504 billion, RMB 2.543 billion, RMB 2.698 billion and RMB 931 million, respectively, accounting for 52.4%, 75.2%, 74.6% and 73.8% respectively.
's online revenue share is increasing year by year, which also means that the power of the offline channels of Shanghai-Mei Group is being weakened.
prospectus shows that the proportion of revenue from offline channels has dropped from 45.7% in 2019 to 24.6% in the first half of this year.
However, in its prospectus, Shanghai Mei Group stated that offline retail and distribution are still crucial to the company's business. Shanghai Mei Group's extensive offline retail and distribution network mainly includes offline retailers and distributors. Among them, offline retailers are mainly well-known supermarkets and cosmetics chain stores, including Watsons , etc.
As of June 30, 2022, Shanghai Mei Group has displayed and sold products through more than 4,000 Watsons stores.
invited celebrities to endorse, spending 5570 0,000
to re-market for two and a half years is the background color of Shangmei Group. This is also the unchanging part of Shangmei Group.
Compared with the reputation of "Shangmei Group", Han Shu seems to be more famous, thanks to the marketing investment of Shangmei Group in recent years.
, which started with the micro-business in her early years, once created a sales myth of 100 million yuan in 40 days. However, since the sales model was suspected of pyramid schemes, Shanghai Mei began to shift its marketing focus to endorsement and naming methods.
has invested heavily in popular variety shows and TV series, and has also invited many celebrities to endorse it. Under various effects, Han Shu and -yezi seem to have become household cosmetic brands. The Han Shu brand of the American Group, which was once named "If You Are the One" for 500 million yuan, broke the record of Chinese TV advertising at that time. The sales of
are reflected in the financial report data. In the first half of this year, its sales expenses reached 608 million yuan, accounting for 48.2% of total revenue.
. Marketing and promotion expenses account for more than 60% of sales and distribution expenses.
Shangmei Group, which relies on marketing, has also suffered from the trouble of the spokesperson's accident.
Shangmei Group also mentioned that it had terminated its business cooperation with the celebrity before the end of the contract period due to misconduct, and thus dispose of relevant packaging materials and withdrawing advertising and marketing materials in 2021, causing an additional expense of approximately RMB 14 million.
In July 2021, after the "Kris Wu incident" fermented, Han Shu said that he would terminate the contract with Kris Wu and terminate all brand cooperation relationships.
In addition, Shangmei Group has also invited many celebrities to endorse it, such as Lin Chiling , Guo Caijie , Nazha , Jingtian, Tong Liya, Wang Ziwen , etc. From 2020 to 2021, the celebrity endorsement fees of Shangmei Group were 20.286 million yuan and 25.326 million yuan, respectively, accounting for 0.6% and 0.7% of the total revenue.
In the first half of this year, the celebrity endorsement fees of Shangmei Group were 10.096 million yuan, accounting for 0.8% of the total revenue. Based on this calculation, from 2020 to the first half of this year, Shanghai Mei Group spent a total of 55.7 million yuan to invite celebrities to endorse.
In addition, the problem of "focusing on marketing and neglecting R&D" has always existed in Shangmei Group. Compared with large marketing efforts, Shangmei Group does not invest much in R&D. In the first half of this year, Shanghai Mei Group spent 51.9 million yuan on R&D, accounting for only 4.1% of the total revenue.
The actual controller cashed out 1.8300 million
Compared with the risks of the epidemic, Shangmei Group has a greater risk, which may be due to the lack of high-end brands.
Han Shu’s previous users are mostly offline, and as the brand grows, the age of users also increases.
For this reason, this year Han Shu repositioned its brand as "China's leading anti-aging technology brand" and entered the anti-aging market. Research firm Zion Market Research once pointed out in its report that the global anti-aging market will reach US$200 billion in 2021.
Shangmei Group also mentioned the "multi-brand strategy" many times in its prospectus. Although the slogan is loud, Shangmei Group's dependence on the large single product of Han Shu is increasing day by day.
Shangmei Group's current cosmetic brands mainly include Han Shu, Yiyezi and Red Elephant. In the first half of this year, the total revenue of these three brands accounted for 93% of the total revenue.
point product, the company's brand Hanshu accounts for 47.8% of the revenue, and then the brand is the first leaf, accounting for 21%; the red elephant accounts for 24.2%.
Compared with single brand revenue in the first three years, the revenue from Hanshu and Red Elephant products has grown steadily, and the influence of Yiyezi is weak year by year.
From 2019 to 2021, Han Shu's revenue accounted for 32%, 39.4%, and 45.1%, respectively. By the first half of this year, Han Shu's revenue accounted for 47.8%.
prospectus shows that in addition to the above brands, Shangmei Group also has brands such as Huafan and Cosmetea, covering skin care, facial masks and other categories, but the market performance of these brands is not outstanding yet.
Shangmei Group is also seeking breakthroughs. The prospectus shows that in recent years, Shanghai Mei Group has successively launched three sub-brands such as Gao Ji Neng. In 2022, the company will launch three new brands.
Due to early "website marketing" and "TV shopping" marketing in the sinking market, brands such as Hanshu and Yiyezi missed the high-end market in first- and second-tier cities.Unlike previous products such as Hanshu, which are mainly in the mass market, the three new brands that will be launched will be positioned in the mid-to-high-end skin care or maternal and child markets.
However, the domestic high-end beauty market has been occupied by foreign brands. The top three cosmetic brands in the domestic market are L'Oreal , Estee Lauder and Louis Vuitton , with market share of 18.4%, 14.4% and 8.8% respectively.
According to the prospectus, Shangmei Group announced a cash dividend of RMB 200 million to all shareholders at the shareholders' meeting held on April 2, 2022.
This means that shareholders of Shangmei Group "cashed out" 200 million yuan on the eve of listing. As of August 31, 2022, Shanghai Mei Group has paid a cash dividend of 97.6 million yuan.
Before this IPO, Lu Yixiong, chairman and CEO of Shanghai Mei Group, directly held approximately 40.96% of the shares and indirectly owned approximately 50.31% of the shares, with a total shareholding ratio of 91.27%.
Based on this calculation, Lu Yixiong will receive approximately 183 million yuan through his faction.
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Operational Editor: Zhang Yi
