In the early morning of November 14, Beijing time, Yixian E-commerce, the parent company of Perfect Diary, updated its prospectus and plans to issue 58,750,000 American Depositary Shares (ADS) at an issue price of US$8.5 to US$10.5. Based on this calculation, Yat Xian E-commerce's proposed fundraising scale this time is between US$500 million and US$620 million.
It is worth noting that the prospectus of Yixian E-commerce shows that many well-known institutions including Hillhouse Capital, Tiger Fund, Tencent and Yunfeng Fund intend to participate in this IPO subscription. Prior to this, Yixian e-commerce publicly submitted a prospectus to the US Securities Regulatory Commission in the early morning of October 31, Beijing time, and planned to be listed on the New York Stock Exchange under the stock code "YSG". According to a report by
CIC, the total sales of Yixian e-commerce in the first three quarters of 2020 were 3.8 billion yuan, a year-on-year growth rate of 70.2%, which is about 15.6 times the growth rate of the Chinese beauty market over the same period. In addition, Perfect Diary is the only makeup brand that has achieved a monthly GMV of more than 100 million yuan on Tmall in 2019 and the first three quarters of 2020.
At the same time, Yixian e-commerce, as a leader in the fast-growing Chinese beauty market, has achieved outstanding results in this year's "Double 11". As of 13:30 on November 11, the cumulative sales of Perfect Diary’s Double 11 exceeded 600 million yuan, ranking first in the makeup category on Tmall. The
prospectus also pointed out that Yixian e-commerce is accelerating the construction of its beauty brand system. In October 2020, the company signed an agreement with Pierre Fabre, one of the largest dermatology and care companies in Europe, to acquire Galénic, a high-end beauty brand that originated in France, and cooperated with Pierre Fabre in product development and production. Establish long-term strategic partnerships.
From the performance point of view, the total sales of Yixian e-commerce in 2019 were 3.5 billion yuan, an increase of 363.7% from the 758 million yuan in 2018, which is about 30 times the increase in retail sales in the Chinese beauty market during the same period; the first three quarters of this year , The company's total sales were 3.8 billion yuan, an increase of 70.2% year-on-year. In 2018, 2019 and the first three quarters of 2020, the company's gross profit margin was 63.5%, 63.6% and 63.1%, respectively. The
prospectus shows that Yixian e-commerce is building a multi-brand beauty group through independent incubation or extensional acquisition. Except for Perfect Diary, the brands acquired or launched by Yixian e-commerce are more inclined to the mid-to-high-end market. In the long run, compared to Perfect Diary's products which are biased towards the mass market, branded products biased towards the mid-to-high-end market will bring higher gross profit to the company. The company expects that the gross profit margin will remain within a stable range in the future, and there will be room for steady improvement as the company launches brands/products aimed at the mid-to-high-end market.
In addition, Yixian E-commerce said that the company's future development focus will still focus on enhancing highly socialized and digital marketing capabilities. Yixian E-commerce said that as KOL plays an increasingly important role in product marketing and promotion, the company will further develop its KOL network and strengthen its relationship with KOL. At the same time, the company will continue to increase brand awareness through cross-border cooperation and cooperation with fashion media.
In the future, Yixian E-Commerce will continue to invest in technology research and development and strengthen data analysis capabilities. The company plans to increase investment in big data analysis and artificial intelligence technology to expand the leading edge of the platform and further enhance the customer experience. With the help of powerful technology, the company will further improve the depth and efficiency of data collection and analysis, so as to optimize all aspects of future business operations, and strive to build a future-oriented incubation platform for new beauty brands.
