Shanghai Chicmax Cosmetic Co. completed a HK$1.1 billion ($141.5 million) initial public offering and listing on the main board of the Hong Kong Stock Exchange, becoming the first mainland China cosmetics company to be listed publicly in Hong Kong.
WHO: Founded by Yixiong Lv in 2002, Chicmax Cosmetic Co. is one of China's leading multi-brand cosmetics companies, focusing on the development, manufacturing, and sales of skincare, maternity, and childcare products. The top three brands in its portfolio are anti-aging brand Kans, skincare range One Leaf, and Baby Elephant products for mother and child. The company operates primarily in third-tier and fourth-tier Chinese cities, focusing on the mass market.
WHY: The company plans to invest the bulk of the proceeds on research and development.
DETAILS:
- Initially planning for a listing on the Shanghai Stock Exchange in 2021, Chicmax Cosmetic shifted its focus to Hong Kong. The company completed a $141.5 million IPO listing on the main board of the Hong Kong Stock Exchange.
- According to Chicmax Cosmetic's prospectus, due to COVID-19–related disruptions, revenue dropped 31 percent year over year to 1.26 billion renminbi ($180 million) in the six months ending June 30, 2022. In the same period, gross profit plunged almost 33 percent year over year to 0.8 billion renminbi ($114) million.
- According to data from the consulting agency Frost & Sullivan, in 2021, Chicmax Cosmetic ranked 14th place in retail sales in China, accounting for a market share of 0.8 percent. Compared to domestic players, Chicmax Cosmetic ranked after Proya, Jahwa, and Yatsen as the fourth largest in the domestic market.
