On August 22, Shangmei Co., Ltd. announced the results for the first half of 2024. On the basis of the original high base revenue and net profit, the company's performance growth rate reached a new high.

According to the announcement, the first half of the year achieved revenue of 3.502 billion yuan, up 120.7% year on year; realized net profit of 0.412 billion yuan, up 308.7% year on year; gross margin reached 76.5%, up 7.5 percentage points year on year.

Prior to the release of this results announcement, several brokerage firms and research institutes had announced high growth expectations related to US stocks, but this performance still exceeded some research expectations. In particular, in terms of the net profit growth rate, it has surpassed the company's previous profit pre-increase announcement of the highest increase of 305.9%.

The beauty market did not grow significantly in 2024, and consumer demand was also affected by the general economic environment and rational consumption trends.

In such a general environment, as an important member of domestic beauty products, Shangmei shares bucked the trend and surged, once again “disrupting” the inherent judgment of many people about consumption in the beauty market with rapid growth surpassing 2023, showing strong growth potential.

Support the sustainable growth of enterprises with the success of multiple brands

At present, Shangmei shares have formed a “one super strong, going hand in hand” brand matrix, and through a sustainable growth model of “super brand+second growth curve”, it has unleashed strong potential in multiple channels, providing high corporate momentum for the high performance growth of Shanghai US shares.

The sales performance of the main brand “Han Shu” in 2024 has made a qualitative leap forward. In terms of the company's revenue, Han Shu generated 2,927 billion yuan in revenue for Shangmei shares in the first half of the year, an increase of 184.7% over the previous year.

The high growth in performance is closely related to the acceleration of online omni-channel development. According to statistics from the third-party data platform Qingyan Intelligence, Han Shu's online omnichannel sales growth rate reached 222.8% in the first half of the year, making it the only brand with three-digit growth among all leading mainstream beauty brands.

Among the most prominent Douyin platforms, Han Shu topped the Douyin beauty TOP1 for 6 consecutive months in the first half of 2024, with a total GMV of 3.44 billion, surpassing 3.34 billion for the whole of last year. Douyin beauty TOP1 has carried the leading banner of domestic beauty products that have completely surpassed international brands.

At the same time, the new brand Newpage of Shangmei Co., Ltd. “ran” as a “dark horse player” and “ran” with strong performance in the consumer market, which also strengthened the confidence and motivation for the company to continue to develop new business fields. Newpage has only been online for two years and has been widely recognized by the market. In the first half of 2024, newpage achieved three-digit year-on-year growth in Douyin flagship stores, Tmall flagship stores, and Jingdong's own flagship stores. The brand pioneered the infant skin care category in the industry, pioneered medical research and co-created a business model, and stood out in the maternal and child market with high-end, differentiation and specialization.

Self-cultivation of leading domestic beauty companies stabilizes the certainty of scientific research and innovation

For leading beauty and skincare brands, continuing to lead the industry's consumption growth and consolidating a strong position has become the key to current competition. As an absolute leading company in the industry with leading performance, Shangmei Co., Ltd.'s insistence on painstaking “internal skills” has been incorporated into every step of the future development plan.

In response to the development of the next ten years, Shangmei Co., Ltd. proposed to empower enterprises to continue crossing the cycle by cultivating six major competitive aspects of “leading organization, leading scientific research, leading information AI, leading marketing, leading intelligent production, and moving from individualized development to common development”.

Guided by this strategy, enterprises have accelerated the improvement of their comprehensive strength in innovative research and development, supply chain management, etc., and have gradually gained resilience and strength to cross the current weak cycle of the global economy.

Taking R&D investment as an example, R&D investment in the first half of 2024 was 78 million yuan, an increase of 44.0% over the previous year. Since its establishment, the company has insisted on independent research and development for more than 20 years, built a mature talent and technology system, and completed a “three-level jump” in the field of scientific research.

In April 2024, Shangmei Co., Ltd. developed its own new ingredients, and Han Shu's disruptive collagen regeneration technology “Cyclohexapeptide-9” successfully completed the filing. It became the first brand in the world to develop its own cyclic hexapeptide, opening the era of scientific anti-aging domestic products.

At present, Shangmei Co., Ltd. has built an open innovation independent research and development platform, that is, a “1+N” industry-university-research and medical innovation platform driven by both technology and consumer demand, making the global external brain a source of innovation. Vigorously lay out international dual-center smart factories, jointly carry out basic research with top universities at home and abroad, build an international computational biology research center, conduct multi-center clinical human research at home and abroad, and gather world scientific research to serve Chinese brands.

End: Focus on strategy to outperform the cycle

Before and after the announcement of the results, some organizations pointed out that the sustainable growth model of the “superbrand+second growth curve” of Shanghai US shares has unleashed strong growth potential. At the same time, high-investment in scientific research and innovation promotes quality upgrades and effectively responds to changes in market demand, which is expected to help the domestic beauty and skincare industry achieve faster growth in a positive environment.

However, in terms of the future development plans already disclosed by Shanghai American Co., Ltd., its ambitions and goals are not limited to this.

At the end of 2023, Shangmei Co., Ltd. established the “2+2+2 Strategy” and “66 Strategy”. It is proposed that in the next 3 years, the company will deeply cultivate the three major skincare, nursing, and maternal and child racetracks, and lay out the mass, high-end, and high-end price ranges to achieve 2 major 10 billion skincare super brands, 2 strong maternal and child care superbrands, and enhance the company's development resilience through the economic cycle.

In the next 10 years, in the domestic market, the company will focus on the six major sectors of public skincare, personal care, maternal and child products, cosmetic care, and high-end skincare+equipment to meet diversified consumer needs, stimulate the high potential and high potential of various brands, and support the company's long-term, healthy and sustainable development.

Only half a year since the above strategy was proposed, Han Shu's leading sales volume and the accelerated growth of the newpage page will all provide more room for imagination for the performance development of Shanghai US shares in the second half of the year and the next three years.

As a leading domestic beauty company that has gone through a 20-year market cycle, under the guidance of the new development strategy, Shangmei Co., Ltd. has accelerated the improvement of its comprehensive strength in innovative R&D, supply chain management, etc., and has gradually gained resilience and strength to cross the current weak cycle of the global economy.

With brand upgrading, scientific research and innovation, and strategic empowerment, I believe Shangmei Co., Ltd. is expected to continue to consolidate the long-term value of the enterprise and lead the high-quality development of domestic beauty products.