Mao Geping Cosmetics (1318) H2 2024 earnings summary

Executive summary

• Achieved record revenue of RMB3,884.7 million in 2024, up 34.6% year-over-year, with net profit rising 32.8% to RMB881.3 million.

• Successfully listed H Shares on the Hong Kong Stock Exchange in December 2024, raising HK$2.52 billion in net proceeds.

• Expanded premium department store presence to over 120 cities with 378 self-operated counters and 31 distributor-operated counters, and entered the Hong Kong market via Sephora.

• Launched new product lines, including the Splendid Aura series, and deepened cultural collaborations, notably with Team China and the Palace Museum.

• Makeup artistry training business revenue grew 45.8% to RMB151.7 million, surpassing pre-pandemic levels.

Financial highlights

• Revenue: RMB3,884.7 million (+34.6% YoY); Net profit: RMB881.3 million (+32.8% YoY).

• Gross profit: RMB3,277.5 million; gross margin stable at 84.4%.

• Online sales surged 51.2% to RMB1,784.3 million; offline sales up 21.6% to RMB1,948.7 million.

• Adjusted profit (non-HKFRS): RMB924.5 million, excluding listing and share award expenses.

• Final dividend proposed: RMB0.72 per share, totaling RMB352.93 million.

Outlook and guidance

• Plans to further expand offline and online sales networks, upgrade department store counters, and open flagship stores.

• Product development to focus on color cosmetics, skincare, and new categories such as fragrance.

• Overseas expansion to continue, targeting both department store counters and online channels, with local teams and R&D centers planned.

• Ongoing investment in R&D, in-house production, and digitalization, with major capital expenditures scheduled through 2029.