On August 27th, Caixin reported that Proya Cosmetics (603605.SH), a leading domestic beauty and cosmetics company, maintained high growth in the first half of the year by relying on its core brand. However, the growth rate of several new brands under the company has slowed down significantly.

Tonight, Proya Cosmetics released its semi-annual report, achieving a revenue of 5.001 billion yuan, a year-on-year increase of 37.90%, and a net income attributable to shareholders of 0.702 billion yuan, a year-on-year increase of 40.48%. Looking at the quarterly performance, the company's performance has been steadily increasing throughout the first half of the year. In the first quarter, its net income attributable to shareholders was 0.303 billion yuan, and this figure rose to 0.399 billion yuan in the second quarter.

Behind the increase in performance, the main brand, Proya Cosmetics, remains the top contributor. During the reporting period, the Proya brand contributed nearly 4 billion yuan in revenue, a year-on-year increase of 37.67%. Compared to previous years, the growth rate has not shown a significant decline, and it has steadily contributed approximately 80% of the company's revenue. Considering the size of the Proya brand, it is not easy to maintain high growth. During the reporting period, the company upgraded several core products of the main brand and continued to develop and promote new products.

Compared to the strong performance of the main brand, the performance of the company's new brands is not impressive. Caixin reporters have noticed that although the new brands of the company are generally smaller in size, their growth momentum has already weakened in the first half of the year, with a significant slowdown compared to previous years.

During the reporting period, the revenue growth rates of the company's main new brands, Caitang, OR, and Yue Fute, were 40.57%, 41.91% and 22.35% respectively. During the same period last year, the revenue growth rates of these three brands were all over 60%, with the highest reaching around 94%. Considering that these three brands are relatively small in size, the significant slowdown in growth is a cause for concern. Among the three brands, Caitang has the largest size, achieving a revenue of 0.582 billion yuan in the first half of the year, while the other two brands have just crossed the 100 million yuan mark.

Proya Cosmetics' management has repeatedly stated that L'Oreal Group's multi-brand strategy is the direction of development for the beauty and cosmetics industry. They hope to break away from relying on a single brand and extend their business from skincare to beauty, hair care, and other areas.