Will make money and dare to spend money. Why is this skin care product cross -border player?｜ Focus analysis

Huaxi Bio's sales cost and R & D expense ratio far exceeded the same.

Wen ｜ Dong Chai Ling

Edit ｜ Qiao Yan

Source ｜ 36 氪 Future Consumption (ID: LSLB168)

Cover Source ｜ Vision China

In the environment of the overall negative growth of the cosmetics industry this year, the "hyaluronic acid faucet" Huaxi creature has maintained the high song of performance.

The financial report shows that the company achieved operating income of 2.935 billion yuan in the first half of the year, a year -on -year increase of 51.58%. The financial report states that the sales revenue of functional skin care products increased significantly by 77.17%year -on -year.

Huaxi Biological 2022 The first half of the year's performance

As a global leader in hyaluronic acid, Huaxi Biological has applied hyaluronic acid to medicine, medical beauty, skin care products and food. Among them, functional skin care products are the most successful. In terms of revenue and growth, they far exceed other sectors. Biological creatures have become the leaders in the local cosmetics industry.

From the perspective of different businesses, the revenue of functional skin care products reached 2.127 billion yuan in the first half of the year, accounting for more than 70 %, and its Runbaiyan and Quadi have become the head brand of the track. In addition, the income from the raw material business is 461 million yuan, and the income of the medical terminal business is 300 million yuan. The functional food business that is preliminaryly deployed also brings 44 million yuan in revenue to Huaxi Bio.

In terms of profits, the operating profit of Huaxi Biological in the first half of the year was 580 million yuan, an increase of 38.48%year -on -year; the net profit attributable to shareholders of listed companies was 473 million yuan, an increase of 31.25%year -on -year, and the overall performance was steady.

Compared with the performance of several heads of cosmetics companies, in the first half of this year, Huaxi Biological, Betai, and Persona maintained a growth trend, while Shanghai Jiajiahua and Water Sheep shares declined to varying degrees. With the profit of making money, the gross profit margin of Huaxi creatures is much higher than their peers. However, Huaxi Bio has a greater effort. The big hand expenses in marketing and R & D expenses obviously compressed the net profit space. At present, the net interest rate is lower than Betai.

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From hyaluronic acid to functional food, frequent cross -border new areas and launching new products have also reflected the growth anxiety of Huaxi creatures. This giant occupying half of the global hyaluronic acid industry, trying to use technology and business innovation to build a sufficiently wide moat.

The faucet of hyaluronic acid, "counterattack" by skin care products

From the research and development of hyaluronic acid raw materials to exploring functional skin care products, Huaxi creatures try to find a new growth curve.

As the world's largest hyaluronic acid supplier, Huaxi Bio accounts for 44%of the global raw material market. With the advantages of the supply of hyaluronic acid raw materials, Huaxi Bio began to test new areas. With the increasing concept of skin care, the international big names and emerging brands have entered the venue, and Huaxi creatures have also accelerated to the new air.

Hyaluronic acid is a necessary component of many high -end skin care brands, which gives Huaxi Biology the opportunity to seize high -end positioning when cutting into the track. The Huaxi creature that mainly supplies hyaluronic acid raw materials for B -ends, instead bets on functional skin care tracks and expands to the huge C -end market.

In 2019, the revenue of skin care products contributed to Huaxi Bio was 634 million yuan, which accounted for less than one -third of the total revenue. In just three years, in the first half of this year, the revenue of functional skin care products reached 2.127 billion. Yuan, an increase of 77.17%compared to the previous year, accounting for 72.46%in total revenue.

In the field of functional skin care products, Huaxi Biological has launched brands such as Run Baiyan, Quadi, Mibel, BM Muscle Living, Runxihe and other brands, covering the secondary throwing original liquid, various cream water milk, masks, and some parts Make -up products, etc. These products target skin problems such as sensitive skin, damage to the skin, face red blood, and acne, allowing Huaxi Bio to open the market on the new track.

Huaxi Biological Four Brand Brands Revenue Statue

Among the four main brands of Huaxi Biological Bio, Run Baiyan and Quadi's revenue exceeded 600 million yuan. As the most profitable brand, Runbaiyan's revenue reached 640 million yuan in the first half of the year, an increase of 31.22%year -on -year. The fastest growth rate is the new brand BM muscle activity launched by Huaxi Bio in 2020, with revenue increased by 445.75%year -on -year to 480 million yuan.

As the brand gradually occupies the user's mind, some explosive models have been born one after another, such as "BIO-MESO muscle living brown rice muscle bottom essence water", "Quydi 5D hyaluronic acid rejuvenation essence", etc. Semi -annual sales have reached 100 million yuan. Huaxi Bio has also accelerated the new speed. In the first half of the year, there were about 199 new products, an increase of about 56 compared with the same period last year.

Relying on the high -speed growth skin care business, Huaxi Biological quickly ranked among the first echelons of local cosmetics companies, competing with Betteni, Perlaya, Shanghai Jahwa, and many new brands to compete for market share.

In addition to the core skin care products, in terms of raw material business, Huaxi Biological continues to expand hyaluronic acid capacity and drive income growth. In the first half of the year, the income of the raw material sector was 461 million yuan, an increase of 10.97%year -on -year. These raw materials are mainly divided into pharmaceutical, cosmetics and food -grade raw materials. The overall gross profit margin is 72.39%, which is decreased compared to 72.64%of the same period last year.

In terms of medical terminal business, the main products launched by Huaxi Bio are medical beauty and medicine. Among them, the earliest "Runbaiyan" injection was modified with sodium hyaluronate gel, which filled the gaps of domestic medical beauty brands, and then Huaxi Biological launched products in ophthalmology and orthopedics.

As a sector with the highest gross profit margin, the gross profit margin of medical terminal products is as high as 81.93%. This part of the income was 300 million yuan in the first half of the year, a year -on -year decrease of 4.53%. The financial report states that it is mainly affected by the new crown pneumonia's epidemic, and the sales of medical terminal products in the second quarter are affected by varying degrees. Since Hyaluronic acid was approved as a new food raw material in January last year, Huaxi Biological Functional Food Circuit has launched a hyaluronic acid and water brand "water muscle spring", hyaluronic acid food brand "black zero" and hyaluronic acid fruit The drinking brand "wants to think of the corner". However, this part of income is not high. In the first half of this year, the revenue was RMB 44 million, and the total revenue in total was 1.5%. Regarding the emerging functional food market, Huaxi Biological plans to strengthen offline channel layout.

From the perspective of overall revenue, the operating income of Huaxi Bio was 2.935 billion yuan in the first half of the year, a year -on -year increase of 51.58%. In terms of gross profit margin, due to the pressure of raw material business and medical terminal sales in the first half of the year, Huaxi Bio has a gross profit margin of 0.45%to 77.43%compared with the same period last year.

In terms of profit, due to the increase in expenses such as sales costs and R & D expenses, the profit growth rate of Huaxi creatures was lower than the growth rate of income. In the first half of the year, the net profit attributable to shareholders of listed companies was 473 million yuan, an increase of 31.25%year -on -year.

Cross -border consumer goods, the dispute over traffic

From To B to transform to C business, the goal of Huaxi Biological is to open up from upstream raw materials to the entire industrial chain of downstream products.

The first is to develop functional skin care products. At the end of 2018, Huaxi Biological launched the "Palace Museum series" lipstick with the Palace Museum at the end of 2018, creating explosive models and masks such as subtrotes and masks. Immediately afterwards, Huaxi Biological pushed its brand to the stage, including Run Baiyan, Mibel, Quadi, etc., to increase the exposure through online channels.

The second is to enter functional food tracks and develop new products. Huaxi Biological has cut into specialty categories such as drinking water, oral liquid, fudge, chocolate rods, etc. through its own brands, and has made new 37 products since last year. Under the demonstration of Huaxi Bio, other brands have also piled up new hyaluronic acid foods, combining concepts such as 0 sugar, 0 fats, 0 cards, and functional foods have become a new consumer trend.

Regarding the development of To C business, Huaxi Bio adopted the way to increase marketing investment and create a celebrity route to cultivate new brands. In functional skin care product lines, brands such as Runbaiyan and Quadi have settled in major e -commerce platforms such as Tmall, JD.com, and Vipshop. They use KOL and short videos to plant grass on the community platforms and start live broadcasts.

KOL has almost become the law of survival of the new brand. For example, Runbaiyan passed nearly 250 KOL and over 150 KOC planting grass last year, which brought over 200 million total exposure. The top 618 Tmall 618 full -time new domestic domestic skin care brand. Quadi became popular through the live broadcast room of the head of the head of the head.

For hyaluronic acid foods with low penetration rates, Huaxi Biological promoted hyaluronic acid into "food" in January last year, and successively created a number of new brands, using online channels to conduct popular science and grass for consumers. Black zero, water muscle springs, and Xiu Xiang corner became popular under the sharing of grass -owners of Xiaohongshu bloggers.

As online becomes the main sales channel, the sales costs of Huaxi Biological have also risen. In the first half of this year, the sales cost of Huaxi Biological was 1.387 billion yuan, an increase of 54.68%year -on -year, and the total revenue in total was 47.25%.

From the past three years, due to the significant increase in online promotion costs, Huaxi Biological sales costs have been higher than that of companies in the same industry. From 2019 to 2021, the sales costs of Huaxi Biological were 521 million yuan, 1.099 billion yuan, and 2.436 billion yuan, respectively, accounting for the total revenue ratio from 27.65%to 49.24%, surpassing Ai Meike, Haohai Biological and Shanghai Jiajiahua. The latter three are below 42%.

However, Zhao Yan, chairman of Huaxi Bio, once said, "Huaxi Bio is not a completely relying on traffic or endorsement. It relies on technology to create its product power, so as to shape its brand power."

This is not a fiction. The investment of Huaxi Bio's research and development is increasing year by year. Huaxi Biological invested 179 million yuan in the first half of 2022, an increase of 67.93%over the previous year. It was used for the research and development of raw materials, medicines, functional skin care products and functional foods. R & D expenses accounted for 6.11%of the revenue in the first half of the year, which was also improved from 5.52%in the same period last year.

In terms of the number of patents, as of June 30, 2022, Huaxi Biological has applied for 570 patents (including 461 invention patents), of which 226 have been authorized (including 126 Chinese invention patents, 4 foreign invention patents) Essence Huaxi Biological revealed in the financial report that the current collagen industry is being entered, and collagen will be used as the core substance in the future to enrich the company's biological activated product pipelines.

From the perspective of the research and development foundation, compared with international big names, many local companies, including Huaxi creatures, are not deeply found out and lack core R & D results, and are full of challenges to high -end positioning. Realizing that the product is king, domestic cosmetics have turned to research and development, and "hematopoietic" by research and development.

In terms of R & D expenses, compared with L'Oreal, cosmetics giants, the R & D cost rate in 2021 was 3.19%, and Estee Lauder was 1.5%.Local players who seize the skin care boom are higher than these overseas giants in recent years, and they are trying to narrow the gap with international big names.36 The official public account of its subsidiary

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Why does this skin care product cross -border player?

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