About PROYA
PROYA Cosmetics Co., Ltd (stock code: 603605) is committed to building a cosmetic industry platform in China, mainly engaged in the research and development, production and sales of cosmetic products, “Off&Relax”, “YETHIE”, “CORRECTORS”, “UZILAI “, “Hanart” and other brands. The company’s own brands have covered mass exquisite skincare, colour cosmetics, high efficacy skincare, toiletries and other beauty fields.
About the proya brand
Proya, the most competitive Chinese cosmetic brand leading the development trend of the beauty industry. Proya brand adheres to the spirit of discovery and insists on “scientific formulations”, based on professional skin mechanism research, selection of global raw materials, repeated experimental verification, with core effective ingredients and scientific composition ratio, dedicated to providing consumers with safer and more effective scientific skincare solutions, leading the skin technology aesthetics.Proya brand has always been at the forefront of the skincare industry, with a distinctive brand image, innovative Proya has been at the forefront of the skincare industry and has maintained a stable and rapid growth trend with its distinctive brand image, innovative “Big Single Product Strategy”, dedicated research and technology, personalised marketing strategy, multi-category and multi-channel operation mechanism. At present, the brand has three core product families, namely “Ruby, Dual Antibody and Source Power”, which meet consumers’ skincare needs with diverse categories such as essence, cream, mask and eye cream.
About Chairman Hou Juncheng
Hou Juncheng, 1964, a native of Zhejiang, China, is the Chairman of proya Cosmetics Co., Ltd, the General Advisor of the Management Committee of China Beauty Town, the Vice Chairman of the Beauty and Cosmetics Chamber of Commerce of the All-China Federation of Industry and Commerce, the Vice Chairman of the China Fragrance, Flavor and Cosmetics Industry Association, the Honorary Chairman of Hangzhou Cosmetics Industry Association, a member of the Standing Committee of the Huzhou Municipal People’s Congress and the Vice Chairman of the Huzhou City Federation of Industry and Commerce. He is a leading figure in China’s cosmetic industry and continues to explore and practice the road of high-quality development of the cosmetic industry, and is committed to building Perrier into a world-class beauty enterprise. With outstanding contributions to the Chinese beauty industry and outstanding performance in the field of charity, he has been awarded the “2020 Global Outstanding Chinese – Chinese Light Award”, the “Cosmetic Industry Merit Award”, the Golden 30 Years Beauty He was awarded the “2020 Global Outstanding Chinese – Chinese Light Award”, the “Cosmetic Industry Beauty Merit Award”, the “Golden 30 Years of Beauty”, the “2021 Charitable Giving Award (Individual)” and the “Order of Friendship” by the City Council of Vaudreuil.
He insists on technology innovation as the core competitiveness of the enterprise, digital upgrading as the driving force of the enterprise development, high quality products to lead the brand upgrade, and public welfare and regional enrichment actions to help the enterprise practice social responsibility, leading the enterprise to continue high growth. The company he founded was selected as one of the “Global Growth Companies” and has been ranked among the top 100 listed companies in China’s main board for four consecutive years (2018-2021), with an MSCI ESG rating of BBB in 2022. To realise his dream of serving his country, he has been a “shop assistant” in the industry, helping to build the “China Beauty Town”. He has helped to build China Beauty Town into one of the top three beauty industry hubs in China by bringing in world-class companies in the beauty industry chain in collaboration with a number of countries and industry associations around the world, represented by the French Cosmetic Valley.He is actively involved in public welfare. He is concerned about women’s employment and physical and mental health, and has cooperated with the United Nations on a number of women’s public welfare projects. The company is also committed to education and poverty alleviation, carrying out the construction of “Love at the Border School” and “PROYA Hope School” to promote the development of education in remote and impoverished areas; supporting the construction of earthquake-stricken areas such as Wenchuan and Ya’an and actively carrying out humanitarian aid; practising environmental protection and committing to “making the blue sky bluer and the green water greener”.
[Proya builds a first-class global R&D and innovation system based on a global strategy]
Including this trip to Europe, PROYA has built a global first-class cosmetic innovation and research system based on a globalization strategy, gathering global strengths and conducting effective, synergistic and forward-looking research and development by deeply integrating global raw materials, global R&D, global talents and global production resources.
- Global Ingredients
Through strategic cooperation with domestic and international research institutes, PROYA selects international high-quality raw material suppliers to import high-quality raw materials, and has entered into cooperation with many global science and technology laboratories such as CKXY, BASF, DSM, Ashland, Hodai, LipoTrue, the international peptide family in Spain, CODIF, the French marine biotechnology expert, CEVA, the French national seaweed research institute, Yingchuang and Zhejiang Peptide. At present, the international high-quality raw materials with which PROYA has entered into cooperation cover more than 100 brands from more than 20 countries, including Europe, America and Japan.
- Global R&D
PROYA has spared no effort in R&D innovation, building a global R&D innovation layout and taking advantage of local strengths in R&D talent.
- As early as 2008, PROYA established its own R&D centre in China – the “Scientific Skin Care Laboratory”. After years of development, this R&D innovation centre has been equipped with advanced research equipment such as plasma emission spectroscopy, high performance liquid chromatography, UV-Vis spectrophotometer, integrated video and optical measurement system, VISIA facial image analyser, electron microscope and dual focus microscope.
- On the basis of the R&D Innovation Centre, PROYA established the International Scientific Research Institute in 2021 to explore in the fields of basic research, applied research, raw material research, clinical research on efficacy, etc. In the same year, the PROYA Testing Centre was awarded the National Laboratory Accreditation Certificate issued by the China National Accreditation Service for Conformity Assessment (CNAS), which signifies that the PROYA Testing Centre has been accredited to PROYA has also become one of the first few companies in China’s beauty industry to have a national accredited laboratory.
- In addition, PROYA’s R&D centres in Longwu, Hangzhou, Shanghai and Japan are under construction.
- Global Talent
In 2022, PROYA introduced high-end international R&D talents based in Hong Kong, with Wei Xiaolan officially taking up the position of Chief Scientific Officer of PROYACSO. This is an important step in PROYA’s continued efforts to build a global R&D team and move towards internationalisation.A graduate of the School of Chemical and Molecular Engineering at Peking University, with an MBA from New York University’s Stern School of Business and a PhD in Chemistry from the University of Pennsylvania, Wei joined the world-renowned fragrance and cosmetics giant Coty Group in 2018 as VP (Vice President) of R&D for Asia Pacific. During her tenure, she helped Coty build a complete local R&D centre and an organisational closure of the front-end product insights, formulation design, packaging engineering, process, efficacy testing, toxicology and regulatory departments.Over the years, she has been involved in the cosmetic and consumer products industry, conducting research and exploring various dimensions of chemical materials, cosmetic ingredients, formulation development and fragrance design. She has published more than 10 papers in world-renowned academic journals and conducted more than 20 patent studies, covering compound synthesis, polymer materials, formulation and performance ingredients.
- Global production
PROYA’s globalisation on the production side is to be found in its equipment, warehousing logistics and management systems. Since its inception, PROYA has introduced globally advanced equipment and processes from Switzerland, Germany and France, and currently has 17 sets of emulsification equipment, 51 filling and packaging production lines with a daily production capacity of up to 1.2 million products or 2 million masks; its warehousing and logistics centre is equipped with three-dimensional high shelves and adopts SAP WM warehouse management system and MES visualisation management system, which can monitor and optimise in real time In terms of management system, PROYA Huzhou factory has passed various international certifications such as ISO22716, GMPC, ISO9001, OHSAS18000 and ISO14001, covering the whole process of product production, providing quality assurance from the source of each product.
[20 Years of PROYA, Moving Towards a World-Class Cosmetic Company]
As we celebrate our 20th anniversary in 2023, PROYA, as a new benchmark company in Chinese cosmetics, is leading with its R&D strength to maintain its leading position in the Chinese cosmetics market and capital market, and will also continue to promote its globalization strategy to move towards a world-class beauty company, bringing better and better products to consumers and taking the quality and brand confidence of Chinese brands to a bigger world stage.
PROYA’s market position in China
- Market share leadership
The PROYA brand continues to grow in market share and ranking in the Chinese skincare industry, joining international brands such as L’Oreal, Lancôme and Estée Lauder in the Top 10 beauty brands in China in 2021, making it one of the leading national brands, according to Euromonitor.Taking the results of the e-commerce platforms during the Double Eleven period in 2022 as an example, PROYA brand was ranked as the TOP1 Chinese brand in the beauty category in Tmall, Jingdong and Jieyin. 120%+ year-on-year growth in GMV on Tmall, ranking No. 1 in GMV on Tmall China Beauty and No. 5 on Tmall Beauty; 120%+ year-on-year growth in GMV on Jieyin, ranking No. 1 in GMV on Jieyin China Beauty; 110%+ year-on-year growth in GMV on Jingdong 110%+ growth, ranking No.1 in Jingdong China Beauty GMV.
- Industry-leading R&D levels
PROYA’s R&D expense ratio for the first half of 2022 was 2.33%, the parent company’s R&D expense ratio for the half-year was 4.69% (3.76% for the same period last year), and the R&D expense ratio for the first three quarters of 2022 was 2.41%. the R&D expense ratio for the first three quarters of 2022 was 2.41%. The R&D expense for the first three quarters of 2022 was RMB95.37 million. It can be seen that PROYA is also increasing its investment in research and development.In terms of the number of patents, PROYA ranks among the top beauty companies in China – as of 31 December 2021, the cumulative number of patents granted by the state was 225. Among them, 107 are invention patents, 19 are utility model patents and 99 are appearance patents.PROYA’s research results on supramolecular vitamin A alcohol were published in the Journal of Cosmetic Dermatology (JCD), an international authoritative academic journal.
Capital Market Impact of PROYA
On 15 November 2017, the Company officially landed on the A-share main board (stock short name: PROYA, stock code: 603605) with an issue price of RMB15.34.On 2 December 2019, PROYA was included in the SSE 380 Index and therefore in the Shanghai Stock Exchange.In February 2020, PROYA was included in the FTSE Russell Global Equity Index.In May 2020, PROYA is included in the MSCI Flagship Index.In 2021, PROYA was included in the CSI 500 Index.In 2021, PROYA achieved revenue of RMB4.633 billion and net profit of RMB576 million, having maintained a double growth of 20%+ for four consecutive years.In 2022, PROYA was awarded an A-grade rating for disclosure of listed companies on the main board of Shanghai for the third consecutive year.In 2022, PROYA was selected as one of the top 100 listed companies on the Main Board of China in terms of value for the fourth consecutive year.In 2022, PROYA received a BBB rating from MSCI ESG. Among the A-share consumer stocks for which MSCI has publicly released the rating results, PROYA is the first listed company to jump three levels in a row within one year.
As of the close of business on 30 December 2022, PROYA has become the top three local cosmetics companies in China by market capitalisation ($47.5 billion).In summary, PROYA’s growth strategy for 2023 aims to meet the needs of different consumers through a multi-category layout: continuous category expansion and multi-channel efforts in skincare/colour cosmetics/toiletries. At the same time, PROYA also aims to establish a consumer insight system to better understand consumer needs and assess the feasibility of products from multiple perspectives, so as to develop products that are more suitable for consumers and increase brand awareness and market share. In addition, PROYA.