As we pass the halfway mark of 2025, many are still searching for certainty amid uncertainty. On one hand, domestic cosmetics retail sales totaled 256.2 billion yuan in January-July 2025, up 3.1% year-over-year, indicating continued market expansion. On the other hand, for many brands and industry professionals, these statistics seem to diverge from their personal experiences.

An analysis of H1 2025 financial reports from domestic beauty listed companies reveals several key development characteristics in the current environment:

1. Domestic beauty listed companies have shifted from purely pursuing scale growth to a balanced approach focusing on profitability and cash flow health, with "cost reduction and efficiency improvement" becoming the key phrase.

2. Leading companies with strong brand power, core bestselling products, and efficient operational capabilities (such as Proya and Shanghai Chicmax) continue to lead the pack, while companies undergoing brand transformation or adjustment (such as Huaxi Biological) face short-term growing pains.

3. Continuous investment in R&D and building technological barriers (such as collagen and plant-based ingredients) is fundamental for brands seeking long-term development and premium pricing capabilities. Successfully cultivating second and third growth curves through new brands can bring additional growth space for multi-brand enterprises.

4. Online channels have become the absolute main battlefield, with companies accelerating refined operations on e-commerce platforms like Tmall and JD.com, short video platforms like Douyin, and building live-streaming systems. For offline channels, the focus is on actively optimizing and screening department stores and new retail channels.

**Revenue Performance: 70% Growth vs 30% Decline Among Top 10**

Based on disclosed H1 2025 financial reports, domestic beauty brand performances show clear differentiation. Proya is the only domestic beauty company to surpass 5 billion yuan in half-year revenue, securing the industry's top position with 5.36 billion yuan. Shanghai Chicmax and Shanghai Jahwa follow with 4.108 billion yuan and 3.478 billion yuan respectively, completing the top three.

Shanghai Chicmax broke through 4 billion yuan for the first time in a half-year period, leading with 17.3% year-over-year growth, primarily driven by strong performance of its flagship brand Herborist on online channels like Douyin and a 146.5% revenue surge from its baby skincare brand newpage.

Besides Shanghai Chicmax, GIANT BIOGENE and Maogeping delivered impressive performances with double-digit growth in both revenue and net profit. Maogeping achieved 31.28% revenue growth, breaking into the top five and potentially reaching 5 billion yuan in annual revenue.

Marubi achieved business growth with the second-highest growth rate of 30.83%, entering the top 10 domestic beauty companies and setting the entry threshold at 1.7+ billion yuan.

In contrast, Betani, Huaxi Biological, and Freda experienced significant performance declines. Betani saw its first simultaneous double-digit decline in both half-year revenue and net profit since listing. Huaxi Biological, undergoing systematic adjustments, recorded its lowest revenue and net profit growth in six years. Freda's core brand Aerboshi lost momentum with a 29.97% decline, becoming the main drag on the company's cosmetics segment performance.

Overall, 70% of companies on the list achieved performance growth in H1 2025. While Proya, Shanghai Chicmax, and Shanghai Jahwa ranked top three in revenue, fourth-placed GIANT BIOGENE had the highest net profit, being the only company reaching the 1 billion yuan net profit level.

**Rising Gross Margins, Diverging Net Margins: 80% Increase Marketing Investment**

In terms of profitability, domestic beauty companies generally saw gross margin improvements. Maogeping achieved the highest gross margin at 84.19%, followed by GIANT BIOGENE at 81.68%. Proya, Shanghai Chicmax, Shanghai Jahwa, Marubi, Betani, Huaxi Biological, and SYPG maintained gross margins between 70-80%, while Freda's gross margin was 61.06%.

Analysis of company financial reports shows that gross margin improvements mainly resulted from adhering to "cost reduction and efficiency improvement" principles, reflected in operating costs. For example, Betani reduced operating costs in its skincare segment by 11.97%, with gross margin rising 4.22 percentage points to 76.93%. Proya reduced costs by 5.43%, with gross margin increasing 3.56 percentage points to 73.38%.

However, net profit performance varied significantly, with only GIANT BIOGENE achieving billion-yuan net profit levels. 60% of companies had net profits within the 300 million yuan range, while Maogeping and Shanghai Chicmax achieved net profit margin increases exceeding 30%, far above average levels, realizing net profits of 500+ million yuan.

Further analysis reveals that rising sales expense ratios significantly impacted net profit margins, primarily due to increasing online traffic costs and investments in brand building and scientific communication. 80% of companies increased sales expenses in H1 2025, with Maogeping showing the largest increase at 37.36%, mainly for optimizing makeup artistry institution facilities, campus environments, and teaching equipment, as well as product development and promotion.

Proya had the highest sales expenses at 2.659 billion yuan, up 13.64% year-over-year. The company announced Liu Yifei and Yi Yang Qianxi as brand ambassadors and conducted theme marketing during key periods like Spring Festival, Women's Day, and Mother's Day, while strengthening online and offline channel deployment.

**Multi-Brand Strategy: Second Pillars Show Impressive Growth**

In terms of core business, companies like Proya, Shanghai Chicmax, SYPG, and Betani emphasized their flagship brands' role in driving performance growth. Specifically, flagship brands maintained steady growth: Proya brand (3.979 billion yuan), Herborist (3.344 billion yuan), Fucomei (2.542 billion yuan), and Winona (1.45 billion yuan), accounting for 74.27%, 81.40%, 81.7%, and 82.65% of respective company revenues.

While converting flagship brand effects into performance growth momentum, many companies are strengthening multi-brand matrices to avoid over-dependence on single brands. For example, Proya's Caitang brand achieved impressive performance under its "professional makeup artist" positioning, with H1 revenue of 705 million yuan, up 21.11%. "Off&Relax" grew 102.52%, and Shanghai Chicmax's "newpage" surged 146.5%, showing strong growth momentum as potential "second pillars."

Notably, Freda's "Yilian" (554 million yuan), Marubi's "PL Romance Fire" (516 million yuan), and GIANT BIOGENE's "Collagen" (500 million yuan) are poised to join the billion-yuan club this year.

In focusing on niche segments and consolidating core categories, Shanghai Jahwa concentrated on core products like Liushen mosquito repellent series, Yuze sensitive skin creams, and Herborist white mud masks, aiming to create billion-yuan products while cultivating potential products like Liushen fragrance body wash, Gao Fu face wash, and Qichu face cream.

Additionally, companies like Proya, Marubi, Betani, and Huaxi Biological began systematically entering the medical aesthetics field. Among non-listed companies, Pechoin and Chando also announced entry into the "medical device" category.

During the reporting period, Huaxi Biological obtained 10 medical device registration certificates domestically, including 2 Class III and 8 Class II medical devices. Recently, Pechoin launched three brands - Jin Quelian, Jin Quelian, and Yu Quelian - injecting new momentum into China's medical aesthetics industry.

**Online Expansion, Offline Cultivation: Demographics First, Then Conversion**

Online channels have become the main battlefield for domestic beauty brands, with continuously rising proportions. Beauty companies are implementing multi-platform coordination and refined operation strategies. Proya's online proportion reached 95.39%, Shanghai Chicmax 92.7%, and SYPG 90.11%.

Freda enhanced online operational capabilities through standardized brand live-streaming rooms and optimized e-commerce infrastructure. Financial data shows the group's cosmetics segment online channel revenue reached 921 million yuan, accounting for 84.20%. Innovative live-streaming formats, including brand ambassador round-the-clock broadcasts and Kuaishou AI digital humans, helped Yilian's self-broadcasting channels grow 28% in H1.

Betani's online channels accounted for 73.93%, with Douyin platforms contributing 408 million yuan as the only growing platform. Alibaba ecosystem remained Betani's largest contributor with H1 revenue of 770 million yuan, accounting for 32.62%.

Online growth and offline contraction indicate more cautious offline channel deployment by beauty companies, requiring strategic investment to improve conversion rates. Maogeping entered high-end department stores like Beijing SKP and Chongqing Starlight 68, and added beauty parlors in Wulin Intime, providing comprehensive professional skin diagnosis and care services. Maogeping's offline sales revenue reached 1.224 billion yuan, up 26.6%.

Shanghai Jahwa actively deployed emerging channels, adding 40 growth-oriented channel distributors and developing 41,000 terminals. Freda also actively explored sales channels including Yonghui Supermarket, MINISO, and OTC.

Marubi accelerated development of new beauty collection stores and opened multiple Marubi Technology Beauty Centers, exploring single-brand store models with channel-exclusive products like small gold needle infusion masks and bosein licorice essence, well-received by consumers. Its PL Romance Fire brand performed well in Sanfu Department Store and Leshaer.

**Increased R&D Investment Provides Innovation Guarantee for New Product Development**

In H1, major beauty companies showed varying R&D investments but overall upward trends, with total R&D expenses reaching 854 million yuan. Huaxi Biological, Betani, and Shanghai Chicmax each exceeded 100 million yuan in R&D investment. Six companies including SYPG, Shanghai Chicmax, Shanghai Jahwa, Huaxi Biological, and Freda achieved double-digit R&D expense growth, with 60% of companies maintaining R&D expense ratios between 1-3% of revenue.

Specifically, Huaxi Biological had the highest R&D expenses at 231 million yuan, up 15.25%, also achieving the highest R&D expense ratio at 10.22% of revenue, compared to 7.13% in the same period last year. These funds primarily strengthened the company's R&D advantages in functional biomaterials like hyaluronic acid.

Betani invested 119 million yuan in R&D, down 8.69% but still ranking third industry-wide. By June 30, Betani successfully registered 16 new cosmetic ingredients including white thorn flower seed extract, Yunnan peony seed oil, Malan extract, and Ilex pedunculosa glycoside, obtaining 20 Class II medical device registration certificates.

SYPG achieved the highest R&D investment growth at 37.31%. During the reporting period, the company applied for 18 patents, published 4 papers, and released 7 group standards, including 3 cosmetic ingredient standards led by SYPG. Its brands Yunifang, Xiaomitu, Dashuidie, and VAA won multiple important industry awards including ICIC2025AWARDS, Ringier Technology Innovation Award, and Beauty Glory Award.

Proya continued improving its global R&D system, completing R&D deployment from raw materials to finished products, applying for 35 new patents and obtaining 15 patents. Marubi focused on key technology and core ingredient research and development, completing development of multiple innovative recombinant functional proteins and advancing pilot-scale transformation, providing innovation guarantee for differentiated new product development.

Whether experiencing growth or decline, under the business philosophy of adhering to long-termism and high-quality development, half-year development is merely a new starting point. China's beauty listed company landscape will inevitably welcome more excellent domestic brands and generate more core barriers and national brands, achieving mutual success through competition and strategic comebacks, bringing Chinese consumers more choices for beauty and better living.

Moving forward, continuous attention will be paid to which companies can maintain growth amid changes.