Chicmax Corporation, the first Chinese mainland beauty and personal care company listed in Hong Kong, has successfully debuted on the Hong Kong Stock Exchange.

Today (December 22, 2022), Shanghai Chicmax Cosmetics Co., Ltd. ("Chicmax Corporation") successfully debuted on the Hong Kong Stock Exchange with the stock code "02145.HK" and a total of 36,958,000 shares offered globally. The opening price of Chicmax Corporation was HKD 25.20 per share, with a total market value of HKD 10 billion. This makes Chicmax the first listed company in Hong Kong's beauty and personal care industry from mainland China.


As a leading Chinese domestic enterprise established 20 years ago, Chicmax Corporation has become the first company to earn the title of "Hong Kong’s first beauty and personal care stock."


According to reports, the funds raised from Chicmax Corporation's IPO will be mainly used for brand building activities, enhancing research and development capabilities, strengthening production and supply chain capabilities, increasing the breadth and depth of sales networks, and improving digital and information infrastructure.


In the past three years, Chicmax Corporation has shown good development momentum. According to the prospectus, Chicmax Corporation's revenue from 2019 to 2021 was CNY 2.874 billion, CNY 3.382 billion, and CNY 3.619 billion, respectively. Adjusted profits were CNY 114 million, CNY 265 million, and CNY 391 million, respectively. Both revenue and net profit have been climbing year by year.


Since its establishment in 2002, Chicmax Corporation has adhered to a strategy of developing multiple brands and has successfully created popular brands such as Kans, One Leaf, and Baby Elephant. According to Frost & Sullivan's report, Chicmax Group was the only Chinese cosmetics company with two annual retail sales exceeding CNY 1.5 billion in 2021. Moreover, Baby Elephant's retail sales exceeded CNY 1.8 billion in 2021, ranking among the top in the maternal and child care field in China.


In addition to the above three major brands, Chicmax Corporation has also created several mid-to-high-end brands, such as New page, which is focused on caring for babies' sensitive skin, Asnami, which specializes in caring for pregnant women's sensitive skin, Kyoca hair care, and the high-end anti-aging skin care brand Tazu planned to be launched in 2023.


Chicmax Corporation has completed its layout of various categories such as skincare, facial masks, maternal and child care, and hair care. It has covered multiple potential tracks such as scientific anti-aging, pure beauty, and baby sensitive skin, forming a pyramid brand matrix of "mass-market + mid-to-high-end brands + high-end brands".



The key factor that has supported Chicmax Corporation's layout in various categories is its research and development capability.


Since its second year of establishment, Chicmax Corporation has been laying out independent research and development and production lines. Currently, Chicmax has two research centers and two production centers in China and Japan. According to Frost & Sullivan's report, Chicmax was the first domestic cosmetics company to establish an overseas R&D center and is at the forefront of Chinese domestic brands.


In terms of research and development investment, Chicmax has always attached great importance to it. From 2019 to 2021 and the first half of 2022, Chicmax Group's R&D expenses were CNY 82.90 million, CNY 77.40 million, CNY 100 million, and CNY 51.90 million, respectively, accounting for 2.9%, 2.3%, 2.9%, and 4.1% of revenue. Its R&D expense ratio is higher than the industry average.


Regarding the formation of research talents, as of the end of June this year, Chicmax has formed a research team of more than 200 people, led by seven scientists from international companies such as P&G and Shiseido. Among them, 81 people have a master's degree or above, accounting for about 39.7% of the R&D team, and their talent quality is at the leading level in the industry. It is reported that this year, ShangMei Corporation has also recruited doctoral students from Peking University, Tsinghua University, Fudan University, and Nanjing University, showing strong competitiveness in terms of talent education level, specialization, and other aspects in the industry.



The continuous investment in research and development and talent cultivation has also paid off for Chicmax Corporation. As of June 30, 2022, Chicmax had approximately 200 patents, including 26 invention patents. It has developed three major basic research achievements: Tiracle (dual-bacterial fermented ingredient), AGSE (active grape seed extract), and Artemisia annua oil AN+ (Artemisia annua oil extract). As of June this year, the revenue generated by Chicmax self-developed products accounted for over 97%.


Today, the successful listing of Chicmax is a victory for its long-term development strategy over the past 20 years. Today will also undoubtedly become a watershed moment for Chicmax as it enters the next 20 years.