Sep 2, 2026 earnings call — Skincare-led growth and portfolio optimization
Total net revenue grew 5.1% to RMB 1.14 billion; skincare grew 40.4% and now represents 71.5% of revenue.
Revenue $0.2B (est $0.2B) · EPS $-0.16
Key quotes
"With revenues increasing 40.4% year over year. And now representing 71.5% of our total net revenues."
"We remain firmly committed to the R&D investment. With R&D expenses maintained at 3.2% of total net revenues in the second quarter"
"We are actively streamlining our color cosmetic portfolio to improve profitability and refocus our resources on the higher growth skin care business."
Analyst Q&A 1
channels and rising online traffic costs
Q (Maggie Huang · CICC): She asked two things: how the company will expand channels for its skincare brands, and how the company will respond to rising online traffic costs and improve marketing efficiency.
A: Management said they will expand beyond core online platforms Tmall and Douyin into online 2B channels (JD, Vipshop, PDD) and offline 2B channels including offline distribution, duty free, and professional channels. They said these channels carry lower traffic cost and support healthier profitability. To fight rising traffic costs, they are shifting more resource to higher growth and higher return skincare brands that now account for over 70% of our revenue, and improving content creation, CRM retention, budget allocation, financial discipline and their AI agent.
"So these channels generally carry lower traffic cost and supports a healthier profitability profile." — Irene Lyu