On August 24, Proya Cosmetics Co.,Ltd. released its semi-annual report for 2026. During the first half of the year, the company achieved operating revenue of RMB 5.375 billion, a year-on-year increase of 0.24%; net profit attributable to shareholders reached RMB 1.168 billion, up 46.26%; however, non-GAAP net profit stood at RMB 664 million, a decline of 13.80%. The company also plans to distribute a cash dividend of RMB 11.80 per 10 shares, with an estimated total payout of approximately RMB 462 million.

Compared with the superficially robust profit growth, the divergence between net profit attributable to shareholders and non-GAAP net profit warrants greater attention. The gap between the two figures is approximately RMB 504 million, indicating that the current period's profit increase was significantly influenced by large-scale non-recurring gains, while core operational profitability did not improve in tandem. Based on calculations from the first-quarter report, the company's second-quarter revenue was approximately RMB 3.07 billion, showing slight growth from the same period last year, with the revenue side recovering from a 2.29% year-on-year decline in the first quarter.

This shift continues the adjustment phase Proya Cosmetics Co.,Ltd. has experienced over the past year. In 2025, the company's revenue was RMB 10.597 billion, down 1.68% year-on-year, and net profit attributable to shareholders was RMB 1.498 billion, down 3.50%. Among its brands, the flagship Proya label generated revenue of RMB 7.689 billion, a year-on-year decrease of 10.39%, accounting for approximately 72.6% of main business revenue. Brands such as彩棠, Off&Relax, 悦芙媞, and 原色波塔 maintained growth, with Off&Relax in particular doubling revenue year-on-year, though its scale remains insufficient to fully offset the flagship brand's volatility.

Entering 2026, the company has continued to repair its flagship brand through new product launches and channel adjustments, introducing men's skincare lines and 源力MED scientific repair products, while strengthening operations on core online platforms. Third-party online monitoring shows that during the 618 shopping festival, the flagship brand's performance improved compared with its overall first-half showing, with Off&Relax sustaining growth, though彩棠's online sales still experienced fluctuations.

Industry demand itself has not contracted significantly. According to data from the National Bureau of Statistics, retail sales of cosmetics above designated size reached RMB 244.5 billion in the first half of 2026, up 6.3% year-on-year, while total retail sales of consumer goods grew 1.3% during the same period. Against this backdrop of overall industry growth, Proya Cosmetics Co.,Ltd.'s revenue remained nearly flat, making the flagship brand's recovery and further scaling of second-tier brands key operational priorities.

This year, the company has also intensified its external acquisition strategy. In May, it announced the acquisition of a 12.55% stake in 花知晓 for RMB 351 million, raising its shareholding from 38.45% to 51%. In 2025, 花知晓 generated revenue of RMB 1.726 billion and net profit of RMB 280 million; in the first quarter of 2026, it posted revenue of RMB 675 million and net profit of RMB 155 million. Following the acquisition of control, 花知晓 has been integrated into the group's portfolio, though the one-off accounting effects from the acquisition and the ongoing operational contributions from the brand thereafter must be assessed separately.

For Proya Cosmetics Co.,Ltd., this semi-annual report is more reflective of "stabilizing revenue with a divergence in profit structure." The flagship brand's recovery, the succession of multi-brand growth, and the post-acquisition integration of 花知晓 will continue to determine the quality of future earnings. At the same time, the company is advancing its international expansion, with 花知晓 already possessing overseas channel foundations and the flagship Proya brand recently confirming plans to enter Ulta Beauty stores in the United States. Whether new brands and overseas markets can translate into sustained incremental growth still requires verification through subsequent operational data.