Chinese cosmetics company Proya (603605), valued at 32.3 billion yuan ($4.5 billion), has announced plans to issue H-shares and list on the Hong Kong Stock Exchange's main board as part of its international expansion strategy.
If successful, Proya would become the first domestic cosmetics brand to achieve dual A+H listing status, marking a significant milestone in China's beauty sector.
**Digital Transformation Success Story**
Founded in 2003 by entrepreneur Hou Junchen in Hangzhou, Proya initially focused on offline channels targeting lower-tier cities to avoid direct competition with international beauty giants like L'Oréal. The company went public on China's A-share market in 2017, earning the title of "first domestic cosmetics stock."
The company's remarkable transformation came through its aggressive digital pivot. In 2024, Proya generated total revenue of 10.778 billion yuan, with online channels contributing 10.234 billion yuan, representing 95.06% of total sales. This dramatic shift from its 2017 profile, when offline sales accounted for over 60% of revenue, demonstrates the company's successful digital transformation.
**Platform Partnership Strategy**
Proya's growth has been significantly driven by its strategic partnerships with major Chinese digital platforms. The company has established a dominant position on Douyin (TikTok's Chinese version), ranking first in beauty category sales during major shopping festivals like "618" and "Double 11" in 2024, with self-broadcasting accounting for over 60% of transactions.
The company has also strengthened ties with Alibaba's ecosystem, achieving top rankings in Tmall's beauty category during the "618" shopping festival. In 2025, Proya partnered with Ant Group to develop a "technology + green" dual-track business model.
**Financial Performance**
Proya's financial metrics reflect its successful digital transformation. The company's gross margin improved to 71.39% in 2024, up from 61.96% in 2016. Non-GAAP net profit reached 1.522 billion yuan in 2024, representing a 29.6% year-on-year increase.
The company's market capitalization has grown approximately seven-fold since its 2017 IPO debut valuation of 4.4 billion yuan, reaching the current 32.3 billion yuan valuation.
**Strategic Innovation**
Proya has implemented several innovative organizational changes to support its digital transformation, including establishing a Chief Digital Officer (CDO) position to break down departmental data silos and drive comprehensive digital planning across the organization.
The company's product strategy focuses on creating viral products through social media marketing and influencer partnerships, successfully launching hit products like "Ruby Essence" and "Dual Anti-Aging Essence" through collaborations with top livestreamers.
**Market Context**
The planned Hong Kong listing comes amid a trend of established A-share companies seeking dual listings to support international expansion and access broader capital markets. Proya's case represents a particularly interesting example of traditional manufacturing companies successfully pivoting to digital-native business models.
The cosmetics market transformation reflects broader changes in Chinese consumer behavior, with social commerce and livestream shopping becoming dominant channels for beauty products, particularly among younger female consumers.
If the Hong Kong IPO proceeds successfully, Proya will join the ranks of Chinese companies that have successfully transformed from traditional business models to digital-first operations, potentially serving as a template for other traditional manufacturers seeking similar transformations.