Mao Geping (01318)'s mid-term net profit doubled, and makeup revenue surged 38.3% year-on-year

The Zhitong Finance App learned that on August 28, Mao Geping (01318) announced the interim results for the six months ended June 30, 2026. During the reporting period, the company achieved revenue of 3.267 billion yuan, up 26.2% year on year; net profit of 807 million yuan, up 20.3% year on year; adjusted net profit of 815 million yuan, up 21.3% year on year. The adjusted items were stock payments; and gross profit margin was 84.8%, up 0.6 percentage points year on year.

In the first half of 2026, consumer spending became cautious and industry competition intensified. The company achieved both revenue and profit increases on the premise of maintaining a stable price system.

By category, makeup revenue was 1,967 billion yuan, up 38.3% year on year, accounting for 60.2% of product sales revenue; skin care revenue was 1,212 billion yuan, up 11.5% year on year; fragrance revenue was 0.17 billion yuan, up 46.0% year on year. Classic products continue to be sold. The caviar mask has become a star item with an annual retail sales of over 1 billion yuan. In the first half of 2026, the skin-nourishing and tanning cream achieved retail sales of about 290 million yuan, while the retail sales of luxury caviar cushions and light-sensitive soft yarn gel powder exceeded 200 million yuan and 300 million yuan respectively.

By channel, online product sales revenue was 1,727 billion yuan, up 33.2% year on year, accounting for 54.1% of product sales revenue; offline product sales revenue was 1,468 billion yuan, up 19.9% year on year. As of June 30, 2026, the company had 466 self-operated counters, covering 132 cities, a net increase of 21; the average revenue of the same counter was 3.3 million yuan, an increase of 17.9% over the previous year.

The company's offline counter network has covered many high-end commercial systems in mainland China, covering core high-end department stores and shopping center systems such as SKP, China Resources Vientiane City, Yintai, Wangfujing, and Hang Lung, and is steadily advancing the extended coverage of core business districts. The company's internationalization strategy has been steadily implemented. In October 2025, the first Hong Kong store opened in Hong Kong's Tsim Sha Tsui Harbour City, making it one of Asia's top commercial landmarks. In August 2026, the brand will soon be located in Times Square in Causeway Bay, Hong Kong. At the same time as retail stores are expanding, in June 2026, Mao Geping Beauty Education's Hong Kong campus landed in Wan Chai and began trial operation, expanding to 12 directly-managed branches around the world. As a result, the company used a systematic overseas strategy that organically combines branded retail stores with professional aesthetic education to construct a high-end international sample that is difficult to replicate. In the future, the company will continue to increase its strategic investment in overseas markets to push Oriental aesthetics to a wider international stage.

In terms of membership, the total number of registered members was 26.08 million, an increase of 37.3% over the previous year, including 18.64 million online and 7.44 million offline; the comprehensive repurchase rate was 27.2%, an increase of 0.4 percentage points over the previous year.

The company's management said, “The pressure on the industry is widespread, and the fragmentation of brands is real. The more we are in such an environment, the more we must maintain product quality and preserve the trust of users. We handed over satisfactory answers in the first half of the year. This result comes from every choice made by users, and also verifies the direction we stick to. In the second half of the year, we will continue to deepen classic products, implement high-end skincare, and refine offline services. We will not chase price wars, and not chase for a moment of excitement. The industry has a cycle, and the brand has a rhythm. We believe that by putting users first, the market will eventually give answers to long-term activists.”