CBO reporter Li Jianzi
Often compared, Huaxizi and Perfect Diary have always been considered to be the "ceiling" of cutting-edge makeup, and with the listing of Perfect Diary's parent company, will Huaxizi, who did not take a share of investors' money before, embrace the capital market?
Hua Xizi, who kept recruiting troops and buying horses, ushered in another personnel appointment. A few days ago, Hua Xizi announced that April Fan, former executive director of Morgan Stanley, was the company's chief financial officer.
According to public information, Fan Xinpeng has held important positions in Deloitte Touche Tohmatsu, Bank of America Merrill Lynch Asia Pacific Investment Bank, and Morgan Stanley, and has nearly 20 years of experience in global investment banking and accounting firms, with rich experience. It is worth mentioning that Fan Xinpeng has been responsible for the listing, mergers and acquisitions, equity and debt financing of a number of enterprises in the Chinese financial industry in the Asia-Pacific region for many times, and has been in charge of a number of landmark transaction projects in the capital market in the Asia-Pacific region, and has won the "Asia-Pacific Best Transaction Award" several times.
Does this move mean that Huaxizi will hit the IPO?
01
Sufficient cash flow
There are no plans to go public
The "Cosmetics Finance Online" reporter noted that in Fan Xinpeng's personal resume, he successfully assisted enterprises to lead the completion of more than 40 mergers and acquisitions and investment and financing transactions. These include nearly 20 cross-border M&A projects totaling more than $50 billion and 20 equity and bond transactions totaling more than $30 billion.
Hua Xizi said that Fan Xinpeng's joining is equivalent to the company's CFO position. "The product of the development of the corporate governance structure to a new stage. Huaxizi has been established for 5 years, and it is still relatively young, we need an architecture that can make the brand develop healthily for a long time, and there are more topics for us to explore and improve. ”
For the rumored listing, Hua Xizi told the "Cosmetics Finance Online" reporter: "The company has a very healthy cash flow, and there is currently no clear financing or listing plan. In the future, if we can find like-minded long-term strategic partners that are conducive to the long-term healthy development of the brand, Huaxizi is open.0 ”
Founded 5 years ago, compared to the perfect diary of another domestic cutting-edge makeup brand that is often used for comparison, HuaXizi can be described as a lot of low-key, and has not taken a penny of investors' money so far.
Last year, it was reported that Hua Xizi was in contact with two investment banks, Hillhouse Capital and Sequoia Capital, to open its first round of financing. At the same time, the source also claims that Huaxizi is also seeking CFO to join, and the listing of its parent company, Yige Enterprise Management Group Co., Ltd., may have been put on the agenda.
Wu Chenglong (Hua Mantian), the founder of Huaxizi, once made it clear in an interview that Huaxizi does not reject capital and will consider it appropriately. Wu Chenglong stressed, "The premise of financing is not to affect the brand attributes and development planning of Huaxizi, and both parties have the same values, but this is a thing that cannot be sought." ”
But for now, Hua Xizi has denied the listing plan. In Hua Xizi's view, after the explosive development of the previous few years, the new consumption field has entered a period of consolidation since the second half of last year, but these adjustments and optimizations will make the industry go further and achieve more sustainable development.
Hua Xizi has always believed that being a brand is a marathon, "We set 2022 as a year of 'repairing the inner and far-reaching', and will focus on long-term product strength, research and development, service power, and organizational construction." While strengthening products, R&D and services, the company is also actively introducing more high-end talents in various fields to improve the company's governance structure for the vision of building a global brand. ”
02
Complements the perspective of female leadership teams
Or prepare for the acquisition of multiple brands
As a female leader, Fan Xinpeng will further complement and strengthen the female perspective and leadership of Huaxizi's management team. At the same time, Hua Xizi made it clear that Fan Xinpeng, Li Huiliang and many other high-end talents joined Hua Xizi at this time, which reflects everyone's recognition of Hua Xizi.
Lu Zeng, chief product officer of Huaxizi, said bluntly, "If there are some bigger breakthroughs in the direction of research and development, we may consider the layout of the skin care direction of the Huaxizi brand." ”
Earlier, Hua Xizi announced a five-year plan to build an oriental beauty research and development system at its headquarters in Hangzhou. At the meeting, Li Huiliang, who joined HuaXizi at the beginning of this year and served as the chief scientist, made his debut. Huaxizi announced that in the next 5 years, Huaxizi will invest more than 1 billion yuan to carry out layout in a number of product innovation, basic research and applied basic research fields to create a complete and technologically advanced oriental beauty research and development system.
With a very rich experience in beauty research and development, Li Huiliang's professionalism in the field of beauty industry is unquestionable, before joining Huaxizi, Li Huiliang has worked in Shanghai Jahwa and Bloomage Biology, known as the "Father of the Six Gods". Li Huiliang said that he chose to join Huaxizi because he had accumulated a lot of valuable experience in the research and development of Chinese culture and Chinese herbal cosmetics in his past career, which was very consistent with Huaxizi's oriental cultural concept.
Li Huiliang said in an interview in March this year that all the world's large or very energetic cosmetics companies have makeup and skin care, so HuaXizi will definitely make efforts at the end of skin care. "As for which direction huaxizi is in the field of skin care, it can be said that we will definitely combine it well with makeup, and there will be a strong incision in the direction of skin care."
According to him, in 2022, Huaxizi will continue to combine consumer needs to create more makeup products that not only nourish the skin, but also meet more diversified makeup effects and have a better skin feeling.
In 2020, Huaxizi's GMV reached 3 billion yuan, with revenue of 1.8 billion yuan, and more than 8 million users who have purchased it; the GMV in 2021 is 5.4 billion yuan. At present, Huaxizi has settled on Tmall, JD.com, Vipshop, Pinduoduo, Koala, Xiaohongshu, Kuaishou and other platforms, of which 90% of sales come from Tmall.
But at the same time, Hua Xizi once relied too much on the traffic of Li Jiaqi's live broadcast, and has always been considered to be its weakness.
Data point out that in February 2020, more than 80% of Huaxizi's sales came from Tmall, and 40% of its sales on Tmall came from Li Jiaqi. Although HuaXizi has been trying to get rid of Li Jiaqi's traffic influence since last year, at present, Huaxizi has not completely stepped out of the traffic comfort zone.
Although Huaxizi responded that there is no listing plan, some people in the investment community believe that Huaxizi's current practice of introducing CFOs is largely to prepare for the acquisition of multiple brands and future listings. "The capital market values beauty companies with multiple brand matrices, and in the future, it is not ruled out that Huaxizi will take the same path of acquisition as Yixian E-commerce, and lay out multi-brand and category matrix."