Domestic makeup bigwigs, withdraw IPO application!

Mao Geping, who had been sprinting for A-shares for many years, withdrew from the IPO on the main board of the Shanghai Stock Exchange, and the listing failed again. According to the documents of the Shanghai Stock Exchange on January 4, due to the withdrawal of the application for issuance and listing of Mao Geping Cosmetics Co., Ltd. (hereinafter referred to as "Mao Geping"), the Shanghai Stock Exchange terminated its issuance and listing review in accordance with relevant regulations. It is worth noting that this is Mao Geping's second sprint to IPO. As early as 2016, Mao Geping submitted a prospectus to apply for listing. However, after the meeting in 2021 and until the resubmission of the prospectus in March 2023, Mao Geping was not approved by the CSRC. For more content, please see "National Treasure Makeup Artist Mao Geping's Company Has Passed a Meeting! It took five years, bringing 700 million goods a year, and girls all over the network want to send him their heads"

Serial with fire makeup artist

Mao Geping's fame is inseparable from the drama "Wu Zetian". At that time, Liu Xiaoqing played Wu Zetian from the age of 15 to 80, and with his shocking makeup skills of "head changing", Liu Xiaoqing not only ushered in the second spring of his career, but also made Liu Xiaoqing's makeup artist Mao Geping popular. After becoming famous, Mao Geping jumped out of the position of a professional makeup artist and created his own cosmetics brand. In July 2000, Hangzhou Huidu, the predecessor of Mao Geping Cosmetics Co., Ltd., was established, and in 2015, the company was renamed Mao Geping Cosmetics Co., Ltd. In recent years, with the rise of the Internet celebrity economy, Mao Geping's brand began to sink into the career of young people, and in 2020, Mao Geping has repeatedly been on the hot search because of the makeup change for the top Internet celebrity "Teacher Xu in the middle of the night" and makeup for Zhang Dayi, and a whirlwind of "sending Mao Geping a head" has been blown on the whole network. According to the prospectus, Mao Geping is mainly engaged in the research and development, production, sales and makeup skills training of makeup and skin care products of the two major brands of MAOGEPING and Zhiai Lifelong. Mao Geping's cosmetics include makeup and skin care, including two brands, "MAOGEPING" and "Love for Life", of which the "MAOGEPING" brand is named after the company's founder, Mr. Mao Geping, and is the company's core brand. The "MAOGEPING" brand is positioned as a high-end brand, which is currently dominated by the direct sales model of mid-to-high-end department store counters and e-commerce sales, while the "Love for Life" brand is mainly based on the distribution model and is positioned at female consumers in second- and third-tier cities. According to Euromonitor International statistics, in 2020, the MAOGEPING brand ranked 10th in the market of high-end makeup products in domestic department stores, and the rest of the top 10 brands are international brands. After more than 20 years of accumulation in department stores, the MAOGEPING brand now has 2.75 million members, and the repurchase rate of fashion series members has reached more than 80%. In the e-commerce channel, the Tmall flagship store currently has 4.4 million fans, the Douyin platform has 1.4 million fans, and in 2022, the Tmall flagship store ranked 14th in "Double 11" makeup sales, Tmall "Double 11" concealer product sales ranked 1st, high-end highlight products ranked 2nd, cushion products ranked 2nd, and Douyin platform "Double 11" foundation liquid/cream sales ranked 1st, and cushion products ranked 5th. In the makeup skills training business, Mao Geping shares from the beginning of its establishment in Hangzhou, Beijing, Shanghai, Chengdu, Chongqing, Wuhan, Zhengzhou, Shenzhen, Qingdao and other nine places gradually set up training institutions, the business has become Mao Geping shares in addition to makeup, skin care products sales in addition to another growth line. In terms of equity structure, Mao Geping and Wang Liqun directly hold 53.71% of the company's equity, and indirectly hold 1.74% of the company's equity through Dijing Investment and Jiachi Investment, and are the controlling shareholders and actual controllers of the company. In terms of performance, from 2020 to 2022, Mao Geping achieved revenue of 882 million yuan, 1.431 billion yuan, and 1.682 billion yuan respectively, and net profit of 198 million yuan, 327 million yuan, and 349 million yuan respectively, and the overall performance showed a steady and rising trend. Check out the official flagship store of Taobao MAOGEPING Mao Geping, the price of luxury caviar new skin rejuvenation cream is 880 yuan, and the price of Mao Geping Master Pan Collector's Edition makeup gift box is 2440 yuan, which is comparable to the price of international first-line products. Behind the high-end pricing, Mao Geping's gross profit margin is higher than that of its peers. From 2020 to 2022, the gross profit margin of Mao Geping's main business was 82.92%, 81.82% and 82.52% respectively, and the comprehensive gross profit margin was 81.20%, 80.54% and 81.17%, which has always remained at a high level. The gross profit margin of its core brand "MAOGEPING" has always been much higher than that of its peers. During the reporting period, the gross profit margin of the "MAOGEPING" brand was 86.7%, 84.45% and 84.22% respectively.

The beauty industry's IPO tide is on the wane

With the series of looks of the heroine Liu Xiaoqing from a girl to an old man in the series "Wu Zetian", makeup artist Mao Geping became famous overnight. After becoming famous, Mao Geping also began to break away from the positioning of a professional makeup artist, create his own cosmetics brand, and established Mao Geping Cosmetics Co., Ltd. The dependence on the founders is also mentioned in the prospectus. According to the prospectus, Mao Geping is the founder and chairman and general manager of the company, and is an iconic figure of contemporary Chinese makeup artists. If Mao Geping reduces or transfers his shares in the company or no longer participates in the company's operation and management in the future, it may adversely affect the company's business development. Looking back on its listing journey, it was quite tortuous. As early as 2016, Mao Geping submitted a prospectus to seek an A-share IPO, and after updating the prospectus at the end of 2017, the IPO process came to a halt and there has been no news. After a lapse of five years, in October 2021, Mao Geping's IPO passed, but since then, Mao Geping has not been approved by the CSRC. In March 2023, Mao Geping resubmitted the prospectus to the main board of the Shanghai Stock Exchange and was accepted by the exchange. In this IPO, Mao Geping plans to raise 1.121 billion yuan, and the raised funds are intended to be used to invest in channel construction and brand promotion projects, R&D center construction projects, information system upgrade construction projects, and image design training institution construction projects. But since then, Mao Geping has not been reviewed and questioned by the exchange until the company finally withdrew its IPO in January this year. In fact, since last year, the "listing fever" of the beauty industry has gradually "subsided". In addition to Mao Geping's termination of the IPO, a number of beauty industry companies have failed in IPO. In December last year, the peptide cosmetic raw material of the peptide bio withdrew its IPO. Founded in 2015, Peptide Biotech is mainly engaged in the research and development, production, sales and related services of peptide products. In this IPO, Peptide Biotech originally planned to raise 1.245 billion yuan. In July last year, Lalami's IPO came to an end. Lalamie is an e-commerce integrated service provider for overseas high-quality cosmetics brands, committed to helping brands enhance brand awareness and expand the Chinese market through a full range of brand incubation services. Lalami had planned to raise 578 million yuan. In terms of policy, in August last year, the China Securities Regulatory Commission announced that it would fully consider the current market situation, improve the counter-cyclical adjustment mechanism of the primary and secondary markets, and make a series of arrangements around reasonably grasping the rhythm of IPO and refinancing, and further standardizing the reduction of shareholdings. It clearly points out that, in light of the recent market situation, the pace of IPOs will be tightened in stages to promote the dynamic balance between investment and financing, and that the funds raised by listed companies should be invested in the main business and diversified investment should be strictly restricted. Since then, many IPOs involving the clothing, food, housing and transportation industries have been withdrawn one after another. Editor-in-charge: Zhang Qianyao Proofreader: Yao Yuan