According to the news on the official website of the Securities Regulatory Commission recently, Mao Geping Cosmetics Co., Ltd. (hereinafter referred to as "Mao Geping Shares") has made its first meeting. The company's founder, Mao Geping, is a well-known makeup artist who has provided makeup styling for many film and television works, most notably the series of styles of the heroine (played by Liu Xiaoqing) in the TV series "Wu Zetian" from girl to old age. Brokerage research report pointed out that if the company can be successfully listed, it means that it will become the first share of A-share makeup. However, the NDRC meeting also asked about its continued profitability and whether training schools were compulsory to consume.
Yangtze Evening News/Purple Cow News reporter Ma Yan
Image source Screenshot of the official website of the Securities Regulatory Commission
Designed the girl to old age style for "Wu Zetian"
According to the official website of the CSRC, the 113th meeting of the 18th NDRC in 2021 was held on October 21, 2021, and the first three companies including Mao Geping Cosmetics Co., Ltd. were approved for the first time.
It is reported that as early as 2016, Mao Geping shares submitted a prospectus, but after the prospectus was updated at the end of 2017, there was no news about the IPO process until the recent initial offering was approved. At present, the prospectus found is still the 2017 version.
Public information shows that the company's founder Mao Geping has provided makeup styling designs for many film and television works. In the 1990s, Mao Geping used his makeup technology to help Liu Xiaoqing, who was 40 years old at the time, design the shape from a 10-year-old girl to an 80-year-old person, which left a deep impression on the audience.
Ms. Li, a consumer in Nanjing, is a post-70s generation, and she remembers seeing Liu Xiaoqing's girly makeup at that time, which was very stunning. "At that time, there was no medical and aesthetic means, amazing makeup skills coupled with Liu Xiaoqing's superb acting skills, playing a girl without any sense of violation, called a classic."
Around 2018-2020, she saw Mao Geping on the hot search again, because of his makeup skills, which can be called "changing his head", netizens have said that they want to "send their heads" to Mao Geping and ask him to "rejuvenate his magic hands". Ms. Li has purchased Mao Geping's foundation and cushion foundation online. "The coverage was good. I don't know if it counts as the same 'Wu Zetian'? Ms. Li said that the price of these products is about two or three hundred yuan, which is acceptable. But other skin care products have not been tried, because there are more well-known products of the same kind on the market.
Products that Ms. Li bought
The NDRC requested clarification on the reasonableness of the gross profit margin and whether there were "beauty loans" and other issues
According to the prospectus, The business of Mao Geping shares can be divided into two parts: one is the makeup brand, the high-end brand MGPIN for urban women, and the "love for life" aimed at women in second- and third-tier cities; the other is the makeup technology training school. However, the prospectus also shows that the company has problems such as weak research and development. The prospectus mentioned that the company's "R & D strength and international first-line brands have a gap" and "the amount of funds invested in the field of R&D to purchase R&D equipment and recruit high-end R&D personnel is limited".
A number of questions were raised at the DCA meeting. For example, it is required to explain the main differences between its core competitiveness and comparable companies, the reasons and rationality of the issuer's gross profit margin being higher than that of first-line brands in the case of R&D capabilities and brand awareness are not as good as first-line brands, whether there are major uncertainties in sustained profitability, and whether there are questions about training schools, including whether there is forced or induced students to use consumer loans and purchase of company products, and whether there is forced or induced students or consumers to use "beauty loans". Ask the sponsor representative to explain the basis and process of the verification, and issue a clear verification opinion.
The size of the makeup market will reach 69.5 billion by the end of the year
According to Wind's inquiry, the Yangtze Evening News/Purple Cow News reporter found that the Galaxy Securities Research Report pointed out that according to the prospectus disclosed in 2017, Mao Geping intends to raise about 512 million yuan, most of which is used for channel construction projects, with an investment of 229 million yuan. The R&D center, image design training institution construction project, and supplementary working capital invested 0.72 billion yuan, 0.61 billion yuan and 150 million yuan respectively. From the operating conditions from 2014 to the first half of 2017, Mao Geping shares achieved revenue of 279 million yuan, 321 million yuan, 343 million yuan and 201 million yuan respectively, and the overall performance showed a stable upward trend. If it can be successfully listed, it means that it will become the first share of A-share makeup. In the long run, makeup is still a high-growth category, Euromonitor Euromonitor data shows that it is expected that by the end of 2021, the overall market size of China's makeup will reach 69.5 billion yuan, and by 2025, it is expected to exceed 100 billion yuan.
【The stock market is risky, investment needs to be cautious】
Proofread by Li Haihui
Source: Purple Cow News