"Mao Geping" initial offering application was approved by the CSRC, how strong is the technical strength?

A few days ago, The initial application of Mao Geping Cosmetics Co., Ltd. was approved by the CSRC and will be listed on the Shanghai Stock Exchange Board. According to the prospectus submitted by the company in 2017, its research and development expenses were 2.4469 million yuan, 3.0511 million yuan and 3.4227 million yuan, respectively, and the research and development expense ratio was about 1%. However, The R&D expense ratio of Shiseido, L'Oréal, Shanghai Jahwa and other companies in the same period was about 1.5%-3.5%.

Comparing the investment in the above R&D expenses with the technical reserves of each enterprise, it can be found that Mao Geping, Shiseido, L'Oréal and Shanghai Jahwa have more than 10, 20,000, 70,000 and more than 1,600 patent applications respectively through the search of the global patent database of Wisdom Bud. As an old and well-known enterprise in the industry, the latter three have a large amount of patent reserves.

It is worth noting that from the perspective of patent type, L'Oréal and Shiseido are both invention patents accounting for a relatively high proportion, while Shanghai Jahwa and Mao Geping are both design patents. Wisdom Bud Consulting experts said that invention patents mainly protect innovative functions, and design patents mainly protect innovative appearances. Therefore, under normal circumstances, the higher the proportion of invention patents, the higher the degree of technological innovation.

In addition, after summarizing the current patent layout of the four companies, it can be seen that Mao Geping's patent is mainly related to the field of "cosmetics", while the other three companies have also developed in the fields of surfactants, keratin fiber, thickeners and other technologies.

(Remarks: The Wisdom Bud Global Patent Database includes patents that have been published in 126 countries/regions, and in general, patents take 4 to 18 months from application to publication)