Trainee reporter Li Kelong
After 5 years of waiting, Mao Geping finally knocked on the door of the A-share IPO.
A few days ago, Mao Geping Cosmetics Co., Ltd. (hereinafter referred to as "Mao Geping Shares") made its first meeting. In fact, as early as 2016, Mao Geping had submitted a prospectus, but suspended listing in 2017.
Mao Geping's IPO application intends to raise 512 million yuan, which will be used for channel construction, R&D center construction, image design training institution construction and liquidity supplementation. However, before that, Mao Geping shares have completed three dividends, totaling 118 million yuan, and the net profit for the three years from 2014 to 2016 was 151 million yuan.
It is worth noting that the products of Mao Geping Shares of "A-share domestic cosmetics first share" are all OEM production, and the prospectus shows that the company's R & D personnel are only 15 people, and the total R & D investment in three years is 89.3 billion yuan, accounting for 1% of revenue.
Online transformation
In the TV series "Wu Zetian", Liu Xiaoqing's Wu Zetian's style became a classic, and the styling design behind it was Mao Geping, who also gradually became well known to the public, and founded a personal makeup brand in 2000.
At this stage, Mao Geping's cosmetics are divided into "MGPIN" and "beloved lifelong" two product lines, MGPIN positioning high-end market, and Lancome, Estée Lauder and other mainstream makeup brands prices are basically flat, the same use of counter direct operation model; zhi ai lifelong positioning in the low-end market, the unit price is below 100 yuan, mainly based on the distribution model.
CBNData data shows that as of March 2020, Mao Geping's national counters have increased to 224, and these counters bring 70%-80% of their revenue.
It is mentioned in the prospectus that due to insufficient financial strength, the brand's marketing investment in Internet media and other fields is insufficient.
In recent years, Mao Geping has tried to use social media to enhance his personal IP influence and shift the focus of product sales to online. In 2020, Mao Geping entered the B station and carried out commercial cooperation with various UP owners to promote MGPIN and the beloved lifelong makeup brand, and its highest video was played more than 2 million times. At the same time, Mao Geping also released makeup tutorials on social channels such as Xiaohongshu and Weibo, and as of now, Xiaohongshu has more than 60,000 notes.
Mao Geping said that the brand has begun to get involved in Tmall, Xiaohongshu and other platform live broadcasts, but also improve the online distribution system.
On the evening of October 20, the double eleven pre-sale, MGPIN two-color concealer, foundation cream and honey powder three products entered the Via double eleven live broadcast room, two-color concealer orders exceeded 80,000.
R&D investment is only 1%
According to the prospectus submitted by Mao Geping in 2017, from 2014 to the first half of 2017, the company's operating income was 279 million yuan, 321 million yuan, 343 million yuan and 201 million yuan, respectively, and the net profit attributable to the mother in the same period was 47.1126 million yuan, 54.6247 million yuan, 53.3197 million yuan and 35.6197 million yuan, respectively.
During the reporting period, the company's R&D expenses were 2.4469 million yuan, 3.0511 million yuan, 3.4227 million yuan and 1.5717 million yuan, accounting for 0.88%, 0.95%, 1.00% and 0.78% of the operating income, respectively.
In addition, as of the first half of 2017, the company's R & D staff was only 15 people, accounting for 1.14% of the total number of employees.
Mao Geping admitted that in the field of research and development, the amount of funds invested in the purchase of research and development equipment and the recruitment of high-end research and development personnel is limited.
It is worth noting that Mao Geping's products are all OEM production and have no independent production lines. It mainly includes three forms: outsourcing processing, outsourcing agreement system and direct outsourcing.
This also means that the company's products are more in the form of OEM, and they do not have the ability to produce independently.
The "2020 Domestic Makeup Market Research Report" pointed out that in order to quickly enter the market, most domestic makeup brands rely on OEM production. This has led to a situation where a foundry is working for multiple brands at the same time, and products of different brands are converging.
Another domestic makeup brand Perfect Diary has been questioned by the outside world because of its dependence on OEM and heavy marketing and light research and development. The data shows that in 2020, perfect diary parent company Yixian e-commerce research and development investment accounted for only 1.3% of revenue. Its stock price was also affected, shrinking by 90% from its all-time high, and as of October 22, it was quoted at $3.22 per share, and its market value shrank by tens of billions of DOLLARs.
Edit: Xiao Mo
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