Botanee Hits 5 Billion Yuan in 2023 Revenue, Eyes Southeast Asia Expansion

4月 30, 2024

On April 25, Botanee (300957.SZ), the parent company of the functional skincare brand Winona, released its 2023 annual report. The company achieved revenue of 5.52 billion yuan, a year-over-year increase of approximately 10.14%; however, its net profit attributable to the parent company decreased by about 28.02% to 757 million yuan.

Botanee attributed the growth in revenue but decline in net profit to several factors. These include lower-than-expected sales during major online promotions such as the 2023 “Double 11” event, where the company did not meet its sales targets. Additionally, the completion and operation of a new central factory base led to increased long-term asset depreciation and amortization costs and expenses, along with a rise in the average customer acquisition cost for the company’s main online stores during the reporting period.

Botanee, which went public on the Shenzhen Stock Exchange’s ChiNext board in March 2021 and became the first Chinese stock in functional skincare, saw its share price fall 3.76% to 55.35 yuan per share by the close of April 26, valuing the company at approximately 23.4 billion yuan.

The company develops multiple brands collectively, with the “Winona” brand at the core, along with “Winona Baby,” “AOXMED,” “Beforteen,” “Za,” and “PURE & MILD.”

In terms of product categories, skincare remains the core, accounting for about 88.5% of the main business revenue, followed by medical devices at approximately 8.42%, and cosmetics at about 3.06%.

Although the financial report did not specify individual brands, the company mentioned that according to Euromonitor statistics, the “Winona” brand ranked ninth in the skincare product market during the reporting period, holding steady from the previous year. Moreover, Winona has consistently maintained the number one position for several years in China’s dermatological skincare market. Throughout the reporting period, the “Winona” brand sustained its leading edge, with a stable market share of approximately 20.4% in the domestic dermatological skincare sector, demonstrating significant market leadership.

In September 2023, Botanee announced that its wholly-owned subsidiary, Hainan Botanee, agreed to use its own funds of 485.5 million yuan to acquire a 48.55% stake in Yuejiang Investment and subscribed to its newly increased registered capital of 12.4279 million yuan with 50 million yuan of its own funds, thereby gaining control over the former Shiseido-owned brands: PURE & MILD and Za.

In investor relations activities, the company indicated that Yuejiang’s integration was completed in December last year, involving front, middle, and back office coordination, and that the post-investment department would coordinate comprehensively in research and development, middle office, and finance to support Yuejiang. The Yuejiang team, consisting mostly of individuals born in the 1980s, is dynamic and complements some of our capabilities. The marketing team will handle negotiations, including influencer partnerships.

“We will also leverage Yuejiang’s overseas strengths to expand our business in Southeast Asia, where Za is well-regarded. Yuejiang will assist us in expanding our international operations. Between 2024 and 2025, Yuejiang will actively fulfill its performance commitments.”

In 2023, Botanee strategically entered the overseas market, establishing its Southeast Asia business headquarters in Bangkok, Thailand.

Botanee stated that the company has reached a strategic consensus to focus on two major markets, with Southeast Asia being one of them. The ASEAN headquarters have been set up in Bangkok, with operations localized to both online and offline channels. The ASEAN market, which is about 10-15 years behind China in terms of market development, can benefit from replicating the domestic experience and breaking through professional channels.

“For Europe and America, our focus is on setting up cross-border e-commerce, with operational teams based in China and promotional teams placed in target markets.”

| Source: Official announcement

| Image Credit: Botanee’s official website

| Editor: LeZhi