On August 1st, the professional skincare product research and development company, Harbin Fuerjia Technology Co., Ltd. (hereinafter referred to as Voolga), officially made its debut on the ChiNext board of the Shenzhen Stock Exchange, with the stock code 301371. The Initial Public Offering (IPO) was priced at ¥55.68 per share, issuing a total of 40.08 million new shares and raising a total of ¥2.072 billion in funds. The funds will be mainly utilized for projects such as “Production Base Construction,” “Research and Quality Testing Center Construction,” “Supplementing Working Capital,” and “Brand Marketing and Promotion.”
As of the close of trading on August 1st, Voolga’s stock price had surged 26.98% to ¥70.7 per share, resulting in a total market capitalization of approximately ¥28.286 billion RMB. Notably, this marks the first A-share IPO company in Heilongjiang Province this year and the first Northeastern enterprise to be listed on the Shanghai and Shenzhen Stock Exchanges in 2023.
Founded in 2017 by Zhang Liguo and his daughter Zhang Mengqi, Voolga is engaged in the research, production, and sale of professional skincare products. The company’s products encompass medical dressing products and functional skincare products. It is particularly known for its dressing and mask products, including water, essence, emulsions, sprays, freeze-dried powders, and more. Among its star products is the medical-grade transparent sodium hyaluronate repair face mask, which has gained popularity as an essential item in many people’s medical beauty care routine. It was also one of the first domestically approved Class II medical dressing patch products containing sodium hyaluronate.
According to Frost Sullivan’s analysis report, in 2021, Voolga’s mask products achieved a 15.9% market share in the professional skincare product market, with medical dressing patches accounting for 17.5% and ranking first in the market, while functional skincare masks accounted for 13.5% and ranked second.
Voolga operates in a rapidly growing skin care product industry. According to the prospectus, from 2017 to 2021, the market size of China’s skincare product industry increased from ¥180.5 billion to ¥317.1 billion, with a compound annual growth rate of 15.1%. The industry is expected to maintain a compound annual growth rate of 10.3% from 2021 to 2026, and the market size is projected to reach ¥518.5 billion by 2026.
From 2020 to 2022, Voolga’s revenue steadily increased to ¥1.585 billion, ¥1.650 billion, and ¥1.769 billion, respectively, while net profit attributable to shareholders reached ¥648 million, ¥806 million, and ¥847 million. The gross profit margin exceeded 80%, with values of 76.47%, 81.95%, and 83.07%, respectively.
In terms of revenue breakdown by product category (cosmetic products have surpassed medical beauty products):
- Medical beauty product revenue accounted for 55.54%, 56.25%, and 48.95% of total revenue.
- Cosmetic product revenue accounted for 44.46%, 43.75%, and 51.05% of total revenue.
Regarding sales channels (online channels accounting for over 40%):
- Online channel sales revenue accounted for 29.08%, 36.23%, and 40.62% of total revenue.
- Offline channel sales revenue accounted for 70.92%, 63.77%, and 59.38% of total revenue.
As of the prospectus signing date, founder Zhang Liguo directly held 93.81% of the company’s shares, while Harbin Medisan held 5.00% of the shares, making them shareholders holding more than 5% of the issuer’s shares.
| Source: Company prospectus
| Image Credit: Company Website
| Editor: Wang Jiaqi
