On April 23rd, the parent company of Yunifang, Shuiyang Branch, announced its 2023 annual report and its Q1 2024 performance report.
In 2023, the operating expenses of Shuiyang’s shares decreased by 4.9% year-on-year to 4.49 billion yuan, and the net cost of returning to the parent company increased by 135% year-on-year to 294 million yuan; The deduction of non net costs increased by 180% year-on-year to 270 million yuan.
In the first quarter of 2024, its business expenses decreased by 1.4% year-on-year to 1.032 billion yuan; The net cost of returning to the parent company decreased by 23.3% year-on-year to 40 million yuan; Deducting net cost of 53 million yuan, the same as deleting 44.7%.

In fact, looking at the performance of the Shuiyang stock index over the past five years, its business expenses and cost performance have always been in a roller coaster state, often experiencing double-digit or triple digit fluctuations.
The two significant changes in the stock composition of Shuiyang in 2023 are that the position of the French high-end skincare brand Yifeidan EDB, which was purchased at the end of 2022, is higher than that of Yuni Fang, becoming a new pillar; From the beginning of the second quarter of 2023, Dai Yuefeng, the chairman of the board of directors, took over the integration of Tiktok channel business.
These two points have also been reflected in the financial report.
Unlike other beauty companies that prioritize their own brands, Shuiyang’s stock division promotes a dual business launch strategy for both its own brand and CP brand. Shuiyang Stock Company refers to itself as CP (China Partner), and its agency business is mainly to assist in introducing overseas brands into Chinese shopping malls.
Before the purchase of the Yifeidan brand in July 2022, Shuiyang Branch was the exclusive agent of the brand in China, and since 2019, it has been introduced to Chinese shopping malls and established online channels.
Image source: Yifeidan Weibo
In the 2023 financial report, the Yifeidan brand surpassed the main brand Yunifang and was listed as the first brand to be introduced in its own brand system. Over the past year, in order to enhance the dissemination and restoration of Yifeidan, the brand has joined a series of sports such as art salons, celebrity endorsements, and tracing the origins of South France. At the same time, Yifeidan has continuously expanded its product matrix and introduced a more high-end Gold Revitalization series. The overall brand item price ranges from 1000 yuan to 3000 yuan.
According to the Jiuman data cited in Heyuan Securities’ complaint, in 2023 and the fourth quarter of 2023, the GMV of Ifeidan on Tmall, JD and Tiktok platforms totaled 500 million yuan and 190 million yuan respectively. Among them, the acquisition of large single product CP accounts for about 75% of the sales on the three platforms in 2023. In September 2023, Yifeidan also established its first cabinet in China under the cooperation of Wulin Yintai, which is seen as the beginning of offline channel expansion.
Another popular brand positioning for “staying up late muscle” repair, Dashuidian, is also a benchmark brand specifically mentioned by Shuiyang Stock. The aforementioned complaint data shows that in 2023, the GMV of the brand on its three online platforms was 250 million yuan, and it maintained double-digit growth for three consecutive quarters.
Image source: Dashuidian Weibo
Although Shuiyang’s stock market has accumulated years of experience in both online and offline channels, the main brand Yunifang has always been in a lukewarm and stagnant state in the public market. According to the annual report, in 2023, Yunifang will focus on overall downgrading, achieve mental correction and product system iteration, and have achieved multiple key material reserves.
According to the Jiuman data cited in the report of Deppon Securities, from January to November 2023, both Yunifang Taoshi and Tiktok declined by more than 40%. The average price of Tiktok is higher than that of Tiktok. The average price of Diaoyin platform is mainly between 130 yuan and 200 yuan, and the average price of Taoxi is more stable around 100 yuan. However, the Yunifang brand has accumulated offline channels since its inception, and there has been no public disclosure of its total expenditure.
Although the efforts made by Shuiyang Shares on Tiktok have been well rewarded, it is still not enough to fill the gap of the decline in Taobao’s business.
In 2023, its Taoyu business development dropped 26.7% year on year to 1.4 billion yuan, and Tiktok business development dropped 60.56% year on year to 1.13 billion yuan. However, compared with the previous year, its dual platform business development still dropped 80 million yuan. In addition, the revenue of its brand governance service business has also increased by 60% to 108 million yuan.
Yifeidan and Dashuidian are still in the development stage, while Yunifang has not yet recovered, and multi brand agency business is also facing challenges from shopping malls. Although the net cost of Shuiyang’s stock division has broken through Cenling’s 235 million yuan mark in 2021 and is approaching 300 million yuan, the sense of urgency of continuous decline in business development still exists.
The trade form of multi brand matrix and self agency dual launch indeed ensures that the east is unclear and the west is clear. However, in order to become the “leader” of the beauty industry, Shuiyang’s stock market still lacks a explosive product, and a star brand serves as the real rear line. Leaving aside the turbulence of channels and traffic, we ultimately need to return to product strength and research and development capabilities.
In April 2023, the Shuiyang Intelligent Manufacturing Property Park, with a continuous investment of 1.4 billion yuan, was officially put into operation. However, the financial report indicates that due to the transformation and integration of its own brand, the actual production in this period has not reached the estimated production.
Before the official production of the Water Sheep Intelligent Manufacturing Base, the Water Sheep stock mainly relied on entrusted processing to control the delivery. The hope carried by the Water Sheep Intelligent Manufacturing Base is to monopolize the formula and delivery techniques, test new techniques and processes, and enhance the research and development ability, overall delivery effectiveness, and dividend ability of Water Sheep.
In the Heyuan Movement, Ting Ting, Chairman and General Manager of Shuiyang Stock, once stated that he will not hesitate to invest, have no job positions, and set no lower limits to strive for R&D talents from around the world, and defeat the strongest beauty R&D team in the world. Based on a research and development team of over 300 people at that time, the plan was to break through 500 people within two years.
However, in the 2023 financial report, the R&D expenditure of Shuiyang’s stock division decreased by 13.81% year-on-year to 76 million yuan, mainly due to the integration of R&D structure and optimization of R&D personnel structure. During the period, the number of R&D personnel in Shuiyang’s stock division increased from 347 in the previous year to 295. The proportion of R&D participation in business development has also increased from 1.88% in 2022 to 1.7%.
From the new material inventory and research and development bias revealed in the financial report, China’s conservative natural animal material refurbishment research and development is its main research bias. Although in line with the rising trend of China-Chic, herbaceous animal material is also a hot topic in the industry, but the difficulty lies in how to extract and preserve its active identity, how to make it mix with other identities in the formula, superstitiously does not reveal its impact mechanism, and further research its safety.
Therefore, there is still a great deal of uncertainty in whether the Shui Yang stock market can defeat the next “star identity”.

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