From strategic accumulation to high-quality development, witnessing CHICMAX (02145)s long-termism.

"The best time to plant a tree is now." CHICMAX (02145) has beautifully illustrated this saying through its development trajectory. On August 17, CHICMAX announced its performance forecast for the first half of 2026. According to the announcement, the revenue during the period is expected to be around 3.718 billion to 3.759 billion yuan (Renminbi, the same unit below), with profits projected to reach 120 million to 130 million yuan in the same period. On the evening of August 17, CHICMAX founder and CEO L Yixiong released an internal letter, stating that the company has successfully weathered the pressure and is back on a positive trajectory. Notably, the performance of SHANGMEI in July and August 2026 has again entered a phase of positive growth. Currently, the overall growth rate of the cosmetics industry is slowing, with the market entering a phase of competition among existing players. Against this backdrop, while SHANGMEI's overall performance and main brand revenue growth have shown some short-term, strategic fluctuations, the underlying logic behind this performance forecast provides investors with a deeper understanding of SHANGMEIs commitment to "long-termism." Strategic Momentum: From Scale Expansion to Quality Depth The mid-year performance forecast for 2026 prompts the market to reassess the underlying assets and commercial essence of CHICMAX. In the Chinese beauty industry, "growth" has once been a highly coveted narrative. However, as the industry shifts from incremental competition to competitive dynamics based on existing market share, mere scale expansion is not enough to sustain long-term enterprise value. In this market environment, consensus is shifting towards the notion that only by building multi-brand synergy, solidifying R&D barriers, and establishing a global supply chain can businesses navigate competitive cycles in the latter half. In this regard, CHICMAX's strategic momentum is a proactive response to these industry trends. For SHANGMEI, which has always been at the forefront of the Chinese beauty industry, this strategic adjustment marks a structural shift from scale first to quality first. In recent years, CHICMAX has channeled considerable resources into critical sectors that will determine its development over the next decade. Globally, the company has laid the foundation for its factory in Indonesia as part of its Southeast Asia initiative, which is expected to commence production in July 2027, marking a significant step in SHANGMEI's global supply chain system and a strategic choice to root itself in international markets for long-term development. In the field of scientific research, SHANGMEI's investments have also been forward-looking. In June 2026, Zheng Zhizhong, the former head of the dermatology department at Huashan Hospital affiliated with Fudan University and a lifetime professor at the hospital, officially joined SHANGMEI's scientific committee as a dermatology expert consultant. As a well-known scholar in the field of dermatology in China, Zheng's addition further strengthens SHANGMEI's integrated professional barriers in "production, academia, research, and medicine." Prior to this, Dr. Karl Lintner, a pioneer in global peptide beauty technology, was appointed as the chief scientific advisor of SHANGMEI's scientific committee. This multinational collaboration marks a new phase in SHANGMEI's global R&D strategic layout. It is not hard to see that a variety of initiatives in globalization, scientific research, intelligent manufacturing, and talent development will collectively form the foundation for SHANGMEI's vision for the next decade. Although these initiatives may not directly revenue data in the short term, they remain core assets in determining whether the company can navigate cycles and enter the global competitive stage. Taking research as an example, competition in the beauty industry has long since evolved from battles over distribution channels and marketing to a contest of ingredients and scientific research. Without sustained investment in R&D, a brand's premium ability will continue to erode as consumer awareness evolves. According to publicly available data, CHICMAX's R&D expense ratio is significantly higher than the industry average, with accumulated R&D expenses exceeding 500 million yuan over the past three years. SHANGMEI's decision to continue increasing its investment in research and talent at this point is precisely in preparation for future product and brand strength growth. What is even more noteworthy is SHANGMEI's firm stance against cutting any investments related to long-term core competitiveness for short-term financial report gains. This strategic resolve of "long-termism" is particularly valuable under the pressure of capital markets. It conveys a clear message to investors: the company is willing to bear short-term performance fluctuations in exchange for the ability to navigate cycles. For a company aspiring to become a world-class beauty group, this strategic resolve is far more critical than short-term performance growth. Signals of Rapid Growth: Multi-Brand Matrix with Differentiated Moats If strategic investments determine SHANGMEI's future, then the synergy effects of its multi-brand matrix dictate its current resilience and growth potential. CHICMAX has always centered on Han Shu, achieving a multi-brand, multi-category, and omni-channel coverage while leveraging platform operations for development. This multi-brand model, characterized by "technological synergy, complementary brands, and comprehensive demographics," mirrors the growth trajectories of international beauty giants like LOral and Shiseido. At the main brand level, Han Shu is evolving from a singular mass skincare brand into a multi-category platform. Public data reveals that in the first half of 2026, Han Shu topped the Douyin personal care leaderboard with a total GMV exceeding 2.5 billion yuan. From a product performance standpoint, Han Shu's growth is not reliant on a single blockbuster product. In addition to the classic hot-selling sets like Red Slim Waist and White Slim Waist, it has simultaneously pioneered new growth avenues in body care, men's skincare, and other subdivided categories. What deserves further attention is the collective rise of SHANGMEI's second and third tier brands. In 2025, newpage achieved revenues of 880 million yuan, representing a year-on-year growth of 134%. An Min You has a strong focus on sensitive skin repair and has seen high double-digit growth within the year. As 2026 unfolds, this momentum is continuing. Among them, Ji Fang, a brand specializing in follicle defense against hair loss, made its debut at the 14th World Hair Research Conference in May 2026, globally unveiling significant research results completed in collaboration with Capital Medical University, garnering sustained market attention. In August, CHICMAX announced further significant news, revealing that its wholly-owned subsidiary Shanghai Qingdao has jointly established Shanghai Ahava Cosmetics Co., Ltd. with Israeli skincare brand AHAVA and Shanghai Yuyuan Tourist Mart's Xingzhi Yumei, of which SHANGMEI holds a 70% stake, thus exercising absolute control. It is understood that AHAVA is the only cosmetics company in the world with a factory located on the shores of the Dead Sea. This cooperation not only validates SHANGMEI's platform capabilities but also injects international elements with a mid-to-high-end positioning into its brand portfolio. It is predictable that with Han Shu's multi-category expansion, the tiered growth of newpage, An Min You, and Ji Fang, alongside the addition of new brands like AHAVA, brands like Cui Yutao and Hello Kitty will also be gradually launched, continuously enhancing the growth dynamics of the increasingly complete multi-brand matrix. At the same time, the long-term strategic layouts in global production capacity, research, and talent are gradually entering a phase of value realization. Coupled with the stable, unwavering long-term strategic resolve of the enterprise, the multi-point explosive growth trend across product lines is expected to continue to deliver results. The medium to long-term high-quality growth trend of the enterprise remains unchanged, which aligns with the core logic of capital markets bestowing long-term valuation premiums. Conclusion Observing the blooming of a seed takes time; similarly, observing the trends of a company or industry requires patience to allow time to provide answers. Looking at the entire Chinese beauty industry, there is no shortcut for local brands to enter the global market. Building overseas market channels, competing with international brands, and constructing global supply chains all require sustained investment of both time and capital, with the growth cycles of world-class brands in the industry being approximately ten years. For SHANGMEI, the choice to actively enter the "strategic momentum phase" essentially reflects the company's strategic adjustment to build a wider moat, deeper R&D barriers, and a more diversified brand matrix. Changes in the external environment wont shake SHANGMEI's strategic resolve: the company's foundation is solid, its strategic direction clear, and its team sufficiently capable. Every product honed, every market expanded, and every system established are all contributing to the energy required to traverse industry cycles and stand on the global beauty competition stage. As the company consistently insists, the world-class opportunities for Chinese beauty brands can only be achieved through long-term investment and hard-earned strength. The path taken by CHICMAX is sure to undergo a period of heavy investment and slow returns, but when viewed from a decade-long perspective, this may very well be the only way from becoming a "leading player in China" to achieving "world-class" status.