MAO GEPING (01318) reports a significant increase in both mid-term revenue and net profit, with cosmetics income rising 38.3% year-on-year.

On August 28, MAO GEPING (01318) released its interim results for the six months ending June 30, 2026. During the reporting period, the company achieved revenue of 3.267 billion yuan, an increase of 26.2% year-on-year; net profit of 807 million yuan, up 20.3% year-on-year; adjusted net profit of 815 million yuan, an increase of 21.3% year-on-year, with the adjustment item being share-based payment expenses; and a gross margin of 84.8%, up 0.6 percentage points year-on-year. In the first half of 2026, consumer spending became cautious, and industry competition intensified. The company achieved growth in both revenue and profit while maintaining a stable pricing system. By category, the revenue from color cosmetics reached 1.967 billion yuan, an increase of 38.3% year-on-year, accounting for 60.2% of product sales revenue; skincare revenue was 1.212 billion yuan, up 11.5% year-on-year; and fragrance revenue was 17 million yuan, an increase of 46.0%. Classic products continued to gain traction, with the caviar mask becoming a star product with annual retail sales exceeding 1 billion yuan. In the first half of 2026, retail sales of the nourishing rejuvenating black cream were approximately 290 million yuan, while retail sales of the luxury caviar cushion and the luminous sheer powder exceeded 200 million yuan and 300 million yuan, respectively. By channel, online product sales revenue was 1.727 billion yuan, an increase of 33.2% year-on-year, accounting for 54.1% of product sales revenue; offline product sales revenue was 1.468 billion yuan, an increase of 19.9%. As of June 30, 2026, the company had 466 self-operated counters, covering 132 cities, with a net increase of 21; average revenue per same-store was 3.3 million yuan, an increase of 17.9% year-on-year. The companys offline counter network has covered many mid-to-high-end commercial systems in mainland China, including key mid-to-high-end department store and shopping mall systems such as SKP, China Resources Vientiane City, Intime, Wangfujing Group, and Hang Lung, steadily advancing the extension of core business circle coverage. The company's internationalization strategy is being steadily implemented. In October 2025, the first store in Hong Kong was opened in Harbour City, Tsim Sha Tsui, becoming a top commercial landmark in Asia. In August 2026, the brand is set to establish itself in Times Square, Causeway Bay, Hong Kong. While expanding retail stores, in June 2026, MAO GEPING Beauty Education launched trial operations at its Hong Kong campus in Wanchai, expanding its global direct-operated branches to 12. Thus, the company has developed a unique high-end internationalized model through a systematic strategy that organically combines brand retail outlets with professional aesthetic education. In the future, the company will continue to increase strategic investments in overseas markets, promoting Eastern aesthetics to a broader international stage. Regarding membership, the total number of registered members reached 26.08 million, an increase of 37.3% year-on-year, consisting of 18.64 million online and 7.44 million offline members; the overall repurchase rate was 27.2%, an increase of 0.4 percentage points year-on-year. The companys management stated, The pressure in the industry is widespread, and the differentiation of brands is real. In such an environment, we must safeguard product quality and user trust. In the first half of the year, we delivered a satisfactory answer; this achievement comes from every choice made by our users and validates the direction we have upheld. In the second half of the year, we will continue to deepen classic products, solidify high-end skincare, and refine offline services, not chasing price wars or temporary excitement. The industry has its cycles, and brands have their rhythms. We believe that by putting users first, the market will ultimately respond favorably to long-term stakeholders.