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Chinese beauty products maker Proya Cosmetics Co.’s half-year revenue missed analysts’ estimates amid growing competition and weaker consumer demand.
The Hangzhou-based cosmetic maker also announced plans to list shares in Hong Kong as it looks to accelerate global expansion and secure more offshore financing.
Revenue increased 7.2 percent from a year ago to 5.36 billion yuan ($748.3 million) in the six months ended June, Proya said in an exchange filing, lower than analysts’ estimate of 5.53 billion yuan. Net income increased 13.8 percent to 798.5 million yuan, below estimates of 830.7 million yuan.
The board approved a plan to list shares in Hong Kong to accelerate its business development in overseas markets and sharpen its overall competitiveness, Proya said in a separate filing. The company’s shares are currently traded in Shanghai.
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Proya’s sputtering growth shows weak consumer sentiment is catching up to affordable brands.
The company has been able to maintain China growth in recent years while global beauty giants from Estée Lauder Cos. to Shiseido Co. languished in the country. Cost-conscious consumers have embraced Proya’s 329 yuan ($46) Ruby facial cream, bolstering the company’s aspirations to become a top 10 global beauty brand within the next 10 years.
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