CITIC Securities: Currently, domestic cosmetics companies are still in the early stages of development.

Citic Securities stated that in the first half of 2025, the overall performance of listed cosmetics companies was significantly better than the industry, with market share further concentrating towards leading companies. At the same time, domestic brands' market share is rebounding. From a financial perspective, excluding channel and structural factors, most brands' gross profit margins have improved, with high online marketing and promotion costs leading to differentiation in gross sales and profitability. The trend of cosmetics companies being multi-brand, multi-category, and group-oriented will not change, as organizational/product/channel/marketing and other multidimensional capabilities support continuous growth from 1 to n for cosmetics companies. In terms of brands and categories, currently most companies are expanding from the skincare category to include makeup, perfume, personal care, mother & baby, insect repellent, and other categories through expanding their main brand product lines, mergers and acquisitions/self-incubation of sub-brands, and other means. In terms of internationalization, Chinese cosmetics companies are still in the early stages of international expansion.