Significant Revenue Growth and Profitability
Total net revenues for the second quarter of 2025 increased by 36.8% year-over-year to RMB 1.09 billion, exceeding previous guidance. Achieved non-GAAP profitability for the third consecutive quarter with a non-GAAP net profit margin of 1.1% compared to a non-GAAP net loss margin of 9.4% in the prior year period.
Skincare Brands Drive Growth
Revenues from skincare brands increased by 78.7% year-over-year, with the combined revenue from Galénic, DR.WU, and Eve Lom growing by 88.1%.
Improved Operating Efficiency
Net loss margin narrowed to 1.8% from 10.8% in the prior year period. Total operating expenses as a percentage of total net revenues decreased to 83.4% from 93.7%.
Successful Product Innovation
Galénic's Brightening Micro Mask ranked #1 among premium single-use masks on Tmall and JD. Perfect Diary introduced new products leveraging biotech technology, supporting growth.
Strong Cash Flow
Net cash generated from operating activities for the second quarter of 2025 was RMB 77.7 million compared to net cash used in operating activities of RMB 148.2 million in the prior year period.