The latest: Chinese manufacturer of skin care products Giant Biogene Holding Co. Ltd. (2367.HK) reported On Monday, net profit for the first half of this year rose 47.3 percent to 983 million yuan ($138 million).

Look up: The company’s revenue increased 58.2% to 2.54 billion yuan, driven by the continuous launch of new products, expansion of sales channels, creation of star products and stronger marketing.

Please note: The company’s sales expenses rose 60.7% to 892 million yuan, outpacing revenue growth as the company invested heavily in online marketing to promote its online direct sales channels.

Dig deeper: Giant Biogene is China’s largest manufacturer of collagen skin care products and has grown rapidly from revenue of 957 million yuan in 2019 to 3.52 billion yuan last year. The company’s gross margin has exceeded 83% in the past five years, reflecting the high profitability of its business. It made its stock market debut in Hong Kong at the end of 2022, becoming the first listed company in its category. In May, the company raised a new HK$1.63 billion (US$208 million) through a share placement to strengthen its core business and ecosystem layout.

Market reaction: Giant Biogene shares fluctuated slightly on Tuesday, closing down 0.2 percent at HK$40.25 at lunchtime. The stock is now trading in the middle of its 52-week range.

Translation by A. Au

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