The latest: Manufacturer of skin care products Shanghai Chicmax Cosmetic Co., Ltd. (2145.HK) reported On Thursday, the company’s net profit in the first half of this year rose more than threefold to 412 million yuan ($58 million), mainly due to a strong increase in sales in the cosmetics business.

Look up: The company’s sales rose 121 percent to around 3.5 billion yuan. The Kans brand benefited from the growth of its e-commerce platform. Sales of this product line rose 185 percent to 2.93 billion yuan, accounting for 83.6 percent of total sales.

Please note: Distribution expenses rose 137 percent to 2.02 billion yuan, accounting for 57.6 percent of total revenue, as the company spent more on brand exposure and advertising and invested in new and existing distribution channels.

Dig deeper: Chicmax was founded in 2002 and launched its core brand Kans the following year. This brand, along with newer brands One Leaf and Baby Elephant, forms the company’s three main product lines and accounts for the majority of its revenue. The company has grown rapidly in recent years by establishing new sales channels through social media platform Douyin and e-commerce platform Tmall. In the first half of this year, sales through its online channels reached 3.17 billion yuan, accounting for 90.6% of total revenue.

Market reaction: Chicmax shares fell on Friday, closing down 4.6 percent at HK$33.25 at midday. The stock is now trading in the middle of its 52-week range.

Translation by A. Au

To subscribe to Bamboo Works’ free weekly newsletter, click Here